Got a security interest in a trademark, patent or
design? Well, listen up!
One of the best parts of the Personal Property Securities
Act 2009 (PPSA) coming into effect in 2012
was the two year transitional period that automatically protected
all security interests. The purpose of this transition period was
to let everyone have a little wiggle room whilst they got used to
the new PPSA environment. But, this period will expire on
30 January 2014, so it's time to consider what
Under the PPSA, if you want your security interest to be
enforceable, and give you priority over everyone else, it must be
perfected. It's not necessarily our definition of
"perfection", but, under the Act this occurs when your
security interest is registered on the Personal Property Security
Register (PPSR). Set up under the PPSA, the PPSR
is the web based record keeping system that deals specifically with
the registration and searching of security interests.
Thanks to the PPSA's automatic migration process, some
security interests with transitional protection have already been
registered on the PPSR, but many have not. One area not lucky
enough to be automatically transferred into the PPSR are the
security interests held over Intellectual Property
(IP) registered with IP Australia. This means it
is very important for those who have interests over IP (such as
trade marks, patents, designs, copyright and intellectual property
licences) to now perfect them before the transitional period
If your interest isn't perfected before 30 January 2014, you
your security interest ranking behind another creditor even
though your interest was created first; or
your security interest transferring to the person or entity who
granted you the interest if they become insolvent. If this happens,
you will have the same limited rights as an unsecured
After reading all this ... what should you do to make sure all
of your security interests are protected?
work out what security interests you hold;
identify any interests that would have been automatically
register all interests that weren't automatically migrated
across before 30 January 2014; and
going forward, make sure all relevant interests are registered
on the PPSR.
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quite proud of it really.
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