In re Cybernetic Services, Inc.
United States Court of Appeals for the Ninth Circuit
252 F.3d 1039 (2001)
Matsco (plaintiff) held a security interest in a patent developed by Cybernetic (defendant) and perfected that interest by filing a UCC financing statement with the California Secretary of State rather than recording with the PTO; after Cybernetic's creditors forced it into involuntary bankruptcy, Matsco sought relief from the automatic stay to foreclose, and the bankruptcy trustee argued Matsco's interest was unperfected because federal law required recording security interests with the PTO. The bankruptcy court and Bankruptcy Appellate Panel both ruled for Matsco, and the trustee appealed to the Ninth Circuit.
Whether a security interest in a patent is perfected by filing a financing statement with the state pursuant to the Uniform Commercial Code rather than by recording the interest in the United States Patent and Trademark Office.