In re World Auxiliary Power Co.

World Auxiliary Power (WAP) and related companies held unregistered copyrights in drawings, manuals, blueprints, and software used to modify airplanes, and obtained financing from Silicon Valley Bank (Silicon Valley) secured by all company assets, including those copyrights; Silicon Valley perfected by filing a UCC financing statement with the California Secretary of State, and none of the copyrights were ever registered with the U.S. Copyright Office. When WAP and its affiliates filed for bankruptcy, Aerocon Engineering (Aerocon) and Airweld together purchased the copyrights and the trustee's avoidance rights against Silicon Valley's security interest; after their business relationship dissolved, Aerocon brought an adversary proceeding to avoid Silicon Valley's interest (by then transferred to Airweld through foreclosure and subsequent sales). The bankruptcy court found Silicon Valley's interest perfected and granted it summary judgment; the district court affirmed, and Aerocon appealed.