General Status and Development Environment of IP Marketplace - A Singapore Perspective Shanghai...

General Status and Development Environment of IP Marketplace

- A Singapore Perspective

Shanghai International Intellectual Property Forum 2011 22nd Nov 2011

Eng Hann Lim, Ph.D.Director (Programs & Operations)IP Academy Singapore

© 2011 IP Academy Singapore All rights reserved

Outline

• The IP Marketplace• Facilitating Participation• New Opportunities


The IP Marketplace -

What is IP Marketplace ? “IP” -

Intellectual Property – property (as an idea, invention, or process) that derives from the work of the mind or intellect*

IP as an asset – non tangible, illiquid, value unknown till transacted, difficult linking buyers and sellers, value in the eye of beholder, lacked transparency in pricing and prolonged deal cycles

“Marketplace” – i) an open square or place in a town where markets or public sales are heldii) the world of trade or economic activityiii) a sphere in which intangible values compete for acceptance*

“IP” + “Marketplace”= IP Marketplace = {IP, place, platform, exchange}

*Merriam-Webster Dictionary


Evolution of IP Marketplace

1400

2011

First statutes on authors' rights -Republic of Florence (1421)

First patent institution of patent protection by the Venice Republic (1474)

Statutes of Monopolies (1624)

Statutes of Anne (1710)

US First Patent Pool Sewing Machine Combination(1856)

US Patent Act (1790)

Europe’s Industrial Revolution (1760s -)

America’s Industrial

Revolution(1800s -)

Defensive Cross-Licensing & Rise in IP Licensing(1980s)Industrialisation

of Japan(late 1800s)

Patent Monopoly Act 1885

MIP Magazine (1990)

China -Industrialisation

(1980 -)

Patent Act Enacted (1984)

PCT(1970)

IP OnlineExchange(Late 1990s)

IP driven M&A((1990s)

IntellectualVentures (2000)

Japan Rising Sun Fund(2010-)

IP basedSecuritization (1997)

Open Innovation(2003 -)

Technology Licensing Networks(2004 -)

Bayh-Dole

Act(1980 )

China Technology Exchange(2011 -)

KoreaIntellectual Discovery(2011 )

USIP Hedge Funds Launched(2008)

First Live Patent Auction(2006 -)

ChinaIP

Collaterization(2008 -)

Multi Billion $ IP Deals

Nortel, Motorola Mobility Patents

(2011-1600 1700 18001900

19601980 1990

20002003

20052007 2008 2009

2010

IBMIP LicensingUnit(1993- Growth of

P-LECs(2000 -)

Rise of IP Activists

(2010-)

Shanghai Technology Exchange(2009-)

13K IP Disputes in

China vs 10K in the US(2005) China -

1.22M patent

applications2010

IP AuctionTaiwan(2007)

Rise of Privateers(2010-)

Japan National IP Licensing Center(1997)

Japan >1000 patent deals/year

>13K deal since 1997

(Mid 1997(2009)

IP Intermediary Singapore(2011 )

Korea Launches Patent Fund(2007)

TaiwanIP Bank(2011 -)

IAMMagazine (2003)

Age of Golden Rule & Rise of AsiaRise of the Intermediaries

ITC(1930)

Court of Appeal Federal Circuit (1982)

Korea Industrialisation

(1960s)

Patent Law (1961)


Ref. sources :1) Moore, Adam, "Intellectual Property", The Stanford Encyclopedia of Philosophy (Summer 2011 Edition), Edward N. Zalta (ed.),2) Raymond Millien & Ron Epstien, “State of IP Marketplace : An Executive Briefing” 24 th September 20093) others

Development of IP Regime Feudal Lords Age

The IP Marketplace –

Global Size of IP Marketplace

Data Source : Source : WIPO – Changing Face of Innovation, 2011

1970 1980 1990 2000 2009$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

1970; RLF $B; $2.81980; RLF $B; $10.0

1990; RLF $B; $27.0

2000; RLF $B; $80.0

2009; RLF $B; $180.0

Worldwide IP Licensing Revenues ($Billion)


• Rapidly Evolving Global IP Marketplace• Growing pool of IP intermediaries & IP Services players• Patent and technology centric• Underpin by litigation and/or threat of litigation• Big players and US centric• Big Money $$$ involved (~ $180B/year)• Gaining the attention of fund managers• IP conversations in the Boardrooms • IP Marketplace growing in Europe • IP Marketplace activities spreading to Asia


