30th October 2014
Presentation to Regional Consultation on Intellectual
Property (IP) Rights for Innovation
In Southeast Asia
Understanding Intellectual
Property Issues in Malaysia
© MIGHT 2014. Proprietary & Confidential 2
CONTENT
General Landscape 01
About Us 02
IP Issues and Challenges
03
IP Rights System Overview 04
© MIGHT 2014. Proprietary & Confidential 3
CONTENT
General Landscape 01
About Us 02
Conclusion 05
IP Issues and Challenges 03
IP Rights System Overview 04
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
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
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
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
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
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
of the
workforce is under 35
years of age
Strengthening Resources
Cybercities/
Cybercentres
Public universities 21
>20
49.5%
© MIGHT 2014. Proprietary & Confidential 11
CONTENT
General Landscape 01
About Us 02
Conclusion 05
IP Challenges and Issues 03
IP Rights System Overview
04
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
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
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
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
© MIGHT 2014. Proprietary & Confidential 16
CONTENT
General Landscape 01
About Us 02
Conclusion 05
IP Issues and Challenges
03
IP Rights System Overview 04
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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Malaysia’s current international ranking on Innovation
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Issues and Challenges
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Government’s Initiative – IP Financing Valuation & Marketplace
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IP Valuation For Financing Purposes
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MDV Positioning
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IPFS : Salient Features
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IPFS : Application Process
25 © MIGHT 2014. Proprietary & Confidential
MDV Portfolio
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Ratio of Valuation to Loans Approved
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Launching of IP Valuation Model, 2013
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Features of IP Valuation Model (IPVM)
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Trainings of Local IP Valuers
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IP Valuation Trainings
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Pilot IP Marketplace Portal Launched 27th June, 2014
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IP Marketplace Collaboration
© MIGHT 2014. Proprietary & Confidential 33
CONTENT
General Landscape 01
About Us 02
Conclusion 05
IP Issues and Challenges
03
IP Rights System Overview 04
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.
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.
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
37 © MIGHT 2014. Proprietary & Confidential
IP Legislations
INDUSTRIAL DESIGN
ACT 1996
GEOGRAPHICAL
INDICATION ACT 2000
LAYOUT DESIGN AND
INTEGRATED CIRCUIT
ACT 2000
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
© MIGHT 2014. Proprietary & Confidential 39
CONTENT
General Landscape 01
About Us 02
Conclusion 05
IP Issues and Challenges
03
IP Rights System Overview 04
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.
41 © MIGHT 2014. Proprietary & Confidential
Acknowledgements
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
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