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Patent Security Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Patent Security Agreement

"I need a Patent Security Agreement under Hong Kong law to secure a HKD 5 million bank loan against my biotech patent, with the agreement to be effective from March 1, 2025."

Document background
The Patent Security Agreement is a crucial document in intellectual property financing transactions under Hong Kong law. It is typically used when a company needs to leverage its patent portfolio as collateral for securing loans or other financial obligations. The agreement must comply with both Hong Kong's intellectual property laws and security interest regulations, particularly the Patents Ordinance (Cap. 514) and Companies Ordinance (Cap. 622). The document details the specific patents being used as security, the secured obligations, maintenance requirements, and enforcement rights. It's particularly important in Hong Kong's business environment where intellectual property assets are increasingly used as collateral in commercial transactions, taking into account Hong Kong's patent system which operates on a re-registration basis with designated patent offices.
Suggested Sections

1. Parties: Identification of the Grantor (patent owner) and Secured Party, including full legal names and addresses

2. Background: Context of the security agreement, including reference to any underlying obligations or facility agreements

3. Definitions: Definitions of key terms used throughout the agreement, including 'Patent Rights', 'Security Interest', 'Secured Obligations'

4. Grant of Security Interest: Express creation and grant of the security interest over the patent rights

5. Secured Obligations: Definition and scope of the obligations being secured by the patent rights

6. Representations and Warranties: Grantor's representations regarding ownership, validity, and status of the patents

7. Covenants: Ongoing obligations of the Grantor regarding maintenance, protection, and exploitation of the patents

8. Further Assurance: Obligation to execute additional documents and take actions to perfect the security interest

9. Enforcement: Rights and remedies of the Secured Party upon default

10. Power of Attorney: Appointment of Secured Party as attorney-in-fact for certain matters

11. Notices: Process and requirements for giving notices under the agreement

12. General Provisions: Standard boilerplate provisions including governing law, jurisdiction, amendments

Optional Sections

1. Patent License: Terms for licensing the patents, used when the Grantor needs to continue using the patents

2. Security Interest in Proceeds: Provisions extending security interest to proceeds from patent exploitation, used when patent generates revenue

3. Cross-Border Provisions: Additional provisions for patents registered in multiple jurisdictions

4. Priority Arrangements: Provisions dealing with priority of security interests, used when multiple security interests exist

5. Intellectual Property Management: Detailed provisions for managing IP portfolio, used for complex patent portfolios

6. Release Provisions: Specific terms for releasing the security interest, used in complex financing structures

Suggested Schedules

1. Schedule 1 - Patent Rights: Detailed list of all patents and patent applications covered by the security interest, including registration numbers and jurisdictions

2. Schedule 2 - Secured Obligations: Detailed description of the secured obligations, including reference to any facility agreements

3. Schedule 3 - Existing Licenses: List of existing licenses and encumbrances affecting the patents

4. Schedule 4 - Filing Requirements: List of required filings in patent offices and other registries

5. Schedule 5 - Form of Patent Office Filings: Templates for required patent office forms and recordings

6. Appendix A - Power of Attorney Form: Form of power of attorney for patent-related matters

7. Appendix B - Notice of Security Interest: Form of notice to be filed with relevant patent offices

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































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Relevant Industries

Technology

Pharmaceuticals

Biotechnology

Manufacturing

Electronics

Telecommunications

Chemical Industry

Medical Devices

Automotive

Aerospace

Research & Development

Financial Services

Relevant Teams

Legal

Intellectual Property

Finance

Treasury

Research & Development

Corporate Secretarial

Risk & Compliance

Technology

Innovation

Patents

Relevant Roles

Chief Legal Officer

Intellectual Property Counsel

Patent Attorney

Chief Financial Officer

Finance Director

Corporate Lawyer

General Counsel

Security Trustee

Compliance Officer

Chief Technology Officer

Research & Development Director

Innovation Manager

Company Secretary

Risk Manager

Intellectual Property Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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