Tentative Research On Intellectual Property Securitization

Intellectual property securitization emerges with the arrival of the knowledge economy era and the development of the asset securitization. As a technique of financial innovation, intellectual property securitization helps to extract the intrinsic value of the intellectual property and accelerates the transformation of intellectual property into realistic productivity. As a brand-new financing instrument, it allows the originator to obtain in advance the discount value of the future income yet to be brought by the intellectual property in a long period of time with retained ownership to avoid the income fluctuation in the future.In view of the fact that intellectual property securitization is still in the course of initial development, no systematic research literature could be found in this field. This paper begins with the valuation of the intellectual property, proceeds to introduce the detailed structure design of the intellectual property securitization based on the cash flow analysis of the underlying intellectual assets applying the product life cycle theory, and then makes an in-depth study of the existing intellectual securitization cases to acquire summarized experience, in the end concludes with the practical mode selection for implementing intellectual property securitization in China based on the feasibility study on the current situation in China.This paper consists of six parts. In the first part, this paper gives a brief introduction of the research background, research significance and research status in this field. In the second part, appraisals are given to and improvements are made for the application of traditional valuation methods in the valuation of intellectual property. In addition, real option method and fuzzy comprehensive evaluation method are discussed for the intellectual property valuation. In the third part, this paper gives the intellectual property securitization a detailed structure design covering the pooling of the underlying intellectual assets, the structuring of the issuing body, the credit rating, the credit enhancing, the cash flow allocation, the payment structure selection, and the transaction process arrangements. In the fourth part, an in-depth study is made to address the practical cases widely collected from the copyright securitization, patent securitization and trademark securitization. In the fifth part, this paper proposes a government-dominated mode for intellectual property securitization in China on the basis of a comprehensive feasibility analysis comparing the favorable conditions and hindering factors in China. In the sixth part, an outlook is made for the possible research directions in the field of intellectual property securitization after a review of this paper.