Collateral Protection Insurance (CPI) provides a vehicle through which an owner of intellectual property (IP) can use their IP as collateral for a loan, up to the value of the IP. In essence, the issued CPI policy protects against collateral default.
- Owners of IP rights who wish to leverage the value inherent in the IP to be used as loan collateral.
- Entities with a financial interest in the value of the IP when using collateralized IP for a loan
Features & Conditions
- CPI can be coextensive with the term of the loan, usually three years; or, it can be typically renewed if the term is longer.
- Escrow agent, if any, ensures that the IP’s maintenance fees are paid during the loan. term and steps in for the purpose of orderly liquidation of the IP if necessary.
- Coverage extends to defaults not cured within a sixty (60) day period.