One of the high-tech zones in Beijing has been running a pilot project for the past several years that allows start-ups to secure loans backed by intellectual property. The program is now being expanded, and the State Intellectual Property Office is reportedly reviewing guidelines.

It’s well known that start-ups in China have huge problems going from concept to development. Funding just isn’t there for small companies. Banks traditionally lend to well-established/State-owned firms in more traditional sectors (industrial, real estate, etc.). However, the government has been pushing both hi-tech development and domestically-created IP in recent years, and this program looks attractive for a variety of policy reasons.

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Read the rest of IP-Backed Loans for China SMEs (189 words)

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Post tags: intangible assets, Internet, junk patents, startups

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