Biomedical Patent Securitization in Taiwan

Abstract

The currently funding institutes such as banks are hesitated to undertake the pledging business on intellectual property, it could be due to the lacking confidence on intellectual property or the overestimation of the high uncertainty of intellectual property, the inefficiency to cash out the pledged intellectual property assets etc.. In this article, the previous cases on intellectual property securitization worldwide were studied, in addition, the issues and suggestions for the future legislation are reviewed, and the adoption of the current finance asset securitization is discussed. My personal suggestions on securitization legislation for biomedical patent are stated and specifically explained the protection mechanism. Considering the characters of biomedical patent (such as the huge investments on equipments, long research period, complicated clinical trials and procedures, strict medicinal laws on manufactures and sales certificates approval, marketing and advertisement regulations etc.), parties involved in the securitization mechanism will not risk their qualified patents for the short term cash flow, which means lower opportunities on fraud or conspiracy comparing to the financial assets securitization. The overseas fund raising and guarantee institutes were presented. Sincerely hope this article shall contribute to the future legislation on intellectual property securitization, starting with biomedical patent securitization. Key words: Intellectual property; Securitization; Fund raising; Asset transfer; Biomedical patent