§ 41-09-41 — (9-321) Licensee of general intangible and lessee of goods in ordinary course of business

North Dakota § 41-09-41

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-09: Secured Transactions

Text

course of business.
1. In this section, "licensee in ordinary course of business" means a person that becomes
a licensee of a general intangible in good faith, without knowledge that the license
violates the rights of another person in the general intangible, and in the ordinary
course from a person in the business of licensing general intangibles of that kind. A
person becomes a licensee in the ordinary course if the license to the person
comports with the usual or customary practices in the kind of business in which the
licensor is engaged or with the licensor's own usual or customary practices.
2. A licensee in ordinary course of business takes its rights under a nonexclusive license
free of a security interest in the general intangible created by the licensor, even if the
security interest is perfected and the licensee knows of its existence.
3. A lessee in ordinary course of business takes its leasehold interest free of a security
interest in the goods created by the lessor, even if the security interest is perfected and
the lessee knows of its existence.