Focusing on Protection and Financing, More Policies be Issued to in Intellectual Property

The National Intellectual Property Administration of China (CNIPA) disclosed at its press conference of the third quarter yesterday that documents on promoting intellectual property pledge financing would be issued in the near future and policies on intellectual property protection would be released in the second half of the year.

Experts said that intellectual property pledge and operation would develop in a rational direction with the support of a well-designed and reasonable mechanism of IP valuation, sophisticated measures of financial risk management and control, and a sound judicial environment.

Statistics show that in the first half of 2019, the amount of new pledge financing for patents and trademarks nationwide totaled 58.35 billion Yuan, up by 2.5% year-on-year, and the number of pledged projects was 3,086, an increase of 21.6% year-on-year.

"This reflects that the value of patents and trademarks is gradually recognized by the financial market, a trend supposed to be seen for a sound knowledge economy," said Liu Yinliang, professor of Peking University Law School, in an interview with ShangHai Securities News.

"The patent pledge financing projects grew at a rate of 33%, of which small projects with an amount of less than 10 million Yuan accounted for 68.6%. This shows that more innovative SMEs and micro enterprises have accessed financing support through intellectual property pledge, and that the application of intellectual property has become more efficient," said Hu Wenhui, spokesperson and director of the CNIPA.

Regarding the reason behind such a rapid growth of intellectual property pledge financing projects, Dong Dengxin, director of the Institute of Finance and Securities of Wuhan University of Science and Technology, said in an interview with ShangHai Securities News that "China’s great policy support for intellectual property pledge financing since this year has made the fast development in the first half of this year within our expectations."

Earlier this year, China’s State Council executive meeting at the end of June called for support in expanding intellectual property pledge financing; later, the China Banking and Insurance Regulatory Commission (CBIRC) also said that banks would make a dedicated credit plan in this regard this year.

Zhao Meisheng, deputy director of Application Promotion Department of the CNIPA, said at the press conference that the CNIPA would further strengthen coordination with the CBIRC and other departments to guide the banking industry to establish credit examination and approval system and interest rate pricing mechanism in line with the characteristics of intellectual property rights. Greater efforts would be made to expand guarantee insurance and other kinds of insurances concerning intellectual property pledge financing; in addition, multiple measures would be taken to better align banks and enterprises and provide better pledge registration services, with an aim to expanding the coverage of intellectual property pledge financing.

Intellectual property protection policies are also gaining momentum. Zhang Zhicheng, director of the Intellectual Property Protection Department of the CNIPA, said that in the second half of this year, relevant policies and documents would be introduced to provide more guidance to patent and trademark law enforcement, further crack down on patent infringement, strictly protect intellectual property rights, and create a better environment for innovation and business."

August 30, 2019

Source: ShangHai Securities News

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