In the past few years, Asia has experienced a gamut of IP monetisation and financing programmes, spearheaded by leading government agencies and government-backed financial institutions. Malaysia is no exception to these developments. In 2013, the government unveiled the IP Financing Scheme (IPFS), worth 200 million ringgit ($55.2 million) and targeted to enable companies of all sizes, especially small and medium sized Enterprises (SMEs), to access business financing via the monetisation of their IP assets.
The landmark IP financing initiative, which aims to inculcate innovation in support of the 11th Malaysia Plan to advance the country to the status of a high-income nation, has attracted over 20 applications valued at 110 million ringgit since its launch. The programme has already dispensed 27.35 million ringgit among just five companies, namely KRU Malaysia, Datamicron Systems, Infoconnect, Smart Mobile Technology and Giggle Garage.
Besides the budget allocation, the parliament has passed amendments to the Industrial Designs Act 1996, clarifying IP owner rights and legitimising the use of registered designs as collateral. Similar changes are anticipated with regard to related legislation, including the Trademarks Act, the Copyright Act and the Patents Act. The government has also introduced the Malaysian IP Valuation Model, providing much-needed guidelines to financiers on assessing these seemingly intangible assets as well as training schemes to expand the base of qualified local IP valuers. The most recent initiative was launched at the end of June 2014 in the form of a pilot IP marketplace, providing a platform to facilitate IP trading, divestment and disposal.
The main pioneers of these developments, the Intellectual Property Corporation of Malaysia (MyIPO), Malaysia Debt Ventures and SME Corporation, will be at ALB’s first Malaysia IP Conference, taking place on the March 12 in Kuala Lumpur, to connect aspiring innovators, legal experts and senior government officials, and present the most creative and viable options to turn your IP into lucrative assets.
