30 November 2021Press Release
President of IPwe China, Henry Wang, spoke at the ‘Operation and Development of Intellectual Property for FinTech Seminar’ in the Baoshan District of Shanghai on the ‘Challenges and Solutions Associated with Intellectual Property Backed Financing’.
Challenges and Solutions Associated with Intellectual Property Backed Financing
Mr. Wang summarized recent policies and developments of China’s intellectual property backed financing by using the opinions from Chinese government authorities, industry experts, existing practices, and government statistics. Mr. Wang further summarized the difficulties and core challenges in the practice of intellectual property backed financing in China, including:
1. Pre-loan evaluations mainly rely on experience and manpower, thus lacking necessary objective evidence. Moreover, Mr. Wang addressed that evaluations do not have an existing verification process that makes the evaluation process inefficient. Accordingly, pre-loan evaluations cannot dynamically monitor the changing value and risks of intellectual property back financing.
2. When one needs to quickly liquidate their evaluations, the vast majority of existing intellectual property transaction service platform models have fundamental flaws as they are normally bilateral rather than multilateral and lacks necessary technical support.
3. The existence of the post-processing model prevents banks from predicting and avoiding such risks in advance. Intellectual property insurance also has defects such as scarcity of products, difficulty in risk control, and lack of global reinsurance support.
Best Practices for Intellectual Property Pledge Financing in European and American Countries
In response to these core challenges of intellectual property backed financing in China, Mr. Wang presented IPwe‘s existing technical capabilities, such as the IPwe Platform, and IPwe’s global verification technology.
Mr. Wang especially emphasized that IPwe can empower banks through an extremely low-cost and extremely efficient artificial intelligence system, so that banks have the ability to screen pledges, and further help banks actively screen and find high-quality intellectual property loan applicants.
Mr. Wang introduced IPwe’s IP pledge financing cooperation cases with partners in different regions, including partnerships with banks, asset trading platforms, and AI technology innovation companies worldwide.
Mr. Wang also introduced the operational details of the industrial patent pools that IPwe China is working with several local governments on, which are being regarded as a valuable fundamental infrastructure to address the new challenges arising from the strategic emerging industries in China.
IPwe is quickly emerging as creating the industry standard for patent NFTs. IPwe recently announced its partnership with IBM to represent patents as non-fungible tokens (NFTs). IPwe also has a partnership with CasperLabs to further improve the patent registration process and create a chain of custody (CoC) Solution by using the Casper public blockchain to store, secure, and trace patent data, thereby creating a new approach to patent ownership verification. Patent NFTs are stored and shared on the IPwe Platform, running on the IBM Cloud and Blockchain services such as the Casper Network. IPwe anticipates tokenized IP to become commercially available in Q4 of 2021. IPwe operates in more than 50 countries with offices in Asia, Europe, North and South America. To learn more about how IPwe can provide the answers to your IP-related business decisions, Request a Demo of the IPwe Platform on www.ipwe.com.