China to Tighten Control over Financing by IPR Pledge and Assessment of Such Pledge

The Ministry of Finance, the Ministry of Industry and Information Technology, the China Banking Regulatory Commission, the State Intellectual Property Office, the State Administration for Industry and Commerce and the National Copyright Administration jointly released the Circular on Strengthening Financing by Pledge by Intellectual Property Rights, Assessment of Such Pledge and Supporting Development of Small and Medium-sized Enterprises (Circular).

The Circular encouraged the commercial banks to carry out credit businesses for small and medium-sized enterprises which own self-developed intellectual property, and to provide support in granting loans to small and medium-sized enterprises with pledge by intellectual property.

The Circular also urged the relevant authorities to support and guide the small and medium-sized enterprises to conduct financing by pledge by intellectual property, and to establish a platform for communication between small and medium-sized enterprises and such financial institutions as commercial banks, so as to raise the enterprises’ protection and utility of intellectual property rights.

(Source: Ministry of Industry and Information Technology)