The Shanghai Intellectual Property Administration on February 16 released the list of top 10 cases of IP financing in Shanghai.

1. Shanghai Ultrahigh Environmental Protection Technology Co., Ltd. (上海超高环保科技股份有限公司) sold its future royalties to be gained from licensing its patent to a Jiangsu province-based company to the Bank of Shanghai Bank. This financing model is called IP royalty securitization, one of the four basic structures to monetize the value of IP in the US market. Ultrahigh debuted on the Beijing Stock Exchange, formerly the National Equities Exchange and Quotations (NEEQ), in 2016.

2. Shanghai Xinfengmilu Fruits and Vegetables Cooperative (上海新凤蜜露果蔬专业合作社) obtained funding from the Shanghai Rural Commercial Bank Co., Ltd. by using its trademark as financing collateral. Xinfengmilu is a certified distributor of the Shanghai Nanhui Peach, Shanghai city’s only geographical indication product, which was recognized by the Chinese government in 2005.

3. Shanghai ShunFeng Restaurant Group Co. Ltd. (上海顺风餐饮集团股份限公司) obtained a 1.2 billion yuan ($190 million) loan from the Shanghai branch of the Bank of Hangzhou by using its trademark as viable financing collateral in 2021. ShunFeng debuted on the Beijing Stock Exchange, formerly the National Equities Exchange and Quotations (NEEQ), in 2017.

4. A Shanghai-based tech company offering triple play services obtained funding from the Shanghai branch of the Industrial Bank by using its 19 invention patents, which were valued at 120 million yuan ($19 million) by the bank and the Hongkou Intellectual Property Office of Shanghai city as fiancing collateral.

5. The Shanghai branch of the Industrial and Commercial Bank of China Ltd. (ICBC) developed a loan product titled “Sci-Tech Innovative Intellectual Property Loans (科创知产贷)” targeting sci-tech innovative small and medium-sized enterprises (SMEs), whose bankability levels were ranked and referenced by the bank when offering loans. The bank in turn developed another loan product titled “Sci-Tech Innovative Intellectual Property Insurance Loans (科创知产保险贷)” in tandem with the People's Insurance Company (Group) of China Ltd. (PICC) to offer loans capping at 5 million yuan targeting the same league. Siasun Robot & Automation Co. Ltd., (新松机器人自动化股份有限公司), one of China’s largest robotics manufacturers, obtained a 260 million yuan ($41 million) loan under the regime of the products developed by the bank.

6. A Shanghai-based company specilizing in equipping libraries with Internt of Things solutions by way of RFID systems obtained a 2 million yuan ($320,000) loan from the Shanghai branch of the Bank of Communications by using its patents and trademarks as financing collateral.

7. Shanghai Weishi Machinery Co., Ltd. (上海威士机械有限公司) specializing in manufacturing dress making and pressing machinery with intelligent technology obtained a 10 million yuan ($1.6 million) from the Shanghai branch of the Bank of China by using its patents as financing collateral.

8. Shanghai Pudong Financing Guarantee Co., Ltd. (上海浦东科技融资担保有限公司) led China’s first-time issuance of the asset-backed securities (ABSs) on the Shanghai Stock Exchange (SSE) in 2019. It has successfully brokered loans of 2.2 billion yuan ($350 million) between over 500 companies as IP owners and 20 banks on its platform since its inception in 2013. Loans of 80 million yuan ($13 million) was brokered between companies with IP assets and banks in 2021 alone.

9. China Pacific Anxin Agriculture Ins. Co. Ltd. (太平洋安信农业保险股份有限公司) has worked with the Shanghai Municipal government to offer loans of 400 million yuan ($63 million) as a major creditor to over 200 Shanghai-based companies using their IPs as collateral since 2017.

10. Shanghai Caohejing Hi-Tech Park (上海漕河泾新兴技术开发区) offers one-stop services for its tenant companies as a financing platform. Loans of 880 million ($140 million) have been brokered between these companies owning IP and the banks in the financial ecosystem fostered by the park in recent years.

The full tex of the 10 cases is avaiable here.