IP-Backed Financing: Using Intellectual Property as Collateral

Kroll is pleased to launch the report on Intellectual Property Backed Financing: Using Intellectual Property as Collateral, co-developed in association with Confederation of Indian Industry (CII).

Highlights

• India is on the cusp of an intellectual-property (IP) revolution and is the third largest economy for startups in IP-intensive industries like technology and bio-pharmaceuticals.
• While government initiatives such as the launch of National IPR Policy in 2016 to spur interest in IPR commercialization have been institutionalized, the traditional asset securitization process is still very much embedded in India’s lending process.
• The regulatory environment is evolving globally and initiatives to provide impetus to IP-backed financing are underway. However, some economies such as Singapore exhibit a sophisticated regulatory environment as well as a robust infrastructure for IP financing.
• IP-financing transactions where IP is used as a collateral, has declined over the past five years globally. However, in transaction financing, where acquired IP is the primary collateral, monetizing IP under a distress situation has gained traction.
• There is increasing interest from large, global PE funds in innovative, IP-based companies. These funds are not only investing in IP-based companies but also are providing finance to help protect IP in certain situations.

We hope you enjoy reading the report.