What you’re describing is basically what happens. Only between the claimant and the government.

Also worth noting that this only applies when a company closes (is removed from the company register) and any IP isn’t transferred out of the company. And in most cases it is full ownership.

So as far as the law is concerned there is no ownership of that IP. Copyrights, trademarks, patents, whatever it might be. But that doesn’t mean people don’t have a claim.

By moving it to a government entity that is specifically set up to deal with these claims.

It removes any ambiguity. The government can make a clear cut ruling on who owns the IP.

Because “The Crown” is just the government. And unlike a private citizen the government won’t use these IPs.

There are only two things the government can do with an IP in this situation, declare someone with a valid claim as the owner, or sell it to a buyer. Who in both cases have to come to the government.

If no claims or offers are made the IP will eventually enter the public domain.