Thai regulators have recently launched a joint IP financing program to encourage Thai businesses to leverage their intellectual property (IP) as another type of collateral when seeking credit or raising funds. This development marks a significant step by the Thai Government toward addressing long-standing challenges, such as the valuation of IP assets and the lack of an established market for IP transactions. To help stakeholders navigate this evolving landscape, it is crucial to understand how the current legal framework actually operates, particularly the business security regime, as well as the practical considerations involved in creating security over IP rights.

For many businesses — especially SMEs and creative industry players — IP assets represent significant business value, but they have been difficult to use as collateral. A similar program was introduced more than a decade ago but faced various challenges. This new initiative signals that regulators are now committed to supporting IP-backed financing. We could expect clearer rules on IP valuation, greater awareness among lenders, and new opportunities for businesses to unlock capital from their intangible assets.

The Business Security Act B.E. 2558 (2015) ("Business Security Act") permits the creation of security over various types of intellectual property. Eligible assets include:

• Patents under the Patent Act B.E. 2522 (1979) (as amended), including patents (which could be protected for up to 20 years), petty patents and registered product designs (which could be protected for up to 10 years).
• Trademarks and service marks under the Trademark Act B.E. 2534 (1991) (as amended), which are directly tied to product/service reputation and customer recognition.
• Copyrights under the Copyright Act B.E. 2537 (1994) (as amended), which are particularly relevant in Thailand's creative industries, including films, TV series, music, software, applications, and other artistic works or creative content. Although copyright protection arises automatically, formal copyright recordal is strongly recommended, as it provides an official record of copyrighted works and facilitate valuation in financing transactions.
• Trade secrets protected under the Trade Secrets Act B.E. 2545 (2002) (as amended), which can, in principle, be used as security under the Business Security Act. However, they could face challenges to assess their value for financing purposes as there is currently no registration or recordal system available for this type of IP.
    

The Business Security Act provides a comprehensive framework for creating security over assets, including IP, without requiring the physical delivery of those assets. In order to create business security over IP, the parties must enter into a "business security agreement" in writing (BSA) and register the same with the Business Security Registration Office (BSRO) under the Department of Business Development, the Ministry of Commerce.

Registration is critical to ensure enforceability and establish priority among creditors. An earlier BSRO registration takes precedence over later registrations, regardless of any recordal and registration with IP offices.

BSA registration can be completed online via the BSRO's system at https://esecured.dbd.go.th/esecure-home/index.xhtml. The security receiver must submit all required information in Thai, such as the names of the parties, the secured debt, the list of secured assets, the maximum amount secured, and enforcement events. For registered IP, the submitted information shall also include the type of registration, application and registration numbers, and the relevant IP office.

The fee for BSA registration is at the rate of 0.1% of the secured amount, but not exceeding THB 1,000 (approximately USD 30) under each registration.

Only "financial institutions" and those specifically designated under a ministerial regulation can accept business security as secured creditors under the Business Security Act. Financial institutions in this context refer to "financial institutions" under the Financial Institution Businesses Act B.E. 2551 (2008), as amended (namely, commercial banks, finance companies, and credit foncier companies, in Thailand), insurance companies under Thai insurance laws, and specific banks or financial institutions under specific laws. Foreign financial institutions without a branch in Thailand are not eligible to take business security under this regime, unless they participate in a loan syndication with Thai financial institutions.

Registration with IP offices is not required to perfect security under the Business Security Act. However, it is strongly recommended to ensure that the relevant IP is registered/recorded with the Department of Intellectual Property (DIP) before completing BSA registration. For trademarks/service marks and patents, IP registration is mandatorily required to establish valid legal ownership, while voluntary copyright recordal provides initial evidence of ownership. Proper IP registration/recordal also facilitates accurate identification of the secured assets in the BSA registration.

