Part 2 Security over Moveable Property

Chapter 1 Pledge

Enforcement of pledge

71 Secured creditor’s right to grant licence over intellectual property
(1) A secured creditor who, by virtue of section 68(1), is entitled to sell intellectual property is entitled to grant a licence over all or any of that property, but only if and to the extent that the provider is entitled to grant such a licence.
(2) In granting a licence by virtue of subsection (1), the secured creditor must take all reasonable steps to ensure that the income obtained is the best reasonably obtainable.
(3) Any income obtained by virtue of subsection (1) is to be held in trust by the secured creditor until applied under section 77.
(4) The provider and the secured creditor may agree, whether before or after the pledge becomes enforceable by virtue of section 64(2), that subsection (1) is not to apply in relation to the intellectual property or some part of it.
(5) Any such agreement must be in writing.

S. 71 not in force at Royal Assent, see s. 121(2)
S. 71 in force at 1.4.2025 by S.S.I. 2024/378, reg. 2
Pt. 2 extended (with modifications) (1.4.2025) by The Moveable Transactions (Scotland) Act 2023 (Financial Collateral Arrangements and Financial Instruments) (Consequential Provisions and Modifications) Order 2025 (S.I. 2025/275), arts. 1(2), 5 (with arts. 6-20)