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
© 2011 IP Academy Singapore All rights reserved
Outline
• The IP Marketplace
• Facilitating Participation
• New Opportunities
© 2011 IP Academy Singapore All rights reserved
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 held
ii) the world of trade or economic activity
iii) a sphere in which intangible values compete for acceptance*
“IP” + “Marketplace”= IP Marketplace = {IP, place, platform, exchange}
*Merriam-Webster
Dictionary
The IP Marketplace -
Evolution of IP Marketplace
Feudal Lords Age
Rise of the Intermediaries
Age of Golden Rule & Rise of Asia
Development of IP Regime
First statutes
on authors'
rights Republic of
Florence
(1421)
America’s
Industrial
Revolution
(1800s -)
Defensive
CrossLicensing
& Rise in
IP
Licensing
(1980s)
BayhDole
Act
(1980 )
Industrialisation
of Japan
(late 1800s)
Statutes of
Monopolies
(1624)
US Patent
Act (1790)
1400 1600
1700
1800
Patent
Monopoly Act
1885
1900
1960
PCT
(1970)
1980
IBM
IP Licensing
Unit
(1993-
Japan >1000
patent deals/year
>13K deal since
Growth of
13K IP
1997
P-LECs
Disputes in
(Mid 1997
(2000 -) China vs 10K in
IP Online
(2009)
China
the US
Exchange
IP
China (2005)
(Late 1990s)
Collaterization
1.22M
Open
(2008 -)
patent
Innovation
applications
First Live Patent
(2003 -)
2010
Auction
IP driven
First patent
institution
of patent
protection
by the
Venice
Republic
(1474)
Europe’s
Industrial
Revolution
(1760s -)
US First
Patent Pool ITC
Sewing
(1930)
Machine
Combination
(1856)
Court of
Appeal
Federal
Circuit
(1982)
1990
MIP
Magazine
(1990)
Intellectual
Ventures
(2000)
2003
2005
2007
2008
Japan
Rising Sun
Fund
(2010-)
Nortel,
Motorola
Mobility
Patents
(2011China
Technology
Exchange
(2011 -)
2009
US
IP Hedge
Korea
Funds
Launches
Launched
Patent Fund
(2008)
(2007)
IAM
Magazine
Japan
China National IP (2003)
Korea
Industrialisation
Licensing
Shanghai
Industrialisation
(1980 -)
Technology Technology
Center
(1960s)
Licensing
(1997)
Exchange
Patent Act Enacted
Networks
(2009-)
Patent Law (1961)
IP based
(1984)
(2004 -)
Securitization
Ref. sources :
(1997)
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” 24th September 2009
3) others
© 2011 IP Academy Singapore All rights reserved
Rise of IP
Activists
(2010-)
IP Auction
Taiwan
(2007)
2000
Statutes
of Anne
(1710)
(2006 -)
M&A
((1990s)
Multi Billion $ IP
Deals
2010
2011
Rise of
Privateers
(2010-)
Korea
Intellectual
Discovery
(2011 )
Taiwan
IP Bank
(2011 -)
IP
Intermediary
Singapore
(2011 )
The IP Marketplace –
Global Size of IP Marketplace
Worldwide IP Licensing Revenues ($Billion)
RLF $B, 2009, $180.0
RLF $B, 2000, $80.0
RLF $B, 1990, $27.0
RLF $B, 1980, $10.0
RLF $B, 1970, $2.8
Data Source : Source : WIPO – Changing Face of Innovation, 2011
© 2011 IP Academy Singapore All rights reserved
The IP Marketplace -
Observations on the Global IP Marketplace
•
•
•
•
•
•
•
•
•
•
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
© 2011 IP Academy Singapore All rights reserved
The IP Marketplace -
Singapore and the IP Marketplace
Transformation of Singapore to an Innovation Economy
“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
Factor - Driven
Efficiency - Driven
Innovation - Driven
Jscreationzs; freedigitalphotos.net
2010s
Research,
Innovation &
Entrepreneurship
© 2011 IP Academy Singapore All rights reserved
The IP Marketplace -
Evolution of IP Marketplace in Singapore
National Science &
Technology Board
Formed
1991
1st S&T 5 Year Plan
$2B
2nd S&T 5
Year Plan
$4B
3rd S&T 5
Year Plan
$6B
1990
4th S&T 5
Year Plan
$13.55B
Intellectual Exploit
2005
Technologies
Property
Formed
Office of
Singapore 2002/3
Formed
Polytechnic
2001
Tech Transfer
Offices
formed IPEXL
2000sFormed
2003
National
Technology
Marketplace
Trials
2008
$100M
Creative
vs Apple
2005/6
Thomson
Reuters
2000s -
IP Intermediary Ltd
2011
Technology
Transfer
Network
2008
5th S&T Plan
$16.1B for
R&D
2010-15
Sept 2010
1995
2000
Trek 2000 vs
Verbatim
Out of Court
Settlement /
ITC
Oct 2011
2003
2005
University
Research
Centers
formed
1990s -
National
University of
Singapore
Tech Transfer
Office formed
1992
Agency for
Science and
Technology
2002
Singapore
Patents
Act
Nov 1994
Nanyang
Technology
University
Tech Transfer
Office formed
2000
© 2011 IP Academy Singapore All rights reserved
Trek 2000 vs
M-Systems
(ThumbDrive)
2007
2009
IP
Academy
2003
Singapore
IP Hub
Strategy
Formed
2002
TransPacific IP
2004
National
Research
Foundation
2006
Intellectual
Ventures Asia
2007
Research,
Innovation and
Entrepreneurship
Council
2006
2011
Internationalising
Companies faced
with IP challenges
2008 360IP Asia
2008/09
$388M
Uniloc vs
Microsoft
(2010)
IP Intermediary (Singapore)
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IP Intermediary (Singapore)
© 2011 IP Academy Singapore All rights reserved
Intermediary Thrust
© 2011
Academy Singapore All rights reserved
© 2011 IP Academy Singapore All
rightsIPreserved
Network Thrust
© 2011 IP Academy Singapore All rights reserved
IP Store Front
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Technology Offer
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The IP Marketplace -
