Research On The Intellectual Property Securitization Under Information Asymmetric Theory Framwork

Since the1970s, national financial markets gradually showing the trend of globalization, liberalization and securitization. With the rapid development of science and technology of information technology, financial product innovation develops very fast as well. As a form of financial product innovation from heaven, asset securitization turned out of the world in the financial market, and gradually became one of the major capital financing instruments. Securitization of intellectual property rights as one tributary of the asset securitization, after the release of "Bowie bonds" as a new mode of financing respected companies and investors, the World Intellectual Property Organization (WIPO) even think that the securitization of intellectual property rights is the new trend of development in the future of intellectual property.Intellectual property securitization is just having its birth more than a decade since its first turning out in the world, and it has achieved great development, but with the entire market of intellectual property, although it is very succeed and popular now, it also catched a tiny share on the entire huge asset securitization market. Inevitably, the securitization of intellectual property rights has shown great potential development, because at this stage the immature intellectual property value assessment technology, the high cost of securitization, imperfect guarantees legal system, lack of secondary market and high risk factors of long-term securitization process development of the securitization of intellectual property rights.The securitization of intellectual property rights and general asset securitization has the same foundation, but also because of the special nature of their own unique characteristics,intellectual property securitization is a new foundation for the subject of asset securitization model. Intellectual property securitization of financial innovations in the field of intellectual property to meet the financing needs of the enterprise using its intellectual property rights assets, but the relationship between enterprises and intellectual property securitization needs to be studied. In view of this, the purpose of this paper is to analyze the economic incentives for enterprises engaged in the securitization of intellectual property rights. With the environment and development of the international financial markets, the research for firm’s economic motivation for this new financial means of intellectual property securitization in China, has a double significance for both the theory and practice of intellectual property securitization.From the securitization of intellectual property rights come to the fore,"Bowie bonds" as the carrier was born from the asset securitization embrace has attracted worldwide attention and application. Domestic and foreign scholars have their different angles, the research focused on the basic theory of the securitization of intellectual property rights (including the concept of the structure of the transaction and the prospects for development, etc.), legal regulation (in the United States, Europe, Japan and other countries legal framework analysis of the legal issues in the securitization process of the national intellectual property rights), case studies and empirical evidence (a typical case of the securitization of intellectual property rights worldwide to analyze and draw conclusions from the empirical), the development prospects (combined United States, Europe the successful experience of the development of intellectual property securitization and other developed countries to explore the mode of development of the national intellectual property securitization and path) as well as the risks (a systematic study on the risks associated with the process of intellectual property). Therefore, this article is writing from the economic motives of enterprises engaged in the securitization of intellectual property rights, the study of the relationship between enterprises and intellectual property securitization, and the risks associated with problems with the point of view of the model theoretical proof, the formation of intellectual property securities model of conclusion of the study.The essence of the intellectual property securitization intellectual property rights as the basis for financing, intellectual property rights or promoters of the original equity by intellectual property rights sold to a special purpose vehicle, through a special purpose vehicle to intellectual property rights arising from cash flow-based assets issued securities and investors to buy its securities financing purposes. Purchase of securities investors to subscribe for securities by virtue of its intellectual property right to the proceeds of the future cash flows to obtain a return on investment. The promoters of the securitization of intellectual property rights (intellectual property rights of the original equity), securitization of intellectual property rights to enable enterprises to the sum of the future cash flow of income in exchange for a sum of immediate cash flow income, has greatly improved the flow of intellectual property assets insufficient to achieve the financing requirements of the enterprise. For investors (ie subscribe for securities), the securitization of intellectual property rights to its idle funds to provide new investment channels, and make it smaller risk relative to other securities, double the return of the psychological and money.Securitization of intellectual property rights is a new financing tool, it broke through the traditional intellectual property financing restrictions on the way to become the darling of the enterprises and the financial sector worldwide, but the development of intellectual property securitization in the United States and other advanced countries, quickly and in an orderly manner share in the world’s capital markets is still far from adequate. In order to promote this new mode of financing, from a theoretical point of its development provide a systematic and comprehensive demonstration,, and practice enables theory and practice, for IP securitization road paving slabs by Tim Watts build a solid, do not destroy the bunker to avoid the gossip of the world. Therefore, the study has an extremely far-reaching importance