April 19, 2011

Securitization Moves Up the Agenda

World Trademark Review

The closing earlier this year of two major U.S. securitization transactions involving sizable trademark royalty components may finally provide the impetus for the lagging IP securitization market to take off. The USD 1.7 billion Dunkin’ Donuts securitization, which closed in May, was topped a few days later by a USD 1.8 billion deal involving KCD IP. Both deals involved securitization of trademark royalty receivables and related rights and may have provided the necessary comfort to professionals in the field to reconsider the viability of trademark royalties as a suitable asset class for future financings. This article analyzes the evolution and basic structure of IP securitizations, as well as the peculiarities of trademark securitizations.