Capitalizing Trademarks as Security: The Canadian Trademark Finance Perspective
Eslam Shaaban and
Janice Denoncourt ()
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Eslam Shaaban: Faculty of Law, University of Ottawa, Ottawa, ON K1H 8M5, Canada
Janice Denoncourt: Nottingham Law School, Nottingham Trent University, Nottingham NG1 4FQ, UK
Laws, 2024, vol. 13, issue 6, 1-28
Abstract:
Canada’s world-renowned banking sector is well- regulated, capitalized and one of the world’s most stable. It meets the essential pre-conditions for intellectual property (IP) finance methods such as a strong IP regime and a pool of firms with registered trademarks. In 2018 Canada launched its National IP Policy followed by certain IP finance initiatives led by the Canadian Business Development Bank (BDC) in 2019. However, it is not well understood how the Canadian Constitution structures economic relations. Certain longstanding federal and provincial issues remain to be addressed if trademark-backed finance is to become part of mainstream commercial lending in Canada. This article contributes to the nascent academic interdisciplinary trademark law and finance literature. An in-depth literature review highlights the existing gaps between the Canadian federal and provincial legal frameworks that govern security interests in trademarks, and market needs. The traditional legal research methodology evaluates the impact of relevant case law, public policies and law practice, adopting finance, economic and IP rights theory perspectives. A digital shared ledger system technology law solution is proposed to enhance registration of security interests with the aim of making trademark finance in Canada more effective and efficient. This article is foundational in the sense that it paves the way for recommendations for new policies with a view to normalising trademark-backed debt finance processes in Canada.
Keywords: block chain; capital adequacy; collateral; constitution; finance; intangibles; intellectual property; personal property security register; shared ledger technology; trademarks (search for similar items in EconPapers)
JEL-codes: D78 E61 E62 F13 F42 F68 K0 K1 K2 K3 K4 (search for similar items in EconPapers)
Date: 2024
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