Mastering Intellectual Property Valuation: A Recent Course Recap

 I recently had the privilege of conducting the Kursus Penilaian Harta Intelek: Pendekatan & Strategi Penentuan Nilai Komersial (Intellectual Property Valuation Course: Approaches & Strategies for Commercial Value Determination). This two-day program, held on June 17-18, 2025, offered participants a deep dive into the critical aspects of valuing intellectual property (IP) assets.

The course, which took place from 8:30 AM to 5:00 PM at Aras 11, Menara MyIPO, PJ Sentral, was designed to equip attendees with the knowledge and practical skills needed to effectively assess the value of their organization's or business's IP assets. It was fantastic to see such an enthusiastic and engaged group of professionals eager to enhance their understanding in this vital area.

Why IP Valuation Matters

Intellectual property valuation is the process of determining the monetary worth of IP assets. It's not just an academic exercise; it's crucial for a wide range of business transactions. Whether you're looking at investments, mergers, acquisitions, or even navigating legal disputes, having a clear understanding of your IP's value is paramount. It allows businesses to make informed decisions, leverage their assets effectively, and protect their interests.

Key Approaches to IP Valuation

During the course, we explored the three primary approaches to IP valuation, each offering a unique perspective:

• Cost Approach: This method estimates the value of IP based on the costs incurred to create or replace it. While straightforward, it doesn't always capture the full commercial potential of an IP asset.

• Market Approach: This approach determines IP value by comparing it to similar IP assets that have been recently sold or licensed in the market. It relies on the availability of comparable transactions, which can sometimes be a challenge.

• Income Approach: Often considered the most comprehensive, this method calculates the present value of the future economic benefits expected from the IP. This includes factors like projected revenues, cost savings, and royalty income.

We delved into the nuances of each approach, discussing their strengths, limitations, and the scenarios where each is most appropriate. Participants engaged in practical exercises, applying these methodologies to real-world examples, which helped solidify their understanding.

Looking Ahead

The course was limited to 30 participants, ensuring an interactive and personalized learning experience. The pre-registration deadline was May 30, 2025, and successful applicants were notified via email with payment instructions.

It was truly rewarding to facilitate this course and share insights into the dynamic world of IP valuation. I believe that a strong grasp of IP valuation is becoming increasingly essential for businesses in today's knowledge-driven economy.

MyIPO Launches IPR Marketplace 2.0 Portal

On January 18, 2024, the Intellectual Property Corporation of Malaysia (MyIPO) launched the IPR Marketplace 2.0 portal, a platform that connects intellectual property (IP) owners, buyers, investors and service providers. The portal aims to facilitate the commercialization and valuation of IP assets in Malaysia and beyond.

Screenshot of IPR Marketplace 2.0 Portal (iprmarketplace.myipo.gov.my)

MyIPO charman, Dr Mohd Zuhan hopes that this platform will encourage collaboration between local entrepreneurs and potential parties in the global market. 

The IPR Marketplace 2.0 portal offers various features and benefits for its users, such as:

- A searchable database of IP assets for sale, licensing or investment opportunities

- A directory of IP valuers

- A dashboard that allows users to manage their IP portfolio and transactions

The portal also provides access to various resources and tools, such as:

- A guide on how to use the portal and its features

- A blog that shares news, updates and insights on IP-related topics

The IPR Marketplace 2.0 portal is open to anyone who is interested in IP, whether they are IP owners, buyers, investors or service providers. Users can register for free and start browsing, listing or contacting other users on the portal.

Screenshot of IP Valuer, Dennis Tan

As one of the IP valuers listed on the portal, I am excited to be part of this initiative and to offer my expertise and services to the IP community. I believe that the portal will help to create a vibrant and dynamic IP market in Malaysia and beyond, and to unlock the potential value of IP assets for the benefit of the economy and society.

If you are interested in learning more about the IPR Marketplace 2.0 portal or want to register as a user, please visit iprmarketplace.myipo.gov.my. You may also engage us by visiting www.boon.com.my.

