Study On The Problems Of Asset Transferring In Patent Securitization

Asset securitization originated from the United States mortgage backed securities in the 1970s.Cash flow generated by the securitized assets is assigned to the payment of principal and interest due under the financial instruments. It has great difference from the bank credit and the commercial credit. So far, securitization has gotten great development all around the world. Patent securitization is a new kind of asset securitization. Patent securitization is desirable and should be attached more importance. It issues asset—backed securities based on patent license revenue, so provides a practical way for enterprises to circulate necessary funds. This article introduces the practical situation and concept of patent securitization, also designs a basic trading structure about the patent securitization used in our country. In this article, I have paid attention to the issues in the aspect of asset transferring. Asset transferring is the beginning of the asset securitization. Assignment and trust are the ways of asset transferring, which can be distinguished true sale or guarantee finance. True sale is the aim for the sake of the risk remoteness. And it can protect both the buyer and the seller. The court can judge whether a transferring consists of true sale or guarantee finance on the base of the market value, buyback option, intention expression, right of recourse and whether the asset is far from risk despite the originator is bankruptcy or not. The basic rights change in the different subjects during the asset securitization procedure and the law should be enacted about offsetting right and contradicing right. Although the civil law clearly stated that any security interest attached to the credit was automatically transferred to the new creditor, issues should be raised in practice as to the transfer of certain types of security interests.