ANALYSIS ON THE BUSINESS COLLATERAL ACT B.E.2558 (2015) A CASE STUDY OF USING TRADEMARK AS COLLATERAL

Abstract

As a result of the financing constraints today, many companies are seeking alternative sources of capital. To use Intellectual Property (IP) as a collateral is the interesting choice that the investors chose to secure their loan.

Other than the tangible assets, offering valuable IP assets to the financial institution can also increase a financing opportunity. In the old days, few of intangible assets are accepted to be a collateral. The forms of assets that accept to be collateralized in Thailand many years ago are (1) a movable property by pledge; and (2) a land registered, a building or some certain types of moveable property by mortgage.

The financial institution normally give loans only to the companies who have operating business histories because those companies are well-known and more reliable. Using IP as collateral is a business option that may offer a financing to the startup and small sized companies who need an additional capital for their starting.

The researcher investigated the scope and methodology to use trademark as collateral in Thailand according to the Business Collateral Act B.E. 2558 (A.D. 2015) (BCA) compare with the Uniform Commercial Code (UCC), Article 9. The law did allow trademark to be used as collateral under the BCA, Section 8, but did not mention any measure and procedure to support it. Due to the special characteristics of trademark, the more specific terms then should be prescribed in the law.