Understand the Quality and Health of Patent Collateral Securing Loans
Turning complex data into risk reduction
As companies hold more intangible assets than tangible ones, commercial lenders are increasingly turning to patents as collateral to provide clients with additional funds. Stakeholders, including collateral agents, lenders’ compliance officers, and legal experts, are crucial in ensuring that patent portfolios used as collateral retain their value and legal integrity throughout the loan term.
PatenTrack’s end-to-end turnkey solution for lenders, borrowers, regulatory bodies, and collateral agents will enable you to lead in no time.
Reviewed patent secured credit transactions & and counting
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.
It’s on the borrower’s list… but is it actually theirs to pledge? You’d be surprised how often the answer is no.
A patent that’s expired is no longer enforceable—and no longer valuable as collateral. So why do so many still show up on borrowers’ lists?
If the borrower never obtained an assignment from the inventors, the patent may not be theirs to pledge—no matter what their cap table says.
The Board of Directors hereby directs management to implement and maintain a Patent Portfolio Monitoring & Risk Disclosure System
When patent collateral weakens post-closing, lenders are often the last to know. A quiet shift in LTV can throw off your risk model—and cost you hundreds of thousands in annual return. Here's how it happens:
In an era of increasing shareholder activism and heightened board accountability, patent portfolio valuation and reporting isn't optional—it's an essential component of fiduciary duty for innovation-driven companies.
Systematic risk management isn't merely defensive—it creates competitive advantages through greater operational certainty and leverage in business negotiations.
Defective title chains are a silent killer of patent value. Real-world cases like Ethicon and Tri-Star underscore the financial and legal fallout of oversight.
Patent ownership disputes often arise when companies fail to explicitly secure rights to inventions created by employees or contractors.
The complexities and risks associated with encumbrances necessitate a proactive approach, underpinned by advanced technological solutions.
Patent enforceability hinges on effective maintenance fee management.
How can I use risk assessment to strengthen my client’s negotiating position? How can I anticipate risks that others overlook? By embracing this mindset, you will not only safeguard your clients’ IP assets but also position yourselves as indispensable strategic partners in the dynamic world of patent law.
