We recently helped a major client in the pharmaceutical industry secure financing backed by its trademark portfolio. For us, it was a particularly satisfying piece of work because the rights we help clients protect were being used to support the business’s plans.
Most companies understand why they need to protect their brands – they have spent years building them, often at considerable cost, and want to prevent others from benefiting from that investment. Their trademarks’ role in financing is perhaps less familiar, even to businesses with substantial portfolios.
We see this in our practice. A company may give considerable attention to its registrations without considering whether those rights could be useful when it needs to raise funds. In some financing discussions, the lender is quicker to recognise that possibility than the business itself.
Of course, a registration alone does not establish what a trademark is worth or whether a lender will accept it as security. That requires an assessment of the particular portfolio and the financing proposed. But it is a conversation worth starting, rather than assuming that the company’s options are limited to its more obvious assets.
For our client, the portfolio had a concrete role in securing finance. It is a good reason for other companies to take a closer look at the rights they already own, especially when planning an investment or expansion.
The legal work involved in protecting a brand can feel quite separate from decisions about funding. This transaction brought the two together. We would like to see more businesses consider that connection.
If it’s something you’re considering, let’s talk!