The significance of intellectual property (IP) has grown tremendously in today’s business environment, especially during high-profile mergers, acquisitions, and legal disputes. However, the true value of IP is often not fully understood, particularly in the context of knowledge-based economies.
In Malaysia, where both the encouragement of domestic innovation and the protection and commercialisation of IP are essential to realising the country’s goal of becoming a developed nation, understanding the value of IP is more critical than ever.
Despite the significant expansion of the Malaysian economy in recent years, with an average annual GDP growth rate of 5.3 per cent between 1994 and 2014, many businesses still struggle to leverage their IP assets to grow their business and stay ahead of the competition. It is crucial to recognise that protecting IP alone is not enough. Businesses must also understand the value of their IP assets and leverage them to stay ahead of the competition.
However, many companies reach a bottleneck as they fail to realise the true worth of their IP. Thus, it is crucial to develop an IP policy that considers the needs and priorities of various economic stakeholders, given the diversity of Malaysia’s economy.
That is why I decided to develop Valuing IP, for companies to make their intangibles tangible by placing values on their IP assets.
Started from awareness to accessibility
When I began my career in IP in 2006, there was a notable lack of awareness among clients about the importance of IP. Even with consultations, clients were often confused and uncertain about the different types of IP rights. As a result, I encountered numerous challenges in those early stages of my career as people struggled to understand the true meaning and value of IP valuation.
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It is evident that intellectual property has transitioned from being perceived as a luxury to a necessity for most businesses today. However, there are still crucial gaps within the industry that require attention, particularly in the realm of securing accurate valuations for a company’s IP assets. The optimal approach for obtaining and determining an accurate valuation significantly relies on the sector and type of firm.
Unfortunately, due to the lack of access to reliable and precise IP valuation, these companies face limited prospects of securing funds. We can effectively address these challenges and make IP valuation more accessible, flexible, and affordable for businesses.
While our focus on Valuing IP is on democratising and disrupting the IP landscape, our ultimate goal is to facilitate IP financing in the ASEAN region using IP as collateral. I have always wanted to operate in the ASEAN region as there are plenty of opportunities that I would like to pursue and even more solutions to offer. One example would be an alternative financing product that would enable businesses to access funding beyond the traditional method of using company shares and or equity.
My goal is to make Valuing IP’s solutions a part of the few digital options accessible to a wider range of businesses. However, for IP financing to become a reality, a strong IP valuation ecosystem is essential.
Navigating challenges and opportunities
As we grow to be one of the leaders in the intellectual property valuation industry, I recognize that educating key stakeholders, professionals, clients, financial institutions, ecosystems, and industry partners in the ASEAN region is a considerable challenge.
However, I remain motivated and dedicated to providing a different perspective on how their intellectual property assets can enhance corporate value and increase the chances of business growth or exit strategy.
Despite the initial difficulties, we have made substantial progress in raising awareness about IP valuation and financing. Our efforts have been rewarded by the support of IP practitioners, lawyers, accountants, and IT companies from across the ASEAN region, including Malaysia, Singapore, Indonesia, Taiwan, and India. In collaboration with IP firms in Malaysia, we are working to foster IP valuation and financing to encourage expansion and growth for the IP industry as a whole.
Even so, we continue to face new challenges as we seek to expand our software and digital platform offerings, including an IP marketplace portal for IP trading, and broaden our presence in the ASEAN region.
To achieve these goals, we require significant capital investment, and I am proud to say that our first round of funding in 2022 was a success, raising almost MYR 990,000 through PitchIn, with additional support from the Malaysia Co-Investment Fund and Cradle Fund‘s CIP Spark Grant Programme.
Moving forward, we remain committed to driving growth and innovation in the IP valuation industry and providing valuable insights and services to businesses and organisations across the ASEAN region.
Staying afloat in the shifting landscape of IP valuation
The most challenging aspect of staying ahead in the intellectual property industry is educating businesses about the value of their IP assets. To achieve success in this area, companies need to adopt a broader view of their business and its role within the wider commercial landscape. While IP protection is vital, it is IP valuation that distinguishes a business’s corporate value from its competitors.
As a leader, I believe that it is essential to facilitate conversations, discussions, and engagements between different groups in the intellectual property community. Our approach should be to educate and provide a different perspective on how intellectual property assets can enhance corporate value and increase the chances of business growth or exit strategy rather than simply trying to convince businesses of their value.
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In order to completely understand IP valuation, it is crucial for firms to seek expert IP guidance to determine whether they are operating correctly. Understanding the potential and perceived value of a company’s IP portfolio is essential if the business is considering expansion, evaluating an M&A bid, or putting the company up for sale to prospective investors.
Raising the profile of IP valuation and financing is critical to unlocking the value of IP within businesses and encouraging the financial system to make better use of this value in financing decisions. In the upcoming years, I will continue to work tirelessly to achieve this goal, using various efforts to help educate and raise awareness about the importance of IP valuation and financing.
A path forward into the future
As we look to the future, we are committed to enhancing and expanding our software and digital platform offerings. Our plans include the development of an IP marketplace portal for IP trading and expanding our presence in the ASEAN region. Our team remains dedicated to providing software demonstrations to interested companies, and we are excited about the possibilities that lie ahead.
Our target for 2023 is to raise more funds, and we are continuously engaging in conversations with IP stakeholders, financial institutions, and the Malaysian government to achieve this goal. Our determination to expand regionally to countries such as Indonesia, Singapore, the Philippines, and India remains strong, and we are currently in talks with a few companies to make this a reality.
For aspiring entrepreneurs in the field of IP, we offer a piece of advice: the IP market has massive potential. To succeed, it’s crucial to look beyond traditional practices and focus on solving industry pain points to help clients improve or strengthen their IP value.
Together with the IP community, let us facilitate the growth and refinement of the IP ecosystem in ASEAN.
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