Document background
The Loan License Agreement serves as a specialized legal instrument under Philippine law, designed for transactions where financing is tied to the licensing of intellectual property or technology. This document is particularly useful when a lender, who also owns or controls valuable intellectual property, wishes to provide both financial support and IP rights to a borrower. The agreement must comply with Philippine financial regulations, including the General Banking Law of 2000 and the Truth in Lending Act, as well as the Intellectual Property Code of the Philippines. It typically includes detailed provisions for loan terms, interest rates, repayment schedules, security arrangements, scope of license, usage restrictions, quality control requirements, and termination conditions. This type of agreement is commonly used in technology financing, equipment leasing with proprietary technology, software licensing with financing components, or any scenario where intellectual property access is tied to financing arrangements.
