Malaysia's Multimedia Development Corporation (MDeC) is currently formulating an intellectual property (IP) valuation model in efforts to urge financial institutions not to dismiss IP as assets or collateral, according to a report.
The framework is expected to be introduced in the first quarter of 2012, said a report by local news agency, Bernama. It said MDeC, which oversees Malaysia's national ICT initiative, the MSC Malaysia, has been working with the Intellectual Property Corporation of Malaysia (MyIPO) to conduct feedback sessions with financial institutions, industry players and IP owners, to highlight the importance of IP valuation and share their concerns in the valuation of IP rights.
In the report, MDeC COO Ng Wan Peng said financial institutes in Malaysia were unwilling to accept IP as assets or collaterals due to the difficulty in determining the value of IP, as there was a lack of a collectively accepted IP valuation framework for them to follow.
"More needs to be done as it is a new area and not many have experience in this," Ng said in the Bernama report. "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."
"More than 1,000 small and midsize businesses with MSC Malaysia status have IP rights which range from patents to trademarks, copyrights and industrial designs. Not all need financial assistance to commercialize 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 added.
The COO noted that the ultimate goal of the IP valuation initiative was for IP rights to be recognized by financial institutions as an asset that could be put up as collateral.