When a Business Enters Administration: What Happens to Its Intellectual Property?

When a company enters administration, attention often turns to cashflow, physical assets and creditor recovery. Yet for many businesses, intellectual property (IP) is one of the most valuable assets involved in the process, and often the least understood. In some administrations, the brand outlives the trading company itself. High profile cases such as Thomas Cook, Joules and LK Bennett show how brand rights are often the first assets potential buyers want to secure.
Who Controls the IP in Administration?
Once administrators are appointed, they take full control of the company’s assets, including its IP.
•    Registered IP such as trade marks, patents and designs recorded in the company’s name form part of the asset pool and are usually straightforward to identify.
•    Unregistered IP, including copyright, software and product designs, typically belongs to the employer when created by employees, but work produced by external contractors may require formal assignments to avoid uncertainty.
•    Domain names should be reviewed for ownership, renewal dates and alignment with registered rights.
•    Founder owned rights can complicate a sale. If key trade marks or domains are held personally rather than by the company, administrators may need to negotiate access or transfer.
Why This Matters for You
You often play a key role in identifying, valuing and preserving IP during financial distress. Clear ownership records, up to date assignments and consistent registration practices help prevent disputes and protect asset value at a critical moment.
Need Expert IP Support?
NBR can help you verify ownership, protect your clients’ brands and prepare for future investment or restructuring. Contact us on 0800 069 9090 or info@nbrg.co.uk.