1E9Ct5D

Creditor protection: PersonalProperty Securities Act and securityinterestsThe Personal Property Securities Act1999 sets out a regime for creatingand enforcing security interests inpersonal property. Personal propertyis essentially all property otherthan land (and a few other specificexceptions). A security interest underthe Personal Property Securities Actis an interest in personal property,created or provided by a transactionthat, in substance, secures payment orperformance of an obligation, withoutregard to the form of the transactionand without regard to the person whohas title to the collateral.In order to protect a secured party’spriority to personal property, thesecurity interest must “attach” to thepersonal property and a secured partymust “perfect” the security interest inthe personal property.Attachment occurs when the debtorenters into a valid security agreement.In order to be valid, the securityagreement must:(a) be signed or agreed to in writing bythe debtor;(b) contain a description of the personalproperty to be secured so that it isreasonably capable of identification;and(c) create the security interest or chargeover the personal property.Generally, perfection of the securityinterest occurs when the secured partyregisters a financing statement on thePersonal Property Securities Register(“PPSR”). The PPSR is an online registercontrolled by the Registrar of PersonalProperty Securities.The Act sets out priority rules andenforcement options for securedparties. Priority is determined by orderof perfection, although there are anumber of specific priority rules whichmodify this general rule.Intellectual propertyThe Intellectual Property Office ofNew Zealand is responsible for theregistration and administration oftrade marks, patents, designs and plantvariety rights.New Zealand is a signatory to severalinternational treaties and conventionsin relation to intellectual property,including the Patent Co-operationTreaty, the Paris Convention, the BerneConvention, and the Agreement onTrade-Related Aspects of IntellectualProperty Rights (TRIPS).Trade MarksRegistration of a trade mark underthe Trade Marks Act 2002 confersthe exclusive right to use the mark inrelation to the registered goods andservices. New Zealand uses the NiceClassification System so trade markscan be registered in one or more of the45 classes of goods and services underthat system.The register is publicly available andregistration lasts for a term of 10years (from the date of application orconvention priority date) and can berenewed every 10 years.PatentsA patent granted under the Patents Act1953 grants the registered proprietor ofan invention the exclusive right to useand license the invention during the termof the patent (a monopoly). Patents aregranted for a maximum term of 20 years,provided renewal fees are paid.21