Secured Lender Loses to IP Owner in Dispute Over Proceeds of Trademarked Inventory
In Variety Wholesalers, Inc. v. Prime Apparel, the borrower sold to a customer certain goods that incorporated a trademark owned by the borrower’s vendor. This case highlights an often overlooked category of risk for secured lenders — the risks associated with financing inventory sold in violation of third-party intellectual property rights.
June 1, 2012
Blank Rome | Robert B. Stein
ABF Journal