Collateralizing Intellectual Property

This Article argues that the process of collateralization of intellectual property lacks transparency.Consequently, the current Article 9 of the Uniform Commercial Code may unfairly advance secured creditor's rights at the expense of intellectual property creators-such as authors and inventors-who are the debtors, and ultimately at the expense of society as a whole. The hidden costs of using intellectual property rights as collateral in secured transactions may prevent intellectual property creators from creating future works based on their early creations. This Article identifies and critiques the collateralization of intellectual property,revealing the complexity of intersecting secured transaction law, namely Article 9 of the Uniform Commercial Code, and doctrinal intellectual property laws such as patent law, copyright law, and trademark law. The inquiry challenges the silence surrounding the pervasive use of intellectual property as collateral in secured financing and suggests changes to the existing framework on secured financing law