The Beijing Patent Attorneys Association has recently released the draft group standard Specification for Intellectual Property Pledge Financing Services (T/BJPAA 0003-2026) for public comment. The standard aims to further standardize the IP pledge financing service process, facilitate the realization of IP value, and provide standardized operational guidance for technology and cultural-innovation enterprises.

This standard is formulated in accordance with regulations and national standards such as the Civil Code and the Patent Evaluation Guidelines, and is applicable to financial institutions, IP agencies, and appraisal firms. It covers patents, trademarks, software copyrights, integrated circuit layout designs, and new plant varieties, while data IP rights may be used as a reference.

The standard establishes a complete closed-loop process covering application, due diligence, risk control, valuation, pledge registration, post-loan management, and collateral disposal, accompanied by standardized process diagrams and due diligence templates to unify operational norms at each stage.

First, it clarifies the rights and responsibilities of all parties: enterprises must ensure the authenticity and completeness of their IP materials; financial institutions shall implement risk control measures throughout the entire process and dispose of pledged assets in case of default; service providers and appraisal agencies shall conduct due diligence and valuation independently and objectively. The pledged subject matter must have clear ownership and a remaining protection period longer than the loan term. Patents belonging to the same family and similar trademarks must be pledged together.

Second, it standardizes the core business processes: due diligence covers eight dimensions, including ownership, technological maturity, market revenue, and business operations. Value assessment uniformly adopts the cost, income, or market approach, and appraisal reports must include detailed mandatory disclosures. Pledge registration is handled through two channels—the China National Intellectual Property Administration and the National Copyright Administration—with the essential terms of the pledge contract clearly defined.

Third, it establishes a full-cycle risk control and disposal mechanism: after the loan is granted, loan funds, enterprise operations, and the legal status of the IP are monitored simultaneously, with tiered risk warnings put in place. If the enterprise defaults, its operations deteriorate, or it becomes involved in major litigation, financial institutions may dispose of the pledged IP through four methods: reverse licensing, bundled auction, debt-to-equity conversion, and third-party operational conversion. A fixed priority order for distributing the disposal proceeds is also established.

Implementation of this standard will strengthen risk controls for financial institutions, standardize industry practices, and reduce financing costs for innovative enterprises. The current document is still at the public comment stage. Once officially issued, it will be promoted and implemented through training, pilot programs, and policy coordination.