IP valuation is a critical enabler for IP-backed financing in assessing a reasonable and fair value for the assets. Unlike real estate or other tangible assets, IP value depends heavily on relevant existing business value, revenue potential, market position, enforceability, and commercial viability. This makes objective valuation challenging. In Thailand, there are still relatively few experts in IP valuation, but guidelines for IP valuation have been developed by the DIP, the Valuers Association of Thailand, and the Thai Independent Appraisers Association, to standardize practices and enhance the quality of IP valuations.

To assess the value of IP, one or a combination of the three recognized valuation approaches, namely the income approach, the market approach, and the cost approach, typically applies:

• The income approach estimates value based on the present value of future economic benefits expected to be generated from the IP, such as royalties, licensing revenue, or other commercialization. This approach is often preferred because it reflects the IP's earning potential.
• The market approach derives value by reference to comparable transactions involving IP assets. However, reliable comparable transactions may not always be available due to the confidential nature of many IP transactions.
• The cost approach considers the costs incurred to create/develop the IP, but may be less reliable because such costs do not necessarily correlate with the IP's commercial value or future economic benefits.
    

Before accepting IP as security, the security receivers need to conduct thorough due diligence.

• Check status and ownership: Search official IP registries to verify validity, remaining term of protection, and ownership. Review the chain of assignments if the IP was acquired from someone else.
• Look for encumbrances: Search the BSRO registry for existing security over the IP. Review IP office records for any recorded encumbrances or licenses. Identify exclusive licensing agreements that might limit the IP's value. Look into any pending litigation, ongoing or threatened oppositions, cancellations/invalidations, infringement claims, or other disputes that could affect the IP. Check if the IP owner has already used this IP as security elsewhere.
• Assess commercial value: Evaluate market demand for products or services using the IP. Assess the competitive landscape and potential infringement issues. Review the revenue history from licensing or commercial exploitation. Consider industry-specific risks that could affect IP value.
    

Thailand's DIP is advancing its IP finance initiative to help businesses unlock the value of IP and improve access to funding. The initiative aims to establish an ecosystem connecting IP owners, financial institutions, investors, valuers, and government agencies, while strengthening market confidence in IP valuation and financing.

As part of this effort, the DIP recently conducted specialized training in June 2026 on "Unlocked IP Finance and IP Valuation" for stakeholders across the public and private sectors. The initiative supports the Ministry of Commerce's policy of enhancing business competitiveness through intellectual property, with Thailand currently holding more than 1.27 million registered IP rights.

Looking ahead, the DIP plans to launch an "IP Finance Thailand Pilot Project" to test IP valuation and financing mechanisms in real-world settings. The pilot will initially focus on high-potential sectors, including healthcare, food, digital innovation, and AI, before expanding to other industries. The DIP is also working with the World Intellectual Property Organization (WIPO) to seek support for strengthening Thailand's IP finance infrastructure through international expertise, case studies, localized training materials, and potential joint certification programs. These efforts are intended to enhance market confidence, promote best practices, and broaden funding opportunities for IP-driven businesses in Thailand.

Thailand's push for IP‑backed financing is expected to spur clearer valuation standards, increased lender participation, and greater attention to proper IP registration/recordation and portfolio management. As the ecosystem matures, businesses — especially those with well-known brands, strong brand protection, patented inventions or product designs, technology, or creative assets — will likely see more practical opportunities to unlock capital from their intangible assets.

IP can now play a more meaningful role in securing financing, but success depends on clear ownership, credible valuation, and careful due diligence. Businesses that proactively strengthen their IP portfolios and prepare commercial evidence will be better positioned to benefit from these emerging IP‑based funding opportunities. Early preparation and strategic IP management can provide significant advantages to businesses by enhancing the value, credibility, and financeability of their IP assets and supporting long-term/future growth.

1 Source: Ministry of Commerce, "พาณิชย์"ขับเคลื่อน IP Finance ผลักดันแปลงทรัพย์สินทางปัญญาเป็นเงินทุน, available at https://chainat.moc.go.th/th/content/category/detail/id/112/iid/170089

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Pattarin Taechamahapun, Metas Sansuk, and Chanaporn Anurukwongkul, Associates, have contributed to this legal update.