Observations on the Global IP Marketplace


Transformation of Singapore to an Innovation Economy


Singapore and the IP Marketplace

Jscreationzs; freedigitalphotos.net

2010s

Research, Innovation & Entrepreneurship

Factor - Driven Efficiency - Driven Innovation - Driven

“Innovation, enterprise and R&D, these are the ways to remake the economy”

Mr Lee Hsien Loong, Prime Minister,

Singapore National Day Rally Speech – August 21, 2005



Evolution of IP Marketplace in Singapore

1990

2011

National Science & Technology Board Formed1991

1st S&T 5 Year Plan$2B

Singapore Patents ActNov 1994

Agency for Science and Technology 2002

$100MCreative vs Apple2005/6

$388MUniloc vs Microsoft (2010)

Trek 2000 vs M-Systems

(ThumbDrive)

National Technology

Marketplace Trials2008

IP Intermediary Ltd2011

Technology Transfer

Network2008

Nanyang Technology University Tech Transfer Office formed2000

Polytechnic Tech Transfer Offices formed2000s-

University Research Centers formed1990s -

Singapore IP Hub Strategy Formed 2002

IP Academy 2003

Research, Innovation and Entrepreneurship Council2006

IPEXLFormed 2003

TransPacific IP2004

Thomson Reuters2000s -

5th S&T Plan$16.1B for

R&D 2010-15

Sept 2010

Trek 2000 vs Verbatim

Out of Court Settlement /

ITCOct 2011

2nd S&T 5 Year Plan$4B

19952000

2005

3rd S&T 5 Year Plan$6B

4th S&T 5 Year Plan

$13.55B2005

National University of Singapore Tech Transfer Office formed1992

Intellectual Property Office of SingaporeFormed2001

Exploit Technologies Formed2002/3

National Research Foundation2006

2003

20072009

Intellectual Ventures Asia2007


Internationalising Companies faced with IP challenges2008 -

360IP Asia2008/09

IP Intermediary (Singapore)


Intermediary Thrust

© 2011 IP Academy Singapore All rights reserved© 2011 IP Academy Singapore All rights reserved

Network Thrust


IP Store Front


Technology Offer


Global IP Marketplace• Rapidly Evolving Marketplace• Growing pool of IP intermediaries &

IP Services players• Patent and technology centric• Underpin by litigation and/or threat

of litigation• Big players and US centric

………………..• Big Money $$$ involved

($180B/year)• Gaining the attention of Wall Street -

fund managers• IP conversations in the Boardrooms • Increasingly in Europe - IPcom• Growing in Asia – China, Japan,

Korea, Taiwan, Singapore


ObservationsIP Marketplace in Singapore• Slow Evolving Marketplace• Small pool of IP intermediaries & IP

Services players• Technology and Trade Secret centric• Underpin by the need to be

technology competitive• Big US private players; local

universities and government players• Small Money $$$ involved ($10s to

$100sK licensing deals) • Gaining the attention of

internationalizing companies • IP still not a priority to C-level execs. • Increasingly impact internationalizing

companies


Outline



Facilitating the Participation in the IP Marketplace

Essentials of a Vibrant IP Marketplace

Vibrant IP Marketplace

IP Creation

IP Services

IP Intermediary

IP Protection

Capital

IP Value Recognition

• Must have IP Creation• IP portfolios available for transactions

• Availability of a pool of IP service providers – patent ratings, search and analysis, valuation and etc.

• IP experts brokering between buyers and sellers• IP professionals using the stick and/or carrot to extract value from IP on behalf of IP owners

• Robust IPR Protection and Enforcement Regime

• Rationalise IP regime and court system• Punitive awards

• Availability of funds to invest for potential long term extra ordinary returns

• IP conversations in the boardroom

• IP in the view of investment bankers

•IP priority in the minds of CEOs

• IP as the basis of products and services offered

• Understands the value of IP in international trade and commerce



IP Marketplace Ecosystem in Singapore

IP Marketplacein Singapore

IP Creation

IP Services

IP Intermediary

IP Protection

Capital


• University, research insititute IP portfolios

• Open Innovation platforms available

• IP brokers exists• Thomson Reuters, PatSnap, IPEXL

• IP Business Consultants• IP Legal Consultants• Lacking local expertise

• Exploit Technology• University TTOs• Polytechnics TTOs• IP Intermediary (IV, TPIP etc)• Lacking local IP experts

• Trusted Legal System• Robust IPR Protection and Enforcement Regime

• Progressive Legal Regime• Dedicated IP Court

• Singapore is a financial hub• Venture fundings available• Need professionals who can package IP into investment quality assets !!!

