SEOUL, Nov.16 (Korea Bizwire) – The Small and Medium Business Administration (SMBA) has announced that it will allow venture funds to invest directly in intellectual property rights to meet the demand, and to encourage small and medium businesses to use their intellectual property.
Previously, investments from venture funds were restricted to company shares and business projects. If a venture fund wanted to invest in intellectual property, it had to invest in the company that held the intellectual property rights.
However, as the government revamped the regulations of the Korea Venture Fund, venture funds that are run by venture capital firms or limited liability companies are now free to buy and sell intellectual property rights directly.
Obligations will be imposed on the venture capital firms that purchase the intellectual property rights of corporations, universities and research centers. These companies will have to allocate more than 60 percent of their total amount of purchases of intellectual property rights to trades with small and medium businesses.
SMBA officials anticipate that venture capitalists will participate in investing and trading intellectual property rights with enthusiasm.
By M.H.Lee (firstname.lastname@example.org)