Protecting Your Company's Intellectual Property: A Practical Guide to Trademarks, Copyrights, Patents & Trade Secrets

Using Trademarks as Collateral

Trademark owners may need to borrow money from lenders. Lenders typically require security for loans so that in the event of a default the lender can seize the property pledged as collateral or security for the loan. Trademarks can also be used as security or collateral. The parties usually enter into a security agreement that specifies the particular marks being used as collateral. The security agreement is recorded with the PTO (using Form 1618A, the same form used to record assignments). When the debt is paid, Form 1618A is again filed or recorded with the PTO to release the marks from the security interest held by the bank or lender. While the security agreement exists, the trademark owner has all rights of ...