A Legal Study On Intellectual Property Financing And Recommendations

"Intellectual property"was only a vase in the corporate tractions, but now is getting more and more important in the modern business world. It is almost the whole point of the most important deals around the world. Following the trend, there are legal impediments to the access to capital for business generally and the high tech industry, in particular, in their ability to borrow money on the basis of collateral consisting of intellectual property assets.This problem is much more clear and serious in the".com"business. Intellectual property is the sole asset of many new businesses and the principal asset of many substantial and established enterprises. The existing legal system is based upon real property and traditional personal property, like factories and equipments, and those legal systems is helpful to secured debt finance based upon real property and traditional property. However, those legal systems are happened to be the barriers to the secured debt finance based upon intellectual property. China is not out of this development and trend. China is going to face this problem with other developed countries, and the problem is: how the law can best serve the facilitation of the raising of capital for both emerging and established enterprises that have valuable property other than real estate and many new born internet companies and other creativity companies that have only intellectual property and without any real estate. This thesis is aimed to propose a new legal system for the secured debt finance based upon the intellectual property.The thesis is given at two parts; first part introduces the general ideas about the intellectual property finance, and the second part discusses the key elements of the intellectual property finance, which is including valuation of intellectual property, due diligence on intellectual property, insurance of intellectual property, and registering and legal process of setting a secured interest on intellectual property. At the end of this thesis, a proposed draft of"Secured Intellectual Property Law"is given as the conclusion of the thesis.