The Patent Trust Financing Legal Issues In China

The protection of intellectual property is the most critical factor in the emerging competition among the countries. As a core part of the intellectual property, patent plays an irreplaceable role on the improvement of China’s economic and its reputation in the international community. since 2008, China has been actively working on realizing the strategy of protecting intellectual property rights. The number of the patent applications in China has taken the first place in the world. Nevertheless, it is important to come up with the solution for the "sleeping patent" issue in the patent system of China. It is the high time to find a way to improve the process of patent transformation. In this situation, trust, with its characters of capital management and investment, may become a great opportunity to wake up the "sleeping patents".Up to the end of 2015, the total amount of the assets under management in Chinese trust industry had reached 16.3 trillion yuan, which is a 16.60% increase from the total amount of 13.98 trillion yuan at the end of 2014. Under the financial reformation and the improvement in the stability of macroeconomic environment, the in-depth adjustment of the trust industry has been expanding. The investment function of trust has also been strengthened. If China is able to combine the patent system and the patent financing, there will be a platform for keeping and adding value on the patents. This will be a solution for the issue of patent transformation and investment in China.The first chapter of the paper introduces the current status of the patent theory. Through the introduction of the trust financing system of patent in the United States and Japan, this chapter analyzes the feasibility of patent trust financing. It also pointed out the disadvantages of the current patent trust financing legal system in China.The second chapter provides in-depth discussions on the main problems of existing patent trust practice by analyzing several perspectives of patent trust practice in China, including the definition of trust, patent trust financing mechanism, patent value evaluation system, the issues of supporting system of patent trust.The third chapter is the highlight of the whole paper. With a profound analysis on patent trust system and patent trust business in China, There are several suggestions on the improvement of patent trust. First, optimization of patent trust environment: clear and definite to transfer the patent trust property, specific the patent trust supervision system. Second, improvement of patent trust financing mechanism: extend the duration of the patent trust, improve the patent value evaluation mechanism, expand the way of patent trust financing and promote the patent securitization financing, introduce the patent trust financing insurance mechanisms and credit enhancement. Third, improvement of other relevant systems. It is expected that the patent trust system in China should be able to develop well through the improvement of both internal controls and the external environment.