Cash pumped into key businesses

Intellectual property authorities around China have ramped up support for enterprises’ IP-collateralized financing to ease their pressures amid the novel coronavirus outbreak.

Earlier this month, the National Intellectual Property Administration issued several policies to help businesses resume production.

According to the policies, provincial and municipal IP authorities are called upon to encourage epidemic-affected businesses to collateralize their IP and secure loans from financial institutions. The policies detail that green channels should be established for the rapid approval of IP collateral registration.

In response, the Guangdong Administration for Market Regulation, also known as the Guangdong Intellectual Property Administration, in South China has made provincial investigations into emergency supplies and enterprises’ production status. It has given strong support to cash-strapped companies.

Among the beneficiary enterprises is Chunxia New Materials Tech, a manufacturer of nonwoven products in Dongguan, Guangdong province. Chunxia has filed 17 patent applications and 10 of them have been granted.

Due to the huge demand for face masks amid the ongoing novel coronavirus outbreak, the company’s orders have surged, leading to a shortage of liquid capital.

Having learned about the problem, the Dongguan intellectual property administration instructed Chunxia to register for collateral online and contacted superior offices to open up the green channel.

As a result, Chunxia got the patent-collateralized registration certificate one working day after its application was received. With three patents used as collateral, Chunxia secured a loan of 15 million yuan ($2.13 million) from the Dongguan branch of China Construction Bank.

The city’s IP administration has also offered interest subsidies. Chunxia only needs to pay half of the appraisal fees and premiums charged during the patent-collateralized application process.

Chen Xiwen, head of the Dongguan IP administration, said the city is committed to helping businesses raise capital and expand production in the fight against the epidemic.

An IP-collateralized financing platform has been built between banks and enterprises, Chen said. “The platform can effectively alleviate financial strain faced by medical products makers because of the lack of a real-estate mortgage.”

As for companies which received IP-collateralized loans before, the IP administration has checked over their financial condition to avoid risks such as the withdrawal or delay of lending due to the outbreak.

Other measures released by NIPA include giving priority to patent applications and trademark registrations related to the prevention and treatment of the novel coronavirus.