Presentation to Regional Consultation on Intellectual Property (IP) Rights for Innovation In Southeast Asia Understanding Intellectual Property Issues in Malaysia 30 th October 2014
CONTENT 01 General Landscape 02 About Us 03 IP Issues and Challenges 04 IP Rights System Overview 2
CONTENT 01 General Landscape 02 About Us 03 IP Issues and Challenges 04 05 IP Rights System Overview Conclusion 3
Malaysia: Today Structure of the economy Total population 2014: 30.07mil 54% are middle class Per capita income (as of 2013) RM 32,144 Services Agriculture Manufacturing Non-manufacturing industry Global Competitiveness Index (GCI) 2014-2015 Malaysia ranked: 20 th The Ease of Doing Business 2014 Malaysia ranked: 4 th Quality of Infrastructure 2014-2015 Malaysia ranked: 25 th Global Innovation Index (GII) 2014 Malaysia ranked: 33 rd MALAYSIA Source: Malaysia in the Global Competitiveness Report 2014-2015
Malaysia has achieved sustained economic growth with low inflation and low rate of unemployment % 1980-1985 Recession with high inflation in 1985 1986-1996 1997-1999 2000-2013 High growth with low inflation Financi al crisis in 1998 Sustainable growth with low inflation Real GDP: - 1.2% in 1985 Unemploy ment rate: 5-6% Rapid industrialisation Higher inflation of 4.6% in 1991-92 Large inflows of ST capital in 1994-95 Source: Department of Statistics, Malaysia 5
Development Plans Malaysia Plan (every 5 years) 1 st Malaysia Plan (1966 1970) 10 th MP ( 2011 2015) National Agenda VISION 2020 Industry The Green Book Programme IMP1 IMP2 IMP3 S&T ST1 TAP ST2 NPSTI 1957 70 75 80 85 90 95 2000 05 10 15 2020
National Transformation Programmes 6 NKRAs 12 NKEAs Reducing Crime Fighting Corruption Improving Students Outcomes Raising Living Standards of Low-Income Households Improving Rural Basic Infrastructure Improving Urban Public Transport ENTRY POINT 133 PROJECTS
Vision 2020 Preservation and enhancement of unity in diversity Effective delivery of Government services New economic model A high income, inclusive and sustainable nation Smooth implementation of Government s development programme Ensuring sustainable growth beyond 2020 1Malaysia Government Transformation Programme (GTP) Economic Transformation Programme (ETP) 10 th Malaysia Plan Science to Action Initiative (S2A) People First, Performance Now 6 National Key Result Areas (NKRAs) 8 Strategic Reform Initiatives (SRIs) Macroeconomic Growth Targets & Expenditure Allocation Mobilising Science to Build a Knowledge Based Economy April 2009 January 2010 March 2010 June 2010 November 2013 8
Infrastructure Development Ports 31 5 International Airports 500 Industrial Estates And Free Zones 5 Economic Corridors 900,000 jobs > 20,000 jobs 1.92 mil jobs 817,500 jobs 662,065 jobs
Strengthening Resources >20 Cybercities/ Cybercentres 21 Public universities 49.5% of the workforce is under 35 years of age
CONTENT 01 General Landscape 02 About Us 05 Conclusion 03 IP Challenges and Issues 04 IP Rights System Overview 11
Introduction... MIGHT is formed to prospect for business opportunities for Malaysia through strategic exploitation of technology for attainment of Vision 2020 objective Launching of MIGHT by the Former Hon. Prime Minister of Malaysia, 22 February 1993 Established in 1993 by the Government As Not-For-Profit company limited by Guarantee Patron Based on partnership between public & private sectors An Organization under the purview Prime Minister Department Joint Chairs Board of Directors Core Business Consensus building think tank to harness technology for business Consultative platform building linkages through membership programme Government A PARTNERSHIP THINK TANK Academia Industry Nurturing high tech industries via necessary interventions 12
MIGHT s Operating Ecosystem Making the sum of us greater than the individuals Prime Ministers Office Ministries Prime Ministers Department Patron Joint Chairs Board of Directors MIGHT Associates & Members Experts (Local & Int l) Various Agencies Partners & Collaborators Strategic Information & Content Academia / Center of Excellences NGOs / Associations Rakyat Malaysia Clients Industry & Government Technology Providers
Our Value Proposition Addressing the gaps We have the mechanisms necessary to fulfill the required expectations GOVERNMENT 1 Informed-Policy Decision Making 2 INDUSTRY Sustainable Hi-Tech Industry Growth Horizon Scanning Scenario Planning Prioritizing Foresight Offset Mgt. Market Access Technology Transfer Local Content Industry Deepening Database Mgmt. Inputs for Policy Making Benchmarking Strategic Intelligence Nurturing R&D Commercialization Hi-Tech. Flagship 4 Global Outreach for Hi- Tech Experts Engagement Collaborations Strategic Platform International Networking HR Training 3 Hi-Tech. Human Capital Advancement Bridging Programs Short Courses 14
Programs & Activities From the institutionalized instruments, programs & activities are tailored to fulfil mandated objectives Foresight Industry Intelligence Technology Nurturing MIGHT International International Linkages Human Capital Development MIGHT Interest Groups MIGHT Consultation Experts Engagement Consultancy Offset Activities
CONTENT 01 General Landscape 02 About Us 03 IP Issues and Challenges 04 05 IP Rights System Overview Conclusion 16
