Project Title

Promoting Innovation through a Mechanism for IP Valuation, Financing and Leveraging IP Assets 

Project Year

2016   

Project Number

CTI 14 2016A 

Project Session

Session 1   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

CTI 14 2016A 

Project Title

Promoting Innovation through a Mechanism for IP Valuation, Financing and Leveraging IP Assets 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: General Fund 

Project Year

2016 

Project Session

Session 1 

APEC Funding

127,375 

Co-funding Amount

Total Project Value

127,375 

Sponsoring Forum

Intellectual Property Rights Experts Group (IPEG) 

Topics

Intellectual Property 

Committee

Committee on Trade and Investment (CTI) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Philippines 

Co-Sponsoring Economies

Korea; Mexico; Russia 

Expected Start Date

31/12/2016 

Expected Completion Date

31/12/2017 

Project Proponent Name 1

Leny B Raz (new PO wef 8 October 2017) 

Job Title 1

Not Applicable 

Organization 1

Intellectual property Office of the Philippines (IPOPHL) 

Postal Address 1

28 Upper McKinley Rd., McKinley Hill Town Center, Taguig City 1634Philippines 

Telephone 1

63-2 2386300 

Fax 1

Not Applicable 

Email 1

leny.raz@ipophil.gov.ph 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Leny B Raz 

Project Summary

This Project seeks to gather, collate, identify, and craft best practices and methodologies in IP valuation, IP financing and IP utilization, and in the process develop an IP valuation manual as a tool to foster innovation by encouraging policy makers of member economies in Asia-Pacific to establish a mechanism for IP valuation and financing to help IP owners, specifically MSMEs leverage their IP assets to grow their businesses and tap other markets, paving the way for their participation in the Global Value Chain (GVC).

The Project will be implemented in two phases: (1) focus group discussion-workshops on IP Valuation, Financing and Leveraging IP Assets for policy makers and finance experts; and 2) the holding of a Trainers’ Training on IP Utilization mechanisms, which builds on the earlier phase and ensures the sustainability of the Project.

Relevance

Through time many intellectual properties (IPs), such as inventions, utility models and industrial designs, have been generated by inventors, universities and even MSMEs; however, they failed to generate or optimize their value for lack of proper strategies to commercialize their IPs.  With the establishment of an IP valuation and IP financing mechanism in APEC economies, inventors and MSMEs will have a platform to leverage their IPs for possible commercialization (through self funding, joint ventures, and investors). This Project seeks to encourage policy makers to establish IP valuation and financing mechanisms in their respective economies in order to institutionalize and facilitate the introduction of IPs in the market. By the establishment of said mechanism, APEC economies can foster an innovation ecosystem that will enhance MSMEs’ competitiveness, and facilitate their participation in the regional and global markets. 

The mechanism that this Project envisages comes in three forms: 1) crafted IP valuation manual after the Project life that contains techniques or How Tos in conducting actual valuation processes; 2) training of a pool of IP valuators competent in mathematical valuation modeling; and 3) documentation of best practices on IP valuation, financing, and utilization. 

This Project falls under the 2016APEC Funding Criteria Rank 1 “MSME Modernization and implementation of the Boracay Action Agenda (BAA- MSMEs)” and “Human Capital Development” to foster greater participation of micro, small, and medium enterprises (MSMEs) in international trade. Under Human Capital Development, it relates to “MSMEs access to Human Capital Development, including activities outlined in Strategic Plan on Capacity Building to Promote Trade and Investment Agenda, education and capacity building, as well as cross-border education cooperation.” 

This Project supports the 2016 APEC Priorities of 1) “Enhancing Regional Economic Integration,” 2) “Investing in Human Capital Development,” and 3) Fostering SMEs’ Participation in the Regional and Global Economy.

Objectives

1) To encourage, educate and enlighten  policy makers on the need to set up a mechanism for IP Valuation, Financing and Leveraging IP Assets in their respective economies;

2) To widen and open more financing opportunities for inventors and MSMEs and assist them in utilizing IP assets as a key business tool;

3) To document best practices and techniques on IP Valuation, Financing and Leveraging IP Assets necessary to promote an innovative ecosystem for inventors and MSMEs. These reference materials will also help policy makers in crafting their respective valuation mechanisms in their respective economies.

Alignment

1) This Project supports the 2016 APEC Priorities of “Towards the Modernization of MSMEs in the Asia-Pacific” and “Investing in Human Capital Development.”

2) It is also aligned with the Osaka Action Plan of “promot[ing] dialogue on emerging intellectual property policy issues, with a view to further improve intellectual property rights protection and use of the intellectual property rights systems for the social and economic benefit of members.”

