Tris Xavier, Associate Director and Head of the Integrated Property Practice Group at Yuen Law, was featured in Asia IP‘s analysis on whether intellectual property can serve as loan collateral in Asia.
The Landscape of IP-Backed Financing in Singapore
In the article, Tris Xavier outlined the current landscape of IP-backed financing in Singapore, noting that while IP assets can function as security, traditional financial institutions remain cautious given the nascent state of IP as a recognised asset class. He traced the history of Singapore’s IP Financing Scheme, which ran from 2014 to 2018, and pointed to Singapore IP Strategy 2030 as an indicator of continued regulatory intent to develop the space.
Preparing IP for Financing
Tris Xavier highlighted the practical steps IP owners should take before approaching a lender, including conducting a thorough IP audit, ensuring complete documentation of ownership, and verifying that existing contracts do not encumber the IP or vest rights in a third party.
He cautioned that overestimating IP value is a common pitfall, one that can lead to overextension when lender valuations fall short of expectations. Valuations typically focus on income attributable to the IP and comparable businesses with similar portfolios.
Read the full article on Asia IP: Turning your IP into Collateral.
Contact Information
For more information and/or assistance on intellectual property matters, you may contact:
Tris Xavier
Associate Director, Head of Integrated Property Practice
E: tris@yuenlaw.com.sg