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Full-Text Articles in Law
The Puzzle In Financing With Trademark Collateral, Xuan-Thao Nguyen, Erik Hille
The Puzzle In Financing With Trademark Collateral, Xuan-Thao Nguyen, Erik Hille
Articles
If trademarks are important corporate assets, do banks and nonbanks lend against trademarks? Or do lenders accept trademark collateral merely as part of a blanket lien? Do banks and nonbanks treat trademarks differently than patents in lending, including venture lending? This first empirical study will attempt to answer these questions. We extract and analyze security interest filings in trademarks and patents against the backdrop of secured transactions law and banking regulations. Based on the data, it seems banks and nonbanks have an aversion for trademark collateral and, by practice, treat most trademarks as idle assets. We also argue that the …
Lessons From Case Study Of Secured Transactions With Bitcoin, Xuan-Thao Nguyen
Lessons From Case Study Of Secured Transactions With Bitcoin, Xuan-Thao Nguyen
Articles
There has been some discussion about the flaws in using secured transactions law, Article 9 of the Uniform Commercial Code (U.C.C.), to govern commercial transactions involving Bitcoins as collateral. Flaws necessitate the urgency of immediately fixing of the existing law. In the case of Bitcoins there is still much to learn about the marketplace for secured transactions with Bitcoins as collateral. The rapid change in technology, the speed of new ideas proposed, the constant announcements of adoption and adaptation of smart contracts in transactions, the volatility in cryptocurrency value, the endless reports of scams, and the rise of dark pools …
Disruptive Lending For Innovations: Signaling Model And Banks Selection Of Startups Innovations, Xuan-Thao Nguyen, Erik Hille
Disruptive Lending For Innovations: Signaling Model And Banks Selection Of Startups Innovations, Xuan-Thao Nguyen, Erik Hille
Articles
Startups desperately need funding. But lending to startups is too risky for banks. How can banks lend to startups whose cash flow is negative, tangible assets are nonexistent, and most valuable assets are patents? In light of the uncertainties, what can banks do in lending for innovations? In this Article, we turn to economic theory to demonstrate how banks can make their selections of startups, ensuring their returns and encouraging innovations. Specifically, we create a signaling model with partial separating equilibria to demonstrate how banks can address the information asymmetry problem by relying on a truth-telling signal in assessing the …
Patent Aversion: An Empirical Study Of Patents Collateral In Bank Lending, Xuan-Thao Nguyen, Erik Hille
Patent Aversion: An Empirical Study Of Patents Collateral In Bank Lending, Xuan-Thao Nguyen, Erik Hille
Articles
The most valuable assets of many companies today are patents. If patents are valuable, why do banks operating across the United States refuse to lend against patents in commercial lending to reduce their risks? Lending is the primary function of banks. Yet banks have a strong aversion to accept patents as collateral, rendering the vast number of patents as idle assets. This empirical study is the first to identify the patent aversion problem as contrary to the frequent headlines of how valuable patents are to the economy. By carefully extracting relevant patent and security interest filings data and examining the …