FORSYTHE INTERNATIONAL SECURITY

INTELLECTUAL PROPERTY:

Exists as a non- monetary asset which is identifiable without physical substance. IP assets come into existence by operation of law and actually differ from other intangible assets. It stands in opposition to tangible assets. It serves as collateral or security for debt finance and provides an additional basis for seeking equity. It helps convince investors/lenders that real market opportunities exist to commercialize your product or service.

TYPES OF IP ASSETS

Trademarks            

Biotechnology

Trade Names         

Pharmaceuticals

Domain Names      

Medical Devices

Patents Portfolios & Generating Activity   Software

Copyrights       

Semiconductors

Design Rights       

Internet Technology

Inventions       

Content

Confidential Information     

Advertising Companies

Database Rights      

Alternative Energy

Contact Lists       

Green Technology

Accounts Receivable    

 Renewable Materials

IP must be calculated into their overall business plans and corporate value proposition to ensure long term economic success.

IP Backed Loans: IP-backed loans are helpful for businesses lacking tangible assets or cash flow to support a traditional credit solution. The loans model the structure of conventional asset-backed loans on real estate equipment or inventory. Lenders secure a security interest in a company’s IP assets as collateral for a loan in exchange for interest payments. It is important to note that IP-backed loans amounts are typically determined by the percentage of the IP portfolio’s liquidation value and overall risk as determined by the lender or investor.

IP Sale -Lease Back:An IP sale-leaseback is similar to a real estate sale-leaseback where there is a change in ownership. More specifically, an investor acquires the IP, and the selling company pays a lease or licensing fee. This financing structure provides holders of IP with immediate liquidity with limited restrictions. In most cases, IP sale-leaseback transactions include a repurchase option allowing the seller to buy back the ownership within a predetermined period.

IP Legal Finance: Accelerated innovation is quickly correlating to infringements on patents and trade secrets. The IP legal finance structure allows IP owners to advance funds against the future value of their outstanding IP infringement disputes. In addition to covering general operating expenses, the capital is often used to mount a successful case against infringing parties. Driven by quantifiable outcomes, IP legal finance has quickly become one of the preferred IP financing vehicles for large investors.

IP Royalty Securitization: The number of securitizations using IP as the underlying assets has significantly increased over the years. IP royalty securitizations generally require an IP owner to sell an IP-related income stream for a fixed duration in exchange for a non-dilutive, upfront cash payment. The primary difference between securitization and an IP-backed loan is that the IP owner is not borrowing money but is instead selling a stream of future cash flows.