INNOVATION AND FUNDING
project and if needed, guidance and consultation services are readily available from MTDC.
Partial funding is provided by MTDC either by way of a match-funding model or a hybrid-financing model. Under the match-funding model, funds of up to MYR 4 million ($1.2 million) are provided for early-stage technology in the form of non- repayable grants through the Commercialization of Research and Development Fund (CRDF) or the Technology Acquisition Fund (TAF). Te TAF was established by MTDC solely to facilitate acquisition of foreign technologies by Malaysian companies. Further up the innovation value chain, hybrid financing in the form of repayable funds of up to MYR 5 million ($1.5 million) are available to companies through the MTDC’s Business Growth Fund (BGF) or the Business Start-Up Fund (BSF).
Aſter a concerted decade-long government effort in promoting IP, many Malaysian innovators are now proud IP owners who place much importance on the vigorous enforcement of their IP rights. However, at present, there is still a lack of awareness among local IP owners about the value or investment IP assets can command and the income they can generate, which is equally crucial in the competitive global arena.
Aſter procuring sufficient funds to attain, realise and successfully commercialise an IP asset, what is next? Government funding can only carry local businesses thus far and hence, there has to be a financial plan B to preserve, if not increase, the value of IP assets for continued growth and success of local innovators.
The legal picture
Recent and proposed amendments to Malaysia’s IP laws include provisions for monetisation and securitisation of IP, paving the way for innovators to obtain downstream funding from financial institutions. Te idea of monetising and securitising IP in the same manner as personal or moveable property has been lobbied for many years in Malaysia. Te objective is to generate capital for IP owners to finance downstream business growth.
Te first IP legislation in this regard is the Industrial Designs (Amendment) Act 2013. With effect from July 1, 2013, a registered Malaysian industrial design may potentially be the subject of a security interest in return for funding from a financier. Similar amendments have been proposed and are expected to be made to the Trade Marks Act and Patents Act in the near future.
Te ultimate goal is statutory provisions
to effectively translate from paper into action,
www.worldipreview.com
“RECENT AND PROPOSED
AMENDMENTS TO MALAYSIA’S IP LAWS INCLUDE PROVISIONS FOR MONETISATION AND SECURITISATION OF IP, PAVING THE WAY FOR INNOVATORS TO OBTAIN DOWNSTREAM FUNDING FROM FINANCIAL
INSTITUTIONS.”
but the road is not yet clear of challenges. Due to the intangible characteristics inherent in IP assets, local banks are unsurprisingly hesitant to put any money on the table unless a national IP valuation model is agreed to and the value of the IP collateral is carefully appraised within the agreed-to model.
Tere are many IP valuation approaches (market, cost, income) and methods (premium pricing, royalty savings, pay-off, etc) from different schools of thought currently being considered. Te cross-industry impact of such IP transactions will change not only IP practices but also local banking and accounting practices. It is vital that stakeholders find common ground and agree on a shortlist of methodologies suitable for the local market, as choosing the right IP valuation model can determine the success or failure of this national venture.
Te Intellectual Property Corporation of Malaysia (MyIPO), Ministry of Finance, Bank Negara (National Bank) and other stakeholders are presently working hard toward a national IP valuation model in which IP practitioners are poised to play a key role. MyIPO has commenced national-level training of a core
group of
practitioners who will form the nucleus of local IP valuation analysts.
Clear direction from the government on how to put valuation, monetisation and securitisation of IP into good practice is very much needed and keenly anticipated. Although IP owners eager to put up their IP assets as collateral in exchange for funds will have to hold their horses
in the meantime, the general consensus amongst Malaysians is that the country is moving in the right direction toward becoming an innovator- friendly nation.
Oon Yen Yen is the business development manager and patent manager at Henry Goh & Co. She can be contacted at:
yen@henrygoh.com
Lim Eng Leong is in-house legal counsel at Henry Goh & Co. He
engleong@henrygoh.com
can be contacted at:
Oon Yen Yen is a registered patent, industrial design and trademark agent and specialises in the fields of biotechnology and chemistry. She oversees patent operations, including staff training on Malaysian patent law and practice. Besides draſting of specifications and prosecution of Malaysian applications, she has substantial experience in the filing and prosecution of foreign patent applications. She regularly advises clients on results of novelty searches and provides validity, infringement and patentability opinions.
Lim Eng Leong is a registered patent, industrial design and trademark agent. He started his legal practice in one of Malaysia’s leading law firms, specialising in IP law. Besides prosecuting trademark applications, handling opposition proceedings and hearings before the registrar, he also advises clients on trademark protection strategies and other IP-related matters.
World Intellectual Property Review September/October 2013
89
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196