China has launched the first national new energy vehicle (NEV) intellectual property securitisation product, enabling the leasing of patents, Kallanish reports.

This IP asset-backed securities (ABS) product released at an event at the Guangzhou Development Zone, adopts the sales and financial leasing transaction model, according to the local government.

Technology companies can transfer their own patent rights to the leasing company and lease the patent rights back for use through the financial leasing contract. They will obtain funds without losing their core technology and brand. Ultimately, it enables firms to realise the effective integration of the innovation chain, capital chain and industrial chain, Guangzhou government says.

“The field of NEVs is an important technical field for China’s automotive industry to achieve overtaking,” comments Song Ruiling, the operator representative of the China Automotive Intellectual Property Promotion Centre. “The securitisation of NEV intellectual property rights is a new national automotive industry intellectual property finance model proposed for the first time after the centre was established in Huangpu.”

In order to enhance the NEV industry’s ability to withstand pressure and bargaining in the face of the external environment and further enhance its international competitiveness, it will take the lead in concentrating resources to build the first nationally operational NEV patent pool in China, he adds. “By integrating resources from all parties, the patent pool will create a more fair and orderly competition environment for NEV companies and further enhance the agglomeration effect of regional industries,” Song continues.

Through the NEV industry development, there have been some IP lawsuits, including the famous litigation between CALB and CATL.