Placing a security guarantee on financing of works
Managing IP is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Placing a security guarantee on financing of works

Sponsored by


It is important not to forget that the Civil Code states that debtors respond to the fulfilment of their obligations with their assets, except for all those assets considered by law as inalienable or which cannot be seized.

Moreover, the Mexican Copyright Law states that economic rights cannot be seized or pledged. However, it recognises the possibility of embargo and having in pledge the revenues and products derived from its exercise.

Therefore, a guarantee on the revenues and products of the exercise of the economic rights of a literary or artistic work can provide legal certainty for creditors for the execution of debt instruments that finance the production of works.

In the execution of debt instruments, there may be accessory contracts, beyond the aforementioned pledge, to guarantee the payment of the debt. Among these are specialised financial and insurance products such as a completion bond.

The purpose of this is to guarantee compliance with the production of the work, to allow the exercise of rights of use or exploitation in order to generate income and to comply with the obligations in favour of creditors.

It is important to mention that the Mexican Copyright Law Regulation recognises that the person who seizes an embargo or exercises a pledge action on the revenues and products derived from the exercise of economic rights can request the judicial authority to authorise the exploitation of the work when the copyright owner refuses to do so.

However, the complexity of the legal structure required for the subscription of debt for the production of literary or artistic works will depend on the magnitude of the investment required.

In addition, there may be distribution agreements that consider advance payments for the exploitation of the work, to guarantee payment to creditors, which can be assigned in favour of them.

The foregoing, must, at all times, follow the formalities required by the Mexican Copyright Law for any transfer of economic rights.

more from across site and ros bottom lb

More from across our site

The full list of finalists has been revealed and the winners will be presented on June 20 at the Metropolitan Club in New York
A team of IP and media law specialists has joined from SK Schwarz alongside a former counsel at Sky
The Irish government has delayed a planned referendum on whether Ireland should join the Unified Patent Court, prompting concern about when a vote may take place
With more than 250 winners recognised during the ceremony, there are many reasons to be positive about the health of the IP industry in EMEA
Practitioners say the USPTO’s latest guidance has some helpful clarifications and is a good reminder of the importance of checking AI outputs
Susanne Schmidt discusses why trademarks are more than 'just a name' and why she would choose green farming as an alternative career
The former head of life sciences at Kramer Levin has joined Orrick, a firm that hopes to grow in the sector
Lionel Martin of August Debouzy and Kristof Neefs at Inteo share how they prevailed in a UPC Court of Appeal case surrounding access to documents
Counsel say ‘strange’ results have increased their reliance on subscription-based search platforms, but costs are not being shifted onto clients yet
The firm was among multiple winners at a record-breaking 2024 ceremony held in London on April 11
Gift this article