Measures to Promote and Support the Use of Intellectual Property as Business Collateral for Startup in Thailand

Abstract

A startup is a business model that uses innovation or technology to develop products or services that create added value and drive rapid growth. It also contributes to Thailand’s economic development. Many countries actively promote and support startups, particularly in accessing funding through the use of intellectual property (IP) as collateral. Although Thailand enacted the Business Security Act in B.E. 2558 (2015) to allow the use of IP as business collateral, Thai startups still face various challenges, such as limitations in using IP as collateral, restrictions that only permit financial institutions and designated entities to accept collateral, enforcement issues with IP as collateral, and legal ambiguities. These challenges differ from countries like England and the United States, where IP is widely used as collateral. Based on a comparative study of relevant laws in Thailand, England, and the United States of America, as well as an analysis of existing challenges and obstacles, the researcher proposes measures and strategies to promote the use of IP as business collateral more effectively. These include increasing support to enable startups to utilise IP as collateral, revising and improving relevant laws to facilitate IP collateralisation, and developing systems that maximise the utility of IP assets. Such efforts will enhance the ability of Thai startups to access funding efficiently and sustainably, increasing their competitive potential both domestically and internationally. Moreover, these initiatives will further support the use of IP in adding value to the national economy.