Observations
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
© 2011 IP Academy Singapore All rights reserved
IP 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
• The IP Marketplace
• Facilitating Participation
• New Opportunities
© 2011 IP Academy Singapore All rights reserved
Facilitating the Participation in the IP Marketplace
Essentials of a Vibrant IP Marketplace
• 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
• 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 Creation
IP Value
Recognition
IP Services
Vibrant
• Availability of funds to invest
for potential long term extra
ordinary returns
IP
Marketplace
IP
Intermediary
Capital
• 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
IP Protection
• Robust IPR Protection and Enforcement
Regime
• Rationalise IP regime and court system
• Punitive awards
© 2011 IP Academy Singapore All rights reserved
Facilitating the Participation in the IP Marketplace
IP Marketplace Ecosystem in Singapore
• 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 Creation
IP Value
Recognition
• 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
IP Services
IP
Marketplace
• Singapore is a financial hub
• Venture fundings available
• Need professionals who can
package IP into investment
quality assets !!!
in Singapore
IP
Intermediary
Capital
• Exploit Technology
• University TTOs
• Polytechnics TTOs
• IP Intermediary (IV, TPIP etc)
• Lacking local IP experts
IP Protection
• Trusted Legal System
• Robust IPR Protection and Enforcement
Regime
• Progressive Legal Regime
• Dedicated IP Court
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Facilitating the Participation in the IP Marketplace
IP Value Recognition Development
Perception on
the Value of
Intangible
Assets (IP)
Capacity and
capability In
Managing IP
Assets
Investment
Risks/Return
IP Value
Recognition
© 2011 IP Academy Singapore All rights reserved
Facilitating the Participation in the IP Marketplace
IP Value Recognition Development
•IP Management for SMEs Programme
•IP for Internationalisation Programme
• BrandPact Programme
• IP Management Training Programmes
• IP Services Sector Development
Perception on
the Value of
Intangible
Assets (IP)
• C – Level Outreach
• Highlight Successful IP
Case Studies
• IP Training (IP Academy)
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Capacity and
capability In
Managing IP
Assets
Investment
Risks/Return
IP Value
Recognition
• Government Grants in IP
Programmes
• IP tax incentives –Productivity
Innovation Credits
Facilitating the Participation in the IP Marketplace
IP Competency Framework
Shaping the
IP Professional
Development Landscape in Singapore
© 2011 IP Academy Singapore All rights reserved
Facilitating the Participation in the IP Marketplace
IP Competency Framework
Challenges Facing Various Stakeholders
• 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.
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Facilitating the Participation in the IP Marketplace
IP Competency Framework
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”
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Facilitating the Participation in the IP Marketplace
IP Competency Framework
Potential Benefits for Stakeholders
• Increase pool of IP practitioners
• Raise quality of IP workforce & training
providers
IPOS
 Professional
development – to
upgrade to higher
positions or move to
new job areas
 Obtain certification
that is recognised by
industry.
IP
Practitioners /
Employees
An industry-wide
IP Competency
Framework
Training
Providers
 Develop programmes to meet
industry needs.
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Employers
 Identify skill shortages
 Assess employee
competency levels
 Bridge employee training
gaps.
Facilitating the Participation in the IP Marketplace
IP Competency Framework
IP Competency Framework – Key Occupations & Occupation Levels
© 2011 IP Academy Singapore All rights reserved
CU43
…
CU22
CU2
…
CU9
(e.g. IP Administrator)
CU3
Operations
CU3
(e.g. IP Engineer)
…
CU3
Level 1
Executive
CU2
Level 2
CU2
(e.g. Tech Transfer
Manager)
(e.g. Patent Agent)
CU1
Management
Expert –Technical
CU1
Level 3
Elective Units
CU1
Occupation Map
Facilitating the Participation in the IP Marketplace
IP Competency Framework
Map of IP Competency Units vs IP Occupations – Example
ExpertTechnical
Group
Competency Unit
Management
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
Executive




Operations


Understand Trade Mark Practice in
Singapore


Understand Registered Design
Practice in Singapore


Understand Copyright Practice in
Singapore


© 2011 IP Academy Singapore All rights reserved
Outline
• The IP Marketplace
• Facilitating Participation
• New Opportunities
© 2011 IP Academy Singapore All rights reserved
New Opportunities in Asia IP Marketplace
Leveraging on the Uniqueness of Asia
• 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.
© 2011 IP Academy Singapore All rights reserved
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
© 2011 IP Academy Singapore All rights reserved