What is an invalidating assignment
Since 1933, the Uniform Customs and Practice for Documentary Credits (UCP), in its various revisions, has become a universally recognized standard, stating and establishing custom and practice for letters of credit.
Through endorsement of the subsequent UCP versions, UNCITRAL provided an important bridge to those countries that were, at the time, unable to participate directly in the work of ICC.
ICC also aligns itself with the Convention’s objective to promote the modernization of the law relating to assignments of receivables, while protecting existing assignment practices and facilitating the development of new practices.
ICC bank and firm members have reported situations where financings had to be reviewed or abandoned as a result of laws considering the assignment of future receivables or bulk assignments of receivables as ineffective.
When filing a PCT application that claims priority from a US provisional application filed in the names of the inventor(s), we recommend either obtaining appropriate assignments before the PCT filing date, or filing the PCT in the name(s) of the inventor(s) as set out below.The approach suggested below is our recommendation for best practice, taking account of recent case law.