Introduction

It is increasingly recognised that all businesses own and use IP of some kind. Lenders in sectors which include IP-rich businesses are focusing increasingly on ensuring that their security captures the value of this IP.

The law relating to security over IP is uncertain, and lenders must manage their way through the uncertainty. In addition, security over IP rights may be costly to put in place and difficult to enforce.

A lender must first identify and value its borrower’s IP. It will distinguish between types of IP, for example IP with proprietary qualities and IP comprised in contractual rights. It will recognise that IP within a business is usually interrelated, such as a patent and the associated Know-how which makes the patent valuable in practice. A practitioner of financial law must also be aware of the substantive character of IP and the context which gives it value. A key question