UNCITRAL’s Contribution to Intellectual Property Financing Law

The UNCITRAL Legislative Guide on Secured Transactions (the “Guide”) and the Supplement on Security Rights in Intellectual PropertyIntellectual Property (IP) (the “Supplement”) are intended to provide guidance to legislators on issues relating to the creation, third-party effectiveness, priority and enforcement (even in the grantor’s insolvency) of a security interest in intellectual property, as well as on the law applicable to such matters. The commentary of the Supplement explains how the legislative recommendations of both the Guide and the Supplement apply in the context of an intellectual property financing transaction. With the same goal in mind, the recommendations of the Supplement modify the general legislative recommendations of the Guide as they apply to security interestsInterest in intellectual property. The Supplement breaks new ground by: (a) suggesting new ways to improve the coordination between secured transactions and intellectual property law; (b) introducing a regime that facilitates the use of intellectual property as security for credit, including secured credit to be used for the acquisition of intellectual property; (c) suggesting ways in which the investment of intellectual property licensorsLicensor or licensees in developing and marketing a licensed product may be protected in the case of insolvencyInsolvency ; and (d) recommending a a conflict-of-laws rule dealing with the law applicable to security interests in intellectual property.