[perspective1]

So did Magic Leap default, or is the loan newly made with JPM to hold the patents while the loan is outstanding? Seems like the IP in this case isn't very valuable to JPM* and this is more just another way to guarantee the seniority of JPM's loan.

* Didn't read the patents themselves, but Oculus, Hololens and others are doing just fine without them. So, hard to imagine they have too much auction value.

[berberous]

It looks like Magic Leap just closed on a new loan in August, not that they defaulted. This filing ensures that if they ever _do_ default, JPM has the rights it expects in the IP as collateral.

[cinquemb]

There's HQLA like treasuries as collateral, and then there is Magic IP paper as collateral.

Amazing collateral chain these days… anything to keep origination pipelines up, hopefully JPM can securitize enough of this and offload it to a yield chasing pension or something.

Maybe the employees can sell what hasn't been collateralized yet on platforms like: https://softbankfiresale.com/

[kguttag]

I'm not a lawyer, but my understanding that the effectively J.P. Morgan now owns the patents (unless a court somehow unwinds the deal) and why the assignment was registered with the USPTO. The patents are then being licensed back to Magic Leap. In this way if Magic Leap defaults, J.P. Mogan simply owns the I.P. like if you pawn something and default on the payback terms.

[berberous]

No, this is a short-form IP security agreement that's customarily used by a secured lender to perfect its security interest in IP collateral. If you want more details, this page explains why these forms are necessary: https://www.whitecase.com/publications/article/perfecting-se....

Ownership does not transfer to the secured lender as a result of this filing.

[egdod]

> The patents are then being licensed back to Magic Leap.

Do you have any evidence for that idea, or are you just making things up?

[jonas21]

At the very top of the PDF, it says this is a patent security agreement, which is a common way to use patents as collateral for a loan. JP Morgan will only own the patents if Magic Leap defaults on the loan.

You can read more about patent security agreements here:

https://www.ipwatchdog.com/2012/06/21/getting-a-loan-with-yo...

[ineedasername]

It looks like the IP was simply collateral. So as long as Magic Leap repays the loan, they still own the IP. Well, as much as you own a house that has a mortgage anyway.