You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

August 25, 2016

Commercializing Intellectual Property Through Securitization

Subscribe to Updates
Informed Counsel

The conventional practice to commercialize intellectual property (IP) is to directly exploit or license IP assets. A trend is emerging, however, to commercialize IP through securitization. This trend coincides with the advent of the Secured Transaction Act B.E. 2558 (2015), which allows IP assets to be used as collateral.

Thailand’s Department of Business Development has been tasked with implementing the Act. As part of its duties under the Act, the  Department of Business Development has enacted a number of secondary laws, and it has established the Secured Transaction Registry Division which oversees an online registration system for security agreements.

The registration system is already in use, and it is now legally possible to use IP assets as collateral. Many lenders, however, are reluctant to accept IP assets as collateral. They prefer to accept tangible assets from borrowers, such as real estate, as opposed to intangible assets like IP.

A main concern of lenders is how to value IP assets. IP valuation requires not only gathering substantial information about an IP asset, but it also requires an in-depth understanding of the economies, industries, and specific businesses that directly impact the value of the IP.  IP owners should therefore be prepared to provide this information to persuade lenders of the creditworthiness of their IP assets.

Although IP owners generally know the economic benefit of their IP assets, such as their level of competitiveness in the marketplace, they are often unaware of the strength of their IP assets from a legal perspective. IP owners should seek the assistance of IP lawyers to analyze the factors that affect the value of an IP asset. These factors include, for instance, qualitative characteristics or standards, such as the nature, scope, and validity of protection of an IP asset.

Other factors, such as the duration of validity of an IP asset, the risk of infringement claims, and the strength of possible defenses, are determined on a case-by-case basis, taking into consideration all of the relevant facts. For example, in the context of trademarks, an IP lawyer can help an IP owner determine the legal strength and status of a trademark registration to identify the risk of a third party claiming ownership over a similar trademark.

Taking another example, in the context of patents, an IP lawyer can assist an IP owner to properly draft a patent claim because the value of a patent mainly depends on the scope of its claims (i.e., whether the claims are valid and enforceable). An IP lawyer can also help determine whether existing IP assets owned by third parties could block the development or effective use of a borrower’s IP assets.

In terms of trade secrets, an IP lawyer could help an IP owner determine the measures necessary to protect confidential information and reduce the risk of unauthorized disclosure.

Many organizations, including Thailand’s Department of Intellectual Property, are studying how to effectively value IP. Once IP valuation is effectively standardized, lenders will associate less risk with using IP assets as collateral, and the practice should become more common.