The Most Valuable Artwork: Mona Lisa

According to Guinness World Records, the Mona Lisa has the highest insurance value ever for a painting in history. In 1962, the painting was assessed at U$100 million. If inflation and surge in art prices are taken into account, the painting is estimated to be worth $2.5 billion in 2014, according to France 24.

Mona Lisa, a masterwork of Renaissance was painted by Leonardo da Vinci in early 16th century. It is described as the best known, most visited, most written about, most sung about, and most parodied work of art in the world, according to The Independant.

Leonardo is the most celebrated man during the Renaissance as an artist, engineer and inventor.

"Leonardo is ranked among the most influential artists in history. He lived in the boom of the Renaissance, a golden age of social and cultural change, a period in history characterized by an enthusiastic fervor towards intellectual pursuits and creativity," says Eliana Salvi, cultural officer of the Embassy of Italy in Kuala Lumpur.

She notes that Leonardo saw the entire world as the great machine of the world, as he call it, a work of art that is to be studied through curious eyes, and paintings as a way to understand and record what he saw, the physical world as well as the contained emotions.

The Mona Lisa painting shows a half length portrait of Lisa Gherardini, which was commissioned by her Italian husband. In Italian language, Mona means madam. It was bought by King Francis I of France which become the property of France. It is displayed at the Louvre, Paris since 1797.


Why the Painting is Valuable?

In 1911, the painting was stolen from the Louvre. The incident created headlines and copies of print out around the world. The copyright for the painting would have long expired. The painting was recovered in 1914. The Louvre then invested heavily in security to prevent such theft from happening again. There are many copies made but there is only one original copy painted by Leonardo.

To commemorate the 500th year of Leonardo da Vinci's death in 1519, a life size digital exhibition of seventeen paintings of Leonardo da Vinci will be held at the National Art Gallery from 15 July to 15 August. Admission is free. The traveling exhibition called 'Leonardo da Vinci: Opera Omnia', which means the incredible exhibition of Leonardo da Vinci is conceived by the Italian public television subsidary RaiCom with the support of the Italian Ministry of Foreign Affairs and International Cooperation.

Chong highlights few points to improve IP system at forum

Deputy Minister of Domestic Trade and Consumer Affairs Chong Chieng Jen highlighted several important points in order to improve on Malaysia’s intellectual property (IP) system such as the proposed amendment to the Trademark Act 1976 at the recent China Asean Trademark & Brand Forum held in Nanning, China.

He said in a press release that the improvement will enable Malaysia to accede to the Madrid Protocol that will benefit us economically by enhancing confidence among foreign investors of the country’s business environment.

Chong also emphasised the country’s commitment to set up a proper and transparent criteria for IP valuation in order to recognise IP asset value as collateral.

The forum was hosted by the government of China in collaboration with the State Market Regulatory Administration (SMRA) and the People’s Government of the Guangxi Zhuang Autonomous Region.
Several ministerial-level participants from Asean countries such as Cambodia, Indonesia, Laos, Vietnam and Thailand also attended the discussion.

The main objective of the event was to discuss and exchange ideas pertaining to trademark and intellectual property development between Asean countries for the benefit of the regional grouping.
China’s huge achievements in trademark applications filed in recent years had inspired Malaysia to strengthen collaborative effort with the economic giant in implementing more activities and programmes that can enhance understanding of trademark laws and protection requirements within the business community in both countries. - Borneo Post

Smartphones: Substantial Returns Driven by Intangible Capital

Apple and Samsung dominate the market for high-end phones that cost more than USD 400, with market shares of 57 percent and 25 percent, respectively. In this segment, crucial intangible assets include technology, the design of hardware and software, and branding. The WIPR 2017 finds that for every iPhone 7 that Apple sells for approximately USD 810, about 42 percent of the sales price is captured by Apple – a proxy for the high returns from intangible capital in the industry. Huawei and Samsung also capture significant value in their top-end smartphone models, despite their lower consumer prices and sales volume.

