Legal Question in Intellectual Property in Texas

Re: Collateralizing and Licensing

The short answer is the uniform commercial code, as adopted by the state where the transaction is going to occur. The problem is that the law in this area is quite technical, i.e., you need to prepare a security agreement that describes the collateral and grants a security interest (and with a lot of other terms) and then file forms with a state agency, the filing of which establishes the priority of the lien (much like a bank does when it records a motrgage to establish if it is a first or junior lien). Given the technicalities at stake, you need to be careful.