Malaysia is preparing to unveil its highly-anticipated intellectual property (IP) valuation model in December this year, and it would be a useful tool for local financial institutions to tap on for determining the value of IP rights put up as collateral.
Malaysian newswire Bernama reported Thursday the Multimedia Development Corporation (MDec) will be releasing details of the IP valuation model later this year. MDec Chief Operating Officer Ng Wan Peng said in the report the country's ICT development agency has finalized the processes and study needed to unveil the model.
Ng added the introduction of the IP valuation model is the first step in assisting financial institutions in the country to refer to a specific methodology in assessing and valuing IP rights. The ultimate goal of this initiative is for IP rights to be recognized as assets that can be put up as collaterals, she added.
There is currently no acceptable IP valuation framework in the local industry for financial institutions to adhere to when processing applications for financial assistance. They are also reluctant to accept IP assets due to the difficulty in ascribing value to them.
MDec is working very closely with the Intellectual Property Corporation of Malaysia (MyIPO) to secure the necessary approvals for the IP valuation model, Bernama added.
A report by the newswire last November stated hundreds of local small and midsize businesses (SMBs) that own IP rights have faced difficulties getting financial assistance to commercialize their products.
Ng said then: "More than 1,000 SMBs 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 the IP created by them actually has value."