Legal Issues Of Intellectual Property Pledge Financing

In recent years, the methodology of raising funds by combining intellectual property right with financial tools has become new means of transforming intellectual property right to productivity for technology-oriented type enterprises. However, in reality, there are still legal problems existing in the area of intellectual-property-rights-pledge loans. Therefore, this paper emphasizes on these practical problems and concludes several issues as follows: firstly, the lack of legal basis in regard to operational practices is caused by imprecise legislative values. Secondly, the lacking in already formulated laws and regulations may result in ownership risk as well as registration risk. Moreover, evaluation systems are not sound in terms of measuring the value of intellectual property right. Finally, intellectual property right also confronts liquidity difficulties in the market, etc.From where intellectual property pledging started, collecting terms and conditions of intellectual property pledging laws at home as well as abroad, I try to analyze some basic situations of using intellectual property pledging laws here in China, including its evolution in last decades, subject characteristics, and differences compared with other pledging laws. The main part of this paper is to analyze its theoretical and practical application in real world. First, in terms of the institutional level, China’s intellectual property pledging has not yet formed a complete legal system, such as its legislative value is unknown, weak laws and regulations support, misunderstanding and apt to pass the buck once anything goes wrong between different levels of administrations, ect. When reviewing the development of pledge, the scope of different kinds of pledge expanse as intellectual property develops, which demands its own improvement. Again, this paper focuses on problem analysis from several dimensions of the registration system, value assessment system, cash transactions. Developed intellectual property mortgage financing system is relatively mature. This paper analyzes the United States, Japan intellectual property pledge legal system in order to make certain suggestions to improve Chinese intellectual property pledge legislation, including offer more terms and conditions of law. Also, this paper will try to find out how to enhance the effectiveness of valuation assessment criteria to be adopted by legislative norms; detailing assessment of risks; improving checking procedures; developing risk-sharing mechanisms; introducing multi-party body involved in the pledge process,; building a mature market in order to create a good environmental circulation, As a result, to ensure regularizing intellectual property pledge’s position,and make it more reasonable and safe.