Creditors\u27 Rights Issues in Copyright Law: Conflict and Resolution

Although preferring voluntary payment from debtors, creditors must often compel the sale of debtors\u27 property to satisfy debts. Ordinarily, state law controls the acquisition of a judgment or a security interest, and federal law controls when there is a federal tax lien or a bankruptcy proceeding. However, if the debtor\u27s property to be sold is a copyright, both federal and state creditors\u27 law must be reconciled with federal copyright law. The author briefly reviews recent developments in both creditors\u27 and copyright law, discusses areas in which creditors\u27 rights law and the Copyright Act conflict, and suggests resolution of these conflicts by considering the underlying rationale of the taws, emphasizing the Copyright Act\u27s purpose of providing authors with a sufficient monopoly to encourage creativity