MORTGAGE OF COPYRIGHT AGREEMENT

Updated: Nov. 1, 2025

1. What is it?

A Mortgage of Copyright Agreement is a legal instrument in which a copyright owner pledges their intellectual property (such as a screenplay, film, music, or literary work) as collateral to secure a loan, investment, or other financial obligation. Unlike an outright assignment or sale, the copyright remains with the original owner (the “Mortgagor”) unless and until they default. If they do default, the lender (the “Mortgagee”) may foreclose on the copyright and assume ownership or control of the rights. This agreement is commonly recorded with the U.S. Copyright Office to put third parties on notice and establish priority of the lien. It’s a form of security interest tailored specifically to protect investors or lenders financing IP-heavy projects like films.

2. Who is it for?

This agreement is essential for parties investing in or loaning money against the value of intellectual property—especially in film, television, publishing, and music industries.

Common users include:

• Independent producers seeking to secure film financing

• Lenders or private equity investors providing capital for media projects

• Entertainment lawyers structuring collateral packages for deals

• Completion bond companies requiring a security interest

• Sales agents or distributors advancing funds against IP rights

• IP owners leveraging copyright to raise capital without giving up ownership

3. What does it include?

The agreement outlines the secured obligation (loan, advance, or other consideration), the copyright being mortgaged, the conditions of default, and the remedies available to the lender if the borrower fails to perform. It also typically includes representations and warranties that the Mortgagor owns the rights free and clear. The lender may record the agreement or a short form “notice of mortgage” with the U.S. Copyright Office to perfect their security interest and establish lien priority.

Key Sections Typically Include:

• Parties

  • Mortgagor (copyright owner/borrower)

  • Mortgagee (lender/secured party)

• Recitals / Background

  • Identifies the obligation being secured (loan agreement, financing contract, etc.)

  • Describes the IP being used as collateral

• Grant of Security Interest

  • Pledge of all right, title, and interest in the specified copyright(s)

  • Includes all derivative, ancillary, subsidiary, publishing, merchandising works

  • Covers all media and territories

• Collateral Description

  • Title of picture

  • Deposited work (e.g., screenplay, film, etc.)

• Remedies

  • Right to foreclose and assume ownership

  • Assignment of rights upon default

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