Exploring models for multi-dimensional and complementary intellectual property pledge financing -
By virtue of a hong kong patent in china, in january 2022, wrtc finance and electronics inc. (hereinafter referred to as wrtc) successfully secured a loan of $5 million in guangzhou, the country's first case of intellectual property pledge financing。
The successful landing of the case is the best footnote to guangzhou's innovative intellectual property pledge financing initiative and to the promotion of a multi-complementarity intellectual property pledge financing model. “in recent years, guangzhou city's innovative model of intellectual property financial services has led to a rapid and efficient transformation of `know-how' to `assets', and has moved beyond a high-quality intellectual property development path, which has strongly underpinned economic and social development.” the relevant head of guangzhou city's intellectual property authority said。
Combined boxing to solve financing difficulties
“this has not only brought financial `live water' to businesses, but has also provided a precursor and model for the use of hong kong/australian intellectual property rights (hong kong/australian intellectual property rights) as collateral financing for other enterprises in guangzhou and beyond.” yang xu, senior deputy general manager of telegraph, said in an interview with the chinese intellectual property newspaper。
Many enterprises, such as the world wide express, rely on intangible assets for “gold and silver”, which is the result of the guangzhou city intellectual property authority's policy of “combinant boxing” to break down intellectual property pledge financing. In recent years, guangzhou has published the “xivv” plan for the protection and use of intellectual property in guangzhou city, which incorporates intellectual property pledge financing into special programmes; revised the “practice for the management of funds dedicated to intellectual property work in guangzhou city” to include patents, trademarks, geographical indications, the design of integrated circuit layouts, etc., in risk-sharing mechanisms; and revised the “promote for the further enhancement of the application and protection of intellectual property rights” to encourage enterprises to use intellectual property for pledge financing。
“in order to further enhance the capacity of intellectual property pledge financing services, guangzhou has focused on leveraging the strengths of intellectual property service providers to encourage them to provide intellectual property financial services to enterprises.” the head of the department of intellectual property of guangzhou city explained that guangzhou had stepped up its training in intellectual property pledge financing through its initiative on preferential access to capital financing for intellectual property, and had helped park enterprises, financial institutions and service providers to learn more about support policies, financing channels, processing processes, etc. In 2022, guangzhou co-organised more than 30 events on the interpretation of intellectual property pledge financing policies, business announcements and the matching of silver companies, covering 23 parks, with more than 50 participating financial institutions and 1,600 training enterprises。
Slow multi-modal resolution process
Between 2021 and 2022, guangzhou patent and trademark pledge financing amounted to 26,770 million yuan, with over 1,500 pledge financing projects benefiting more than 1,400 enterprises ... A set of data highlights the remarkable success of guangzhou intellectual property pledge financing。
The director of intellectual property of guangzhou city made a presentation: “the rapid advance of intellectual property pledge financing is closely linked to the city's model of multi-dimensional and complementary intellectual property pledge financing, which is complemented by three models of `government and finance' cooperation, `government and finance' cooperation and risk compensation fund cooperation, and effectively solves the difficulties of slowing down the pledge financing process.”
The “government and finance” model of cooperation is supported by the government, whereby commercial banks interact directly with business; the “government and finance” model of cooperation is supported by the government to reduce the cost of financing, service providers are supported to improve the efficiency of financing and the bank is able to achieve rapid financing; the “risk compensation fund” model of cooperation is used to share the risk of commercial bank debt through an intellectual property risk compensation fund, raise the credit lines of commercial banks for intellectual property rights, and help science, technology and small and medium enterprises finance through intellectual property。
The case of the 5 million yuan bank credit support provided to the world wide line is a successful example of the “government and finance” cooperation model. In 2021, merchandise and five subsidiaries under its banner received a total of $122 million in credit support using 36 patents for pledge financing. “in 2008, the company established a wholly-owned subsidiary in the hong kong region of china, which has nearly 80 hong kong patents in the financial field.” yang xue, in 2019, the guangzhou development zone (preliminary) scheme for promoting mutual recognition of intellectual property rights in hong kong and australia was published, proposing 10 policies that would facilitate mutual recognition of intellectual property rights in hong kong and australia, which would provide a policy basis for the use of hong kong patents for pledge financing in the interior of hong kong, and eventually led to the landing of the country's first-class intellectual property pledge financing case。
“compensation payments” to address high-risk situations
“in 2020 and 2022, companies received $60 million in loans through 13 patents pledged, effectively addressing the financial constraints posed by the lack of real estate guarantees for sti-based smes.” in an interview with the newspaper's journalist, vice president xie peng, billion air smart holdings ltd. (hereinafter called billion air smart) said:。
In recent years, guangzhou has been constantly developing a cooperative model of mechanisms for compensation for the risks of intellectual property pledge financing, which can compensate banks for losses in pledge financing and significantly increase banks' motivation to participate in pledge financing, using this model to pledge multiple patents. It is a scientific and technical enterprise engaged in the development of smart autopilots and has a large number of core patents in the field of autopilots. “the company's financing model is the cooperative venture fund model, which effectively revives an enterprise's intangible assets through a pledge of intellectual property rights, adding value to its continuous innovation.” according to xue peng, intellectual property pledge financing not only greatly increases the efficiency of financing for companies, but also reduces the cost of financing, which is of great value to stis。
Risk compensation mechanisms provide risk compensation for intellectual property pledge financing and induce financial institutions to support the use of intellectual property rights by msmes. As early as 2016, the city of guangzhou established an intellectual property pledge financing risk compensation fund to compensate cooperative banks for part of the risk losses incurred in carrying out intellectual property pledge financing services for msmes。
In order to improve the risk compensation mechanism, the city of guangzhou recently introduced the measures for managing the risk compensation mechanism for the financing of intellectual property mortgages in guangzhou city (hereinafter referred to as the scheme), with a total annual subsidy of up to 50 million yuan. The scheme regulates, inter alia, the operation and management of compensation mechanisms for the risk of deposit financing of intellectual property in guangzhou city, specifying the general rules of the compensation mechanisms, the subject and conditions of compensation and criteria, work protocols, supervision and management。
The relevant head of the department of intellectual property of guangzhou city stated: “the scheme regulates the management of risk compensation mechanisms, helps to optimize the operating environment for intellectual property and reduces the risk of collateral financing of intellectual property by financial institutions, which is important for economic growth, employment, scientific and technological innovation and social harmony.”
“in the future, guangzhou will continuously refine its policy system, optimize its service platforms and upgrade its service levels, continuously explore multiple and complementary models of intellectual property pledge financing, turn an enterprise's intangible assets into tangible value and reinvigorate its innovation. "the above-mentioned official states. (reporter feng fei)
