There are various ways by which a company can raise funds. The easiest is through debt financing, that is creating debt securities. When a debt is created, a security equivalent to the debt amount is given by the debtor as “collateral.” The “collateral” can either be a tangible or intangible asset. Tangible assets are those which could be perceived by senses while intangibles include intellectual property rights of a company. Usually, the documents of IP rights are used to create security interest. The created IP sometimes will be again used to create a pledge, in that case, the question as to who will have the authority of the property is still not clarified in Indian laws. The paper tries to cover international principles that could be applied such rule of perfection to cater to the development of a solution.