Selling a Patent/Investors Rights

[cndygirl]

What is the name of your state? my state is Colorado but the Patent/company is in Texas

I would like to know what happens to investors money when a company that has tried to secure enough funding to get their company up and running but fails to do so sells their patent? Is the company still obligated to pay investors? The company has not informed me as an investor that they are selling the patent, I performed an online search and found the information.

Additionally, one of the investors had a contract that said he would own 51% of the company if his investment was not returned by its due date. The CEO of the company however put the patent up for sale the very day that the investors money was due. This particular investors money was not only an investment to the company, it was personally signed for and guaranteed by the CEO and Vice President of the company. Where do investors go from here.

Thank you

 

[divgradcurl]

What is the name of your state? my state is Colorado but the Patent/company is in Texas

I would like to know what happens to investors money when a company that has tried to secure enough funding to get their company up and running but fails to do so sells their patent? Is the company still obligated to pay investors? The company has not informed me as an investor that they are selling the patent, I performed an online search and found the information.

Additionally, one of the investors had a contract that said he would own 51% of the company if his investment was not returned by its due date. The CEO of the company however put the patent up for sale the very day that the investors money was due. This particular investors money was not only an investment to the company, it was personally signed for and guaranteed by the CEO and Vice President of the company. Where do investors go from here.

Thank you

You will probably need to hire and attorney to go through whatever contracts and agreements are in place. The patent is an asset of the company, and if the CEO has the authority to sell off assets of the company, then the sale may be legal -- but, again, he also has a duty to the investors to act in the best interest of the company, so you may want to sit down with a lawyer who can review all of the facts of your situation and advise you accordingly.