Emerging Financing Strategy: Using IP Assets as Collateral

Legal Strategies for Borrowers and Lenders in Asset-Based Lending Transactions

Recording of a 90-minute CLE webinar/teleconference with Q&A


Conducted on Wednesday, October 21, 2009
Recorded event now available


This seminar will examine the use of intellectual property assets in arranging financing, which has emerged as a valuable alternative financing strategy in the current economy. The panel will review key legal issues for borrowers and lenders to minimize the risks associated with the use of IP as collateral.

Description

Asset based lending with IP collateral may be ideal for a distressed business whose IP collateral is more certain than its financial performance or cash-generating capabilities. In the bankruptcy setting, this could very well be the company’s only vehicle for debtor-in-possession financing.

From the lender's perspective, IP assets have become a more substantial portion of a company’s total assets. In the current economic environment where balance sheets of many businesses are thin, IP is an essential piece of the collateral pool available to borrowers and lenders.

There are unique risks to lending against IP that lenders must take steps to mitigate. For example, there are special rules governing the perfection of security interests in IP assets due to the overlap between UCC Article 9 and federal law governing IP assets like patents.

Listen as our authoritative panel of attorneys discusses the key factors for businesses to consider in obtaining IP asset-based financing and what borrowers and lenders must do to mitigate risks and protect their interest in the event of default.

Outline

  1. Key concerns for businesses using IP as collateral
    1. Weighing the risks and benefits
    2. Well-managed IP portfolios
    3. Developing an exit strategy
  2. Key concerns for lenders and investors
    1. Weighing the risks and benefits
    2. Perfecting security interest in IP assets
      1. UCC Article 9 v. federal law
      2. Copyrights, trademarks, and patents
      3. Trade secrets, software licenses, domain names and other non-registrable rights
    3. Developing an exit strategy
    4. Borrower distress/default

Benefits

The panel will review these and other key questions:

  • What steps must a business take to leverage its intangible assets value?
  • How does perfecting a security interest in IP assets differ from perfecting an interest in tangible assets?
  • What steps should lenders take to protect their interest in the event of default?

Faculty

Scott J. Lebson, Partner
Ladas Parry, New York

He counsels clients on commercial transactions relating to the worldwide acquisition, sale, licensing, exploitation and securitization of intellectual property rights. His transactional work also includes extensive structuring and negotiating of trademark, copyright, content, software, technology and merchandise licenses in a broad range of industries.

Christopher G. Dorman, Partner
Phillips Lytle, New York

He concentrates his practice in the area of banking and commercial law, including secured lending, asset based financing, trade finance, factoring, acquisition financing, intellectual property finance, loan restructuring and workouts, leasing and telecommunications law.

Ron Ben-Yehuda, Partner
Gibson Dunn & Crutcher, Los Angeles

He has negotiated numerous sales of IP or of businesses that hold significant IP and run the associated IP audits or due diligence. As a former general counsel of a public software company, he combines extensive industry experience, expertise in IP and contract law, and practical business sense to help clients structure successful transactions and relationships involving technology and IP rights.

Ordering

Online CLE - Audio Recording

Includes audio streaming of full program plus handouts (available 24 hours after live seminar).

CLE: Pre-approved for participatory or non-traditional/alternate format credit in: CA, HI*, NY*, WV*. Pre-approved for self-study credit in: AK, AZ, MO, MT, TX, VT, WA.
Upon request, also available in: CO, CT*, FL, GA, ID, KY, LA*, ME, NC, ND, NE, NH, NM, NV, OR*, SC, TN, UT, WI, WY. If you are applying for credit in one of these states, make sure to select those states when placing your order.
(*Indicates that Strafford must report attendance.)

Online CLE Audio $149.00
Available 24 hours after the live event

How does this work?


Recorded Event

Includes full event recording plus handouts (available after live seminar).

CLE: Pre-approved for self-study credit in: AK, AZ, CA, CT, HI, MO, MT, NY, TX, VT, WA, WV. Upon request, self-study credit is also available in: CO, FL, GA, ID, KY, ME, ND, NE, NH, NM, NV, OR, UT, WI, WY. If you are applying for self-study credit in one of these states, contact Strafford CLE at 1-800-926-7926 ext. 35 or CLE@straffordpub.com.

Webinar Download (Audio + Slide Presentation) $49.00
Available three business days after the live event

How does this work?

Webinar on DVD (Audio + Slide Presentation) $49.00 plus $9.45 S&H
Available ten business days after the live event

MP3 Download (Audio Only) $49.00
Available 24 hours after the live event

How does this work?

Teleconference on CD (Audio Only) $49.00 plus $9.45 S&H
Available ten business days after the live event

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Program Materials

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Program Materials

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Customer Reviews

I liked the substance of the program and the ease of participating.

Paul L. Hammann

First American Title Insurance Company

I liked the topic and the fact that Strafford kept to the time schedule.

Susan Piperno

Gottlieb Rackman & Reisman, PC

The speakers were knowledgeable and presented useful information.

Karen Shaffer-Levy

Reed Elsevier

The webinar offered excellent insight into some specific areas.

Beth Ann R. Lawson

Virginia Beach Law Group

The subject matter was timely and important, and the webinar format is well suited for this topic.

Dennis Brennan

Saul Ewing LLP

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Finance Law Advisory Board

Anne Lee Benedict

Partner

Gibson Dunn & Crutcher

Mark N. Berman

Partner

Nixon Peabody

Willa Cohen Bruckner

Partner

Alston & Bird

Laura D. Richman

Counsel

Mayer Brown

Robert M. Stern

Partner

O’Melveny & Myers

or call 1-800-926-7926

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