The WIPR 2017 also finds that component makers - like Corning Inc., the producer of iPhone Gorilla Glass – and technology providers including Nokia Corp. and Qualcomm Inc., use intangible assets to capture substantial value.

Smartphone firms and technology providers rely heavily on patents, trademarks and industrial designs, generating a high return on their intangible capital. Indeed, in the domain of patents, up to 35 percent of all first filings worldwide may relate to smartphones. The report finds that the 4th-generation (4G) cellular standard used today is associated with close to four times more patents than the 2nd-generation standard.

Another particularly fast growing area of filing activity concerns graphical user interfaces (GUIs), such as icons for mobile apps. For example, Apple filed 222 designs on GUIs at the European Union Intellectual Property Office between 2009 and 2014, while Samsung filed 379.

30% Value of Manufactured Goods comes from Intellectual Capital

According to World Intellectual Property Report 2017, 30% value of manufactured products sold around the world comes from intellectual capital, such as branding, design and technology.

An amount of USD 5.9 trillion in 2014, shows that intangible capital contributes twice as much as buildings, machinery and other forms of tangible capital to the total value of manufactured goods.

"Intangible capital will increasingly determine the fate and fortune of firms in today’s global value chains. It is behind the look, feel, functionality and general appeal of the products we buy and it determines success in the marketplace," said WIPO Director General Francis Gurry. "Intellectual property, in turn, is the means by which companies secure the competitive advantage flowing from their intangible capital."

Three product groups - food products, motor vehicles and textiles, account for close to 50% of total income generated by intangible capital in the manufacturing global value chains.

LES Malaysia New Office Bearers 2017/2018

On 29 Sep, 2017, the Annual General Meeting of the Licensing Executives Society Malaysia was held. The following executive officers were elected:

President: Michelle Loi
Vice President: Anita Kaur
Secretary: Dennis Tan
Assistant Secretary: Sri Sarguna
Treasurer: Jillian Chia
Committee members: Lim Pui Keng, Eddie Poh, Suaran Singh, Chong Tze Lin

LES Malaysia is the national section of LES International, an organization that advances the business of intellectual property globally.

10 Most Valuable Global Brands

Brand Finance, a business valuation consultancy, have published their 2017 report on most valuable global brands. Here are the top 10 brands ranked:


1. Google US$109 bil


2. Apple $107 bil

3. Amazon $106 bil

4. AT&T $87 bil

5. Microsoft $76 bil

6. Samsung $66 bil

7. Verizon $66 bil

8. Walmart $62 bil

9. Facebook $62 bil

10. ICBC $48 bil

Google have overtaken Apple as the most valuable brand. Google remains unchallenged in advertising income.

Apple was the most valuable brand for the past five years, according to the report. Apple's brand value have dropped due to unexciting new product launch such as Apple Watch. Apple and Samsung is also facing pressure from Chinese brands such as Huawei and Oneplus in the smartphone market.

Six out of the top ten brands are owned by technology companies: Google, Apple, Amazon, Microsoft, Samsung and Facebook. These companies rely on their intellectual property to generate income. They are actively involved in generating more research and intellectual property to remain competitive. It is also clear to these companies that intellectual property is more valuable than physical property.

AT&T and Verizon are telecommunication companies that leverage and use technology. Walmart is the worlds largest physical retail store. ICBC is the worlds largest bank.

In 2013, I participated in IP valuation training by World Trade Institute and MyIPO. I learnt how to calculate the value of a brand from its activity.

10 Most Valuable Oil and Gas Brands

Brand Finance, a business valuation consultancy, have published their 2017 report on most valuable oil and gas brands. Here are the top 10 brands ranked:



1. Shell US$37 bil

2. Sinopec $30 bil

3. PetroChina $29 bil

4. Chevron $22 bil

5. ExxonMobil $21 bil

6. BP $19 bil

7. Total $19 bil

8. ENI $11 bil


9. Petronas $ 11 bil

10. Pemex $8 bil

Shell is the worlds's most valuable oil and gas brand for many years. They have operation in a number of countries. According to Brand Finance, its association with Ferrari continues to deliver returns, with a price premium.

