IDB studies the practicability of IPR-based bank loans
E020321Y1 Apr. 2002（E32）
Industrial Development Bureau of MOEA is considering the practicability of IPR-based bank loans for the biotech industry. If everything goes well, the industry may be able to apply for bank loans using its intellectual property right as guarantee.
The financing industry holds doubt to whether IPR can be used as a security for a loan. Therefore, to expel banks' such doubt, the IDB has established a special panel to study the practicability of IPR-based loans. The result will come forth at the end of this year.
In 2001 the Biotech Development Panel of Executive Yuan drafted a Plan of Promoting Biotechnology. To shift into high gear to develop biotech industry, biotech industry is allowed to have higher R&D funds, expand sources of capital, and, for the first time, apply for IPR-based bank loans, in addition to the five-year tax exemption applying to emerging tactical industries. From research to commercialization a biotech product, a long period of time and a huge amount of capital are required. Therefore, how to introduce capital to support the development of biotechnology is key to the development of biotech industry.
Source: Economic Daily News 03/21/2002
