IP in lending, security and insolvency

Intellectual property (IP) is first and foremost a form of property, and is a key and valuable asset for many businesses. For this reason, in commercial lending transactions, IP rights are commonly offered as security for a loan. When companies fall into difficulty, extracting maximum value from assets is essential to insolvency procedures. This can mean that dealing appropriately with a company’s IP will be important for insolvency practitioners.

Taking security over IP

IP may be taken as security in a lending transaction as part of a package of security over the whole

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Latest IP News

Data (Use and Access) Bill passes through Parliament and heads for royal assent

Parliament passed the Data (Use and Access) Bill (DUA Bill) on 11 June 2025. First introduced in October 2024, this passage concludes a protracted legislative process as a notable amount of legislative 'ping pong' (nine rounds of back-and-forth) took place between the two Houses. Central to these discussions was the contentious issue surrounding the use of copyright works in the development of AI systems. During the last debate on 11 June 2025, the House of Lords opted against insisting once more on its amendment, which would have required further government legislation on copyright infringement and transparency in AI. Instead, the peers accepted an amendment in lieu from the Commons, which mandates the Secretary of State for Science, Innovation and Technology to lay a progress statement before Parliament within six months of the DUA Bill’s enactment, outlining advancements on the review. The DUA Bill will now move forward for royal assent at a date yet to be confirmed.

IP weekly highlights—12 June 2025

This week's edition of IP weekly highlights includes: a hand-picked summary of news analysis, updates and new content from the world of IP. These highlights focus on the key rights of copyright and associated rights, database rights, trade marks and passing off, designs, and patents, as well as covering issues relating to confidential information, know-how R&D and IP disputes all mainly from a UK and European perspective.

IPO reports rise in Trading Standards enforcement actions under Trade Marks Act

The Intellectual Property Office (IPO) annual Trading Standards survey for 2024-25 reveals multiple successful prosecutions under the Trade Marks Act 1994. Notable cases include a £270,000 confiscation order in Berkshire, a 20-month suspended prison sentence in Ceredigion with ongoing Proceeds of Crime Act proceedings, and multiple premises closure orders across the UK. The report, covering April 2024 to March 2025, shows increased enforcement activity with 70% of local authorities responding. Trading Standards officers secured convictions for counterfeiting offences across various jurisdictions, with courts issuing closure orders, confiscation orders and criminal sentences.

Joint prosecution for counterfeit cranberry sauce supply offences

West Yorkshire Trading Standards and Kirklees Council have jointly prosecuted Irfan Hanif Patel and Mohammed Patel for supplying counterfeit cranberry sauce. Irfan Patel, operating as a sole trader and Mohammed Patel, as director of Stock Up Direct Limited, have both pleaded guilty to offences under the Trade Marks Act 1994 and breaches of food hygiene regulations by trading without registering their food businesses. At Leeds Crown Court, Irfan Patel has been sentenced to a 12‐month community order including 120 hours of unpaid work and issued a confiscation order of £18,903, reflecting a declared benefit of £681,510.47 from criminal conduct. Mohammed Patel has been sentenced to a 12‐month community order with 100 hours of unpaid work and issued a confiscation order of £1,607, matching his declared benefit. The proceedings were conducted under the framework of the Proceeds of Crime Act 2002.