• Brandia LLC

Intellectual Property as Collateral in Times of Crisis

Are you considering using your company’s IP as collateral or obtaining a security on someone else’s IP as an investor or creditor? Today’s economy and labor market are a shadow of what they were weeks ago. #Copyright, patents, trademarks and trade secrets are great vehicles to finance, continue and expand operations.

One of the advantages of using IP as collateral, especially if they are part of licensing agreements and royalties, is that the IP is directly linked to an existing flow of income. The risk of default is reduced and the loan recovery quicker. Where IP is not linked to licensing agreements it can still be used to secure loans. The lender (angel investor, capital venture, bank) should register the security interest to let everyone know that the IP is encumbered.

IP collateralization also has some disadvantages, such as obsolescence of the technology (patents and software) which does not necessarily occur with trademarks and most copyrights. Maintenance costs need to be weighed too (patents pay annuities). Enforcement costs and pre-existing exclusive licenses could limit the use of IP as collateral. Of course, each IP is inherently unique and the scope of use varies case by case. Call us to discuss options!


Brandia LLC

6718 Whittier Ave., Suite 200

Mc Lean , VA 22101

Email:  IP@BrandiaLLC.com

Tel:  571.723.5520


Our legal services cover areas in Washington D.C.

Website Terms & Conditions

The information on this website is for general information purposes only. Nothing on this website should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and its receipt or viewing does not constitute, an attorney-client relationship. By continuing to use this website, you agree having read and understand the provisions contained in the Terms & of Use Disclaimers section of this website. Brandia LLC is registered a Virginia Limited Liability Company. All Brandia trademarks and copyrights are reserved and of exclusive use by Brandia LLC subject to strict US and international enforcement, remedies and damages.