Intellectual Property (IP)

A security interest granted by a borrower over its intellectual property assets — including patents, trademarks, copyrights, and trade secrets — as collateral for a loan or other financial obligation. IP charges must typically be registered at both the relevant IP registry (such as the UK Intellectual Property Office or USPTO) and the general security interests registry (Companies House, UCC, or PPSA).

A systematic review of a company's intellectual property portfolio — including patents, trademarks, copyrights, trade secrets, domain names, and licences — to assess ownership, validity, enforceability, freedom to operate, and commercial relevance. IP audits are essential in M&A due diligence, technology licensing negotiations, and litigation preparation.

Contracts that grant permission to use intellectual property (patents, trademarks, software, content) in exchange for fees or royalties. Licensing is both a monetisation strategy for IP owners and an intangible asset for licensees who gain access to proprietary technology or brand rights.

Confidential business information that provides a competitive advantage, including formulas, processes, methods, customer lists, and supplier terms. Unlike patents, trade secrets are not publicly disclosed and are protected through confidentiality agreements and security measures rather than registration.

An income-based valuation technique that estimates the value of an intangible asset by calculating the present value of hypothetical royalty payments the owner is relieved from paying by owning the asset. The method is commonly applied to value trademarks, patents, technology, and trade names in both transaction and financial reporting contexts.

A legally binding contract that establishes confidentiality obligations between parties sharing proprietary information. NDAs are essential tools for protecting trade secrets and other sensitive intangible assets during due diligence, partnership discussions, and employee onboarding.

The economic return generated by a company's intangible asset base, expressed as income attributable to intangible assets divided by their estimated value. Yield on intangible assets provides a measure of how effectively a firm is monetising its intellectual property, brand, customer relationships, and other non-physical resources.

Government-granted exclusive rights to an invention, giving the patent holder the right to prevent others from making, using, or selling the invention for a specified period (typically 20 years). Patents are among the most clearly defined and legally enforceable intangible assets.