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30 th October 2014 Presentation to Regional Consultation on Intellectual Property (IP) Rights for Innovation In Southeast Asia Understanding Intellectual Property Issues in Malaysia

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Page 1: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

30th October 2014

Presentation to Regional Consultation on Intellectual

Property (IP) Rights for Innovation

In Southeast Asia

Understanding Intellectual

Property Issues in Malaysia

Page 2: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

© MIGHT 2014. Proprietary & Confidential 2

CONTENT

General Landscape 01

About Us 02

IP Issues and Challenges

03

IP Rights System Overview 04

Page 3: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

© MIGHT 2014. Proprietary & Confidential 3

CONTENT

General Landscape 01

About Us 02

Conclusion 05

IP Issues and Challenges 03

IP Rights System Overview 04

Page 4: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

Malaysia: Today

Total population 2014:

30.07mil

54% are middle

class

RM 32,144

Per capita income

(as of 2013)

Agriculture

Manufacturing

Non-manufacturing

industry

Services

Structure of the economy

MALAYSIA

Global Competitiveness

Index (GCI) 2014-2015

Malaysia

ranked: 20th

The Ease of Doing

Business 2014

Malaysia

ranked: 4th

Global Innovation

Index (GII) 2014

Malaysia

ranked: 33rd

Quality of Infrastructure

2014-2015

Malaysia

ranked: 25th

Source: Malaysia in the Global Competitiveness Report 2014-2015

Page 5: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

5 © MIGHT 2014. Proprietary & Confidential

Malaysia has achieved sustained economic growth with low inflation and low rate of unemployment

%

High growth with low inflation Sustainable growth with low inflation

Recession with high inflation in

1985

Source: Department of Statistics, Malaysia

1997 - 1999 1986 - 1996 2000 - 2013

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

Financial crisis in 1998

1980 -

1985

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Development Plans

Malaysia Plan (every 5 years)

IMP3 IMP2 IMP1 Industry

S&T ST2 TAP ST1 NPSTI

1957 ‘70 ‘90 ‘85 ‘80 ‘75 ‘10 ‘05 2000 ‘95 ‘15 2020

National Agenda

10th MP ( 2011 – 2015) 1st Malaysia Plan (1966 – 1970)

VISION 2020

The Green Book Programme

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National Transformation Programmes

ENTRY POINT PROJECTS 133

NKEAs 12

Reducing Crime

Fighting Corruption

Improving Students

Outcomes

Raising Living Standards of

Low-Income Households

Improving Rural Basic

Infrastructure

Improving Urban Public

Transport

NKRAs 6

Page 8: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

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)

10th Malaysia Plan Science to Action Initiative (S2A)

April 2009 January 2010 March 2010 June 2010 November 2013

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

8

Page 9: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

Infrastructure Development

Ports

International

Airports

5 31

> 20,000 jobs 1.92 mil jobs

662,065 jobs

900,000 jobs

817,500 jobs

5

Economic Corridors

Industrial Estates

And Free Zones

500

Page 10: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

of the

workforce is under 35

years of age

Strengthening Resources

Cybercities/

Cybercentres

Public universities 21

>20

49.5%

Page 11: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

© MIGHT 2014. Proprietary & Confidential 11

CONTENT

General Landscape 01

About Us 02

Conclusion 05

IP Challenges and Issues 03

IP Rights System Overview

04

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12 © MIGHT 2014. Proprietary & Confidential

Introduction

“ .... MIGHT is formed to prospect for business opportunities for Malaysia through

strategic exploitation of technology for attainment of Vision 2020 objective ”

As Not-For-Profit company limited by Guarantee

Based on partnership between public & private sectors

An Organization under the purview Prime Minister Department

Consensus building think tank to harness technology for business

Consultative platform building linkages through membership programme

Nurturing high tech industries via necessary interventions

Launching of MIGHT by the Former Hon. Prime Minister of Malaysia, 22 February 1993

Government Industry

Academia

A PARTNERSHIP THINK TANK

Patron

Joint Chairs

Board of Directors

Established in 1993 by the Government

Core Business

Page 13: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

MIGHT’s Operating Ecosystem

“Rakyat

Malaysia”

Patron

Joint Chairs

Board of Directors

Clients

Industry &

Government

MIGHT

Associates &

Members

Experts

(Local & Int’l) Prime

Ministers’

Department

Prime Ministers’ Office

Various Agencies

Academia / Center of

Excellences

Partners &

Collaborators

Ministries

Strategic Information &

Content

NGOs / Associations

Technology Providers

Making the sum of us greater than the individuals

Page 14: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

Foresight Offset Mgt.

