What are the patent risks in the process of listing?

It is not uncommon for many listed companies to delay listing or even be forced to give up listing because of intellectual property issues such as patents. Patent problems encountered by enterprises to be listed mainly include the following two aspects:

(1) False disclosure of patent information

The enterprise to be listed shall fulfill the obligation to disclose relevant information such as intellectual property rights. China Securities Regulatory Commission requires listed companies to disclose the contents of their intellectual property rights in a true, accurate, complete and timely manner, including the acquisition, use and value of trademarks, patents and proprietary technologies.

(2) Disputes such as patent infringement and unclear ownership.

As an important asset of enterprise's production and sales, intellectual property disputes, especially patent disputes, will not only make enterprises bear large litigation costs, affect their current financial situation, but also make enterprises' ability to further develop or maintain sustainable profitability in an uncertain state, and uncertainty means that enterprises have certain risks when using these intellectual property rights, which often constitutes a "hard injury" for enterprises to go public.

The patent problem of listed companies has always been the focus of attention of the CSRC and the majority of shareholders. It not only relates to the asset integrity of listed companies, but also relates to the sustainable profitability and competitiveness of enterprises, thus directly affecting whether enterprises can go public smoothly.