Monetizing IP in China

This book consists of three parts. Part I covers facts. It provides straight forward state-ments of various stories or incidents relating to IP monetization in China. A reader may feel the observations, though fascinating, are somewhat disorganized. That is exactly the case in China. So, we need Part II. Part II organizes and analyzes these facts with "three axes" that dominate any IP monetization deal. The three axes are IP's creation, IP pledge (IP as collateral to a loan), and risk mitigation. In this part, we conduct the analysis against the developing regulatory regime. This provides additional information to a more serious planner for IP monetization in China. Part III is a concise endnote highlighting certain strategic guidelines for IP monetization in China. We assume the readers to be foreign investors in China or foreign entities in other countries hoping to benefit from enhancing their IP utilization in China. Such readers may have a grasp of the basics when it comes to the Chinese IP environment, but are seek-ing a better understanding of the most recent phenomena, or hope to improve their approach in seizing the opportunities of IP monetization in China. Readers who will most benefit from this book are:

(1) promoters wishing to monetize their IP in China,

(2) foreign investors in China, especially those in cultural and creative industries or high-tech industries,

(3) legal, accounting or consulting professionals ad-vising on doing business in China, and

(4) observers or commentators following China's development in the IP regime.

Special thanks to Huan-Yi Lin, who comments on the substance of the content, to Paul Bendemire, who contributes his views from a perspective of global IP professional, and to T-Bone (Eric Shih) and Amber Yu for their art and design.

This book includes the following features about IP monetization in China First-time disclosed real life cases and market intelligence up-to-date statistics

* Effective analytical tools to decipher the contemporary phenomena

* Insights and observations on the trends

* A concise strategy summary for seizing business opportunities Readers who will most benefit from this book are:

* Promoters wishing to monetize their IP into China

* Foreign investors in China, especially those in cultural and creative industries or high-tech industries

* Legal, accounting or consulting professionals advising clients on doing business in China

* Observers or commentators following China's development in IP regime

本書介紹在中國進行智慧財產權變現操作的現況，內容的特色為：

*首次揭露的真實案例和市場情報

*最新統計資料

*解讀當代現象的有效分析工具

*發展趨勢的洞悉與觀察

*捕捉商機的行動策略綱要

適合的讀者為

*希望在中國變現智慧財產權的專案負責人

*在中國投資的外商，特別是在文創與高科技產業的經營者

*協助客戶在中國展業的律師、會計師及顧問

*跟進中國智慧財產權制度現狀的觀察家或評論員

Dr. Jili Chung is a cross-culture, cross-discipline legal professional. He worked in Washington D.C., Hong Kong, Beijing, Shanghai, and Taipei for global mega professional institutes, including Clifford Chance as its senior lawyer, and Goldman Sachs as its executive director. He is now the General Counsel of a leading high-tech company in the Apple’s supply chain.

He obtained his J.D. from UCLA, Ph.D. in Law from Peking University, and MBA and BS in Chemical Engineering from National Taiwan University, with qualifications of attorney-at-law (California and China), patent agent (China), and Certification of Securities Professional (China).

With his 15-years’ working experience in the Greater China, Dr. Chung is dedicated himself to IP strategies, and enthusiastic about exploring values of ancient Chinese culture through IP mining and technology innovation. He is the author for IP Financing for Creative and High-Tech Industries (2015 Peking University Press)

鐘基立博士是一位跨文化、跨專業的法律工作者。他曾在華盛頓特區，香港，北京，上海，及臺北等城市的跨國大型專業機構工作，包括在Clifford Chance律師事務所擔任資深律師，以及在高盛擔任執行董事。現在為蘋果供應鏈中一家創新領導企業的法務長。

他是美國加州大學洛杉磯分校的法律博士，北京大學法學博士，臺灣大學企管碩士及化學工程學士。他為美國加州律師，並通過中國律師、專利代理人以及證券營業人員資格考試。

鐘博士在大中國區有15年以上的工作經驗，致力於智慧財產權策略，並對藉由智慧財產權與技術創新開發悠久中華文化的價值，具有高度熱忱。他著有“文創與高新產業融資”一書（北京大學出版社2015年出版）

Contents
MONETIZING IP IN CHINA

PART I OBSERVATIONS ON IP MONETIZATION IN CHINA
1. Highlights of Dynamic Developments
1.1. Sizable IP pools being created
1.2. IP pledge
1.3. Experiments in novel IP financing
2. Planned Economy and Regulatory Regimes
2.1. Color of planned economy
2.2. National IP Strategy Outline
2.3. Regulatory framework
2.4. National campaign promoting innovation
3. Spirit of Experimentalism
3.1. Speech during Deng Xiaoping's South China Tour in 1992
3.2. Spirit inherited
4. From Quantity to Quality
4.1. IP pledge transaction
4.2. Driver of quantitative change
4.3. Strong demand for IP by cultural and creative industries
5. Excess Liquidity in Certain Industry Sectors

PART II ANALYSIS USING 3 AXES
1. The first Axis – IP Creation and Transfer
1.1. The IP movie phenomenon
1.2. The current platform - Crowdfunding and Quasi IP securitization
1.3. Case studies - Crowdfunding and Quasi Securitization
1.4. Development of an IP transfer platform
2. The Second Axis – IP Pledge
2.1 Current frameworks
2.2 Characteristics of the development
2.3 Achievements and further developments
3. The Third Axis – IP Risk Mitigation
3.1 The function of IP insurance
3.2 Insurance policies available in China
3.3 An illustrative case of patent insurance

PART III STRATEGY GUIDELINES
1. Get Familiar with the Rules of the Game
2. Develop Win-Win Strategies
3. Occupy the High Ground with an Edge in IP
4. Utilize Effective Approaches (the 3 Axes) to Follow
New Developments 61

Table of Exhibits

Exhibit 1:Worldwide patent application filing trends (2004-2014)
Exhibit 2:Selected targets under the “2014-2020 Action Plan”
Exhibit 3:The number of contracts and the total amount of patent pledge loan
Exhibit 4:Comparison of various models for patent pledge loan