Enterprise Patent Pledge Loans

In order to strengthen the work of patent pledge financing, improve the scale and efficiency of patent pledge financing, and solve the financing problems of small, medium and micro enterprises, the Intellectual Property Office of Xiamen has innovated the financial service mode of intellectual property according to the "Measures for the Administration of Special Funds for Patent Development of Xiamen City (Xia Zhi [2017] No.13), and launched two sets of patent pledge loan services for small, medium and micro enterprises, the financing plans of "IP Insurance Loan" and "IP Pledge Loans", with a trial period of one year.

Our firm responded quickly, actively promoting the work of patent pledge loans, helping small, medium and micro enterprises to solve the problems of financing difficulties and high costs.

When an enterprise applies for a patent pledge loan, the following conditions shall be met:

1. Should conform with the standards of small and medium-sized enterprises (in accordance with the "Notice on Printing and Distributing the Provisions of the Standards for the Classification of Small and Medium-sized Enterprises" (MIBC [2011] No. 300)). The company should be registered in Xiamen City, with a fixed place of business, normal production and operation, and good enterprise fundamentals; in line with the State industrial policies, with a good development prospect, stable business income, and the ability to repay capital and interest on schedule. The company should have good credit, and its legal representative, actual controller and major shareholders have good personal conduct and no major bad credit record;

2. The enterprise has legal and valid patents, clear property rights, can handle pledge registration, can be listed and traded in accordance with relevant national regulations, and is easy to liquidate;

3. The patent rights (including invention patents and utility model patents) used for pledge shall meet the following conditions:

(1) the pledged patent rights shall be the core patented technology operated by the pledgor, form industrial scale operation with certain market potential and good economic benefits;

(2) where the pledged patent right is a single patent, the patent has been substantially implemented for at least 2 years (inclusive) and is still in use at the time of applying for loan, and has profitability; where the pledged patent rights are multiple patents, at least one patent shall have been substantially implemented for more than 2 years (inclusive) and still be in use at the time of applying for loan, and has profitability; where the patent right has won the State Patent Award, the implemented time of the pledged patent right can be more than 1 year (inclusive);

(3) the current remaining term of invention patents shall not be less than 5 years, and that of utility model patent shall not be less than 5 years;

(4) the pledgor shall provide proof of the annual patent fee paid, and shall pay the annual patent fee in full and on time during the pledge period; if the ownership of the pledged property jointly belongs to the pledgor and others, the pledger shall provide legal and effective written documents that all the joint owners agree to the pledge;

(5) the pledgor shall truthfully declare to the bank whether there is any application for utility model patent or invention patent with the same technology; if the pledgor has applied for utility model patent and invention patent with the same technology, but the invention patent has not been granted by the relevant national authorities in accordance with the law, it may temporarily pledge the utility model patent that has been granted by the relevant national authorities in accordance with the law, but the pledgor shall at the same time promise to add the pledge of invention patent right to the same financing in time after the invention patent has been granted; the related patent and improved patent of the pledged patent right shall be pledged together with the pledged patent right regardless of whether they are implemented or not.

II. Required Materials

The following materials shall be provided for the preliminary review report of the enterprise:

1. Application form for filing patent pledge loan;

2. A copy of the business license;

3. A copy of the patent certificate (the pledged patent right);

4. A copy of the certificate of annual patent fee payment;

5. Copies of the financial audit report of the enterprise for the past three years