IP Collateral and Investment Protection Service Mitigates Risk

LEHI, UTAH, USA, July 29, 2015 /EINPresswire.com/ -- Most investors and lenders are looking for a sure thing, but in today’s world, that rarely happens. EscrowTech, though, provides IP Collateral and Investment Protection services that completely alters the risk level of loans to and investments in technology companies. This service addresses both situations:

- Loans (debt) collateralized by intellectual property, and

- Investments in companies that have intellectual property

An Increasingly Common Practice

More intellectual property owners than ever before are looking for capital based on their intellectual property. That capital can be in the form of loans (debt) to, or equity investments, in the companies that hold the intellectual property. Lenders are relying on that intellectual property as collateral; and investors are relying on that intellectual property to create value and a return on investment.

Although loans and investments may be made based in substantial reliance on the intellectual property of the company, most of these transactions occur without securing and documenting the intellectual property, and that means real risk for the lenders and investors.

"When you make a loan based on IP collateral or make an investment that will be used to create or commercialize IP, you have to know that the IP is going to be there at the end of the day, and that wasn’t always possible with IP," said Jorge Sagastume/Vice President . "We’re changing that, though, with documented, secured storage of the technology assets that the intellectual property is based on."

Is There Actually a Risk?

Case after case has demonstrated there are very real risks in loans and investments. For example, if the company’s founders or developers simply walk away from the company, taking source code, trade secrets, documentation, and more, you could be left with almost nothing. If there is no reliable and corroborated documentation or audit trail of what was developed, it is easy for departed founders and developers to claim that the technology they are exploiting with another company did not come from and was not a derivative of the intellectual property of the company you invested in. A similar problem applies to loans. For example, if the IP collateral includes the copyrights and trade secrets to software (including source code) and you cannot produce the software, how can you show what the copyrights apply to and what the trade secrets are. Establishing who owns certain materials and protecting your collateral or investment has to encompass far more than just having an attorney sit down and draw up a contract.

"Our IP Collateral and Investment Protection services are built to protect your loans and investments that rely on intellectual property. From computer programs to prototypes to encryption keys to every form of technology assets, we’ve built a depository and archive service dedicated to the protection of lenders and investors, complete with a corroborated and dated audit trail of the technology assets on which the IP is based," said Jorge Sagastume/Vice President.

More Necessary than Ever

With a growing number of companies looking to monetize their intellectual property to attract debt and equity based funding, lenders and investors are beginning to see the need for EscrowTech’s IP Collateral and Investment Protection services, including dated, independent corroboration, access and retrieval when it’s needed the most, and peace of mind.


Press release courtesy of Online PR Media: http://bit.ly/1MxU6QC

Jorge Sagastume
EscrowTech
801-852-8202
email us here

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