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The Trademark Trap, Aneta Ferguson

Aneta Ferguson

The currently existing scheme of two filing systems for recordation of security interests in trademarks causes a lot of legal uncertainty and numerous problems for lenders and trademark owners. The uncertainty about the rules of perfection and priorities increases costs associated with financing transactions involving trademarks and contributes to the complexity of those transactions. The empirical study of the security interests in trademarks shows that fifteen percent of creditors failed to fulfill the requirements of the currently existing dual filing system and as a consequence are left in a position of unsecured creditors. Legislative reform is very urgently needed in …