to enterprises engaged in intellectual property securitization economic motives and advantages, so as to clarify the relationship between the enterprise and intellectual property securitization, should be the focus of research scholars and industry development, the future of intellectual property securitization significance.A business securitization of intellectual property rights, representing the change in the nature of this business organization, it is natural to use asymmetric information as the basis for analysis. Above the basic theory of asset securitization further explore the theory of intellectual property securitization, and divided into two groups to discuss the basic theory of asymmetric information framework. The first category is that a period of time between the securities until maturity, the relationship between the senior management may occur operating action and uncertainty affect investors’ securities compensation from the issuance of securities (This is the "hidden action,"or the famous" principal-agent problem "). The second category is starting from the moment of the securities issued between different investors can get hold of the amount of information on the basis of assets and marketable securities (in terms of modern economic theory known as " Hidden Information "). The difference between the "hidden action" and "hidden information" has been replaced before the problem of asymmetric information, moral hazard and adverse selection, classification, has become a new discussion hot issues.Intellectual property securitization was launched economic motive for a business research center, and then we will discuss the relationship between intellectual property securitization and firm business. Therefore the intellectual property right holders subject is studied in this paper within the enterprise, other natural or non-profit organization initiated by intellectual property securitization is not in scope of this study. This article is based on information economics theory of asymmetric information for the study on the basis of the intellectual property rights of systemic modeling and analysis, and therefore’ does not specifically discuss the risks specific to intellectual property issues. The risk of asset securitization is divided into systemic risk and unsystematic risk, we only study the risk of problems in the non-systemic risk in the securitization of intellectual property rights associated with asymmetric information, such as the principal-agent problem, the risk is not this article study the contents of the column. Of the legal norms for intellectual property securitization is not perfect, so this article is mostly with reference to the relevant laws and regulations of the United States and Europe and other developed countries for the securitization of intellectual property rights.For enterprise’s economic motivation of doing its securitization of intellectual property rights, the use of law and economics of cost-benefit analysis to establish the relationship between enterprises and intellectual property securitization theory of asymmetric information model analysis, cash rich at home and abroad on intellectual property securities lack of research methods defect, at the same time provide a clear and strong theoretical basis for the argument of this article. Law and economics cost-benefit analysis and asymmetric theoretical model that combined the two innovative combination of enterprise intellectual property securitization economic motives for this article provides a fresh and strong theoretical support.The content of this article is broadly divided into seven parts:The first part is an introduction, summing and elaborating the securitization of intellectual property rights in the course of development and research around the world from the point of view of both theory and practice. In the second part of the this paper, we will review the scope and extent of the principle of the process of securitization of intellectual property rights and securities. The third part from the principal-agent problem and the hidden action "perspective of the securitization of intellectual property rights, drawn from the company’s cash flow separation can effectively monitor the work of the senior managers, so as to solve the principal-agent problem. The fourth part from the "hidden information" theory framwork to point that interpretation of intellectual property assets of securitization, investors different value of classified information generated by market forces to force the separation of ownership for internal assets where different. This is the true value of securitization. The fifth part will be the benefits and costs of intellectual property securitization comparative analysis Description securitization of intellectual property rights, not only in the income benefit, to achieve cost savings in terms of cost advantage. Part VI deficiencies and obstacles to the development of China’s current intellectual property securitization as a reference, the recommendations of the three aspects of the legislation, markets, and institutions of the prospects of the development of intellectual property securitization. Part VII Summary section will once again review the overview of the main contents of the entire paper, and put forward the development of the securitization of intellectual property rights in China.All in all, under the problem of information asymmetry theory framwork, the unique nature of the securitization of intellectual property rights is the focus of this paper, our research also shows that the reason what a corporate’s economic motives when it participate in intellectual property securitization. China’s road of development of intellectual property securitization just a short span of several years, followed by the development of a variety of uncertainties and obstacles that could cause our intellectual property securitization market bumpy, I still hope that China can learn from the developed countries who have experienced equity securities knowledge and successful experience of this new financing instruments of securitization of intellectual property rights. In China’s enterprises in particular, the use of high-tech industries to promote and achieve booming future of our own securitization of intellectual property market, and ultimately to contribute to the development of China’s enterprises.