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Universal, 50 Cent Block Sale of Young Buck’s IP

Wednesday, September 5, 2012 13:23

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(Before It's News)

Young Buck has had a rough summer. First he filed for bankruptcy, was evicted from his Tennessee mansion, and had to auction off all of his possessions, including his prized Tennessee Titans soda machine. Then he was sent to prison.

Now the rapper has hit another pothole on his road to economic recovery. Universal Music Group, the G-Unit label, and 50 Cent have blocked the auction to sell off Young Buck’s intellectual property, The Wall Street Journal reports.

Young Buck originally filed for Chapter 11 bankruptcy, but his case was converted to a Chapter 7 bankruptcy in December. Now that the case is a Chapter 7, the trustee, Jeanne Ann Burton, is selling off Young Buck’s property to help pay off his debts. In July, the IRS seized most of the rapper’s possessions and auctioned them off to pay Young Buck’s sizeable unpaid taxes.

This month, Young Buck’s intellectual property, including his “trademarks and copyrights, all masters, compositions, royalties, rights and licenses,” were to be sold off at auction. However, 50 Cent, his G-Unit label, and Universal Music Group have halted the sale, claiming their publishing deals with Young Buck give them the rights to his intellectual property.

The aborted IP auction is a huge blow to Young Buck’s creditors. The rapper has been granted a one-time royalty payment of $211,000, leaving him with less than $339,000 in assets. With about $11.7 million in claims, many creditors will be going home empty-handed.

For instance, G-Unit’s $10 million claim is unsecured, meaning its chances of seeing any of that money are slim. That’s because secured creditors — those whose loans are secured by collateral — are generally paid in full before unsecured creditors see a dime.

Fortunately for Young Buck, his debts will be discharged regardless of whether all his creditors are repaid. So he’ll likely have a clean slate once he gets out of prison.

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