Does an LLC shield me personally from copyright/trademark infringement and privacy issues? Will bankruptcy get me off the hook?

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If I file the business for bankruptcy are the debts abolished and my personal assets untouched?

Attorney Answers

3
Pamela KoslynBusiness AttorneyLos Angeles, CA ·
No, an LLC won't shield you for a copyright/trademark infringement claim, since those are "torts" that will result in claims being brought against you personally. Same with bankruptcy, there's an exception to dischargeability for some acts, and infringement will likely fit into that exception. You're obviously facing some trouble, and need to see an IP litigator ASAP to see if there's any meritorious defense to the claims against you.
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Michael Potter ·
I would query whether the Infringement was undertaken by the LLC itself or by an individual. Who is going to be the Defendant in the Lawsuit? I concur with my colleague that you are likely facing Personal liability. I'd recommend that you sit down with an Intellectual Property attorney licensed in the State of Ohio and sort out your best course going forward. Good Luck.
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James JuoIntellectual Property Law AttorneyLos Angeles, CA ·
If you authorized the LLC to perform the alleged acts of infringement, a claim of infringement could bebrought against you personally as well. You will sometimes see corporate officers as co-defendents with the corporation in infringement cases. Whether this would pertain to you is something you should discuss with your own lawyer in private. As for the bankruptcy issue, a debt such as a money judgment could be discharged in bankruptcy, unless it was for "willful and malicious injury" (see Section 523(a)(6) of the Bankruptcy Code). Again, whether this would pertain to you is something you should discuss with your own lawyer in private. Bankruptcy is not something to be entered into lightly.
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