| Intellectual Property Rights (IPRs) are a set of property rights that have economic value. Each of these rights serves as an asset or source of income for those who own it. As a property right, IPRs are able to function as collateral for borrowing funds from financial institutions like banks. This practice is common in many countries but not in Indonesia. Currently, all Indonesian banks only accept tangible assets as collateral to obtain loans. Accepting IPRs as loan collateral would be a great assistance to owners of Indonesian small-medium enterprises (SMEs), especially first starters. All SME owners need capital to finance their businesses and most of them expect to get the funds through bank loans. However, they rarely have tangible assets that can be used as loan collateral. Therefore, if banks accept their IPRs as loan collateral, SME owners would get the utmost benefits of IPRs. While the idea of using IPRs as loan collateral is beneficial, its realization in Indonesia requires a number of things to happen. At present, the Government of Indonesia (GoI) is preparing regulations that support the realization of this idea. In this preparation, it is understood that these regulations go beyond the sphere of IP law. |