WIPO IP Finance Dialogue

Expanding Horizons on IP Finance and Valuation

This is a summary of the WIPO IP Finance Dialogue focusing on “Expanding Horizons on IP Finance and Valuation”. The content is fully aligned with the joint CEIPI European Patent👉 A legal right granting exclusive control over an invention for a limited time. Office Diplom Universitaire IP Business Administration and can be used to supplement the diploma content.

The World Intellectual Property👉 Creations of the mind protected by legal rights. Organization (WIPO) convened its second IP Finance Dialogue, focusing on “Expanding Horizons on IP Finance and Valuation.” This dialogue brought together policymakers, financial sector representatives, businesses, and IP experts to explore strategies for unlocking the potential of intangible assets and intellectual property (IP) for financing purposes. The event highlighted WIPO’s action plan, explored best practices in IP finance, and examined opportunities presented by technological advancements. Discussions spotlighted perspectives from the financial community, startups, scale-ups, and the creative sector.

Opening Remarks and Keynote Addresses

The dialogue commenced with a pre-recorded keynote opening by WIPO Director General Daren Tang, who described intangible assets as the “dark matter” of the economy, estimating their value at over $70 trillion. Despite their value, intangible assets remain mysterious and invisible, hindering their use as financial assets. Tang emphasized the need to shine a light on IP financing and understand its importance for the future economy. Examples from China, the Republic of Korea, and Canada demonstrated the growing use of IP pledges and secured loans. Developing economies like Kenya and Guatemala are also exploring IP-backed financing.

Tang highlighted two key takeaways from the previous year’s dialogue: the need to better understand developments on the ground and to make progress on IP valuation. WIPO has been working with 20 countries to build a global evidence base and has formed an expert group on intangible asset👉 An intangible asset is a non-physical resource with economic value to a company. valuation. Cooperation and collaboration are central to these efforts, requiring involvement from governments, IP experts, investors, financiers, valuers, accountants, central banks, and development banks.

Additional keynote addresses emphasized the importance of IP finance and valuation from various perspectives:

• Singapore’s Perspective: Minister Indranee Rajah highlighted Singapore’s efforts to develop IP financing, including the launch of an intangible disclosure framework to guide enterprises in systematically disclosing their intangible assets. This framework aims to improve investor understanding and facilitate commercialization. Singapore is also developing IA and IP valuation guidelines based on international standards.
• Islamic Republic of Iran’s Perspective: Vice President Ruhollah Dehghani Firuzabadi addressed enhancing the financing system and IP framework for a knowledge-based economy. He emphasized the role of government in supporting the financing system through policy formulation, tax exemptions, subsidies, and grants. Iran established the Innovation👉 Practical application of new ideas to create value. and Prosperity Fund, the largest government fund dedicated to financing technology and innovation.
• European Union Intellectual Property Office (EUIPO) Perspective: Executive Director João Negrão discussed leveraging brands to facilitate access to financing. He noted that industries using IP rights intensively contribute significantly to the EU’s GDP and jobs. IP rights are critical for protecting investments in innovation, but businesses need supportive instruments beyond IP rights, including IP evaluation, financing, commercialization, and monetization. The EUIPO’s SME funds support IP registration and awareness among SMEs.
• International Trade Center (ITC) Perspective: Executive Director Pamela Coke-Hamilton focused on financing small businesses to go global. She emphasized that MSMEs are champions of innovation but face challenges in accessing finance to protect their IP. The ITC and WIPO are committed to developing a stronger business ecosystem👉 Interconnected digital entities collaborating to create value and innovate. to support MSMEs’ needs.
• National Bank of Slovakia Perspective: Governor Peter Kazimir highlighted the importance of intangible assets in shaping the future economy. Intellectual property, brand👉 A distinctive identity that differentiates a product, service, or entity. value, human capital👉 Knowledge, skills, and abilities of individuals driving economic growth., and data are increasingly valuable. Emerging economies with solid growth understand the value of IP better. He emphasized the need for protection, financial valuation, and eligibility of intangible assets as collateral.

WIPO’s Action Plan on IP Finance

Marco Aleman, Assistant Director General at WIPO, presented the organization’s action plan, built on three main pillars:

• Raising the Profile of IP Finance: Bringing attention to the potential of IP for shared prosperity.
  • This involves highlighting success stories and demonstrating how IP can be a valuable asset for businesses of all sizes.
  • WIPO aims to educate stakeholders, including policymakers and financial institutions, about the importance of IP-backed financing for economic growth.
  • By increasing awareness, WIPO hopes to encourage a shift in mindset towards recognizing the financial value and potential of intellectual property.
• Revealing What is Happening on the Ground: Providing policymakers and the financial community with data to inform decisions.
  • This pillar focuses on gathering and analyzing data related to IP finance practices in different countries and regions.
  • WIPO conducts surveys and publishes country reports to provide insights into existing IP financing mechanisms and their impact.
  • This evidence-based approach aims to provide policymakers and financial institutions with the information they need to make informed decisions about IP finance policies and investments.
• Equipping Stakeholders: Supporting those who want to make intangible asset finance operational.
  • WIPO provides resources and tools to help stakeholders, such as businesses and financial institutions, navigate the IP finance landscape.
  • This includes developing guidelines, pilot projects, and training programs to promote the use of IP for financing purposes.
  • By equipping stakeholders with the necessary knowledge and tools, WIPO aims to facilitate the practical implementation of IP finance strategies.

