Even Patents as Collateral Can Generate Money! KIPO Supports IP-Backed Loans Through Monetization of Collateralized IP
Roundtable Discussion Held to Explore Monetization Strategies Between IP Recovery Support Organizations and Intermediary Institutions
The Korean Intellectual Property Office (Commissioner Kim Wan-ki) announced a field communication roundtable discussion with the IP Recovery Support Organizations* and IP Intermediary Institutions** at the Korea Science and Technology Center in Gangnam-gu Seoul on June 25th (Tuesday) at 10:30 AM.
IP Recovery Support Organizations: Comprised of KIPO Korea Invention Promotion Association and Intellectual Discovery Co. responsible for purchasing collateralized IP from banks in case of IP-backed loan defaults.
** IP Intermediary Institutions: A total of 47 organizations including patent law firms and private technology transfer institutions which have agreements with KIPO to mediate transactions of collateralized IP.
The roundtable aims to establish a cooperative system to facilitate the trading of collateralized IP between the IP Recovery Support Organizations and IP Intermediary Institutions and to gather feedback from the field to activate the business.
Through this roundtable KIPO plans to share successful cases of selling collateralized IP with IP Intermediary Institutions and collect feedback on their challenges to discuss ways to invigorate the trading of collateralized IP. They will also listen to opinions on strategies to attract demand for purchasing collateralized IP such as support programs for companies purchasing collateralized IP.
The IP Recovery Support Program involves purchasing collateralized IP from banks when IP-backed loans default thereby reducing the banks recovery burden and monetizing the acquired collateralized IP through licensing or sales. Since its launch in 2020 the IP Recovery Support Organizations have purchased a total of 186 collateralized IPs and monetized 46 of them. This initiative has contributed to reducing the recovery burden on banks and promoting the spread of IP-backed loans*.
Outstanding Balance of IP-Backed Loans: (2019) KRW 700 billion → (2023) KRW 2.3 trillion
Mok Seong-ho Director General of the Industrial Property Policy Bureau at KIPO emphasized The role of IP Intermediary Institutions in helping monetize collateralized IP is crucial for IP-backed loans a cornerstone of IP finance. Given that IP-backed loans are a highly useful means for SMEs to secure funding we will diligently operate the IP Recovery Support Program and actively communicate with IP Intermediary Institutions to enhance the monetization of collateralized IP.
For more detailed information about the roundtable please contact the Industrial Property Trade Cooperation Team at KIPO at 042-481-8555.
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