PatenTrack for SEC Examiners
Ensuring Patent-Backed Loans Are Truly Secured

Why It Matters:
The public and the law rely on SEC examiners to ensure that market participants, particularly lenders, comply with due diligence regulations designed to protect investors and uphold market integrity. When companies report loans secured by patent collateral, the underlying assets must be verified and reliable.

The Oversight Gap:
In many cases, patent collateral is accepted at face value but never revalidated after loan origination. This leads to situations where:

• Patents may have expired or lapsed
• Ownership may have changed without notice
• The collateral may no longer be enforceable
• The asset may have been double-pledged or impaired

These breakdowns can affect the accuracy of financial reporting, investor disclosures, and ultimately, the reliability of the market.

How PatenTrack Helps:
PatenTrack equips SEC examiners with the ability to:

• Confirm that patent collateral actually exists and is borrower-owned
• Detect impairment risks that undermine reported asset value
• Strengthen audit and disclosure review processes
• Support enforcement of due diligence and disclosure obligations

Patent-backed lending presents a hidden but material risk to financial reporting and investor confidence. PatenTrack helps SEC examiners surface these issues and ensure that what is represented as “secured” credit is in fact fully supported by enforceable collateral.