An Analysis On China’s Improvements In Intellectual Property Pledge

The prosperity of knowledge economy is one of the features of21stcentury. The adventof knowledge economic society means that there is an increasing need to use intangibleproperty to guarantee the financing issue. The advent also indicates that the use of intellectualproperty pledged will become the wind vane in China’s use of intellectual property rights forquite a long period. China’s enterprises, especially small medium enterprises (SMEs) arecurrently groups with most development potential and with innovation. They play asignificant role in building innovation-oriented country. However, because of the risk, it isdifficult for banks to provide loans to the SMEs and it has become a global concern.In China, it is very important to develop intellectual property pledge system in order tobuild and develop socialist market economy. Intellectual property pledge system is not onlythe realization of subject matter’s value, but also conducive to enrich our financing model,improve the financing structure and reduce financial risk. It lights a candle for technologySMEs. Although China’s intellectual property pledged system slowly develops, due toactively learn foreign best practices, our system has got some success.This thesis focuses on definition of the basic problems on knowledge property pledge. Ituses case analysis, comparative study and economic analysis. As for learning foreign practices,the author points out the legislative status quo as well as defects and then suggests that weshould improve China’s knowledge property pledged system both in theory and in practice.Excepting introduction this thesis includes four parts.The first part starts from the concept of intellectual property pledge. It explains somerelated conceptions and makes clear the concept of knowledge property. This part specificallyaddresses the characteristics and types of the subject matter and also describes the features ofknowledge property pledge. Combined with the development of SMEs in China, this sectionelaborates the importance of knowledge property pledge’s application. It is not only good forthe realization of subject matter’s value, but also conducive to resolve the problem for SMEsin financing difficulties.The second part describes the intellectual property system of civil law and common lawcountries. Also it contains the comparison among these patterns and the ways to learn fromthem.It cites intellectual property pledge financing patterns and the development in the UnitedStates, Japan, and German, etc. From these examples, the author finds out that these countriesattach great importance in applying knowledge property pledge system and they try to protect it through a variety ways to promote its healthy development. For example, by adopting“policy investment bank”, Japan emphasized the dominance of government and policy in theentire financing system. And Germany developed its knowledge property pledge system byspreading the risks for various institutions. Based on its national conditions, China is nowimproving the intellectual property rights pledge system by learning the system in developedcountries. China puts increased emphasis on the role which the government played inintellectual property pledge process and establishes intellectual property rights tradingplatform.The third part of the thesis discusses the overview, history and current status of thelegislation of China’s intellectual property rights pledge. As we all know, China’s IPR pledgesystem has a late start, imperfect development and there are still many inadequate aspects. Bylearning the content system and program content, the author suggested that there are someflaws in registration, evaluation system, and the choice of subject matter, etc. For example,our assessment system is not perfect, the registration agencies are not unified, the realizationof subject matter is difficult and there are too many restrictions for pledgor’s rights. Apartfrom this, this part also elaborates the contradictions and conflicts among the system ofChina’s IPR pledge.The forth part is the most important part of the thesis and includes the author’sinnovation. Corresponding to the deficiencies mentioned in chapter3, this section putsforward some suggestions and intends to resolve the conflict. The first subtitle expounds theissue of intellectual property’s entity content, mainly to improve the selection of subjectmatter and the evaluation system. The second subtitle discusses the improvement ofregistration system in intellectual property rights. The author holds that it is necessary to unifyregistration agencies, to enrich the registration system and to improve the registration rules.The third subtitle works on the risk prevention in IPR pledge process. For the current pledgerisk problems, China can establish risk spreading system. That is to say, various agenciesjointly undertake the potential risk which may occur in pledge process. China can alsoenhance the bank’s review ability, give them autonomy and tell them how to judge andprovide the pledged loans. Similarly, China can improve the risk prevention system in order togive an effective response to the pledged risk.