Hanna Vinod Bhaskar, Christ University, Bangalore
Dr. Avishek Chakraborty, Christ University, Bangalore
ABSTRACT
This paper explores the fundamental concept of Intellectual Property (IP) and its crucial role in the modern world. It encompasses various creations originating from human intellect, including inventions, literary and artistic works, designs, symbols, names, and images used in commerce. Legal mechanisms protect these creations, ensuring that creators or owners have exclusive rights over their use and distribution. IP rights are not only acknowledgments of effort and creativity but also valuable assets for individuals and companies, contributing to their success and recognition in the marketplace.
The value of IP extends beyond legal rights to encompass goodwill and reputation associated with brands or products. Consumers often base their purchasing decisions on the recognition of trademarks and designs, associating them with quality, reliability, and authenticity. IP rights are strategic assets that significantly impact the success and competitiveness of businesses in the global economy.
Moreover, IP serves as a valuable asset for securing bank loans and financing, as startups and Micro, Small, and Medium Enterprises (MSMEs) globally utilize their IP assets as collateral to secure funding. Securitization of IP involves using IP assets as collateral for loans or through other forms such as licensing, assignment, or mortgage. The paper explores legal provisions in India that facilitate IP securitization, analyzing historical trends in this area. It also provides insights into the international landscape regarding the securitization of intellectual property. At the same time, the paper looks into other countries and how they have incorporated this idea.
While the concept of IP securitization holds promise for businesses, there is a lack of comprehensive understanding of its legal and practical implications, particularly in the context of emerging economies like India. This paper aims to address this gap by analyzing the legal framework and historical trends in
IP securitization in India and comparing them with international practices. Additionally, the paper seeks to explore the challenges and opportunities associated with IP securitization for businesses, especially startups and MSMEs, and propose recommendations to enhance the effectiveness of IP securitization mechanisms in India and beyond.
Keywords: Intellectual Property, Security, Loan, Collateral, Asset
