Legal impediments to the collateralization of intellectual property in the Malaysian dual banking system

• Main Authors: Azmi, Ida Madieha, Engku Ali, Engku Rabiah Adawiah
• Format: Article
• Language: English
• Published: Asian Journal of Comparative Law 2007
• Subjects: KBP Islamic Law
• Online Access: http://irep.iium.edu.my/28434/1/20130111162227296.pdf; http://irep.iium.edu.my/28434/; http://www.degruyter.com/view/j/asjcl.2007.2.1/asjcl.2007.2.1.1031/asjcl.2007.2.1.1031.xml

This paper examines the legal impediments facing the acceptability of intellectual property as collateral in Malaysia. As Malaysia practices a dual banking system, conventional and Islamic, both running parallel to each other, the position of intellectual property under the Islamic banking system will also be analysed. This, in turn, requires a deeper elaboration of principles relating to collateral security or rahn in Islamic law. The paper also proceeds to explore the suitability, acceptability and practical risks of allowing intellectual property as a form of security in comparison to "physical assets".