Intellectual property and Make whole clause: Difference between pages

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(IP).
''US - securities''


Copyrights, patents, trademarks and other similar and related rights.  
A strong form of protection for lenders/investors in securities, designed to mitigate the adverse effects of call risk for investors.


Under a make whole clause the borrower/issuer has to value the cash flows beyond the date of the early call/redemption at the US government bond yield.


Intellectual property law is mainly about giving creators exclusive rights, for a limited period of time and to legally prevent others from using intellectual property, without permission.
This potentially makes it prohibitively expensive for the issuer to take an early redemption.
 
The consequence of a make whole clause for the investor is that they can re-invest the redemption monies in US government stock, thus preserving their originally expected cash inflows at lower risk.
 
 
Make whole clauses are similar in their effect to Spens clauses.




== See also ==
== See also ==
* [[Chattel]]
* [[Call risk]]
* [[Copyright]]
* [[Clause]]
* [[Federation Against Software Theft]]
* [[Security]]
* [[Goodwill]]
* [[Spens clause]]
* [[Intangible assets]]
* [[IPR]]
* [[Know-how]]
* [[Monetisation]]
* [[Patent]]
* [[Proprietary]]
* [[Real property]]
* [[Research & development]]
* [[Royalty]]
* [[Tangible asset]]
* [[Trademark]]
 
[[Category:The_business_context]]

Revision as of 19:28, 4 September 2017

US - securities

A strong form of protection for lenders/investors in securities, designed to mitigate the adverse effects of call risk for investors.

Under a make whole clause the borrower/issuer has to value the cash flows beyond the date of the early call/redemption at the US government bond yield.

This potentially makes it prohibitively expensive for the issuer to take an early redemption.

The consequence of a make whole clause for the investor is that they can re-invest the redemption monies in US government stock, thus preserving their originally expected cash inflows at lower risk.


Make whole clauses are similar in their effect to Spens clauses.


See also