Sinopec, in 2nd place, is planning an IPO of its retail business. Along with PetroChina at 3rd, Chinese brands are on the race to take the number one spot. Brand Finance predicted that both brands could easily overtake Shell in 2018 with growth of 47% and 43% this year.

Petronas manage to increase brand value up to 6% from value of $10 bil in 2016. Petronas was ranked 8th in 2016 gave way to Eni which leap frog from 10th position in 2016 to 8th position in 2017.

In 2013, I participated in IP valuation training by World Trade Institute and MyIPO. I learnt how to calculate the value of a brand from its activity.

10 Most Valuable Football Brands

Brand Finance, a business valuation consultancy, have published their 2017 report on most valuable football clubs. Here are the top 10 clubs ranked:


1. Manchester United US$1.7 bil

2. Real Madrid $1.4 bil

3. FC Barcelona $1.4 bil

4. Chelsea $1.2 bil

5. Bayern Munich $1.2 bil

6. Manchester City $1.0 bil

7. Paris Saint-German $1.0 bil

8. Arsenal $0.9 bil

9. Liverpool $0.9 bil

10. Totenham Hotspur $0.7 bil

Manchester United generated revenues of $765 million during the 2015-16 season. They posted operating income of $288 million, $107 million more than second placed Real Madrid. They currently have 26 global sponsors including Adidas, Chevrolet, 20th Century Fox and Uber. Manchester United also benefited from Premier League broadcast deal. The Premier League have a formula for sharing broadcast revenue. Other than Premier League, the club developed MUTV channel, which has launched in 160 countries, requiring fans to pay a monthly fee for access.

There is no debate that the most popular football club in Malaysia is Manchester United. Public Bank used to provide co-sponsored credit card. Now Maybank have filled the role and provide co-branded credit card in Malaysia, Singapore and Philippines. In 2016, Maybank was ranked third most valuable brand in Malaysia by Brand Finance, behind Petronas and Genting.



On 4 Sep 2013, I presented a paper on 'Sports and IP' at Sports Centre, Universiti Malaya. I shared that sports club own tremendous potential in IP. Popular sports are well supported in Malaysia. If a sports club is well managed, the IP can be a tool of unity to generate income for the club.

I hope that Malaysia football, badminton and basketball clubs can realize their IP potential.

Kerajaan Usaha Wujud Lembaga Penilai Harta Intelek

Kerajaan sedang berusaha menubuhkan Lembaga Penilai Harta Intelek bagi mengeluarkan prosedur operasi standard (SOP) untuk menilai harta intelek (IP) di negara ini, kata Menteri Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan (KPDNKK) Datuk Seri Hamzah Zainudin.

Menyasarkan penubuhan lembaga itu selewat-lewatnya pada akhir tahun ini, beliau berkata lembaga itu berperanan mengesahkan penilaian sedia ada, yang dilakukan oleh konsultan IP diiktiraf oleh agensi antarabangsa.

Penubuhan lembaga itu akan dikendalikan oleh Jabatan Penilaian dan Perkhidmatan Harta (JPPH) dan Perbadanan Harta Intelek Malaysia (MyIPO).

"JPPH dan MyIPO akan memulakan kerjasama ini secepat mungkin bagi mengumpul penilai IP yang terbaik untuk menentukan SOP, nilai, standard, penanda aras dan sektor sesuatu IP itu nanti.

"Kita percaya usaha ini boleh membantu meningkatkan ekonomi negara kerana IP dianggap aset utama perniagaan yang boleh menjana tunai," katanya kepada pemberita selepas menyaksikan pemeteraian Memorandum Persefahaman (MoU) di antara JPPH dan MyIPO.

