Patent pledge means that the patentee takes the patent right as the guarantee of creditor's rights. When the debtor (patentee) fails to perform the debt, the creditor has the right to discount, transfer or auction the patent right according to legal procedures, and the proceeds will give priority to paying off the debt. Where the patent right is pledged, the pledgor and the pledgee shall conclude a written pledge contract.
In addition, after the patent pledge contract comes into effect, the patent right will not be transferred and will still be owned by the pledger. According to the law, pledge refers to the legal relationship that the debtor transfers the possession of a certain property to the creditor as a guarantee for performance, and only transfers the possession, not the ownership. Therefore, after the patent pledge contract comes into effect, the patent right will not be transferred and will still be owned by the pledger.