Intellectual Property A Valuable Asset
James Brown did it, so did David Bowie. They each raised $50 million
by issuing bonds backed by current and future revenue from their
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.
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.