§ 6A-9-321 - Licensee of general intangible and lessee of goods in ordinary course of business. - Rhode Island Statutes

SECTION 6A-9-321

   § 6A-9-321  Licensee of general intangibleand lessee of goods in ordinary course of business. – (a) "Licensee in ordinary course of business." In this section,"licensee in ordinary course of business" means a person that becomes alicensee of a general intangible in good faith, without knowledge that thelicense violates the rights of another person in the general intangible, and inthe ordinary course from a person in the business of licensing generalintangibles of that kind. A person becomes a licensee in the ordinary course ifthe license to the person comports with the usual or customary practices in thekind of business in which the licensor is engaged or with the licensor's ownusual or customary practices.

   (b) Rights of licensee in ordinary course of business.A licensee in ordinary course of business takes its rights under a nonexclusivelicense free of a security interest in the general intangible created by thelicensor, even if the security interest is perfected and the licensee knows ofits existence.

   (c) Rights of lessee in ordinary course of business. Alessee in ordinary course of business takes its leasehold interest free of asecurity interest in the goods created by the lessor, even if the securityinterest is perfected and the lessee knows of its existence.