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Patent Security Agreement Template for England and Wales

A Patent Security Agreement is a legal document governed by English and Welsh law that creates a security interest over patents and patent applications. It enables patent owners to use their intellectual property as collateral for financing while maintaining their ability to exploit the patents commercially. The agreement establishes the rights and obligations of both the security provider and taker, including provisions for enforcement, maintenance of the patents, and the procedure for releasing the security once the underlying obligation is satisfied.

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What is a Patent Security Agreement?

A Patent Security Agreement is commonly used when a company seeks to leverage its patent portfolio for financing purposes. Under English and Welsh law, this document creates a registrable security interest over specified patents and patent applications, which must be recorded at both the UK Intellectual Property Office and, where applicable, Companies House. The agreement typically includes detailed provisions about the maintenance and exploitation of the patents, the security provider's continuing rights to use the patents, and the circumstances under which the security taker can enforce their rights. It's particularly important in technology-intensive industries where patents represent significant business assets.

What sections should be included in a Patent Security Agreement?

1. Parties: Identification of the security provider and security taker

2. Background: Context of the security arrangement and description of the patents

3. Definitions: Key terms used throughout the agreement including Patent Rights, Security Interest, and Secured Obligations

4. Grant of Security: Core provisions creating the security interest over the patents and patent applications

5. Representations and Warranties: Statements about ownership, validity, and right to grant security over the patents

6. Covenants: Ongoing obligations regarding maintenance, prosecution, and defense of the patents

7. Enforcement: Rights and remedies available to the security taker upon default

What sections are optional to include in a Patent Security Agreement?

1. Further Assurance: Additional actions required to perfect security interest in different jurisdictions

2. Power of Attorney: Authority granted to security taker to act on behalf of security provider in specified circumstances

3. Cross-Border Provisions: Specific provisions dealing with international patents and multiple jurisdictions

What schedules should be included in a Patent Security Agreement?

1. Schedule of Patents: Comprehensive list of all patents and patent applications covered by the security agreement

2. Form of Registration: Templates for required filings with UKIPO and Companies House

3. Existing Licenses: Details of any existing licenses or encumbrances affecting the patents

4. Patent Maintenance Requirements: Schedule of renewal dates, maintenance fees, and ongoing obligations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use

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