Download Full Article
Related Professionals

Practices

Intellectual Property

Location

RELATED INSIGHTS​ 

November 13, 2025
Tilleke & Gibbins has contributed the Thailand chapter to Franchise 2026, part of the International Comparative Legal Guides (ICLG) series published by Global Legal Group. This annual guide offers comparative analysis of franchise laws and regulations across jurisdictions worldwide, providing practical insights for businesses and legal practitioners operating in the global franchise sector. Each country chapter in the 12th edition follows a Q&A format covering key aspects of franchise law and operations, including: Relevant legislation and rules governing franchise transactions Business organization options for franchised operations Competition law considerations Protection of intellectual property and brands Liability issues and risk mitigation Governing law and dispute resolution Real estate matters Online trading regulations Termination requirements Joint employer risks and vicarious liability Currency controls and taxation Commercial agency considerations Good faith obligations and fair dealing requirements Ongoing relationship management Franchise renewal processes Franchise migration procedures Sustainability commitments Electronic signatures and document retention Current developments in the franchise sector The Thailand chapter, authored by Alan Adcock and Kasama Sriwatanakul, provides an in-depth overview of the legal landscape for franchising and franchising-related activities in Thailand. The complete Thailand chapter is available as a PDF below. The Thailand chapter—and the full Franchise 2026 guide—are also freely available on the ICLG website.
Read More
October 26, 2025
AI-generated songs are now making waves in Vietnam on platforms like TikTok, with tracks such as “Say mot doi vi em” quickly gaining popularity and sparking widespread attention. This phenomenon raises a host of legal and ethical questions: Who is the author of these songs? Can they be protected by copyright? Who is responsible if there is an infringement? These questions are becoming increasingly urgent as AI music becomes more mainstream in Vietnam. Copyright Protection for AI-Generated Music in Vietnam Under current Vietnamese law, copyright protection is reserved for works that bear the mark of human creativity. The 2022 amendments to Vietnam’s Intellectual Property Law reaffirm that only works created by humans are eligible for copyright. In practice, if a human meaningfully contributes to the creative process—by providing prompts, making selections, editing, or arranging—their contribution may be protected. However, if a song is generated entirely by AI without significant human input, it is unlikely to qualify for copyright protection. When an AI-generated song does not qualify for copyright protection, the question arises as to whether the person who writes the prompts, edits, or compiles the work can still be considered the owner of an asset under the Vietnamese Civil Code. According to Article 105 of the Civil Code 2015, assets include objects, money, valuable papers, and property rights. While AI-generated music that is not protected by copyright is not considered money or valuable papers, it may be regarded as an object (in the form of a digital file or recording) or as a property right if it can be possessed, used, transferred, or exploited for value. Use of AI-Generated Works Without Copyright Protection If a song is not protected by copyright, does that mean anyone can use it freely? Not necessarily. The absence of copyright does not mean the
Read More
October 24, 2025
Thailand currently lacks a specific franchise act. Consequently, the legality of any franchise agreement is determined by its compliance with various existing laws, such as the Civil and Commercial Code, the Trademark Act B.E. 2534 (1991) (as amended), and the Unfair Contract Terms Act B.E. 2530 (1997). Thailand is a freedom-to-contract jurisdiction. This allows for a high degree of flexibility and autonomy in contractual arrangements, provided that the terms do not violate any laws or public policy and do not fall under the scope of unfair contract terms. Given this, the requirement for fairness in franchise agreement terms often leads to uncertainty, but decisions from the Trade Competition Commission of Thailand (TCCT) can provide guidance on whether specific contentious terms are in fact fair.  One issue worth examining in this light is the inclusion of terms on nonrefundable franchise fees and strict purchasing conditions. Franchise Fee: Unfair to Refuse Refund? Nonrefundable franchise fees represent a significant upfront investment for franchisees, often becoming a point of contention if the franchise relationship deteriorates or the franchisor ceases operations. Their fairness and enforceability are frequently scrutinized by regulatory bodies like the TCCT, highlighting the critical balance between contractual freedom and franchisee protection. Faced with one such case, the TCCT considered whether it was unfair for the franchisor to refuse to refund the franchise fee after the franchisor ceased operations.  The franchisee had entered into a service agreement on August 2, 2021, and begun operating on October 9, 2021. However, by November 21, 2023, the franchisee was notified that the system would be shut down for maintenance, and by December 26, 2023, the franchisor announced the cessation of operations due to financial losses. The franchisee then requested a refund of the franchise fee. Unfortunately for the franchisee, the TCCT found that the franchisor’s
Read More
October 23, 2025
Myanmar’s customs authorities have introduced new procedures allowing copyright holders to protect their intellectual property from infringing goods at the border. The Ministry of Finance and Revenue issued Notification No. 107/2025 on September 11, 2025, establishing rules and requirements for customs recordation under the Copyright Law of 2019. The notification includes eight official forms for copyright-related customs matters—three for applicants and five for the Customs Department. This was followed by Customs Department Announcement No. 1/2025, dated September 29, 2025, which details the security required for suspended goods. Customs recordation provides a proactive mechanism for rights holders to prevent importation of pirated works. By registering their works with the Customs Department, rights holders gain access to enhanced border enforcement measures, empowering customs officials to identify and intercept pirated goods before they enter the market. While copyright protection in Myanmar arises automatically under the Copyright Law of 2019, a registration certificate for copyright or related rights is required to apply for customs recordation. Customs Recordation Registered copyright and related rights holders can apply directly or through authorized legal representatives for customs recordation to prevent cross-border trade in pirated works. Applications must use the prescribed form and include all supporting documentary evidence specified in the form. The Customs Department will notify applicants within 15 days of receiving their application. Each recordation remains valid for two years from the date of acceptance and may be renewed for successive two-year periods by submitting a renewal application at least 30 days before expiration. Rights holders whose works are recorded must notify the Customs Department within five days of any amendment or withdrawal of information at the Intellectual Property Department. Suspension Orders Registered copyright and related rights holders can request a suspension order to prevent release of pirated goods into free circulation, regardless of whether they
Read More