A Study on the Introduction of Intellectual Property Value Backed Insurance

Intellectual Property(IP) is the key factor of company and economy growth. IP financing and IP related financing system is necessary to promote the key factor role of the IP. This study suggests the IP-backed insurance as an alternative IP financing method. This is a kind of guarantee insurance and ensures the payment of principal and interest. The significance of the scheme are as follows. First, this insurance system does not cause credit delinquents. Therefore, given the opportunity to recover to failed management and the multiplier of guarantee policy can be achieved also. Second, because this insurance system is backed by intellectual property rights as collateral. In the real sense, this is the intellectual property right financingThird, credit risk of management associated with insurance is lower than the risks associated with equity investments, and higher than that of the guarantee. Fourth, though in credit guarantee, the company and management is insolvent at the same time, but in insurance, because only the company become insolvent, opportunity to recover the company using existing management increases