Yet another celebrity is in the spotlight after having filed for bankruptcy. Late last year, rapper Young Buck filed for Chapter 7 bankruptcy protection. Since then, as is the case in Chapter 7 bankruptcy proceedings, he has been assigned a bankruptcy trustee.
Each year, many people facing financial hardship file for Chapter 7 bankruptcy. Under this particular chapter, the assets of the person who files are sold and the proceeds are passed along to creditors. For most people these assets are items commonly owned by people throughout the Miami area. In some cases however, the assets can be more extravagant such as fancy cars and vacation homes. In some cases, intellectual property may also be liquidated.
This is the case in Young Buck’s Chapter 7 bankruptcy proceeding. His trustee is currently seeking to sell the following intellectual property owned by the rapper:
- trademarks
- copyrights
- masters
- compositions
- royalties
- rights
- licenses
- rights of publicity
If handled correctly, the purchaser of the rapper’s intellectual property could have income from it for years to come. This is because intellectual property, such as the masters, make it possible for the owner to do things such as license songs for commercial use. Whoever owns the royalties will make a set amount of money each time the song to which it is tied, is played.
Assuming the proposal to sell the intellectual property is approved, it will be sold as a part of an auction scheduled for May 14.
Source: The Wall Street Journal, “Young Buck Songs, Royalties on the Block,” Jacqueline Palank, April 6, 2012