Ever since Thomas Edison first used his patent on the incandescent electric light bulb as collateral to secure financing to start his company, the General Electric Company, intellectual property has been able to be used as collateral. Although not immediately thought of when securing financing, using intellectual property as collateral has occurred ever since the late 1800’s with Thomas Edison. In recent years, using intellectual property as collateral to secure financing has become quite popular. However, as with most financing in general, the use of intellectual property as collateral has slowed due to the first recession in the twenty-first century. Even though there have been signs of the recession coming to an end and recovery starting in the beginning of 2010, will the use of intellectual property to secure loans ever bounce back?
Brian W. Jacobs,
Using Intellectual Property to Secure Financing after the Worst Financial Crisis Since the Great Depression,
15 Marq. Intellectual Property L. Rev. 449
Available at: http://scholarship.law.marquette.edu/iplr/vol15/iss2/6