Sehingga kini, negara mempunyai 23 orang penilai IP yang diiktiraf oleh agensi antarabangsa hasil inisiatif dan kerjasama MyIPO dengan World Trade Institute (WTI) University of Bern, Switzerland.

Hamzah berkata MoU di antara JPPH dan MyIPO itu, antara lain akan mewujudkan rangka kerja lengkap dalam menjadikan IP sebagai instrumen cagaran dalam kewangan untuk tujuan pembiayaan.

"Pada masa kini kerja-kerja penilaian IP masih baharu dan dalam peringkat pembangunan sebab itu rangka kerja sedang dijalankan untuk memastikan hak pemberi pinjaman dan peminjam," katanya.

Dalam perkembangan lain, Hamzah berkata sejumlah 53 produk tempatan berjaya didaftarkan sebagai IP negara di bawah komponen petunjuk geografi.

"Beberapa produk tempatan dilabel sebagai IP antaranya Lada Hitam Sarawak, Rumpai Laut Sabah dan Asam Pedas Melaka. Produk ini diiktiraf kerana keunikan berdasarkan kedudukan geografinya di negara ini," katanya.

-- BERNAMA

How Startup Valuation Works –A Way To Measure a Company’s Potential

by annavital.
Explore more infographics like this one on the web's largest information design community - Visually.

Kodak Sells Patent to get Financing

Kodak is half way out of bankruptcy status by selling its patents to Intellectual Ventures for US$525 million. The sale enables Kodak to repay substantial amount of loan and secure new financing of US$793 million obtainable from Centerbridge Partners, L.P., GSO Capital Partners LP, UBS and JPMorgan Chase & Co, if Kodak can sell their patents for more than US$500 million. The US$525 milestone satisfies the preset financing terms. Initially, banks tried to auction the 1,100 patents. However, initial bids received were between US$150 to US$250 million, which were much below valuation of US$2.6 billion. The low bid forced Kodak to suspend the auction of the patent portfolio. By taking time to look for suitable buyers, Kodak manage to secure a better deal.

Proton acquires Petronas engine technology (117 patents for RM63 million)

A report by Bernama states that Proton has acquired all of Petronas’ engine technologies as well as the associated technology patents at a cost of RM63 million. The deal encompasses seven engine technologies as well as 117 technology patents.

The reports adds that the acquisition gives Proton immediate ownership of a family of normally-aspirated engines and turbocharged 2.0 litre engines, as well as a 2.2 litre turbocharged version to complement its existing Campro engine line-up, according to Proton chairman Datuk Seri Khamil Jamil.

“Proton and Petronas initiated the engine technology exploration in 1996. It is now time to take over from Petronas, since the company decided in 2010 to exit completely from all engine development activities,” he told reporters at the agreement signing.

The only Petronas-developed engine revealed to date is the E01e inline-four, 16-valve DOHC engine with variable valve timing, which is a normally-aspirated unit, so the mention of turbocharging could mean previously unrevealed tech.

Designed to be configurable in three displacements (1.8, 2.0 and 2.2 litres), the E01 first appeared in 1998 in a Proton Waja and a Satria GTI.

The original design target for the unit was 200 PS and 200 Nm of output as well as a 120 kg weight – when delivered, these benchmark numbers were surpassed, the rated output being 204.3 PS at 7,300 rpm and 203 Nm at 5,300 rpm, and the engine tipped the scales at 108.9 kg.

Commercially, the engine never made its way into series production Protons, despite an intention to do so. In 2005, it was reported that Nanjing Automobile would be using the Petronas E01 technology in its vehicle line-up. It was later mentioned that the unit was to be built in China. - Paultan

Intellectual property can be used as collateral soon

A valuation system is being drawn up to allow intellectual property (IP) to be used as collateral for business development soon.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said although IPs were a new source of income generation for the country, these had yet to be accepted as collateral by financial institutions.

“This is important because this type of financing plays a big part in business development. The Govern­ment realises this situation and is in talks with agencies to form an intellectual property valuation model for this purpose,” he said after the launch of the National Intellectual Property Day here yesterday.

