Trademark Collateral Security Agreement

The granting of credit against intellectual property (including copyrights, trademarks, patents and domain names, together “intellectual property”) is an important financial instrument for lenders and intellectual property holders to maximize the value of their transactions. Lenders get the security of a viable property as collateral and borrowers have a little more to offer with their intellectual property. However, the rules on securitisation, further processing and locking in intellectual property protection interests are not easy to navigate. Due to the increase in intellectual property lending in the digital age, it is important not to miss key elements of securitization that can mean the difference between real security and real loss. Article 8(5) of the BCA allows the use of intellectual property rights as collateral. It appears, however, that this section was added to the BCA as a later idea. The reason for this is that this section contains phrases that are not appropriate to intellectual property rights, such as “loss” and “damage”. In addition, there is no criterion for calculating the exact value of a trademark. This is because a brand`s value can rise and fall based on a number of factors such as customer trust and loyalty, as well as brand image and image, as well as the revenue generated from the sale of branded products.

In addition, there are no criteria for imposing a trademark as a guarantee under Thai law. Unfortunately, it is not uncommon to discover that a lender, whether a financial institution or otherwise, has not properly documented or guaranteed its interest in the intellectual property guarantees offered by a borrower to guarantee a voucher and a loan. In some cases, failure to do so from the outset can undermine the priority or security of a lender with serious consequences. And there is rarely a complete repair “a posteriori”. In summary, for registered value marks, a lender should consider continuing to protect its security interests against bona bona fruit buyers and mortgages by filing a trademark security agreement with the USPTO. Please contact us if you have any questions or requests. The security interests of trademarks are governed by Article 9 of the Uniform Commercial Code (PEC). While the lender`s standard guarantee agreement and UCC`s financing statement are sufficient to complete a security interest for common law marks, the reference to the lender`s security interest should also be registered in the USPTO for registered trademarks and registrations in process to protect the lender from bona fide buyers and mortgages. A short-form brand security agreement is recommended when submitting to the USPTO in order to protect the borrower`s privacy and avoid disclosure of the terms of the loan that appear in the traditional security agreement. The trademark security agreement submitted to the USPTO must specifically identify the marks, which is usually achieved by attaching a schedule indicating the trademark, jurisdiction, registration number, date of registration, and holder of the registration.

The Single Commercial Code defines intellectual property as a “general intangible asset” for which a lender`s hedging interest is further developed by filing a UCC-1 financing statement in the state where the borrower`s principal place of business is located. However, it should be borne in mind that, where the intellectual property rights in question are governed by federal laws, regulations or treaties, federal procedures generally apply either in addition to the investigation period or instead of the INVESTIGATION PERIOD. . . .