How to secure an asset over IPR?
A fixed or floating charge or mortgage requires an assignment of either legal or equitable title in the IPR in favour of the party taking the security. Once the assignment is effective and the assignor will continue to use it, it is necesary for a licence back of the IPR during the term of the mortgage.
There is no transfer of ownership of the IPR but only a security of the interest over the IPR.
The difference between a fixed and floating charge is that a fixed charge prohibits the sale of the IPR until such time as the debt is settled. A floating allows the borrower to continue to deal with the IPR until the charge crystallises.
If a company secures the charge it is obliged to register the same within 21 beginning with the day after the day, the charge was created. If not, every director may well face a fine and the security will be void against the liquidator or creditor but not against the company.
Any security interest over a patent or trade mark or registered design must be registered within 6 months of the execution.
Michael Coyle is a Solicitor Advocate and can be contacted at Michael.firstname.lastname@example.org .