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Maybe the following will help.
Although the use of patents as collateral to
secure financing has not been a popular practice, many small firms
and individuals are interested in doing so. A major obstacle to
using Patents as collateral is the inability of investors and lenders to
assess the risk associated with collateralizing patents.
When you use a building as collateral for financing, the bank has
an interest against what you own and the transaction is registered with
the state. If you go to a second bank, they will find the first lien.
But when you use intangible assets, how do banks find out who the owner
is and whether there are any pre-existing encumbrances against that
asset? Because the
due diligence process is so complex, some lenders and investors may
States Patent and Trademark Office is starting a pilot project to find a way using innovative,
web-based technology to make it easier for inventors, entrepreneurs and
small businesses to leverage their intellectual assets.