Patent hypothecated loan service available in Nanyang

Starting this year, the Nanyang Intellectual Property Administration will be providing patent hypothecated loans for medium and small-sized enterprises to help resolve financing difficulties.

The administration's work on patent pledge financing proved productive over the first half of the year, as it has formed a long-term cooperative channel for intellectual property rights evaluation, pledges, banking, and enterprise docking and participation. It has successfully established a financing platform.

So far, four enterprises have successfully received 24 million yuan ($3.49 million) from the Bank of China in patent pledges, among which Nanyang Green Photoelectric Science and Technology Co obtained 6 million yuan, Henan Huibo Medical Co obtained 10 million yuan, Henan Jinhai Biotechnology Co obtained 5 million yuan, and Henan Huatai Building Material Co obtained 3 million yuan.

Li Heng, intellectual property manager of Huibo Medical, said that the new loan type will help the company obtain intangible assets.

According to Shi Xinzhong, chief of the Coordination Management Division of the Nanyang Intellectual Property Administration, applicants can apply for patents directly or authorize a patent agency to apply to the patent office of the State Intellectual Property Office or its representative offices. Applicants must satisfy two requirements: patents must correspond to the legal state and the state annual fee must be paid, and enterprises with a certain amount in fixed assets must have an operating debt ratio under 45 percent.