Discussion On The Case Of Intellectual Property Securitization Of Patent Licensing Model

Small and medium-sized enterprises are the main force of my country’s market players.However,"financing difficulties,expensive financing,and limited financing channels" have become the "three mountains" that restrict the development of enterprises.In the era of the knowledge economy,intellectual property rights have increasingly become the key to enterprises’ core competitiveness.However,intellectual property rights such as patents have high R&D costs and long R&D cycles,and many small and medium-sized enterprises’ R&D expenses come from their funds,which makes small and medium-sized technology enterprises have certain financial constraints.Therefore,exploring intellectual property financing and supporting the development of small and medium-sized scientific and technological enterprises have become the focus of the theoretical and practical circles in recent years.Since 2015,the government has successively issued a series of policies,expecting to explore and develop new financial service models such as intellectual property pledge financing and intellectual property securitization,to help technology-based enterprises break through financing bottlenecks.In 2018,with the successful listing of two products,the “First Entrepreneurship-Wenke Leasing Phase I Assets Support Special Plan” and the “Qiyi Century Intellectual Property Supply Chain Financial Assets Support Special Plan”,my country has officially opened the practice road of intellectual property securitization.To further explore the development and actual effect of intellectual property securitization in my country,this thesis selects the "Xingye Yuanrong-Guangzhou Development Zone Patent Licensing Assets Support Special Plan " as the background of the case.This Special Plan is China’s first pure patent intellectual property securitization product.Its transaction model design is different from the issued products,and analyzing this case can enrich the comparison of the design principles of intellectual property securitization products under different models.By sorting out the research results of domestic and foreign scholars on asset securitization,intellectual property financing,and intellectual property securitization,this thesis finds that domestic and foreign scholars have put forward a relatively systematic and comprehensive theoretical system in this field,and my country issued the first intellectual property securitization products relatively late,and there are few case studies in this field,especially the financing effect and mechanism of intellectual property securitization on enterprises still need to be enriched.It is expected that by sorting out and analyzing the initiation process,actual financing effect,and mechanism of this case,the advantages of intellectual property securitization under the patent licensing model will be explored,and a reference idea for the large-scale development of intellectual property securitization will be provided.In the second chapter,this thesis narrates the related concepts of intellectual property securitization,introduces four different models of intellectual property securitization,and discusses the key elements,operation process,characteristics,and theoretical basis of intellectual property securitization in the patent licensing model.After sorting out,the analysis indicators for analyzing the financial effect of intellectual property securitization were selected from the four aspects of financing cost,capital structure,operating conditions,and financial risk.The third chapter introduces the basic situation of the project "Xingye Harmony-Guangzhou Development Zone Patent Licensing Assets Support Special Plan",the program design process,and the duration of the project.The fourth chapter analyzes the financial and non-financial effects of the special plan based on the specific data of each enterprise,and discusses the mechanism of the special plan to achieve the above effects;in the fifth chapter,based on the specific introduction and analysis of the special plan,draw corresponding conclusions,and provide reference suggestions for the further promotion of intellectual property securitization.This thesis sorts out the transaction structure of "Xingye Harmony-Guangzhou Development Zone Patent Licensing Assets Support Special Plan " and finds that 11 companies with financing needs signed two patent license contracts with Kaide Leasing,reconstructing the underlying assets with stable and predictable cash flow to issue intellectual property securitization products.Reconstructing basic assets in the above way not only meets the financing needs of enterprises,but also enables enterprises to retain the ownership of patent technologies,avoids the risk of patent leakage,and provides new ideas for building underlying assets for intellectual property securitization.In addition,because “the Special Plan” integrates the different patent assets of 11 companies in the Guangzhou Development Zone,taking into account the homogeneity and difference of the asset pool,the overall risk of the asset pool is reduced,and the multi-level internal and external credit enhancement measures make the Special Plan’s investment risk reduced,and the patent owner also obtains funds with lower financing costs,improves the capital structure,improves the operating level,and reduces the financial risk of the enterprise to a certain extent.Most importantly,11 companies have broadened their financing channels and improved their financing efficiency through this special plan.Compared with the financial leasing model,the micro-loan model,and the supply chain model,under the patent licensing model,the threshold for companies to introduce a third party to reconstruct underlying assets is relatively lower.On the whole,the advantages of the patent licensing model are more obvious.However,it is worth noting that the "Xingye Harmony-Guangzhou Development Zone Patent Licensing Assets Support Special Plan" introduced the intermediary Kaide Leasing as the licensee and licensor of the two patent licensing contracts,and the patent owner jointly builds basic assets that meet the conditions for issuing intellectual property securitization.However,analyzing the more common foreign patent licensing model of intellectual property securitization products,it can be found that those patent owners already have a certain amount of patent licensing income before issuing the intellectual property securitization products,and there is no need to reconstruct the underlying assets.The patent license fee can satisfy the conditions of securitization issuance.At present,this type of product has not been issued in China.We can learn from foreign experience to explore the issuance of similar products,which can help companies with patent licensing income to realize cash in advance and improve asset liquidity.In addition,the method of "packaging" patents can effectively diversify the risk of underlying assets.This model is a great advantage for industrial parks with an agglomeration effect,which is conducive to the "warming" of enterprises in the area and can promote the largescale and batch development of intellectual property securitization.Compared with other financing models,it has more room for development.After launching the "Xingye Harmony-Guangzhou Development Zone Patent Licensing Assets Support Special Plan",several intellectual property securitization products with similar structures have also been launched.Through the analysis of this thesis,it can also be found that the patent licensing model of intellectual property securitization has the advantage of large-scale development.However,the road to domestic intellectual property securitization has just begun,and the market environment and laws and regulations are not yet perfect,and all entities need to work together to promote the development of intellectual property securitization.