DATE: 24 October 2020
TIME: 7:00 PM (GMT +1)
TOPIC: Using Intellectual Property as Collateral for Credit Access
ANCHOR: Priscilla Mapinda
PLATFORM: Zoom
The Seminar commenced at 7:00 PM (GMT +1).
The speaker stated that a “collateral” is that which is pledged as security to a lender as assurance for the repayment of a loan. She explained that the use of intellectual property (IP) as collateral is not a new concept but is largely underutilised as itremains unusual especially in most African countries. To demonstrate the relatively non-novel nature of using IP as collateral, she discussed a famous instance where IP was utilised as collateral ; that is, the case of Thomas Eddison who utilised his IP right on light bulb as collateral for a loan ascapital for his business.
The speaker explained that IP collateral is divided into two; collateral on the IP right itself and collateral on the embodiment of the IP.
She discussed the characteristics of a good IP collateral as follows:
a. Registration with relevant authority under the extant laws of a country.
b. The Scope of protection.
c. Third party interests.
d. Value.
e. Marketability
