The Consummation Of The System Of Intellectual Property Investment

The intellectual property is one of the most vigorous production factors in thesystem of enterprise in these days, while the investment of intellectual can also bringbenefits to the owner of intellectual property. The investment of intellectual propertyowns both importance and dangers in the same time. One the one side, it can enhancethe core competitiveness of enterprises, increase human capital, reduce the transactioncosts; on the other hand, the intellectual property investment has potential risks. Theinvestment of intellectual property includes two modes: the investment of useintellectual property and the investment of transfer intellectual property. In order todecrease the cost of bargain and avoid risk to the maximum extend, the investorsshould choose the intellectual investment modes with consideration of the advantagesand disadvantage that both modes have and the potential risks with them. Theimperfect of the intellectual investment system in our country will increase the cost ofbargain in the investment of intellectual property, which may suppresses some peopleto carry on the investment of intelligent property. And it also makes the investorscan’t take both risk control and cost control in account. Sometimes, it even cause legaldilemma.The thesis consists of four parts, in addition to the foreword and the epilogue.Chapter I: This chapter describes the theoretical basis of intellectual investmentwith analyzing the transfer of intellectual property and its characters. Intellectual Property Investment in real terms is a behavior of transferring property rights.Bedifferent to the transfer of property, the transfer of intellectual property has its owncharacters. The analysis of those unique characters is the basis to find the risks ofintellectual property investment and to discuss the different modes of intellectualproperty investment. This chapter also covers the introduction of modes of intellectualproperty and the theory and feasibility of the use investment of intellectual property.Attributed to the indetermination of related provisions of company law in our country,whether the use intellectual property can be contributed, has been the focus ofcontroversy. The author lists the major negative argument with criticism. And then,the author discusses the feasibility of the use investment of intellectual property.Chapter II: This chapter analyzes the risk of investment of intellectual propertyfrom the perspectives of the features of the intellectual property itself, the company’soperations and the impact on shareholders.This laid the foundation for discussing thechoice of intellectual property investment mode. Meanwhile, this chapter discussesthe advantages and disadvantages of investment of intellectual property with the basisof analyzing the impact of that on the owner of intellectual property and the enterprise.The author also compares the different impacts to enterprise with the two modes ofinvestment in some occasions. The pros and cons of intellectual property investmentdirectly determine the parties’ choice of intellectual investment mode.Chapter III: This chapter analyzes the additional costs of use intellectual propertyinvestment from the perspective of transaction cost, and the choice of the intellectualproperty investment mode with analysis of cases. The risks and transaction costsdiffers between the two modes of intellectual property investment. Therefore,investors should consider all the situations to make the choice of modes of intellectualproperty investment to decrease transaction cost and to prevent riskChapter IV: This chapter makes recommendations on the consummation of theintellectual investment system. From the perspective of the additional cost and riskbring by the existing system, the author believes there is a necessary to improve thesystem of use intellectual property investment; to establish special conditions ofintellectual investment and etc.This paper argues that: the investors should choose the intellectual investmentmode from the point of view of risk-averse and weigh the pros and cons, however, theadditional transaction costs to investors caused by the existing institutionalarrangements make the choice in trouble. Therefore, it’s necessary to improve the existing system design, thereby reducing investors’ transaction costs and risks, andpromoting the optimal allocation of social resources.