Collateral Protection Insurance


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Product Overview

       Collateral Protection Insurance (CPI) is a powerful new tool that your company can use to borrow money against the value of your patents, copyrights, trade secrets - without having to give up your hard-earned equity. The power of the CPI policy is that it turns your IP into insured collateral that banks or other lenders are quite comfortable accepting (banks have always been uncomfortable dealing with technology - technology asset analysis is not their expertise).

Note: the CPI policy is NOT a financial guarantee - it only insures the value of your IP while you are paying off the loan. If you default on the loan (and IPISC works with you to prevent this), the balance of the lender's loan is repaid. In parallel, the rights to the insured IP is transferred to IPISC and its insurance carriers, who resell the IP to a company better positioned to commercialize the IP, using the proceeds to cancel out the loan repayment.


Requirements to Qualify for a CPI Policy

To provide insurance companies and banks with the technology value guarantees that underlie your CPI policy, IPISC requires that your company satisfy the following conditions:

PATENT QUALITY.   Sad to say the vast majority of issued patents are invalid, usually because there is prior technology that anticipates your invention, or because the description of your invention in the patent is faulty. IPISC conducts its own exhaustive analysis of the quality of your patents - sad to say, we can't rely on the assurances of your patent lawyers that they obtained good patents for you. That is not a big concern for too many law firms. And yes, part of the CPI application process is a fee we charge for this analysis to be done.


Target Markets

Features & Conditions