Ismail Sabri added that the model, which would make it easier for the exploitation of IPs from lab to market, would benefit their owners.

“We hope financial institutions will support this initiative,” he said.

Developed countries, he added, already had IP valuation systems, which allowed properties such as films and songs to be used as collateral because of the value tagged to them. “It is still very early for us.”

Pahang Mentri Besar Datuk Seri Adnan Yaakob, who launched the event, urged IP owners to register their products in order to avoid these from being copied by others.

“Without registration, the products will be exposed to copycat risks by irresponsible parties. This will cause great loss to owners and their businesses,” he said. - the Star

Tan: How I made money from Facebook

Friendster was among the first social networking websites. It preceded MySpace and Facebook. Starting operations in 2003, Friendster found the going tough and lost money for years.

The company continued to raise but spent money aggressively. In running up losses, Friendster had, nonetheless, built up a base of 140 million registered users, of which 40 million were active.

Vincent Tan said the losses then stemmed from Friendster not monetising its user base. Finding it hard to make money from its users, it was losing an average of US$10mil a year.

Eventually, the patience of the owners and investors in Friendster wore thin and they wanted to exit the business. Friendster then called for a process to sell the business and now Friendster CEO, Ganesh Kumar Bangah, who was then working with Tan, informed him that Friendster was for sale.

“I asked for the numbers and found that 140 million registered users and 40 million active users was interesting. If we could make them spend some money, maybe Friendster would be a good investment. Of course, the downside was the business will continue to lose US$10mil a year,” he said.

Vincent Tan said the owners of Friendster initially wanted US$100mil for the business but with losses mounting, he knew no one would pay that much for the company. “At that time, Facebook wanted to buy Friendster’s patents but Facebook was willing to pay US$10mil cash and later increased it to US$20mil cash.”

Tan was made to understand then that the owners felt that taking US$20mil only to lose US$10mil a year will soon see that cash vanish and then decided to accept US$40mil for Friendster but wanted a quick sale. “They gave the potential buyers about a week to decide. Many people were looking, including large firms from China and Japan, at Friendster.

“They were much larger than MOL but with the owners of Friendster needing a fast sale, I told Ganesh to do a quick due diligence on Friendster.

“We took two days for the due diligence and made a bid. We said since Friendster owed people US$2mil, we offered US$38mil.

“With other potential buyers doing their due diligence, I told them that if they accepted US$38mil, we will do the deal right away. They accepted our proposal,” said Tan.

After buying Friendster in 2008, Tan then turned his attention to Facebook, which remained interested in Friendster’s patents and whose offer of US$20mil cash for the technology rights was still on the table. “We had a conference call with the people at Facebook. I accepted their price but I wanted shares.”

Facebook officials told him that Mark Zuckerberg, the boss of Facebook, did not want to dilute the shares in the company but Tan stood firm and said “if there was no shares, forget it”.

Tan insisted on getting shares in Facebook because he felt the company will be big in the future. Finally, Zuckerberg agreed to a share exchange for the patents and Tan got his 700,000 shares. His shares have grown to 3.5 million following a 5-for-1 split in Facebook’s shares before the IPO process. - StarBiz

Facebook Acquired Friendsters Patent through MOL

Facebook bought the entire Friendster portfolio of patents in 2010. The eighteen patents had been transferred to MOL Global when it bought Friendster for about $39.5 million in 2009.

Friendster, the first social networking website, was launched by Jonathan Abrams in 2002. The Friendster patents, which date back to the early days of social networking, are incredibly broad. They cover things like making connections on a social network, friend-of-a-friend connections through a social graph, and social media sharing. Friendster had received its first patent back in 2006, when it was already on the decline. At the time, Friendster President Kent Lindstrom said the company had nearly forgotten it had ever applied for the patents, but added that “We’ll do what we can to protect our intellectual property.”