• IP is still not a priority to most local companies

• IP is not a purview in the Boardrooms of companies

• Lacked understanding on how to extract value from IP



IP Value Recognition Development


Perception on the Value of

Intangible Assets (IP)

Capacity and capability In Managing IP

AssetsInvestment

Risks/Return



IP Value Recognition Development


Perception on the Value of

Intangible Assets (IP)

Capacity and capability In Managing IP

Assets

Investment Risks/Return

•IP Management for SMEs Programme•IP for Internationalisation Programme• BrandPact Programme• IP Management Training Programmes• IP Services Sector Development

• Government Grants in IP Programmes

• IP tax incentives –Productivity Innovation Credits

• C – Level Outreach• Highlight Successful IP

Case Studies• IP Training (IP Academy)


Shaping the IP Professional

Development Landscape in Singapore


IP Competency Framework


• IP Practitioners / Employers Limited staff development opportunities Insufficient training for specific industry needs Lack of benchmark for staff appraisal & development

• New Entrants Inadequate information of job requirements & roles

• Training Providers Lack of recognised IP training standards Inconsistent programme quality.

Challenges Facing Various Stakeholders




Objectives of the IP Competency Framework

• Articulate competencies for IP job functions

• Bridge gaps with relevant training programmes

• Define competency standards

• Develop training and assessment guides

• Propose suggested career roadmaps

• Provide recognition for competencies obtained.

“Developed by the industry, for the industry”




Training Providers

EmployersIP

Practitioners / Employees

IPOS

Professional development – to upgrade to higher positions or move to new job areas

Obtain certification that is recognised by industry.

Identify skill shortages Assess employee

competency levels Bridge employee training

gaps.

Develop programmes to meet industry needs.

Potential Benefits for Stakeholders

An industry-wide IP Competency

Framework

• Increase pool of IP practitioners

• Raise quality of IP workforce & training providers




IP Competency Framework – Key Occupations & Occupation LevelsOccupation Map

Level 3

Level 2

Level 1 CU1

CU2

CU3

CU9…

CU1

CU2

CU3

CU22…

CU43…

CU1

CU2

CU3

Operations(e.g. IP Administrator)

Management(e.g. Tech Transfer

Manager)

Expert –Technical(e.g. Patent Agent)

Executive(e.g. IP Engineer)

Elective Units




Map of IP Competency Units vs IP Occupations – Example

Group Competency Unit Expert-Technical Management Executive Operations

Intellectual Property Protection

Understand the Legal System in Singapore

Understand the Fundamentals of IP Rights

Understand IP in the Global Context

Understand the Anatomy of Patents

Understand Patent Practice in Singapore

Handle Patent Office Actions

Understand Trade Mark Practice in Singapore

Understand Registered Design Practice in Singapore

Understand Copyright Practice in Singapore




Outline



• New Business Models that are more efficient and sustainable– carrot licensing and/or mix thereof– network of IP/technology exchanges

• How about Intellectual Assets and Intellectual Capitals ? – IP Collateralization of Technology, Know-How, Brands, Trade Secret, Reputation and

etc.– IP funding for Start-Ups and SMEs to raise funds– IP securitization of successful businesses with no register-able IP– etc

• Growing IP Services sector in Asia– Demand for IP professionals/intermediary services growing rapidly

• Growing IP Consultants/Professionals Training needs in Asia– to extend beyond individual traditional expertise silos of legal, finance, taxation,

technology, analytics, business, investment and etc

• Public Sector IP – University, Research Institutes, Government Agencies, and etc.

New Opportunities in Asia IP Marketplace

Leveraging on the Uniqueness of Asia


Key Takeaways• A rapidly evolving IP Marketplace has emerged globally

• Attracting attention at Boardrooms and Wall Street

• Evolving IP Marketplace growing rapidly in Asia

• Lack of IP value recognition and capacity to fully leverage on the value of IP posing a challenge in Asia

• Executive IP education and training are key to increased participation in the IP Marketplace for Asia

• Exciting new opportunities have arisen from the evolving IP Marketplace in Asia, and globally


General Status and Development Environment of IP Marketplace - A Singapore Perspective Shanghai...

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