What is patent pledge?

The so-called patent pledge means that the debtor or a third party guarantees the performance of its debts with a patent right. When the debtor fails to perform his debts, the creditor has the right to receive priority compensation from the discount, auction or sale of the patent right. Simply put, patents can be used as collateral for debts, and patented technology is pledged to creditors, which reflects people's recognition of patent value.