Patents don’t last forever. But you wouldn’t know it by looking at many of the collateral lists submitted by borrowers.

In our reviews, we’ve routinely found patents that expired years ago due to non-payment of maintenance fees, or simply reached the end of their statutory term—yet are still listed as if they provide enforceable value to secure a loan.

This isn’t a harmless oversight. An expired patent can’t support a security interest. It’s dead collateral. And when it makes up a meaningful portion of the recorded portfolio, it distorts the value of the lender’s position and exposes the collateral agent to avoidable reputational and legal risk.

Why Does This Happen?
Patent expiration is more nuanced than it seems:

• Maintenance fees must be paid periodically (at 3.5, 7.5, and 11.5 years after issuance in the U.S.). If they aren’t, the patent lapses early.

• Statutory terms end 20 years after the earliest non-provisional filing date—but that term can be shortened or extended based on various legal and procedural factors.

• Confusion between application status and patent status leads some borrowers to mistakenly assume pending or related filings keep the original patent “alive.”

• Borrowers often don’t track fee schedules or update collateral lists over time.

How PatenTrack Helps
We continuously monitor the legal status of every pledged patent and alert you when a listed asset is expired or nearing lapse. Our platform ensures that expired patents don’t go unnoticed—or get mistaken for valid security.

Because expired patents can’t secure live debt.