Problems and Obstacles to Enforcement of the Business Collateral Act BE 2558 : A Case Study on Trade Secrets as Collateral

Abstract

This research paper aims to study and investigate the problems and obstacles to the enforcement of the Business Security Actof BE 2558 in the case of using trade secrets as collateral. This study has collected information on the problems of the enforcement of this law, which will lead to important issues that must be considered for making improvement and amendment to the Business Security Act of BE 2558. The study found that the use of trade secrets as collateral for business under the Business Security Act of BE 2558 has problems of enforcement that are not acceptable and has not been able for the implementation in business world.  This does not follow the spirit of the law thatrequires the introduction of trade secrets (intangible assets) as collateral to be used extensively and widespread. The causes of this are that the current law is still unclear; no rules are set andthe methodology of implementing the business trade secrets along with the enforcement of debt and liquidation. These can be summarized to three problems, which are: (1) the particularities of intellectual property of trade secret, (2) valuation of the trade secrets, (3) enforcement of the collateral of trade secrets. The issue led to the analysis and proposed amendments to the Business Security Act of BE 2558.This research proposes the amendment to the Business Security Act of BE 2558, consisting of (1) redefining characteristics of trade secrets as collateral under the Business Security Act of BE 2558, specifically to Trade secrets, so thatit can be used as collateral more clearly; and (2) Proposing an organization to regulate the valuation of intellectual property and stipulate in the proposal that the appraiser must have an expertise in the intellectual property valuation (Trade secrets).