Personal Property Securities Act commences 30 January 2012: 4 ways to prepare
In 2009, the Federal Government passed the Personal Property Securities Act (PPSA) which fundamentally changes the landscape for registration, determination of priority and enforcement of security interests in personal property in Australia. The PPSA establishes a new, single, searchable online register to record security interests in personal property in Australia. Under the PPSA, “personal property” includes registered and some unregistered intellectual property rights.
The PPSA is currently scheduled to come into substantive operation on 30 January 2012 (although legislation has recently been enacted to give the Attorney-General the power to postpone the commencement date to accommodate any unforeseen issues in the transition to the new register).
Be prepared: what you can do now
As the registration commencement date draws near, now is the time to be preparing your business to ensure it is able to comply with the requirements of the PPSA and is not left in a position where its current (and future) security interests are unenforceable or are subordinated to the rights of other security interest holders.
There are a number of things you can do now to ensure your business is ready to comply with the requirements of the PPSA by 30 January 2012, including:
- checking existing interests recorded on any of the IP registers to see whether they need to be registered under the PPSA and, if necessary, register them;
- checking all intellectual property-related agreements to see whether they involve a security interest and determine whether that interest can or should be registered on the Register;
- in relation to new intellectual property licence agreements, considering whether the creation of a security interest in the licence by the licensee should be an event of default; and
- in relation to all agreements which give rise to security interests, determining whether the enforcement provisions under the PPSA should be varied, as permitted by the Act.
For further information about the impact of the PPSA on your business, particularly in relation to its implications for your business’s IP assets, you can speak with a member of our commercial team: Darron Saltzman, Rodney De Boos and Timothy Creek.