Intellectual Property As Security

Introduction

The evolution of Intellectual Property laws and standards are all in the direction of maximizing private rights and not give importance to public interests. ¹ There is always an inconsistency between the valuation of a company as a whole and the law protects as intellectual property. The technical and managerial knowledge and skills which are used by the company is valuable but in a legal sense it is difficult to be termed as 'property'. ² Copyright, patents, trademarks, and designs all are intellectual property but each one of them is protected to a different standard.

Most precisely the Intellectual Property is actually the borrower's to give in security. ³ IP rights can increase a company's asset value, and valuing these assets will help top management to make informed investment and marketing decisions. ⁴ There are majorly three ways by which we can undertake the security over Intellectual Property.