Supporting the Expansion of IP Financing

Recently, the Ministry of Finance and the National Intellectual Property Administration jointly issued a plan to build and deploy an intellectual property rights (IPR) management system in several selected cities across the country within three years, and to support key cities in broadening the financing channels for innovative entities, expanding the scale of IPR pledge financing, and promoting the securitization of intellectual property assets so as to effectively reduce financing costs for enterprises.

According to the plan, China will broaden financing channels for innovative entities and support them in improving their ability to utilize IP assets. It will increase support for innovation among small and mediumsized enterprises and start-ups, especially those impacted greatly by the COVID-19 outbreak. Besides, it will also encourage state-owned enterprises to share mature patented technologies with small and medium-sized businesses through free or lowcost licensing, so as to support the latter’s transformation.

According to the plan, each chosen city will be granted an amount of RMB 150 million from the central government.