2006 Code of Virginia § 59.1-505.8 - Finance licenses

59.1-505.8. Finance licenses.

(a) If a financier becomes a licensee in connection with its financialaccommodation contract and then transfers its contractual interest under thelicense, or sublicenses the licensed computer information or informationalrights, to a licensee receiving the financial accommodation, the followingrules apply:

(1) The transfer or sublicense to the accommodated licensee is not effectiveunless:

(A) the transfer or sublicense is effective under 59.1-505.3; or

(B) the following conditions are fulfilled:

(i) before the licensor delivered the information or granted the license tothe financier, the licensor received notice in a record from the financiergiving the name and location of the accommodated licensee and clearlyindicating that the license was being obtained in order to transfer thecontractual interest or sublicense the licensed information or informationalrights to the accommodated licensee;

(ii) the financier became a licensee solely to make the financialaccommodation; and

(iii) the accommodated licensee adopts the terms of the license, which termsmay be supplemented by the financial accommodation contract, to the extentthe terms of the financial accommodation contract are not inconsistent withthe license and any rights of the licensor under other law.

(2) A financier that makes a transfer that is effective under paragraph (1)(B) may make only the single transfer or sublicense contemplated by thenotice unless the licensor consents to a later transfer.

(b) If a financier makes an effective transfer of its contractual interest ina license, or an effective sublicense of the licensed information orinformational rights, to an accommodated licensee, the following rules apply:

(1) The accommodated licensee's rights and obligations are governed by:

(A) the license;

(B) any rights of the licensor under other law; and

(C) to the extent not inconsistent with subparagraphs (A) and (B), thefinancial accommodation contract, which may impose additional conditions tothe licensee's right to use the licensed information or informational rights.

(2) The financier does not make warranties to the accommodated licensee otherthan the warranty under 59.1-504.1 (b) (1) and any express warranties inthe financial accommodation contract.

(2000, cc. 101, 996.)