June 13, 2011 by Renée Brosseau and Andrea Rush
Renée Brosseau and Andrea Rush are partners at Heenan Blaikie LLP and were counsel for GeoDigital International Inc. in the appeal in Canrock Ventures LLC v. Ambercore Software Inc. and Terrapoint Canada (2008) Inc.
The sale of a business in the context of a receivership occurs on an “as is where is” basis. The would-be purchaser of intellectual property is buying a mystery because ordinary rights clearance queries and reassurances are not available. This sense of the unknown generates hardship for the purchaser whose business depends on uninterrupted operation of its computer systems.