So any existing products, or products in progress get pulled from shelves, any company that had rights, then loses them?
If the IP owner is dead or dissolved, all profits made from his IP thereafter go to the government to help pay for the agency that protects copyrights and handles such cases. Existing products based on that IP will continue to be sold until they sell out. No new products based on that IP can be made. Obviously this only really applies to entertainment IP, like videogames, movies, books, etc. Essential IP pertaining to technology, medicine and so forth would continue to be developed under government control.
End result: Reduced franchise milking.
Because what you are saying is Paramount shouldn't have to pay shares out to anyone just because Mario Puzo died.
Well, yes. Anthony Puzo doesn't own the IP nor did he create it. Royalties from the IP should have ceased when his father died. Was that part of the original contract? No, but it should have been.