                                 CODE OF VIRGINIA

LICENSEE OF GENERAL INTANGIBLE AND LESSEE OF GOODS IN ORDINARY COURSE OF
BUSINESS (§ 8.9A-321)

a. &#8220;Licensee in ordinary course of business.&#8221; In this section,
&#8220;licensee in ordinary course of business&#8221; means a person that
becomes a licensee of a general intangible in good faith, without knowledge that
the license violates the rights of another person in the general intangible, and
in the ordinary course from a person in the business of licensing general
intangibles of that kind. A person becomes a licensee in the ordinary course if
the license to the person comports with the usual or customary practices in the
kind of business in which the licensor is engaged or with the licensor&#8217;s
own usual or customary practices.

b. Rights of licensee in ordinary course of business. A licensee in ordinary
course of business takes its rights under a nonexclusive license free of a
security interest in the general intangible created by the licensor, even if the
security interest is perfected and the licensee knows of its existence.

c. Rights of lessee in ordinary course of business. A lessee in ordinary course
of business takes its leasehold interest free of a security interest in the
goods created by the lessor, even if the security interest is perfected and the
lessee knows of its existence.

HISTORY: 1991, c. 536, §§ 8.2A-103, 8.2A-307; 2000, c. 1007.