Registration of copyright pledge is the legal condition for copyright pledge to take effect. Article 227 of the Property Law of People's Republic of China (PRC) stipulates that if the property rights in intellectual property rights such as the exclusive right to use a registered trademark, patent right and copyright are pledged, the parties concerned shall conclude a written contract. The pledge right shall be established when the relevant competent department handles the pledge registration.

Article 79 of the Guarantee Law of People's Republic of China (PRC) stipulates that if the property right in the trademark exclusive right, patent right and copyright that can be transferred according to law is pledged, the pledgor and pledgee shall conclude a written contract and register the pledge with the administrative department. The pledge contract shall take effect from the date of registration.

Article 5 of the Measures for the Registration of Copyright Pledge stipulates that the establishment, alteration, transfer and extinction of copyright pledge shall take effect when it is recorded in the copyright pledge register.

Therefore, the copyright pledge contract can only take effect after registration, the pledge can be established, and the creditor can enjoy the priority of compensation for the price of discounted, auctioned and sold pledged property.