Unlocking the commercial value of intellectual property: New opportunities from technology transfer to bank financing
In the past, many innovative technology companies and SMEs have focused their resources on technology research and development and patent registration, but they often face the dilemma of "holding high-quality patents but finding it difficult to obtain financing from traditional banks." The difficulty in valuing intangible assets and the lack of a secondary liquidity market have always been the biggest obstacles to intellectual property-backed loans.
As Hong Kong accelerates its development into a regional intellectual property trading center, the Hong Kong SAR Government and the Hong Kong Technology and Innovation Support Centre (HKTISC) have officially launched the two-year "Patent Valuation Pilot Support Scheme" (PVSS) , which, together with the "Intellectual Property Financing Sandbox" promoted by the Hong Kong Monetary Authority and the Hong Kong Association of Banks, has created a new avenue for local enterprises to use patents as credit financing.
What is the Patent Valuation Pilot Support Program (PVSS)?
The Patent Valuation Pilot Support Scheme (PVSS) aims to lower the cost threshold for businesses to hire professional independent appraisers through government subsidies, enabling SMEs to obtain credible quantitative valuation data for patents and other intangible assets as an objective basis for applying for financing from financial institutions.
Two key highlights of the program's funding
1:1 matching grant (maximum HK$80,000)
A one-time grant will be provided to each eligible company to cover 50% of the cost of a quantitative intellectual property valuation conducted by an independent, qualified valuation service provider (including accountants, financial analysts, and valuation assessors).
Free national standard patented quality analysis service
If an enterprise's assets include at least one Hong Kong patent that has passed substantive examination, the Patent Examination Officer of the Intellectual Property Department (IPD) will assist HKTISC in providing a free quality analysis report from three dimensions: legal, technical, and economic value, in accordance with the national standard "Guidelines for Patent Evaluation" (GB/T 42748-2023).
List of SME Application Qualifications
Applicant companies must meet the following basic requirements:
Locally registered : Incorporated under the Hong Kong Companies Ordinance and holding a valid business registration certificate.
Small and medium-sized enterprises (SMEs) size : fewer than 100 local employees in the manufacturing sector, or fewer than 50 local employees in the non-manufacturing sector.
Holding valid intellectual property rights :
At least one patent, trademark, design, or plant variety right has been applied for or granted in Hong Kong; and
Holds a patent that has been approved and substantively examined in Hong Kong or other jurisdictions.
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Pain Points in Intellectual Property Financing and Challenges in Bank Credit Extension
At a recent intellectual property forum, the Hong Kong Association of Banks clearly pointed out two major obstacles to promoting intellectual property-backed financing:
Evaluation Dimensions | Challenges currently faced by SMEs | Future driving direction |
Intellectual Property Valuation | Lack of standardized reporting templates; high financial and administrative costs; significant discrepancies between valuation results obtained using the cost approach, market approach, and income approach. | Establish an objective and transparent quantitative valuation framework and unified standards. |
Secondary circulation market | The secondary market suffers from low transparency and insufficient liquidity, making it difficult for banks to effectively assess the value of disposal and liquidation. | Promote regulatory sandboxes and facilitate cross-sectoral professional ecosystem collaborations |
This means that if a company wants to successfully obtain financing through patents, the key lies in the quality of its patent portfolio in the early stages. Only high-quality patents with clear claims, broad geographical protection, and high commercialization potential can achieve high scores in legal, technical, and financial evaluations.
Three Strategies for Innovation and Technology Companies to Improve Patent Funding Success Rate
Complete the substantive examination as early as possible : Prioritize obtaining a Hong Kong standard patent that has undergone substantive examination through the Original Patent Grant (OGP) or designated patent transfer system in order to unlock the government's free quality analysis endorsement.
Multi-dimensional patent search and defense strategy : Establish a complete patent defense network in the early stages of R&D to ensure that the patent has high technical barriers and is irreplaceable, thereby enhancing the credit confidence of financial institutions.
Make good use of government funding to reduce costs and increase efficiency : integrate patent application grants (PAG), PVSS, and the industry-academia-research 1+ program to reduce overall cash flow pressure from R&D protection to commercialization financing.
Let Reg Easy IP help you transform your intangible assets into business chips.
Intellectual property is not only a legal defense tool, but also a crucial capital asset for businesses. The Reg Easy IP team possesses extensive experience in local and international patent applications, trademark registration, and asset management, providing businesses with:
Patent strategy and search : Tailor-made high-quality patent application plans to enhance the stability of rights.
Funding and valuation matching consultation : Assist in compiling a list of compliant patents and application documents, and smoothly connect with PVSS and the financing sandbox.
Comprehensive intellectual property protection : from application and defense to subsequent licensing and transfer, the entire chain safeguards commercial value.
Ready to unlock new financing avenues for your company's patents? Contact the Reg Easy IP expert team now(Email: info@regeasy.hk, Phone: +852 2810 6861) to schedule a one-on-one intellectual property diagnostic consultation!
(Update from 20 Oct 2026, IP Symposium: Unlocking the Value of Intellectual Property, Pioneering New Commercial Paradigms)
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