Minutes - TRIPS Council - View details of the intervention/statement

189.   In 2020 and the first part of 2021, Members actively participated in discussion on "Making MSMEs Competitive through Intellectual Property (IP) and Innovation" in TRIPS Council. The discussions have provided important references for Members to use public policies to help MSMEs to promote their innovation ability and better participate in global trade. China shared our experiences and happy to make contributions to the discussion. 190.   On the topic IP for investment/Financing/Funding, China attaches great importance to helping technological companies to tackle their financing strain and has adopted a number of measures to assist technological companies to obtain financing through IPRs. One of the important measures is to promote intellectual property pledge financing. Intellectual property pledge is a financing activity in which enterprises pledge their intangible assets including trademarks, patents and copyrights in order to obtain funding. Through intellectual property pledge, enterprises, especially technological MSMEs can better tackle their capital constraints, accelerate intellectual property transformation, and enhance competitiveness. Intellectual property pledge has produced positive outcomes, in 2020, financial institutions at national level have issued a total of more than 5,000 loans, amounting to CNY 59 billion. 191.   In time of pandemic, in order to help companies to obtain rapid pledge financing, local intellectual property administrations in China have established a green channel for intellectual property pledge registration and improved the efficiency. This compressed the paper processing time of patent pledges to three working days and the electronic processing time to one working day. 192.   Commercial banks in China also have improved the working mechanism of intellectual property pledge loans. For example, the Bank of Communications has launched a "Smart Financial Services" project in Beijing specifically for intellectual property pledge financing. This project has three advantages. Firstly, the project can save 2%-3% costs by reducing assets evaluation by asset appraisal companies, legal reviews by law firms, insurance service by insurance companies. Secondly, the project establishes a credit approval system in line with the characteristics of IPR. Nearly 40 indicators being set up serve as an important basis for evaluating intellectual property quality, intellectual property financing risks, and approving credit lines, which can be easily measured by bank staffs. Thirdly, the project establishes a form-based standardized process for credit approval, the loan approval can be completed within three working days when the materials are already.
51. The Chair recalled that this item had been put on the agenda at the request of Australia, Canada, Chile, The European Union, Japan, Switzerland, Chinese Taipei, the United Kingdom and the United States, and subsequently co-sponsored by the delegations of Brazil and Singapore. A communication had also been circulated in document IP/C/W/679.
52. The representatives of the United Kingdom; Switzerland; the United States; Australia; Singapore; Japan; Canada; Chinese Taipei; the European Union; Brazil; China; Côte d'Ivoire; the United Kingdom; and Jamaica took the floor.
53. The Council took note of the statements made.