Introduction New economy 70% of business transactions are attributed to intangible assets More companies increasingly using their IP to generate revenue To improve their competitive advantage and access to financing Information asymmetry situation (young, intangible and limited track record = collateral seeking financier (s) Limited IP awareness an business capacity, high costs of access to the IP system Problems valuing IP, liquidity issues in IP young markets Limited IP expertise and procedures among lenders, few initiatives to consider IP as collateral 17
Malaysia s current international ranking on Innovation 18
Issues and Challenges 19
Government s Initiative IP Financing Valuation & Marketplace 20
IP Valuation For Financing Purposes 21
MDV Positioning 22
IPFS : Salient Features 23
IPFS : Application Process 24
MDV Portfolio 25
Ratio of Valuation to Loans Approved 26
Launching of IP Valuation Model, 2013 27
Features of IP Valuation Model (IPVM) 28
Trainings of Local IP Valuers 29
IP Valuation Trainings 30
Pilot IP Marketplace Portal Launched 27 th June, 2014 31
IP Marketplace Collaboration 32
CONTENT 01 General Landscape 02 About Us 03 IP Issues and Challenges 04 05 IP Rights System Overview Conclusion 33
MyIPO s Current Initiatives The Intellectual Property Corporation of Malaysia (MyIPO) is an agency under the purview of the Ministry of Domestic Trade, Co-operatives and Consumerism development and administration of intellectual property rights system. 34
International IP Treaties Malaysia is a member of World Intellectual Property Organisation (WIPO) since 1989 and has acceded to seven conventions/treaties/agreements administered by WIPO as follows: 1) Paris Convention for the Protection of Industrial Property in 1989; 2) Berne Convention for the Protection of Literary and Artistic Works in 1990; 3) Patent Cooperation Treaty in 2006; 4) Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks in 2007; 5) Vienna Agreement Establishing an International Classification of the Figurative Elements of Marks in 2007; 6) WIPO Copyright Treaty in 2012; and 7) WIPO Performances and Phonograms Treaty in 2012. Malaysia is also a signatory to the Trade Related Aspects of Intellectual Property Rights (TRIPs) Agreement since 1995. Malaysia s IP legislations complies with the TRIPs Agreement and other IP international treaties which Malaysia is a party to. 35
National Intellectual Property Policy The main purpose of the National Intellectual Policy (NIPP) is to harness intellectual property (IP) as a new engine of growth for the enhancement of economic and social prosperity. Objectives of the NIPP Highest Standard of IP Protection Promotion of IP-generated Activities Promotion of Commercial Exploitation of IP Development of IP Management Capabilities Development of Infrastructure for IP Transaction Protection of National IP Interest Human Resource Development and Public Awareness Promotion of Foreign Investment & Technology Transfer 36
IP Legislations GEOGRAPHICAL INDICATION ACT 2000 INDUSTRIAL DESIGN ACT 1996 LAYOUT DESIGN AND INTEGRATED CIRCUIT ACT 2000 37
IP Courts Malaysia launched the IP Court in July 2007 Reason : The concern for the high rising number of piracy of copyrighted materials and counterfeiting of goods in Malaysia 15 Sessions Courts known as Sessions Court (Intellectual Property) in each state and one in Putrajaya 6 High Courts High Court (Intellectual Property) in Kuala Lumpur, Selangor, Johor, Perak, Sabah and Sarawak 38
CONTENT 01 General Landscape 02 About Us 03 IP Issues and Challenges 04 05 IP Rights System Overview Conclusion 39
Summary For Malaysia itself, IP has been growing steadily, we have yet to fully leverage on the value and significance of IP in particular, as an important asset to create growth opportunities for businesses. Shared an overview of Malaysia IP landscape in order to facilitate session, in which to further provide an opportunity to exchange initiatives experiences. Identified challenges faced and best practice examples adopted in the region to address those challenges. We welcome discussion on strategic sharing of information and best practices. 40
Acknowledgements 41
Thank you Malaysian Industry-Government Group for High Technology (the Organization ) has taken reasonable care to ensure the accuracy of information materials and content given directly and exclusively by the Organization. Notwithstanding the same, the information, materials and contents provided by the Organization in this presentation are provided on an "as is" basis and are of a general nature and shall be subject to the User s obligation to take independent legal, financial or other advise as the User shall deem necessary. The data and analysis contained in this presentation may, however, be quoted with proper acknowledgement of the Organization. Copyright 2014 by MIGHT. All rights reserved. No part of this presentation may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form, or by any means (electronic, mechanical, photocopying, recording or otherwise) without the prior written permission of the Organization. Contact Information MIGHT Tel: +603 87157888 Email: CorporateCommunication2@might.org.my Malaysian Industry-Government for High Technology (320059-P) Prime Minister s Department, MIGHT Building, 3517, Jalan Teknokrat 5, 63000 Cyberjaya, Selangor Darul Ehsan, Malaysia Tel.: +603 8315 7888 Fax.: +603 8312 0300 Email : www.might.org.my 42