Perfecting Security Interests In Intellectual Property
Law360 (July 10, 2007, 12:00 AM EDT) -- As intellectual property rights have become increasingly valuable assets for many companies, it has become common for commercial lenders to secure obligations of borrowers using as collateral not only their tangible assets, but also their intangible intellectual property assets.
As a result, lenders must confront the question of how to perfect their security interests in a borrower’s intellectual property and thereby place themselves at the front of the line of creditors should the borrower default. To perfect its security interest in intellectual property, the lender must record the security interest with the proper governmental authority and thereby place the public on...
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