Intellectual Property A Valuable Asset
Soul singer
James Brown did it, so did David Bowie. They each raised $50 million
by issuing bonds backed by current and future revenue from their
songs.
The use of
patents and trademarks for financial flexibility is growing because
of the U.S. economy’s shift away from manufacturing. It can indeed
be a godsend for smaller companies that don’t want to share equity
with an investor.
One
biopharmaceutical company recently obtained financing of $30
million, by agreeing to pay a private-equity firm a percentage of
its revenue over 10 years. They maintain control over their
intellectual property unless they go into bankruptcy protection, in
which case their patents go to the private-equity firm.
