Since the Cooperation Agreement of Patent Pledge Financing was signed by Zhangzhou Intellectual Property Office and Bank of Communications Zhangzhou Branch on May 16, enterprises in the city have been capable of securing bank loans by using their intellectual property rights including trademarks and patents as collateral.

Vice Mayor Zhao Jing believed that the move is an effective solution to financing problems of innovation-based entities and will promote the industrialization and commercialization of patents held by those entities.

Meanwhile, local authorities commit to rendering subsidies to those technological small and medium-sized companies successfully obtaining bank loans by pledging their IP rights.

It is reported that local subsidiaries of both Bank of China and Industrial Bank also announced to take up the business.

(Source: IPR in China)