While financial institutions may not be willing to finance a business on the basis of a new brand, brands that have earned their reputation and goodwill for years can benefit. Intellectual property holders may also make up all of their intellectual property, including the trademark as a basket of rights, to ensure higher value financing. However, with respect to non-registered copyright, the law governing security interests is not as clear. The leading appeal decision states that there is no federal anticipation of state law with respect to the security interests of unregistered copyrights.  The PPSA applies to “personal property,” which generally includes, among other things, intangible assets. By law, a trademark is generally considered “thing in action” and is therefore included in the definition of “intangible assets” under the PPSA. Therefore, PPSA`s terms likely apply to trademarks. Under current Canadian law, what are government fees for registering a trademark security interest? Copyright Copyright Copyright The Copyright Act anticipates UCC Section 9 with respect to the perfection of a security interest in registered copyright and pending copyright applications.  In order to enhance a security interest in registered copyrights and spent copyright applications, the IP KURZform security agreement must be filed with the USCO.  Copyright law generally gives priority to the first transmission performed on the first recorded transmission.  The Copyright Act defines a “transfer” of copyright that includes a “copyright assumption” and “mortgage” “a collateral of property as collateral or guarantee of a debt.”  However, the transfer must be registered within one month of the execution of the delegation contract (two months if the contract is executed outside the United States) or before the registration of a subsequent transfer, in order to ensure priority for these subsequent transfers.  Section 9 of the Single Code of Commerce (“UCC”) governs any transaction that creates an interest in the security of personal property.  All states of the United States and the District of Columbia have adopted UCC Section 9.
 Section 9 of the UCC regulates the security interests of “general intangible assets” that are considered personal property.  Although trademarks, patents and copyrights are not explicitly included in the definition of “generally immaterial,” official commentary uses “intellectual property” as an example of a “general immaterial.”  According to the UCC, perfection generally requires filing the UCC-1 return to the Secretary of State of the state in which the debtor/borrower is located.  The UCC-1 statement presented should not be the transaction document that creates the interest of security, but contains basic information about the parties and a description of the nature of the guarantees.  Many financing transactions, such as credit or securitization, involve companies that focus on intellectual property or have a certain amount of material (“IP”). We often receive questions about the ip security interest process, which has become confused by competing federal and regional bodies and various court decisions. This contribution contains a general summary of the law and some good practices. It is not surprising that intangible assets such as intellectual property are always more important than any other form of tangible assets, i.e. land and machinery, for the current business. Given the importance of intellectual property, the Trademark Act 2019 (“TMA 2019”), which came into force on December 27, 2019, now recognizes the trademark as a form of safety interest and considers it to be a personal or mobile property, such as shares and cars, whether registered or pending.