International

Networking

HR

Training

Informed-Policy Decision Making Sustainable Hi-Tech Industry Growth

Hi-Tech. Human Capital

Advancement

Global Outreach for Hi-

Tech

Hi-Tech.

Flagship

1 2

4 3

We have the mechanisms necessary to fulfill the required expectations

Our Value Proposition … Addressing the gaps

Strategic

Intelligence Nurturing

GOVERNMENT INDUSTRY

14

Market Access

Technology Transfer

Local Content

R&D

Commercialization

Industry Deepening

Database Mgmt.

Inputs for Policy Making

Benchmarking

Bridging Programs

Short Courses

Experts

Engagement

Collaborations

Strategic

Platform

Horizon Scanning

Scenario Planning

Prioritizing

Page 15: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

Consultancy

Industry

Intelligence Foresight

Technology

Nurturing

MIGHT

Consultation

MIGHT

International

Experts

Engagement

Human

Capital

Development

Offset

Activities

MIGHT

Interest

Groups

International

Linkages

Programs & Activities…

From the institutionalized instruments, programs & activities are tailored

to fulfil mandated objectives

Page 16: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

© MIGHT 2014. Proprietary & Confidential 16

CONTENT

General Landscape 01

About Us 02

Conclusion 05

IP Issues and Challenges

03

IP Rights System Overview 04

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17 © MIGHT 2014. Proprietary & Confidential

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

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18 © MIGHT 2014. Proprietary & Confidential

Malaysia’s current international ranking on Innovation

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19 © MIGHT 2014. Proprietary & Confidential

Issues and Challenges

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20 © MIGHT 2014. Proprietary & Confidential

Government’s Initiative – IP Financing Valuation & Marketplace

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21 © MIGHT 2014. Proprietary & Confidential

IP Valuation For Financing Purposes

Page 22: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

22 © MIGHT 2014. Proprietary & Confidential

MDV Positioning

Page 23: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

23 © MIGHT 2014. Proprietary & Confidential

IPFS : Salient Features

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24 © MIGHT 2014. Proprietary & Confidential

IPFS : Application Process

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25 © MIGHT 2014. Proprietary & Confidential

MDV Portfolio

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26 © MIGHT 2014. Proprietary & Confidential

Ratio of Valuation to Loans Approved

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27 © MIGHT 2014. Proprietary & Confidential

Launching of IP Valuation Model, 2013

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28 © MIGHT 2014. Proprietary & Confidential

Features of IP Valuation Model (IPVM)

Page 29: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

29 © MIGHT 2014. Proprietary & Confidential

Trainings of Local IP Valuers

Page 30: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

30 © MIGHT 2014. Proprietary & Confidential

IP Valuation Trainings

Page 31: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

31 © MIGHT 2014. Proprietary & Confidential

Pilot IP Marketplace Portal Launched 27th June, 2014

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32 © MIGHT 2014. Proprietary & Confidential

IP Marketplace Collaboration

Page 33: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

© MIGHT 2014. Proprietary & Confidential 33

CONTENT

General Landscape 01

About Us 02

Conclusion 05

IP Issues and Challenges

03

IP Rights System Overview 04

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34 © MIGHT 2014. Proprietary & Confidential

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.

Page 35: Understanding Intellectual Property Issues in · PDF fileUnderstanding Intellectual Property Issues in Malaysia ... Database Mgmt. ... Jalan Teknokrat 5, 63000 Cyberjaya, Selangor

35 © MIGHT 2014. Proprietary & Confidential

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.

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36 © MIGHT 2014. Proprietary & Confidential

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

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37 © MIGHT 2014. Proprietary & Confidential

IP Legislations

INDUSTRIAL DESIGN

ACT 1996

GEOGRAPHICAL

INDICATION ACT 2000

LAYOUT DESIGN AND

INTEGRATED CIRCUIT

ACT 2000

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38 © MIGHT 2014. Proprietary & Confidential

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

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© MIGHT 2014. Proprietary & Confidential 39

CONTENT

General Landscape 01

About Us 02

Conclusion 05

IP Issues and Challenges

03

IP Rights System Overview 04

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40 © MIGHT 2014. Proprietary & Confidential

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.

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41 © MIGHT 2014. Proprietary & Confidential

Acknowledgements

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42 © MIGHT 2014. Proprietary & Confidential

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

Thank you

Contact Information MIGHT Tel: +603 87157888

Email: [email protected]

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.