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Trimarchi v. Together Development Corp.

255 B.R. 606 (2000)

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Trimarchi v. Together Development Corp.

United States District Court for the District of Massachusetts

255 B.R. 606 (2000)

Facts

Horace Trimarchi (creditor) owned 25 percent of the outstanding shares of Together Development Corporation (debtor), a company that sold and operated dating services. In 1986 Together Development repurchased its shares from Trimarchi in exchange for two promissory notes. Together Development also assigned Trimarchi a security interest in its trademark, Together Dating Service. Trimarchi filed a financing statement with the United States Patent and Trademark Office (PTO). Trimarchi did not file a financing statement with any state or local clerk’s office. In 1997 Together Development filed for bankruptcy. The bankruptcy court ordered Together Development to sell its assets, including its trademark. Trimarchi objected to the sale of the trademark, arguing that he had a perfected security interest in the trademark. The bankruptcy court overruled Trimarchi’s objection, finding that Trimarchi had failed to perfect his security interest in the trademark because he did not file financing statements in the relevant state and local clerk’s offices as required by Article 9 of the Uniform Commercial Code. Trimarchi appealed, arguing that he had perfected the security interest by filing a financing statement with the PTO as required by the Lanham Act, the federal statute that governed trademark assignments.

Rule of Law

Issue

Holding and Reasoning (Gorton, J.)

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