Intellectual Property as Collateral in Secured Transactions: Collision of Divergent Approaches

Business Law International, Vol. 10, No. 1

37 Pages Posted: 15 Mar 2012

See all articles by Anjanette Raymond

Anjanette Raymond

Indiana University - Kelley School of Business - Department of Business Law; Queen Mary University of London, School of Law; Indiana University Maurer School of Law

Date Written: January 10, 2009

Abstract

Until recently, commercial lending was a resource only for companies that had significant tangible assets and historic accounts receivable. Borrowers traditionally pledged tangible assets and accounts receivable to secure bank loans, and intellectual property was a mere afterthought in the lender's credit analysis. Increasingly, more businesses are finding that their most valuable asset is their intellectual property portfolio. However, in the United Kingdom, and elsewhere, there is a structural uncertainty in the law relating to the use of intellectual property as collateral for the purpose of raising debt based finance. This article considers the evolution of intellectual property as collateral. It examines the significance of the availability of collateral to the lending decision and also considers whether the reluctance of lenders to use intellectual property as collateral is based in unfamiliarity, legal limitations or in the potential difficulties which arise out of the nature of intellectual property.

Suggested Citation

Raymond, Anjanette, Intellectual Property as Collateral in Secured Transactions: Collision of Divergent Approaches (January 10, 2009). Business Law International, Vol. 10, No. 1. Available at SSRN: https://ssrn.com/abstract=2019612

Anjanette Raymond (Contact Author)

Indiana University - Kelley School of Business - Department of Business Law ( email )

Bloomington, IN 47405
United States

Queen Mary University of London, School of Law ( email )

67-69 Lincoln’s Inn Fields
London, WC2A 3JB
United Kingdom

Indiana University Maurer School of Law ( email )

211 S. Indiana Avenue
Bloomington, IN 47405
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
412
Abstract Views
1,683
rank
76,718
PlumX Metrics