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Value of IP assets being overlooked by banks, report finds

A new report from the UK Intellectual Property Office (UKIPO) has revealed that banks and other lending institutions need to update their lending criteria in order to ensure that the true value of intellectual property is recognised.

 

The Government-backed report concluded that lending criteria needed to better support innovation in the UK by realising how important a business asset IP is.

 

While the majority of businesses still seek finance from banks, often they find securing the funding they need tough as a result of the lenders not being familiar with the business models of companies that are rich in terms of IP.

 

The lack of understanding regarding the value of certain IP assets could also put some banks at a “disadvantage” as the country’s economic recovery continues, Real Business reported, as overall economic growth could be curtailed due to a lack of asset-based lending to firms.

 

Highlighting the importance of IP-led businesses to Europe’s economy is a recent report from the European Patent Office and the Office for Harmonisation in the Internal Market, which showed that 39 per cent of the European Union’s total economic activity came from such businesses each year – activity that is worth around €4.7 trillion annually. This only serves to confirm the importance of lenders having a full understanding of IP-based assets in order that they can lend appropriately.

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