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who owns system and shut off rights / ISC schedule - still time to host a round table
July 6,  2021
ISC round tables
            I have round table discussion groups scheduled for July 19, 20 and 21.  Please contact Stacy Spector,Esq at 516 747 6700 x 304 or to reserve a spot or initiate your own round table discussion group [we have a few timeslot openings as of now on Wednesday July 21]
Confirmed round tables:
Monday July 19 from 2-3pm Ron Davis - discussion on selling and listing with broker
Tuesday July 20 from 11 am to 12pm Troy Iverson, Avantguard.  Central station issues and what's new at Avantguard
Tuesday July 20 from 2-3pm  Mitch Reitman.  Selling, taxes and structuring issues
Tuesday July 20 from 4-5PM Morgan Hertel, Rapid Response.  What's new at Rapid and exciting in central station operations
Wednesday July 21 from 10 -11am.  Shawn Iverson, The Insurance Center.  E&O coverage and insurance issues for alarm industry
Wednesday  July 21 from 2-3pm  Open
Wednesday July 21 from 4-5 pm  Open
who owns system and shut off rights
    We use the All In One (the sale, not lease) and it was my understanding that the security system is our property until the initial term is complete, so wouldn't that mean we could change codes and such.
Our collections process doesn't allow for turning off codes until they are at 60 days past due so we have given them fair warning.
    The system is owned by the subscriber once it's installed. A good argument could be made that the equipment belongs to the subscriber once it's dropped at the premises. Even if you install the system and get it working, and the subscriber doesn't pay any part of the purchase price and installation price, the system is still owned by the subscriber.
    You do have the right to file a Security Interest in the equipment by filing a UCC-1 Financing Statement, but that will only secure you to the value of the equipment. The better option would be to default the subscriber and pursue collection, seeking 100% of the purchase and installation charge and 80% of the balance of the RMR services of the term of the contract, plus legal fees. The sooner you start your proceeding - use the arbitration provision - the more likely a favorable resolution will be; either reinstatement with payment in full or collection of the entire amount under the contract.
Don't be confused, but you do own and will always own the Intellectual Property included with the system. That's the propriety programming and codes.
    Going back to the scenario where the installation price isn't paid and the system is not yet activated, you are not under obligation to activate the system. But, once you activate the system you should not render it inoperable because you don't own it. You can and should terminate the after-install RMR services. That means you don't have to perform a repair service call, make an inspection or continue monitoring the system. Those are on-going services and the All in One permits you to terminate those services when the subscriber defaults under the contract; failure to pay is certainly one way the subscriber defaults.

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301