APRIL 2009
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Icann Board backs TM protection proposals March 12, 2010
Securitise your IP rights in Asia
Managing Intellectual Property
Businesses should not abandon IP securitisation because of the credit crisis. Instead, argues Stanley Lai, this financing method could make a comeback in Asia
| One-minute read |
| In 2006 it looked as though IP securitisation would become a big trend. Dunkin' Brands launched a $1.7 billion whole business securitisation structure that captured all of the company’s cash flows, including franchise royalty payments from licensees, IP rights, leases and other licensing receivables. Since that time activity has slowed and the credit crisis has discredited the whole concept of securitisation. But the crisis was created by the poor quality assets that were being securitised and a lack of understanding of the process itself. IP securitisation could still bounce back and, if a proper standard for evaluating IP is agreed upon, become more popular than before. And if Asia is first to bounce back from the crisis, IP securitisation could develop here. |
The creation of debt traditionally drives commerce and investment, especially when there is a liquidity squeeze or financial blockage. At the moment, the financial crisis has halted economic generation. The challenge of this article is to put forward a case for the future of securitisation of intellectual property. This is a formidable and daring phrase, because securitisation has almost become a banned word, in the parlance of our times. But with the expected recovery, when markets and economies rebound, it is likely that IP-rich companies will turn to their IP rights, being creditworthy and intangible assets, as sources of capital and income.
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