Document background
The Intellectual Property Security Agreement is a crucial document used when a company seeks to leverage its intellectual property assets as collateral for securing financing. Under Indonesian law, this agreement must comply with both intellectual property regulations and security interest requirements, particularly the Law on Fiduciary Security (Law No. 42 of 1999) and various IP-specific laws. The document becomes necessary when companies with valuable IP portfolios seek funding while retaining the ability to use and commercialize their IP assets. It includes detailed descriptions of the IP assets, mechanisms for maintaining their value, default provisions, and enforcement procedures. The agreement must be properly registered with relevant Indonesian authorities to ensure enforceability and priority of the security interest.
