8.9A-321 - A-321. Licensee of general intangible and lessee of goods in ordinary course of business. - Virginia Statutes

§ 8.9A-321. Licensee of general intangible and lessee of goods in ordinarycourse of business.

(a) "Licensee in ordinary course of business." In this section, "licenseein ordinary course of business" means a person that becomes a licensee of ageneral intangible in good faith, without knowledge that the license violatesthe rights of another person in the general intangible, and in the ordinarycourse from a person in the business of licensing general intangibles of thatkind. A person becomes a licensee in the ordinary course if the license tothe person comports with the usual or customary practices in the kind ofbusiness in which the licensor is engaged or with the licensor's own usual orcustomary practices.

(b) Rights of licensee in ordinary course of business. A licensee in ordinarycourse of business takes its rights under a nonexclusive license free of asecurity interest in the general intangible created by the licensor, even ifthe security interest is perfected and the licensee knows of its existence.

(c) Rights of lessee in ordinary course of business. A lessee in ordinarycourse of business takes its leasehold interest free of a security interestin the goods created by the lessor, even if the security interest isperfected and the lessee knows of its existence.

(1991, c. 536, §§ 8.2A-103, 8.2A-307; 2000, c. 1007.)