Using Patents as Assets

Intellectual property may be intangible, but it is treated like real and personal property for most purposes.

Just like real estate and personal assets, intellectual property can be used as collateral on some loans – if you can find a lender who’s willing to accept the patent as security on loan.

Similarly, patents, or shares of patents, can be leveraged as consideration for a contract. For example, as part of an investment in a company, an investor could be granted a share of the patent, in addition to, or in lieu of a share of the company. That share of the patent comes with shares of revenue from licensing or sale of the patent, and some control over what happens with the patent in the future.

If you’re considering using your intellectual property as collateral, or in part of a contract, please drop us a line to make sure your interests are protected.