Pushing for IP financing in APAC
IP financing goes beyond protecting intellectual property (IP) rights. It is a key driver for turning innovative ideas into marketable products and services.
Research by the World Intellectual Property Organization (WIPO) highlights how IP-intensive industries significantly contribute to jobs creation and economic output, emphasizing the crucial link between IP financing and prosperity.
For businesses, especially startups and SMEs, IP financing offers a vital source of capital. By leveraging their IP, businesses can secure loans and equity investments. This funding helps them scale operations, hire talent, and expand their market reach. The European Patent Office (EPO) has shown that IP financing positively impacts business growth, fostering innovation-led entrepreneurship across various sectors.
Moreover, IP financing encourages the dissemination of knowledge and technology transfer. Financial incentives for creators and innovators promote the sharing of ideas and expertise, spurring collaboration between industries and academia. This collaborative environment drives technological progress and innovation. Institutions like UNESCO recognize IP’s role in promoting sustainable development and knowledge-based economies.
Since assuming the chairmanship of IPEG in 2023, I have prioritized actions supporting the Aotearoa Plan of Action (APA). We established a work plan to share best practices and success stories among member economies, resonating deeply during the 57th IPEG Meeting at the 3rd Senior Officials Meeting (SOM3) in 2023.
To further this dialogue, the Philippines launched a self-funded project titled “Dialogue with Industry Partners on IP Financing” at the 58th IPEG Meeting. Insights from this forum revealed that while financial institutions excel in assessing financial data, they often lack the expertise to understand a company’s IP assets. This gap highlights the need for specialized intermediaries, like Japan’s innovative IP mentoring team, which guide startups in developing sound business models and IP strategies.
Developing professionals with dual expertise in management and IP is crucial for a holistic ecosystem that supports both IP financing and the broader startup landscape. Another key takeaway from our discussions was the underutilized potential of trademarks as financial assets.
Currently, trademarks and brands are often excluded from balance sheets, undervaluing these intangible assets. A more comprehensive approach to brand valuation, as recommended by the International Trademarks Association (INTA), is necessary.
INTA suggested enhancing ISO 10668 by incorporating a database of local registries and records for brand valuation.
Developing professionals with dual expertise in management and IP is crucial for a holistic ecosystem that supports both IP financing and the broader startup landscape.
Such a resource would empower brand owners to accurately reflect the true value of their IP.
A recent APEC-funded study by the Republic of Korea on harmonizing the IP financial system found that proactive collaboration between the government and financial institutions, along with government support, is essential for the voluntary implementation of IP finance.
The government needs to establish policies to share the risks associated with IP finance.
Moving forward, continuing this dialogue between governments and industry partners is vital. By fostering collaboration, knowledge sharing, and effective IP financing mechanisms, we can unlock the full potential of intellectual property, driving innovation and prosperity across the Asia-Pacific region.
