(77) Recordability of Foreclosures
for Assignment Purposes
It has been the practice of the Assignment Branch to record security
agreements between a secured party and a debtor which refer specifically
to a patent or a patent application and which are signed by the debtor.
However, foreclosures by the secured party were not recorded because
they were not signed by the debtor. Accordingly, before recording a
foreclosure not signed by a debtor, the Assignment Branch required a Court
order. This requirement forced the secured party to bring action in a
court of law where otherwise Court action might not have been necessary.
To facilitate recording of foreclosures not signed by a debtor and
avoid unnecessary court proceedings, the Office will record foreclosures
which comply with all of the following criteria:
(1) Submission of the foreclosure document with original endorsement by
the secured party, or a verified copy thereof;
(2) Identification of the patent by patent number or the patent
application by serial number, or other acceptable identifier(s) as
specified in 37 CFR 1.331(c), in the body of the foreclosure document
itself or any addenda incorporated by reference;
(3) Reference to the security agreement recorded under 37 CFR 1.331;
and
(4) Submission of a verified statement by a representative of the secured
party stating that the patent or the patent application has been legally
foreclosed on based upon the applicable state laws.
A foreclosure document complying with the above criteria will be deemed
to be a recordable instrument in accordance with 37 CFR 1.331.
March 14, 1988 THERESA A. BRELSFORD
Assistant Commissioner
for Administration
[1089 OG 35]
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