KRS 355.9-321: Licensee of general intangible and lessee of goods in ordinary course of

business.

(1) In this section, "licensee in ordinary course of business" 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's own usual or customary practices.

(2) 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.

(3) 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.