SIPO Pushes Further Implementation of Patent Pledge Financing

In support of China’s high-level innovation policies, the State Intellectual Property Office (SIPO) issued a work notice on patent pledge financing on October 24. SIPO calls upon further work in five main areas summarized below: 

  1. Expand coverage
  2. Focus on creating a mechanism to distribute risk and provide compensation 
  3. Strengthen the connection between projects and services provided 
  4. Improve the quality of risk management 
  5. Launch patent pledge registration pilots  

Through patent pledge financing, companies are able to access financing by pledging patents as collateral. SIPO issued the Opinions on Further Promoting Financial Services Relating to Intellectual Property Rights in 2015 calling for a deepening and expansion of IPR-related financial services. The Opinions also set a target of over RMB 100 billion in patent pledge financing by 2020.