China has been helping small and medium enterprises resolve their financing problems by using their intellectual property as collateral for loans to keep them in operation during the outbreak of novel coronavirus pneumonia, according to the country's top IP regulator.
"We've seen many SMEs suffering a financial strain due to the epidemic, so solving their financing difficulties should be the top priority," said He Zhimin, deputy commissioner of the National Intellectual Property Administration. "Using IP rights of the SMEs, especially those in technological industries, as collateral to aid them in getting loans is an effective solution."
"We opened a quick channel for SMEs to register for loans, trying our best to help them finish the registration within one working day online," he said. "If companies are engaged in producing epidemic supplies, we'll handle their registrations at the fastest speed to guarantee their loan issuance is not affected by the registration procedures."
The administration has also checked the demand for such loans and the abilities of SMEs to repay them, making sure to explain the IP collateral policy and offering relatively supportive services for them, according to He.
In Dongguan, Guangdong province, for example, a company producing medical supplies has alleviated its business burden after it successfully asked for a loan of 15 million yuan ($2.1 million) by pledging its three invention patents, he said.
He called for local IP departments to further promote the policy to help more SMEs overcome financing problems during the outbreak.
Total financing by pledging patents and trademarks in 2019 exceeded 151 billion yuan, helping almost 10,000 enterprises resolve their funding shortages, he added.
Kang Lixia, an IP lawyer in Beijing, said the policy will contribute to aiding some SMEs in resuming production, "but whether a company can apply for a loan from a bank and how much it will be given also depends on the value of its IP rights. Enterprises with high-quality IP rights will be able to get more loans sooner."
Source: China Daily
