Securitization of intellectual property refers to the business activity of issuing asset-backed securities on the basis of using the cash flow generated by the intellectual property as the guarantee for debt repayment, and achieving credit enhancement through structured financing and other methods. The securitization of intellectual property is an important project and also a challenging task that China has attached great importance to and has been committed to advancing for a long time. In 2017, the State Council issued the Plan for Building a National Technology Transfer System, in which the pilot program for intellectual property securitization was proposed. On November 7, 2018, the State Council released the Notice of the State Council on Supporting the Measures for Deepening Reform and Innovation in the Free Trade Zone (Guo Han [2018] No. 38), proposing to promote financial innovation to serve real economy and to support the pilot of intellectual property securitization in qualified pilot free trade zones.

Currently, there are no policy-imposed barriers for enterprises to issue intellectual property securitization products in the Shanghai Stock Exchange and the Shenzhen Stock Exchange. Eligible projects can set up special plans in accordance with the Provisions for the Administration of Asset Securitization Business of Securities Firms and Subsidiaries of Fund Management Firms and then be listed and transferred in accordance with the existing rules of the Shanghai Stock Exchange and the Shenzhen Stock Exchange. Piloting intellectual property securitization is conducive to expanding the loan channel for private micro and small-sized enterprises as well as the enterprises committed to entrepreneurship and innovation and to alleviating the difficulties faced by them in accessing financing. According to the statistics from market institutions, as of January 31, 2021, a total of 24 intellectual property securitization products have been issued nationwide, with an accumulative issue size of CNY 8.97 billion. These products were issued in 8 cities in China, among which, Beijing is leading the way with 8 being issued. The underlying assets of these products can be divided into 4 major types, namely, rent receivable from the sale-lease back of intellectual property, accounts receivable from the transfer of intellectual property, licensing fees receivable for the intellectual property sub-licensing, and principal and interest receivable over intellectual property pledge loans.

(1) Promote the development of Beijing Intellectual Property Exchange, integrate and optimize services, establish and improve an integrated intellectual property service system, and provide support for enterprises to issue intellectual property securitization products.

(2) Explore ways to formulate supporting policies concerning intellectual property securitization, to improve related supporting mechanisms such as intellectual property assets evaluation mechanism, and to actively encourage the intermediary agencies in the jurisdiction to provide services to enterprises in need of intellectual property financing.

The official establishment of Beijing Intellectual Property Exchange: On September 9, 2020, Beijing Intellectual Property Exchange was officially inaugurated at the 2020 China International Fair for Trade in Services. Developing and operating with China Technology Exchange as a carrier, Beijing Intellectual Property Exchange takes hold in the advantages of Beijing in policies, resources and geographic location to integrate and optimize the existing services of China Technology Exchange such as pricing for technology trading and the commercialization of sci-tech achievements, to establish and refine the service system integrating intellectual property registration, pricing, professionalism and finance, and to emerge as an important infrastructure for the scientific and technological innovation center of China and an important hub for the international intellectual property cross-border trading market.