Investors/ Lenders benefit - IP Audit Trail

In connection with an investment in or loan to a company, an investor or lender may require the company to participate in the IP Audit Trail Program.

The IP Audit Trail Program can be modified to give the investor or lender the right to receive releases or copies of Deposit Materials from the EscrowTech Depository. The company would not be allowed to have Deposit Materials removed from the Depository without the investor’s or lender’s approval.
In this manner, the investor or lender can better document and secure the intellectual property or technology on which it is basing an investment or loan. It makes it more difficult for the principals or management of the company to walk away from the company (leaving the investor or lender with a failed company) only to begin over again with a new company that takes advantage of the previous company’s intellectual property and technology.

Please note that depending on the level of protection and the procedures desired by the parties, a software or technology escrow may be a better alternative - see a description of EscrowTech’s escrow services