This is a type of loan loan which is similar to a mortgage; the bank holds a claim to the Intellectual Property concerned until the loan is repaid, in the same way that your home would be subject to a mortgage. This is useful for high-growth companies, who often have little in the way of physical assets but hold IP rights such as patents or trade marks, which themselves are valuable to the business.
Where this type of loan is granted, it will often (if not always) be a contractual requirement that the patent and/or trade mark register is updated to reflect that the bank holds a "security interest" against those rights. This prevents, for example, the transfer of those rights to a new owner without the consent of the bank, and so it is obviously in the IP owner's interest to settle the loan.
Small and growing businesses tend to choose well-known names when selecting a bank in their infancy, given the financial security that these established institutions offer. With
With this new proposition,
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