Model of the legal framework for secured transactions backed by intellectual property assets: International experience and recommendations for Vietnam

Abstract

Lending secured by intellectual property assets is now considered a channel with great potential to solve the difficulties in access to finance for small and medium enterprises; it also helps maximize the value of intellectual property assets. However, compared to other countries within the ASEAN area or worldwide, intellectual property-based lending in Vietnam started later and developed more slowly, partly due to the lack of an adequate legal framework to promote this type of lending. This article addresses two issues: 1) What are the necessary elements of the legal framework for secured transactions backed by intellectual property assets? 2) To what extent are these elements present in the current Vietnamese law? The article affirms that the legal framework for secured transactions backed by intellectual property assets in Vietnam is generally adequate and favorable; however, it needs further improvement in order to promote lending secured by intellectual property assets and to meet the need for access to finance of small and medium enterprises in the digital economy.