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What are the advantages and disadvantages of equity in intellectual property rights

2026-07-24 03:021680NameNetworking

Legal issues related to the incorporation of intellectual property rights

Shareholding in intellectual property means a form of financing for shareholders or sponsors to invest in the company in which the intellectual property is invested and to obtain the corresponding shares. Let's talk about its pros and cons。

Legal issues related to the incorporation of intellectual property rights

At the legal level, article 27 of the companies law of the people's republic of china provides that shareholders may be financed in monetary terms or in monetary terms, in kind, intellectual property, land use rights, etc., and non-monetary property which may be valued in monetary terms and transferred in accordance with the law. Intellectual property equity allows shareholders to take full advantage of their own intellectual property rights and avoid resource idleness. For example, technocratic shareholders can take advantage of patented technology to obtain corporate equity and participate in the distribution of company profits without having to invest significant amounts of money. At the same time, for companies, the acceptance of intellectual property equity can provide access to intangible assets such as advanced technology or unique trademarks, enhance the core competitiveness of companies and enhance their market value。

Legal issues related to the incorporation of intellectual property rights

Let's talk about the bad. Value assessment of iprs is a challenge. Since the value of intellectual property rights is not as easily determined as physical assets, there may be overvaluation or underestimation. If the value is assessed too high, the interests of the other shareholders will be impaired; if the value is assessed too low, the interests of the intellectual property owners will not be adequately safeguarded. Moreover, there is a degree of prescription and uncertainty in intellectual property rights. For example, patented technologies may become obsolete as science and technology develop, and trademarks may be depreciated by market changes or torts. In addition, the companies law of the people's republic of china provides that shareholders financed by intellectual property rights shall, in accordance with the law, process the transfer of their property rights. If the intellectual property right is subsequently found to be flawed, such as unclear attribution of rights, and tort disputes, shareholders may be subject to corresponding legal liability, which may also pose risks to the company and other shareholders。

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