The action plan involves convening expert consultative groups to address challenges in intangible asset finance, such as valuation methodologies, accounting rules, and lender engagement.

Alison Mages, Head of the IP commercialization sector presented an overview of WIPO’s country perspectives report series, and emphasized the role it plays in providing information in the project.

Panel Discussions

The dialogue featured panel discussions that explored various aspects of IP finance.

• Panel I: Perspectives on Best Practices to Support IP Finance: Moderated by Alison Mages, Head of the IP Commercialization Section at WIPO, this panel discussed how to reshape the financial landscape to allow lenders and investors to confidently consider IP assets. Panelists included Rena Lee (IPOS, Singapore), Astrid Bartels (European Commission), Nabila Agwe (INSEAD), and Roland Emmons (HSBC).
  • Rena Lee discussed Singapore’s intangible disclosure framework and its impact on access to capital.
  • Astrid Bartels outlined the sources of finance for European SMEs and the role of IP in attracting risk👉 The probability of adverse outcomes due to uncertainty in future events. finance.
  • Nabila Agwe discussed public-private partnerships in Nigeria and the African continent to improve IP finance.
  • Roland Emmons provided an update on HSBC’s IP finance activities, including growth lending and the acquisition of Silicon Valley Bank UK.
• Panel II: IP Finance on the Ground – Practical Perspectives from Start-ups and Scale-ups: Focused on practical implications for startups and scale-ups looking to grow in this field. Expert Consultative Group on Valuation of Intangible Assets: Andre Gourios, an expert in IP valuation, introduced a series of testimonials from members of WIPO’s Expert Consultative Group on the valuation of intangible assets. The group’s discussions focused on the impact of IP evaluation, the importance of transparency, and the challenges in building trust in IP valuation. Panelists and presenters included: Nicolas Cruzet: Northwestern University School of Management, Dulce Miranda: Deloitte Legal in Spain, Gordon Veniott: Valuation Research Group, Canada. The experts highlighted the difficulties in measuring and valuing intangible assets, the need for improved methodologies, and the importance of harmonized international legal frameworks. Several key themes emerged from the WIPO IP Finance Dialogue:
  • Importance of Intangible Assets: Intangible assets are critical for innovation, growth, and competitiveness in the modern economy.
  • Challenges in IP Valuation: Difficulties in measuring and valuing intangible assets hinder their use for financing.
  • Need for Collaboration: Cooperation among governments, IP experts, financial institutions, and businesses is essential for advancing IP finance.
  • Role of IP Offices: IP offices can play a key role in supporting businesses to get more value out of their intangible assets.
  • Importance of IP Strategy👉 Approach to manage, protect, and leverage IP assets.: Businesses need a clear IP strategy to attract investors and lenders.
  • Need for Standardization: Development of internationally recognized standards for disclosure and valuation is crucial.
  • Government Support: Governments can play a significant role in supporting IP finance through policy formulation, tax exemptions, subsidies, and grants.
  • Building Trust: Building trust in IP portfolios is essential for attracting risk and venture capital.
  • Inclusiveness and Diversity: Ensuring that a number of relevant groups in our society that are to a certain extent excluded from the IP system can effectively participate in and benefit from it such as SMEs.
  • Best Practices: No single way that countries are approaching this. It is really a mix of different kinds of initiatives that fit the local innovation ecosystem.

WIPO will continue its work on IP finance, including:

• Publishing country reports on IP finance practices: These reports will document the diverse approaches countries are taking to facilitate IP-backed financing. They will provide valuable insights for policymakers and financial institutions seeking to develop or improve their own IP finance ecosystems.
• Developing guides and pilot projects to promote IP finance in different countries: WIPO plans to create practical guides that businesses and financial institutions can use to navigate IP finance. Pilot projects will test and refine these approaches in real-world settings, generating best practices for broader implementation.
• Convening expert consultative groups to address specific challenges in IP valuation and finance: These groups will bring together experts from various fields to tackle issues like intangible asset valuation methodologies and lender engagement. Their discussions will inform WIPO’s recommendations and initiatives in the IP finance space.
• Facilitating dialogue and collaboration among stakeholders: WIPO aims to create platforms for ongoing communication and partnership between governments, IP experts, financial institutions, and businesses. This will foster a shared understanding of the opportunities and challenges in IP finance and encourage collaborative solutions.
• Building data on intangible asset investment: WIPO’s economic and data analytics department will conduct in-depth analyses to improve the availability and reliability of data on intangible asset investment. This data will inform policymaking and investment decisions, promoting a more evidence-based approach to IP finance.

Conclusion

The WIPO IP Finance Dialogue provided a valuable platform for discussing the challenges and opportunities in IP finance. The dialogue highlighted the importance of intangible assets in the modern economy and the need for collaboration among stakeholders to unlock their potential for financing purposes. WIPO’s action plan and ongoing initiatives aim to address the key challenges and promote the use of IP to drive innovation, growth, and economic prosperity. The overall message was clear: intangible assets are crucial for the success of the contemporary economy, and unlocking their full potential requires a concerted effort from policymakers, businesses, and financial institutions. The best regards from Bratislava from Slovakia.