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China's First IP Agent to Be Listed

Recently, China Securities Regulatory Commission disclosed the details of its planned initial public offering for Shanghai Sinofaith IP Group. If the company is listed on the Growth Enterprises Market, it will become the first IP company listed in China. Some experts say that Sinofaith does not disclose completely and truly in its prospectus, and its survivable profitability would be influenced profoundly. Therefore, Sinofaith's application could be vetoed. Expert suggests that Sinofaith should disclose as much detail as possible, and establish cooperation relation with other qualified IP service organs to satisfy different demands of customers.

After more than 30 years'development, Chinese IP service industry continues to expand its scale and enhance its service capability. But there is no one company in IP service industry listed. "According to Chinese law, the patent agencies are yet ready to be listed," said Xie Huisheng, the director of Beijing Celve Law Office. "One of the problem Sinofaith faced is its sustain profitability. Patent attorney is one of important operation of patent agencies. If Sinofaith cannot be engaged in such operation after it was listed on the market, the correlated services would be very limited, which could have an adverse impact on its sustain profitability." Xie adds. According to Xie, Sinofaith should revise its prospectus to make sure of being successfully listed, and establish working relationship with law firms or IP companies.

Although there are some difficulties for patent agencies to be listed, it could have a positive effect on such industry if a patent agency can successfully be listed. "If Sinofaith can be listed on the market, its operation ability, financial strength and brand influence could be improved. Encouraged by the example, other IP agencies would continue to improve their own ability, which would help IP service industry to enhance practitioners' quality, service quality and international competitiveness." Xie adds.

(China IP News)