{"ok":true,"canonical_url":"https://dealroom.so/glossary/patents","api_url":"https://dealroom.so/api/public/glossary/patents","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"patents","term":"Patents","group":"Reading the business","definition":"Patents protect inventions, giving the owner exclusive rights. If the business relies on patented technology, you need to verify ownership and transferability during due diligence.","what_it_means":"If the business you're acquiring has patents, these are valuable intangible assets. During due diligence, confirm the patents are valid, owned by the seller, and properly maintained. Ensure the purchase agreement includes a clear assignment of all intellectual property, including patents, to your new entity. This protects your right to use and benefit from the technology.","url":"https://dealroom.so/glossary/patents","official_sources":[],"related":[{"slug":"intangible-asset","term":"Intangible asset","url":"https://dealroom.so/glossary/intangible-asset"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"legal-structure","term":"Legal structure","url":"https://dealroom.so/glossary/legal-structure"}],"related_questions":[{"question":"Does the SBA require a lien on intellectual property, like trademarks or patents, as collateral?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-require-a-lien-on-intellectual-property-like-trademarks-or-patents-as-collate"},{"question":"Can an SBA 7(a) loan finance the purchase of intellectual property, like patents or trademarks?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-the-purchase-of-intellectual-property-like-patents-or-trademar"},{"question":"Are patents or trademarks eligible collateral for an SBA 7(a) loan for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/are-patents-or-trademarks-eligible-collateral-for-an-sba-7-a-loan-for-a-business-acquisiti"},{"question":"Are intellectual property assets, like patents or trademarks, acceptable collateral for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/are-intellectual-property-assets-like-patents-or-trademarks-acceptable-collateral-for-an-s"},{"question":"Can an SBA 7(a) loan be used to purchase intellectual property like patents or trademarks?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-intellectual-property-like-patents-or-trademarks"},{"question":"For a business heavily reliant on patents or trademarks, can that intellectual property be used as primary collateral?","url":"https://dealroom.so/sba-7a/questions/for-a-business-heavily-reliant-on-patents-or-trademarks-can-that-intellectual-property-be-"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Patents","url":"https://dealroom.so/glossary/patents","source_type":"DealRoom Data"}}