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MDeC, MyIPO Set to Unveil IP Valuation Model

Issued: November 01 2011

Malaysia’s Multimedia Development Corporation (MDeC) is pushing for intellectual property rights to be accepted as assets or collateral through an IP valuation model which is set to be introduced in the first quarter of 2012. MDeC chief operating officer Ng Wan Peng told Malaysian news agency Bernama that 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 is working very closely with Intellectual Property Corporation of Malaysia (MyIPO) in getting the necessary approvals for the IP valuation model.

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, Ng said.

“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 said 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 tocommercialise 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. She said IP IP owners, financial institutions and Bank Negara have provided input for the valuation initiative for the IP.

Malaysia will soon unveil an IP valuation model that will allow IP owners to
more easily use their IP rights as collateral.



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