Neijiang Xintai Machine Tool Co. Ltd. of Sichuan Province mainly manufactures digital control machine tools with many key patents in this field. But owing to the lack of fund, the company cannot further expand its business. After consulting Neijiang IP Administration, the company decided to break the capital bottleneck through patent pledge loan. It filed an application to Neijiang's Shizhong District Rural Credit Cooperative early this year. After bank investigations and appraisal office's assessments to the company's six patents of utility model, the credit cooperative recently agreed to grant the loan of 1.5 million yuan to Xintai Machine Tool Co. Ltd., making the company the first private enterprise to gain IPR pledge loan in Neijiang.

IPR pledge loan is an effective way to help small and medium-sized enterprises get enough capital in their innovation programs in Neijiang City. Xintai's success in this regard shows that patent rights are economically valuable and can be pledged legally. In the past two years, Neijiang enterprises totally possess 63 service patents of invention, 18 Sichuan provincial famous trademarks and one national well-known trademark. Under the circumstance, Neijiang Science and Technology Bureau and Neijiang IP Administration will join hands with the city's financial sector to encourage enterprises to change its intellectual property to capital. Through developing new financial products and speeding up the transformation of scientific and technological achievements, the city's financial sector can meet the urgent demands from some hi-tech enterprises of enhancing and expanding their business, which can continuously improve Neijiang enterprises' independent innovation capacities.