China to Strengthen Intellectual Property Pledge Financing to Ease Financing Difficulties
China will strengthen intellectual property pledge financing and release relevant policies and documents in the near future, according to the National Intellectual Property Administration of China (CNIPA) on its 2019 regular press conference.
Intellectual property pledge is a financing activity that enterprises pledge their intangible assets including trademarks, patents and copyrights, which plays an important role in helping innovative SMEs to obtain funds, accelerate the application of their intellectual property and enhance their core competitiveness.
Statistics show that an increasing number of SMEs and micro enterprises are gaining financing support through intellectual property pledge financing. In the first half of 2019, newly added pledge financing of patents and trademarks nationwide amounted to 58.35 billion Yuan, and pledge projects totaled 3,086, an increase of 2.5% and 21.6% year-or-year respectively. China saw a year-on-year growth of 33% in the number of projects concerning patent pledge financing, among which 68.6% were microcredit with an amount of less than 10 million Yuan (including 10 million Yuan).
State Council executive meeting on June 26 called for expanding the use of intellectual property pledge financing to widen financing channels for private, micro, small, start-up and innovative businesses and ease their financing difficulties.
Zhao Meisheng, an official with the CNIPA, said that the CNIPA would strengthen coordination with the China Banking and Insurance Regulatory Commission and other departments to effectively help financial institutions like banks to establish and improve mechanisms concerning intellectual property pledge financing and guide the banking industry to establish credit examination and approval system and interest rate pricing mechanisms in line with the characteristics of intellectual property rights, so as to facilitate the development of innovative SMEs and micro enterprises through intellectual property pledge financing. Greater efforts would be made to expand guarantee insurance and other kinds of insurances concerning intellectual property pledge financing, and constantly improve the risk sharing mechanism; in addition, multiple measures would be taken to better align banks and enterprises and provide better pledge registration services, with an aim to continuously improving business environment and expanding the coverage of intellectual property pledge financing.
August 18, 2019
Source: Xinhua News Agency
Photo from: 6199pic.com