Tianjin - China's first international market-oriented clearinghouse for trade in patents and other intellectual property was recently announced in the northern metropolis, with business operations scheduled to begin in the third quarter of the year.

The Tianjin Binhai Intellectual Property Exchange International (TIPEI) is poised to tap overseas markets, Lin Yishan, president of TIPEI, told China Daily.

"We are planning to introduce projects from other countries including Japan and the United States and list them on our exchange."

"The Nasdaq and Nasdaq-listed companies are our target partners," Lin said. "We are also approaching other major stock exchanges worldwide including Deutsche Boerse AD, the London Stock Exchange, and Singapore Exchange Ltd for cooperation possibilities."

TIPEI founders are studying different exchange models that use a corporate system, according to Lin.

The Tianjin exchange will provide various services for trade in intellectual property, as well as IP-based equity and financial derivatives.

An international over-the-counter market for intellectual property rights (IPR) will be developed to take advantage of the Tianjin Binhai New Area's pilot efforts in financial innovation.

Business operations for the exchange are still in the preparatory stage, he said. Its inception is a sign the intellectual property field is maturing in China, say industry insiders, though much work remains.

"Our work in IPR protection is still weak in operations, law enforcement and mechanisms," said Gong Yalin, director of the Planning and Development Department at the State Intellectual Property Office.

Last year alone, the US International Trade Commission conducted 19 investigations into alleged patent infringements involving Chinese companies, a new record high.

"During the 12th Five-Year Plan period (2011-2015), China will strive to foster its image as a power in IPR protection," Gong said.

Patented technology and other intellectual property are especially crucial to the development of small and medium-sized enterprises (SMEs).

"Our exchange appears to be more useful to technology-oriented SMEs," TIPEI president Lin Yishan told China Daily.

"Many SMEs face the dilemma of owning patent, yet lacking funds," Lin said. "We will offer financing services and serve as a clearinghouse for such companies."

"There are many regional centers for intellectual property exchange, so we target ours as international and fully market-oriented," he said.

China Daily

(China Daily 06/29/2011 page15)