MOL Global, which is controlled by Vincent Tan, is said to have 3.5 million shares in Facebook as part of the patent acquisition deal. Assuming Facebook IPO price is set at US$40 a piece, this would translate to US$140mil (RM420mil), and even more after the listing.

MDeC To Unveil IP Valuation Model In 2012

The Multimedia Development Corporation (MDeC) is striving for Intellectual Property (IP) rights to be accepted as assets or collateral through the IP valuation model which is set to be introduced in the first quarter of next year.

MDeC chief operating officer Ng Wan Peng said currently there is no collectively acceptable IP valuation framework which financial institutions can adhere to when processing applications for financial assistance.

She said financial institutions are reluctant to accept IP as assets or collateral because of the difficulty in determining the value of Intellectual Property.

Ng said the introduction of the IP valuation model is the first step taken in assisting financial institutions to refer to a specific methodology in valuing IP rights.

MDeC, the driver of MSC Malaysia's National ICT Initiative, is working very closely with Intellectual Property Corporation of Malaysia (MyIPO) in getting the necessary approvals for the IP valuation model.

At the 22nd MSC Malaysia Implementation Council Meeting (ICM), organised by MDeC last year and chaired by the Prime Minister, it was decided that MyIPO should formulate an IP valuation model in accordance with the National IP Policy, she said.

Since then MDeC and MyIPO, together with other stakeholders, have been collaborating in preparing an introductory IP valuation framework that looks into the different types of IP rights. MDeC and MyIPO are confident that the framework would be ready and be tested with a few IP owners soon.

"More needs to be done as it is a new area and not many have experience in this. We must start getting the financial institutions to value IP rights as something of high value. Educating and increasing the level of awareness is necessary in order to ensure more people understand and appreciate IP," Ng told Bernama in an interview.

Ng revealed that hundreds of MSC Malaysia-status small-and-medium enterprises (SMEs) that possess IP rights such as patents, copyrights and trademarks are facing difficulties in getting financial assistance to commercialise their products.

"More than 1,000 SMEs with MSC Malaysia status have IP rights which range from patents to trademarks, copyrights and industrial designs. Not all need financial assistance to commercialise their products but most of them will be happy to have some kind of recognition that the IP created by them actually has value," she said.

According to Ng, the IP valuation model could serve as a guide for the financial institutions as well as stakeholders in conducting valuation or use it as a basis to get third party valuators to undertake the valuation process.

Ng said IP owners, financial institutions and Bank Negara have provided input for the valuation initiative for the IP. MyIPO together with MDeC had conducted feedback sessions with some financial institutions, industry players as well as IP owners to make them understand this area better as well as share their concerns in the valuation of IP rights.

"We are happy with the cooperation provided by the parties involved in this IP valuation initiative. MyIPO has been working hard in driving this initiative including looking at the amendments of the IP laws to allow the adoption of IP rights as security," she said.

Although the government has been promoting an innovation and knowledge-based economy, support from financial institutions is not forthcoming as they find it very difficult to accept IP rights as a collateralisable asset.

"I think they are more comfortable in giving out the loan based on business plans on tangible assets or proven business rather than looking at IP as collateral. It's not that they don't want to value the IP, the problem is that they don't know how to value IP rights," she said.

"We do not see financial institutions keen in readily accepting IP as collateral at this moment. We were told by some companies, most of them SMEs, that they have difficulties in getting banks to recognise their IP rights," she added.

Ng said the ultimate goal of the IP valuation initiative is for IP rights to be recognised by financial institutions as an asset that can be put up as collateral.

"These are also opportunities for the banks. Financial institutions have to start developing capability in these areas as more and more companies will have less and less tangible assets. In becoming more competitive, financial institutions would need to know how to value intangible assets and put a defensible value that can mitigate the perceived risk attached to assets such as IP.

"Eventually, we hope that local companies will continue to create IP which will be accepted as an asset that can be transacted and thus help increase our competitiveness as a nation," she said. -Bernama