Recognizing the potential for profit in owning the rights to technological and other inventions, the Taiwanese government recently made plans to create an "intellectual property bank," according to a recent Intellectual Asset Management report.

The idea arose as a potential response to many Taiwan-based businesses being sued by foreign firms for patent infringement, the report said. The new intellectual property bank will purchase patents in the international market in order to assist local Taiwanese businesses.

According to the report, the bank will begin operating in June, under the control of the Industrial Technology Research Institute. The Taiwanese Ministry of Economic Affairs will hold a 30 percent stake in the bank, while a combination of venture capital firms and operating companies will contribute initial funds.

The intellectual property bank's initial funding will be approximately $18 million, the report said.

According to the Focus Taiwan News Channel, the new bank will "seek to purchase patents that are likely to be beneficial to Taiwan-based firms in the international market."

International companies often accuse competitors of "stealing" patents as a way of competing with each other, Focus Taiwan said. Taiwanese companies are often the targets of these efforts. The intellectual property bank aims to give Taiwanese businesses the option of buying the patents in order to gain a competitive edge.