Ministry of Economic Affairs planned to promote a new bank financing guarantee system to assist emerging enterprises in development

The Ministry of Economic Affairs (“MOEA”) intended to follow suit the American way of doing. It plans to promote a new bank financing guarantee system by making intellectual property rights and other intangible assets instruments of bank financing guarantee to improve the current problem of insufficient credit encountered by the small and medium-sized enterprises, and to assist emerging enterprises in development.

After analysis, the officials thought that the new system could assist the emerging enterprises which own intellectual property rights to get capital from financial organizations by using their intellectual property rights as the financing guarantee.  Moreover, the intellectual property rights can be used as the subject matter of financing guarantee to encourage local enterprises to positively invest in research, development and creation and further vitalize the local market of know-how transaction.

At the earlier stage, the new system can be promoted first through foreign appraisal mechanisms and the transaction market.  Meanwhile, local intellectual property rights appraisal mechanisms need to be set up as soon as possible. The government may begin its guidance and assistance from offering relevant subsidies and manpower training.