Patent Backed Securitization Of Small And Medium-sized High-tech Enterprises

Small and medium-sized high-tech enterprises are an important source of technological innovation and, with the advent of the era of knowledge economy, have become a very active force in market economy. They also play an important role in the economic development of various countries. How to promote it rapidly and healthily developing is very important to many countries. The Chinese government has upgraded "Independent Innovation" highly to the basic national policy. At the same time,the development of small and medium-sized high-tech enterprises in China is the basic requirement to establish "An Innovation-oriented Country" and implement intellectual property strategy. The development and research of high-tech product needs substantial long-term investment and the success or failure of financing will impact directly on the successful development of the enterprises. Because they are high-risk, high-yield, high uncertainty, they are not suited to the traditional the mode of financing. The difficulty in financing has been severely constrained the development of small and medium-sized high-tech enterprises in China. The enterprises now facing the main question of financing is that: firstly they could not acquire loans because of their low-level credit and lacking tangible assets; secondly it is also difficult to go to capital market; thirdly the administrative and legal constrain their bond financing. Because the difficulties of financing so seriously troubled small and medium-sized high-tech enterprises, that it limits their development and applications of patents owned by the enterprises. They are unable to implement the following research and development on national patent commercialization and it is impossible for China to initiate the establishment and implementation of intellectual property strategy. Therefore, small and medium-sized high-tech enterprises shall play their superiority in patents in response to the establishment of national "innovation-oriented country," and the new means of financing, namely patent backed securitization have become a new choice to the enterprises.This article introduces the definition, production, development, characteristics and structure of patent backed securitization through the analysis of small and medium-sized high-tech enterprises financing difficulties and also analyze the feasibility of patent backed securitization of small and medium-sized high-tech enterprises in China. The article brings forth Japanese measures to resolve the legal obstacles of patent backed securitization and advise the Chinese government shall adopt a planned and step-by-step progress to realize the patent backed securitization and support this new method of financing.