The benefits of the UNIDROIT Model Law on Factoring in facilitating IP finance presented in Shanghai

On 6 November 2025, the UNIDROIT Model Law on Factoring was presented at the Intellectual Property Future Forum organised by the International IP Commercialization Council (IIPCC) in Shanghai, China. During a panel on “IP Finance to Enable Economic Development” moderated by Michael Lin (IIPCC), UNIDROIT Senior Legal Officer William Brydie-Watson, Professor Giuliano Castellano (Director of the Asian International Institute of Financial Law, HKU) and Johnson Kong (IIPCC) discussed the growing importance of IP finance to enable access to credit for small and medium enterprises (SMEs). The panel specifically considered how the UNIDROIT Model Law on Factoring provides a legal framework that would allow SMEs to transfer receivables arising from the assignment or licence of IP. The panel drew two important conclusions: (i) the importance of enabling product-focused finance mechanisms with sufficiently developed regulatory and legal frameworks, and (ii) the need for further legal and regulatory reforms across the Asia-Pacific region, based in-part on the Model Law on Factoring. The agenda from the event is available here.

Adopted in 2023, the UNIDROIT Model Law on Factoring is a complete, self-standing legal framework designed to help countries update and harmonize their laws on factoring and receivables financing. It provides a set of rules to facilitate factoring transactions, particularly for states that lack a comprehensive secured transactions legal system. Learn more about the UNIDROIT Model Law on Factoring on the UNIDROIT website: https://www.unidroit.org/instruments/factoring/model-law-on-factoring/.

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