California Senate Bill SB6 Amended / Bill

 BILL NUMBER: SB 6AMENDED BILL TEXT AMENDED IN SENATE JANUARY 15, 2013 INTRODUCED BY Senator Lieu DECEMBER 3, 2012 An act to amend  and repeal   , add, and repeal,  Section 9321 of the Commercial Code, relating to business, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 6, as amended, Lieu. Business.  Until January 1, 2013, existing   Existing  law provides that a  licensee in ordinary course of business, as defined, takes its rights under a nonexclusive license free of a security interest in the general intangible created by the licensor, as specified.   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   .  This bill would  indefinitely extend the operation of that provision and further provide that a person does not become a licensee of intellectual property in the ordinary course if the transaction involves meaningful negotiation of material terms of the license   , until January 1, 2015, also provide that 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  . This bill would, notwithstanding any other law, make its provisions operative on January 1, 2013, and state the Legislature's intent in this regard. This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. To ensure economic stability and continuity for purposes of contract interpretation, it is the intent of the Legislature to negate the repeal on January 1, 2013, of, and also to enhance, existing provisions within Section 9321 of the Commercial Code relating to a licensee in ordinary course of business.  SEC. 2.   Section 9321 of the   Commercial Code   is amended to read:  9321. (a) 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. (b) This section shall become operative on January 1,  2013   2015  .  SEC. 2.   Section 9321 of the Commercial Code, as amended by Section 1 of Chapter 315 of the Statutes of 2009, is amended to read: 9321.   SEC. 3.   Section 9321 is added to the   Commercial Code   , to read:   9321.  (a) 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.  A person does not become a licensee of intellectual property in the ordinary course if the transaction involves meaningful negotiation of material terms of the license.  (b) 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. (c) 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.  (d) This section shall remain in effect only until January 1, 2015, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2015, deletes or extends that date.   SEC. 3.   Section 9321 of the Commercial Code, as amended by Section 2 of Chapter 315 of the Statutes of 2009, is repealed.  SEC. 4. Notwithstanding the operative date set forth in Section 2 of Chapter 315 of the Statutes of 2009, Section 9609 of the Government Code, or any other provision of law, Sections 2 and 3 of this bill are operative commencing on January 1, 2013. SEC. 5. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to negate the repeal of, and to enhance, existing law relating to a licensee in ordinary course of business  that   to  ensure economic stability and continuity for purposes of contract interpretation, it is necessary that this act take effect immediately.