“IP financial investment” to SW companies holding patents and copyright is increasing
Hur Woo Young | yenny@ | 2017-06-15 11:21:22
The number of receiving Intellectual property (IP) financial investment is increasing if a software (SW) company holds patent or copyright of an original technology despite of its small size.
On Jun. 14, according to the Korean Intellectual Property Office, the operation scale of IP finance was sharply increased from 212 sureties, loans, and investments with the sum of 75.9 billion won in 2013 to 1,199 sureties, loans, and investments with the sum of 303.5 billion won. Korea Technology Credit Guarantee Fund and Korea Credit Guarantee Fund certify maximum 1 billion won for each company in the value evaluation price of patent and copyright, and support companies to borrow maximum 2 billion won from KDB, IBK, KB, and the like holding certification of Korea Technology Credit Guarantee Fund and Korea Credit Guarantee Fund as security.
Accordingly, it is expected that a company which holds patent or copyright for excellent technical skill and received a proper valuation therefrom can solve a difficult problem of funding. It is difficult for small and medium-sized companies to raise fund by being certified, borrowing money, or the like due to low credit rating and lack of material security. However, a company with an excellent SW technology can be certified or borrow maximum 2 billion won through IP evaluation of the Korean Intellectual Property Office (Korea Invention Promotion Association and the like), Korea Technology Credit Guarantee Fund and Korea Credit Guarantee.
For example, a SW development company, Shift Information Communication Co., LTD. has the value of patent technology the company holds, evaluated as 5.4 billion won, and then borrowed 2 billion won from KDB. The company invested the fund to R&D and overseas marketing, developed web graphic SW, entered the Chinese market, and thus accomplished export over 30 billion won and received additional fund from banks. In addition, companies which have low credit rating (CCC-) possess advanced technical skills, and thus there are many cases of attracted investment through IP evaluation.
Meanwhile, relevant agencies planned to cooperate to use IP finance and protection of copyright of SW companies. SW-related agencies such as the Korean Intellectual Property Office, Software Policy and Research Institute, the Federation of Korean Information Industries, Korea Information Technology Service Industry Association, and Korea Commercial Software Association had a meeting last month and agreed to increase IP finance awareness of small and medium-sized companies, prevent and protect IP dispute of companies extended their business abroad, and develop IP finance system.
“The new government pledged reinforcement of SW intellectual property protection and it is expected that there is going to various plans for supporting poor SW companies to solve financial difficulty” said an official in business.
By Hur Woo Young yenny@
[ copyright ⓒ The Digitaltimes ]
On Jun. 14, according to the Korean Intellectual Property Office, the operation scale of IP finance was sharply increased from 212 sureties, loans, and investments with the sum of 75.9 billion won in 2013 to 1,199 sureties, loans, and investments with the sum of 303.5 billion won. Korea Technology Credit Guarantee Fund and Korea Credit Guarantee Fund certify maximum 1 billion won for each company in the value evaluation price of patent and copyright, and support companies to borrow maximum 2 billion won from KDB, IBK, KB, and the like holding certification of Korea Technology Credit Guarantee Fund and Korea Credit Guarantee Fund as security.
Accordingly, it is expected that a company which holds patent or copyright for excellent technical skill and received a proper valuation therefrom can solve a difficult problem of funding. It is difficult for small and medium-sized companies to raise fund by being certified, borrowing money, or the like due to low credit rating and lack of material security. However, a company with an excellent SW technology can be certified or borrow maximum 2 billion won through IP evaluation of the Korean Intellectual Property Office (Korea Invention Promotion Association and the like), Korea Technology Credit Guarantee Fund and Korea Credit Guarantee.
For example, a SW development company, Shift Information Communication Co., LTD. has the value of patent technology the company holds, evaluated as 5.4 billion won, and then borrowed 2 billion won from KDB. The company invested the fund to R&D and overseas marketing, developed web graphic SW, entered the Chinese market, and thus accomplished export over 30 billion won and received additional fund from banks. In addition, companies which have low credit rating (CCC-) possess advanced technical skills, and thus there are many cases of attracted investment through IP evaluation.
Meanwhile, relevant agencies planned to cooperate to use IP finance and protection of copyright of SW companies. SW-related agencies such as the Korean Intellectual Property Office, Software Policy and Research Institute, the Federation of Korean Information Industries, Korea Information Technology Service Industry Association, and Korea Commercial Software Association had a meeting last month and agreed to increase IP finance awareness of small and medium-sized companies, prevent and protect IP dispute of companies extended their business abroad, and develop IP finance system.
“The new government pledged reinforcement of SW intellectual property protection and it is expected that there is going to various plans for supporting poor SW companies to solve financial difficulty” said an official in business.
By Hur Woo Young yenny@