Insolvency Act Safeguards IP

As the commercial value of sports brands and athlete endorsements continues to expand, Jamaica’s insolvency framework plays a critical role in safeguarding intellectual property (IP), especially when financial distress arises.

Attorney-at-Law and Supervisor of Insolvency, Fayola Evans Roberts, told JIS News that modern sport now extends far beyond competition, with team identities, athlete images, merchandising arrangements and sponsorship deals representing significant assets.

“Sport today is not only about performance on the field or track. It is a major commercial enterprise, and many of the most valuable assets are intangible in nature, including brands, logos, endorsement agreements and other intellectual property,” she said.

Mrs. Evans Roberts explained that when an individual or business becomes insolvent, the law provides a clear framework for the treatment of those assets.

She noted that in Jamaica, the process is governed by the Insolvency Act and overseen by the Office of the Supervisor of Insolvency (OSI), an external department of the Ministry of Industry, Investment and Commerce.

“When a debtor is declared bankrupt, the assets vest in the appointed Trustee, who is tasked with identifying, protecting, managing and, where necessary, realising those assets for the benefit of creditors, while acting within the provisions of the law,” she said.

This, according to Mrs. Evans Roberts, includes intellectual property such as trademarks, copyrights, patents and licensing rights that may carry substantial commercial value.

She further emphasised that as Jamaica’s sports industry continues to grow, robust governance structures will become increasingly important.

“As sport evolves into an even larger business sector, strong management of both intellectual property and insolvency processes will be essential. This ensures that the commercial value embedded in sports brands, creativity and innovation can endure, even after the game stops,” the Supervisor of Insolvency said.

Meanwhile, Attorney-at-Law and Deputy Supervisor of Insolvency, Chevánt Hamilton, said Sections 106 to 108 of the Insolvency Act are particularly important in preserving value tied to creative and innovative works.

“These provisions allow Trustees to realise value from patented and copyrighted works, while preserving the lawful rights of creators and other stakeholders. That balance is essential, because it means commercially viable assets can continue to generate value even during periods of financial distress,” he said.

Mr. Hamilton noted that this is especially relevant for Jamaica’s sports sector, where international success has created new income streams through branding, endorsements, merchandising and licensing.

“Jamaica’s sporting achievements have built globally recognised brands. Ensuring that these assets are treated fairly and transparently during insolvency proceedings helps to maintain confidence among sponsors, investors and commercial partners,” he said.

He added that the OSI has an important oversight function in ensuring that Trustees administer estates with integrity and in accordance with the law.

“The Office of the Supervisor of Insolvency helps to safeguard confidence in the system by regulating Trustees and promoting proper administration of all assets, including intellectual property,” Mr. Hamilton said.