Securing a Loan With Patents, Trademarks, and Copyrights Is Best for Lenders
January 2010
By: Neil P. Ferraro, Steven J. Henry, and Hunter Keeton
Journal of Bankruptcy Law
Lending is, of course, not without risk. How, then, can a lender best mitigate against the risk of loss where the collateral is intellectual property ("IP",) such as a borrower’s patents or patent applications (herein collectively referred to as "patents")? Some lenders request a security interest in the IP. Other, self-proclaimed "savvy" lenders seek to own outright the IP and grant a license back to the borrower.
