The State Intellectual Property Office Answers Questions from Every Economics: Actively Exploring Reforms in Separate Asset Management of Employed Scientific and Technological Achievement, Implementing Differentiated Management Modes for Intellectual Property and Other Intangible Assets Distinct from General Tangible Assets

Everyday Economic News Reporter | Zhou Yifei Everyday Economic News Editor | Huang Bowen

On March 23, the State Council Information Office held a press conference. During the event, the National Intellectual Property Administration introduced the implementation of the Special Action Plan for Patent Transformation and Application (2023–2025) (hereinafter referred to as the “Special Action”).

What are the main difficulties and bottlenecks currently faced by patent transformation and application in China? How does this special action plan aim to address these challenges?

Hu Wenhui, Deputy Director of the National Intellectual Property Administration, responded to questions from the Daily Economic News reporter on-site, stating that there are many difficulties and bottlenecks in patent transformation and application, mainly the “five no’s”: “cannot transfer,” “unwilling to transfer,” “dare not transfer,” “don’t know how to transfer,” and “inconvenient to transfer.” Moving forward, the National Intellectual Property Administration will build on the achievements of this special action, continue to deepen institutional reforms, optimize the ecosystem for transformation and application, further unblock these key bottlenecks, and improve the efficiency and effectiveness of patent transformation.

Press Conference Scene Photo Source: Zhou Yifei, Daily Economic News

Exploring a Due Diligence and Fault Tolerance Mechanism for Patent Transformation

Hu Wenhui told the Daily Economic News that there are many difficulties and bottlenecks in patent transformation, mainly the “five no’s”: “cannot transfer,” “unwilling to transfer,” “dare not transfer,” “don’t know how to transfer,” and “inconvenient to transfer.”

Specifically, “cannot transfer” is due to some patents in China being disconnected from industrial applications, lacking prospects for transformation, and insufficient supply of high-value patents that can be transformed; “unwilling to transfer” stems from the long cycle, high uncertainty, and risks involved in patent transformation, which reduces motivation among researchers; “dare not transfer” is because China’s current due diligence and fault tolerance mechanisms are not yet fully developed, and those involved worry about improper valuation during patent assessment leading to loss of state assets; “don’t know how to transfer” is because universities and research institutions generally lack specialized intellectual property agencies and personnel, resulting in limited transformation capacity; “inconvenient to transfer” is due to poor matching between universities, research institutions, and enterprises, and an ecosystem that does not sufficiently support patent transformation and application.

Hu Wenhui pointed out that since the implementation of the special action, the National Intellectual Property Administration has coordinated efforts with relevant departments, implementing targeted policies to address the “five no’s.”

Specifically, for “cannot transfer,” efforts focus on improving systems such as pre-application evaluation, dynamic inventory, graded management, and navigation R&D to strengthen the quality foundation of patent transformation.

For “unwilling to transfer,” efforts include deepening reforms to empower technological achievements from official positions, establishing and improving profit-sharing mechanisms for intellectual property, and effectively stimulating endogenous motivation and innovation vitality for patent transformation.

For “dare not transfer,” reforms are being explored to manage assets of technological achievements separately, adopting management models different from those for tangible assets; simultaneously, a fault-tolerant mechanism for due diligence is being developed. For personnel who have fulfilled their diligent responsibilities without seeking improper benefits, if market risks cause failure or underperformance, they will be exempted from liability, effectively alleviating concerns about “daring not to transfer.”

“For example, in a university in Northwest China, a reform of separate management for technological achievements from official positions has dispelled researchers’ fears of state asset loss, turning ‘dare not transfer’ into ‘actively transfer.’ Currently, this university has valued over 300 patents at 630 million yuan, with transformation revenues exceeding 3.2 billion yuan,” Hu Wenhui explained.

Regarding “don’t know how to transfer,” the focus is on promoting universities and research institutions to establish professional technology transfer agencies, cultivating a team of technology managers to provide full-process services such as discovery, incubation, evaluation, promotion, transaction, and related financial and legal services.

For “inconvenient to transfer,” the promotion of models such as “open licensing,” “use first, pay later,” and “patent industrialization + equity subscription” is underway to connect intellectual property operation platforms and accelerate breaking down barriers to transfer.

Hu Wenhui emphasized that moving forward, the National Intellectual Property Administration will continue to deepen institutional reforms based on the achievements of this special action, optimize the transformation ecosystem, further unblock key bottlenecks, and improve the efficiency and benefits of patent transformation.

Further Improving the Paperless Online Registration of Patent Pledge

Financial support is a crucial guarantee for patent transformation, and many regions have explored the intellectual property financial ecosystem. What are the next steps planned by the China Banking and Insurance Regulatory Commission to promote diversified intellectual property financial support?

Du Mo, head of the Regulations Department of the China Banking and Insurance Regulatory Commission, stated that the next step is to continuously improve the quality and efficiency of intellectual property financial work.

First, promote financial institutions to optimize management mechanisms continuously. Further expand the coverage of full-process paperless patent pledge registration. Guide financial institutions to leverage digital intelligence to thoroughly explore enterprises’ financial needs, use intelligent profiling to match products and services, and improve financing efficiency.

Second, coordinate with the National Intellectual Property Administration and other departments to guide local efforts in bank-enterprise matchmaking activities. Establish a “white list” of intellectual property enterprises for two-way push, carry out policies such as “entering parks and benefiting enterprises” with intellectual property financial services, and hold intellectual property forums to enhance policy publicity and bank-enterprise connections.

Third, deepen the pilot work of the comprehensive intellectual property financial ecosystem. Evaluate the pilot effects in a timely manner, summarize innovative measures and successful experiences, publish typical cases, and promote replicable development models. Additionally, based on progress, consider expanding the scope of pilots.