Energizing Filipino exports via IP
IPs undeniably add value to export products and services, benefiting both exporters and the Philippine economy
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IPs undeniably add value to export products and services, benefiting both exporters and the Philippine economy
In the recent 2022 National Export Congress, we received news of the updated plan for the Philippines to become a major exporter of high-value products in the next six years.
According to the Philippine Export Development Plan for 2023 to 2028, the country envisions doubling exports to $240.5 billion by 2028, a promising agenda to uplift economic competitiveness and value-added investment.
To maximize our efforts to achieve this export plan, we must first recognize that value addition goes beyond the additional processing of Filipino goods.
In fact, value addition may also be secured by investing in intangible assets, specifically in creating, protecting, utilizing and enforcing exporters' intellectual property or IP.
With ever-changing global markets and disruption across industries, a comprehensive understanding of IP rights to increase export value is crucial to emerging global market players.
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Apart from offering the ability to protect export products from counterfeiting, piracy and other infringement, securing IPs can support businesses in taking advantage of the potential of export goods.
According to a 2017 Word Intellectual Property Organization report citing a study on intangibles in global value chain production, on average, almost one-third or 30 percent of the total value added of products marketed worldwide were associated with intangible capital such as technology, design and brand value.
For instance, the success of smartphone manufacturers is attributed to the variety of IPs found within a single unit.
These intangibles include patent rights over the technology itself including its component parts and accessories, such as Bluetooth, WiFi, camera and operating system.
Additionally, a smartphone possesses design rights and copyright over its interface and applications, and trademarks and other marks of ownership to the company's logo and other branding components.
Coffee is also a prime example of export goods laden with intangible assets in its global value chain. From farming methods, trademarks and geographical indications, to industry knowledge through trade secrets and patents in manufacturing technologies, IPs are found in every stage of the production process.
IPs undeniably add value to export products and services, benefiting both exporters and the Philippine economy. A 2017 study by the International Trademark Association shows the direct
contribution of trademark-intensive sectors to the Philippines' GDP is at 17 percent, with an indirect contribution of up to 41 percent. In terms of copyright, earlier research in 2014 by WIPO found that copyright-based industries produced an estimated 7.34 percent of the Philippines' GDP and 14.14 percent of total employment in 2010.
With the expected boost of the country's economic recovery, entrepreneurs, manufacturers, researchers and marketers of the export industry must take progressive steps in securing these intangible assets to ensure that these businesses see long-term success in the global field.
Thus, Filipino businesses venturing into the export stage must be proactive in understanding how their IPs can be used to increase export value and develop strategies to leverage these resources effectively.
With the Intellectual Property Office of the Philippines' ongoing and upcoming programs and projects to incentivize IP creation, protection and commercialization, we hope to sustain momentum in inspiring Filipinos' deeper appreciation of the benefits of investing in IP.
We also hope to encourage more innovative and creative endeavors in the upcoming year to help propel a resilient, inclusive and faster recovery of our local MSMEs, the potential players in our growing export industry.
The Philippines is a rising star in the export industry and is expected to become even more robust in the foreseeable years. Through a collective push to bring more understanding to intangible assets, we can support more businesses to flourish amid the excitement and challenges of bringing Filipino IPs to the worldwide field.
