It looks like the Guangxi Zhuang autonomous region has made good on a plan it announced in 2012, to double the number of patents in the region by 2015 by letting small to mid-sized tech-companies use a patent as loan collateral -- five companies in the city of Liuzhou, recently used their patents as collateral on a total of 42 million yuan ($6.86 million) in bank loans.
The original idea was to help small companies secure more R&D funds and, according to the local science and technology bureau, and the city has been working since March to reconcile intellectual property rights with finance capital. After a careful evaluation, it chose 11 patents out of 23 applications, and recommended them to local banks.
The number of patent applications grew 48 percent year-on-year, to 420, in the first half of this year, in Liuzhou alone. Currently the city has 1.15 patents for every 10,000 people.
Sun Songqiang, the bureau chief, has said that it is very important that companies become aware of the fact that assets, such as patents, can be turned into more tangible assets, and has explained that the main task of his bureau in the second half, is to train professionals who are good at both science and technology and finance to further capitalize on intellectual property rights.
“We’re also planning to work on regulation for borrowing against patents,” Sun concluded.
Edited by Lin Hong and Roger Bradshaw