On April 13, 2026, the European Union Intellectual Property Office (EUIPO) released a new study, “IP-backed finance in Europe: State of Play and Future Perspectives,” which highlights significant legal and structural obstacles that prevent small- and medium‑sized enterprises (SMEs) from securing financing with intellectual property as collateral. Published amid the EU’s recently launched Savings and Investment Union (SIU) programme, the report outlines a series of policy measures to improve the treatment of IP rights within financial and regulatory frameworks.

According to the report, SMEs face an annual credit gap of €365 billion (US$430.3 billion), despite business startup rates in Europe having outpaced those in the United States from 2016 to 2025. The EUIPO estimates the addressable market for IP‑backed finance at €70 billion to €150 billion (US$82.5 billion to US$176.9 billion) per year, noting that with appropriate legal and financial infrastructure in place, 40 percent to 80 percent of this market segment could be captured over time. That would translate into as much as €580 billion (US$683.9 billion) in additional mobilized financing over a decade.

The EUIPO attributes the lack of uptake to “mutually reinforcing” barriers. These include deep information asymmetries between IP owners and lenders, the uncertain and asset‑specific nature of IP valuation, the absence of secondary markets and the high cost of valuation processes relative to SME financial resources.

The study notes: “Together, these barriers form a vicious circle: without transactions, no data accumulates; without data, risk assessment remains conservative; without credible risk assessment, no instruments can scale.”

Only 13 percent of SMEs with IP rights currently attempt to obtain financing using IP rights as collateral.

To address these challenges, the EUIPO identifies five priority areas for legal and policy intervention. The first is the creation of a voluntary structured disclosure framework enabling SMEs to present IP and other intangible assets consistently to financial institutions. The study suggests this could be modelled on the EUIPO’s existing IP Scan service, adapted for financing rather than pre‑diagnostic purposes.

The second priority calls for a European valuation architecture aligned with International Valuation Standards, including sector‑specific guidance and certification pathways for valuation professionals. The report notes that subsidies for SMEs may be necessary until a sufficient pool of certified experts is established.

Guarantee schemes form the third pillar, with the EUIPO recommending credit guarantee products tailored to IP‑backed lending. Additional proposals include pilot lending programmes involving the European Investment Bank Group and national development banks, as well as new IP insurance products covering infringement or default risks.

A fourth priority focuses on building a stronger evidence base for financial actors. Here, the EUIPO recommends a centralized register of pledges or rights in rem, interoperability between IP registries, and the collection of anonymized transaction data to support risk modelling. A limited, standardized set of data elements would form the foundation for these assessments.

The fifth priority proposes establishing a coordination institution to oversee disclosure, valuation quality, stakeholder engagement and training. While no new licensing regimes are suggested, the institution would maintain functional separation from financing decisions while promoting consistent processes and digital tools to support SME participation.

Beyond these core areas, the report identifies several enabling conditions requiring legislative or macro‑policy action. These include the development of secondary markets for IP assets, potentially through a centralized digital marketplace; the long‑term goal of securitizing IP‑backed loans; and reforms to ensure predictable recovery of IP in insolvency proceedings. The study also highlights the importance of channeling the EU’s substantial private savings into innovation under the SIU framework.

The EUIPO notes that aligning the SIU programme with clearer rules and stronger mechanisms for IP‑backed finance would provide an important opportunity to expand SME access to capital and support Europe’s innovation sector.

- Cathy Li