Journal of Intellectual Property Rights

Open Access Open Access  Restricted Access Subscription Access

The Securitization of IP Assets:Issues and Opportunities


Affiliations
1 Maastricht University, Bouillonstraat 1-3, 6211 LH Maastricht
 

Securitization of Intellectual Property (IP) Assets is very recent phenomenon that has been less captured by the academic literature on IP valuation. The understanding and application of the concept in India has been found even scantier. This article attempts to bring in some clarity about the general concept of securitization and its specific application to IP. It also captures the various risks and issues that limit the scope of securitization of IP assets from becoming an effective and successful tool of financing. A section is devoted to briefly analyse the status of IP asset securitization as done in the USA and its limited application in India; thereby leading to suggest some consideration that could enhance its scope in India.

Keywords

Intellectual Property Royalty Financing, Bowie Bonds, IP Assets, Production Costs, Securitization, Intellectual Property, Loan Collateralization, Special Purpose Vehicle, Trustee, Piracy Risk.
User
Notifications
Font Size

  • Donna P S & Weston T A, Fundamentals of Intellectual Property Valuation: A Primer for Identifying and Determining Value, ABA Book Publishing, Illinois, USA, 2005, 169.

  • Andreas J, Back to basics: What is securitization? Finance and Development, September 2008, 48, https://www.imf.org/ external/pubs/ft/fandd/2008/09/pdf/basics.pdf.

  • Innokenty Y A, Securitization of Intellectual Property, Thesis Project, 5, http://law.stanford.edu/wp-content/ uploads/2015/03/AlekseevInnokenty2002.pdf.

  • Steven L S, The alchemy of assets securitization, Stanford Journal of Law Business & Finance, 1 (1994) 133-135.

  • Guidelines on Securitization of Standard Assets, 2006, https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=272 3&Mode=0.

  • Benefits and Disadvantages of Securitization, http://home.zonnet.nl/tilborgh/MBS/part3.htm.

  • The Securitization of Intellectual Property Assets- A New Trend, http://www.wipo.int/sme/en/ip_business/finance/ securitization.htm.

  • Nigel J & Ann H, Global IP-Backed Securitisation: Realising the Potential, Building and Enforcing Intellectual Property Value-Linklaters, http://www.linklaters.com/pdfs/Insights/ipsecuritisation.pdf.

  • Rahmah M, Promoting Intellectual Property Securitization for Financing Creative Industry in Indonesia: Challenges and Solutions, 5 http://artsonline.monash.edu.au/indonesianstudiesjournal/files/2015/04/Promoting-intellectualpropertysecuritization.pdf.

  • Gabala J M Jr., Intellectual alchemy: Securitization of intellectual property as an innovative form of alternative financing, John Marshall Review of Intellectual property Law, 3 (2004) 307, 316, http://repository.jmls.edu/cgi/viewcontent.cgi?article=1054&context=ripl.

  • Gabala J M Jr., Intellectual alchemy: Securitization of intellectual property as an innovative form of alternative financing, John Marshall Review of Intellectual property Law, 3 (2004) 317.

  • Wei C, Research on Securitization of Intellectual Property for Small and Medium-Sized Enterprise Innovation, Proceedings of the 7th International Conference on Innovation & Management, 1399, http://www.pucsp.br/icim/ingles/downloads/papers_2010/part_6/15_Research%20on%20Securitization%20of%20Intellectual%20Property%20 for%20Small%20and.pdf.

  • Kramer W J & Patel C B, Securitisation of intellectual property assets in the US market, http://www.ipo.org/wpcontent/uploads/2013/04/Securitisation_of_IP_in_the_US.pdf.

  • Solomon D & Bitton M, Intellectual property securitization, Cardozo Arts & Entertainment, SSRN Electronic Journal, 33 (125) January 2015 130, http://www.cardozoaelj.com/wpcontent/uploads/2014/01/Solomon-Bitton-Final.pdf.

  • Special Purpose Vehicle, 29 December 1999, https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx ?ID=164.

  • Sharma V, Securitization of Intellectual Property Assets, 30 June 2011, http://www.citi.columbia.edu/B8210/read23/SecuritizationIPA.pdf.

