Document Type



If trademarks are important corporate assets, do banks and nonbanks lend against trademarks? Or do lenders accept trademark collateral merely as part of a blanket lien? Do banks and nonbanks treat trademarks differently than patents in lending, including venture lending? This first empirical study will attempt to answer these questions. We extract and analyze security interest filings in trademarks and patents against the backdrop of secured transactions law and banking regulations. Based on the data, it seems banks and nonbanks have an aversion for trademark collateral and, by practice, treat most trademarks as idle assets. We also argue that the trademark collateral filing data fails to provide a complete picture of financing with trademarks, as trademarks represent goodwill and equity. That means lenders can lend against accounts receivables, the byproduct of goodwill and equity. When that type of assets-based lending occurs, there is no need for lenders to lend against trademarks. Hence, fewer trademarks serve as collateral, obscuring the complexity of lending practices



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.