In line with the requirements stipulated by the Notice on Further Strengthening IP Pledge Financing Work (Yin Bao Jian Fa  No. 34 – issued in August 2019 by the China Bank Insurance Regulatory Commission, the National Intellectual Property Administration and the National Trademark Administration), on 24 October 2019 the Zhongguancun S&T Park Management Committee, the People’s Bank of China Business Management Department, the Beijing Regulatory Authority of the Bank of China Insurance Regulatory Committee, and the Beijing Intellectual property Office, jointly released the Several Measures for Further Boosting the Development of IP Pledge Financing in Zhongguancun (Zhong Ke Yuan Fa  No. 66).
The document outlines a series of measures that will be implemented in the short/medium-term to encourage financial institutions to grant credit and other financing services to enterprises using IP pledges. For instance:
- Supporting financial institutions to strengthen and innovate management mechanisms: e.g. banks, guarantee companies and other financial institutions will be encouraged to establish dedicated departments or teams for IP pledge financing, to set up separate credit plans, and improve pricing mechanisms of interest rates. Financial institutions with good performance records in IP pledge financing will receive preferential support in terms of internal capital transfer pricing, credit examination and approval, etc.
- Guiding financial institutions and IP professional bodies to innovative products and services: e.g. Zhongguancun’s Management Committee will provide up to 5 million RMB annually of risk subsidies to banks and guarantee companies granting credit to companies with high-value IP; up to 5 million RMB of subsidies to IP professional institutions providing IP value assessment, risk and management services to banks, or providing financial leasing services; up to 500,000 RMB of loan interest rates subsidies to enterprises taking loans with IP pledges; etc.
- Optimising the mechanisms for examination, incentives and risk management of IP pledge financing: e.g. insurance institutions will be supported to launch IP pledge financing-related services and products, such as IP infringement loss insurance, tort liability insurance, patent insurance, etc.).
Notice on Further Strengthening IP Pledge Financing Work (Yin Bao Jian Fa  No. 34)