  • Baron N D, The Role of Rating Agencies in The Securitization Process, in A Primer on Securitization 81, 81–82 (Leon T Kendall & Michael J Fishman eds., 1996). Solomon D & Bitton M, Intellectual property securitization, Cardozo Arts & Entertainment, SSRN Electronic Journal, 33 (125) January 2015 139, http://www.cardozoaelj.com/wpcontent/uploads/2014/01/Solomon-Bitton-Final.pdf.

  • Asset Securitization, Comptroller’s Handbook, 1997, 10, http://www.occ.treas.gov/publications/publications-bytype/comptrollers-handbook/assetsec.pdf.

  • Alekseev I Y, Securitization of Intellectual Property: Thesis Project, 2002, 3, http://law.stanford.edu/wp-content/uploads/2015/03/AlekseevInnokenty2002.pdf.

  • Jones N & Hoe A, Global IP-Backed Securitisation: Realising the Potential, Building and Enforcing Intellectual Property Value 2006, www.linklaters.com/pdfs/Insights/ipsecuritisation.pdf.

  • Gabala J M Jr., Intellectual alchemy: Securitization of intellectual property as an innovative form of alternative financing, John Marshall Review of Intellectual property Law, 3 (2004) 320, http://repository.jmls.edu/cgi/viewcontent.cgi?article=1054&context=ripl.

  • Kumar J, Intellectual property securitization: How far possible and effective, Journal of Intellectual Property Rights, 11 (2) (2006) 98-102, 98.

  • Alekseev I Y, Securitization of Intellectual Property: Thesis Project, 2002, 4, http://law.stanford.edu/wpcontent/uploads/2015/03/AlekseevInnokenty2002.pdf.

  • Gabala J M Jr., Intellectual alchemy: Securitization of intellectual property as an innovative form of alternative financing, John Marshall Review of Intellectual property Law, 3 (2004) 307-308, http://repository.jmls.edu/cgi/viewcontent.cgi?article=1054&context=ripl.

  • http://ftalphaville.ft.com/2016/01/11/2149761/a-short-historyofthe-bowie-bond/.

  • Gabala J M Jr., Intellectual alchemy: Securitization of intellectual property as an innovative form of alternative financing, John Marshall Review of Intellectual property Law, 3 (2004) 314, http://repository.jmls.edu/cgi/viewcontent.cgi?article=1054&context=ripl.

  • http://www.pullmanbonds.com/#!about/c1537.

  • Gabala J M Jr., Intellectual alchemy: Securitization of intellectual property as an innovative form of alternative financing, John Marshall Review of Intellectual property Law, 3 (2004) 308, http://repository.jmls.edu/cgi/viewcontent.cgi?article=1054&context=ripl.

  • Solomon D & Bitton M, Intellectual property securitization, Cardozo Arts & Entertainment, SSRN Electronic Journal, 33 (125) January 2015 145, http://www.cardozoaelj.com/wpcontent/uploads/2014/01/Solomon-Bitton-Final.pdf.

  • Eisbruck J H, Blockbuster or flop? The history and evolution of film receivables securitization, 1995-2005, The Journal of Structured Finance, 11 (2005) 11–12.

  • Solomon D & Bitton M, Intellectual property securitization, Cardozo Arts & Entertainment, SSRN Electronic Journal, 33 (125) January 2015 146, http://www.cardozoaelj.com/wpcontent/uploads/2014/01/Solomon-Bitton-Final.pdf.

  • Steven L S, The alchemy of assets securitization, Stanford Journal of Law Business & Finance, 1 (1994) 134.


Abstract Views: 176

PDF Views: 131




  • The Securitization of IP Assets:Issues and Opportunities

Abstract Views: 176  |  PDF Views: 131

Authors

Naina Khanna
Maastricht University, Bouillonstraat 1-3, 6211 LH Maastricht

Abstract


Securitization of Intellectual Property (IP) Assets is very recent phenomenon that has been less captured by the academic literature on IP valuation. The understanding and application of the concept in India has been found even scantier. This article attempts to bring in some clarity about the general concept of securitization and its specific application to IP. It also captures the various risks and issues that limit the scope of securitization of IP assets from becoming an effective and successful tool of financing. A section is devoted to briefly analyse the status of IP asset securitization as done in the USA and its limited application in India; thereby leading to suggest some consideration that could enhance its scope in India.

Keywords


Intellectual Property Royalty Financing, Bowie Bonds, IP Assets, Production Costs, Securitization, Intellectual Property, Loan Collateralization, Special Purpose Vehicle, Trustee, Piracy Risk.

References