TILF/ASF Justification

This Project is applied for APEC Support Fund – General Fund, specifically under the priority areas of “Developing Human Capital” and “Developing and strengthening the dynamism of Small and Medium Enterprises (SMEs).

Beneficiaries and Outputs

Outputs: This Project will carry out seminar-workshops/focus group discussions that will gather, collate, identify, and craft best practices and methodologies in IP valuation, IP financing, and IP utilization, and eventually provide participating APEC member economies with trainers’ training module which can be used by APEC economies in establishing their respective IP valuation and financing mechanisms. 

The training module, which the experts tapped for this Project will produce, will be the output during the Phase 1 of this Project, and will be used for the trainers’ training during the Phase 2. Project participants are expected to enhance their knowledge and appreciation of IP management, particularly IP valuation, financing and leveraging, as well as other issues relating to innovation and creating an environment facilitative of business activities bankrolled through the use of valued IPs. An IP valuation manual and training of a pool of IP valuators will be the outputs for Phase 2. 

This Project shall also provide e-publications in the APEC website of best practices on IP Valuation Mechanism, IP valuation seminar session reports, workshop outputs, contact details of participants and IP valuation resource speakers and experts, for future collaboration and reference of interested APEC economies. 

Outcomes: This Project is expected to provide project participants better understanding and increased appreciation of the value of IP Valuation, Financing and Leveraging IP Assets in supporting business activities and spurring more aggressive innovations. In the process, it is expected that economies will consider prioritizing the need to come up with an IP Valuation mechanism for the optimum utilization of IP in the market; and dish out measures arising from the recommendations based on the outputs of this Project in order to foster a culture of innovation that is friendly to inventors and MSMEs. 

Participants shall be encouraged to share the learnings to people in financing sectors, in the hope that MSMEs through the financing sectors of member economies shall mainstream IP valuation, financing and leveraging strategies in trade and other business dealings. 

Beneficiaries: The Project will invite two (2) participants from participating economy who are senior officials preferably from the Department of Finance or a government office in charge of crafting policy options and measures on valuation and financing, and Department of Trade or the national IP office. Moreover, the participants should have direct involvement and influence in developing policies for advancing IP valuation and financing. 

IP owners, particularly inventors and MSMEs will be the beneficiaries of this Project, particularly upon the implementation of the IP valuation mechanism. Institutional partners such as chambers of commerce, business organizations, and associations of accountants or asset valuators from the participating APEC economies can later on partner with these MSMEs whom they can equip with technical knowledge and skills in IP valuation, financing and leveraging IP Assets, and whom APEC economies can harness in rolling out business and trade activities.

Dissemination

Electronic publication of best practices on IP valuation, seminar session reports and outputs, best practices and contact details of resource persons and project participants shall be readily accessible online for use of APEC member economies. Publication shall be hosted by the Philippine economy. Electronic publication will be linked online with the other APEC economies through the APEC-IPEG. The E-publication shall likewise include post-project contributions by participants directly associated to IP valuation, financing and leveraging activities in their respective home economies. The outputs will also be shared with other relevant APEC working groups. Representative offices from the APEC economies (i.e. the national IP offices, the central banks) shall be responsible for sharing and communicating the outputs of this Project to their respective MSME sectors, to the financial institutions, as well as to other relevant stakeholders within the respective economies. 

Dissemination of the E-publication through chambers of commerce, business organizations and associations of accountants and asset valuators will also be encouraged. 

Presentation of the results of the Project will also be presented to relevant working groups in APEC, such as SMEWG and IPEG.

Gender

Participating economies shall see to it that one of the two participants should be a woman, but with the desired qualifications (i.e. senior level acquainted with policy making in the field of financing or IP commercialization). This will be stated categorically in the invitation letter sent to participating economies. This will ensure active involvement of both female and male gender in this Project. Likewise, at least one of the experts to be tapped for this Project should be a woman. In this way, the Project will generate respect and equal opportunities for individuals regardless of gender.

Work Plan

Date

Actions/Tasks

How

Output

Dec 2016-Jun 2017

Phase 1

IP Valuation, Financing, and Leveraging IP Assets Seminar-Workshop

Dec 2016

Identification of experts

(4 experts, at least one of whom a woman.

Experts may come from financial institutions, investments banks, or MSMEs preferably  from US, Singapore, Korea, and Malaysia economies)

Coordination with member economies

where experts will come from, and with the APEC Secretariat

Contract of Services

Jan 2017

Identification of Topics and drafting of FGD-workshop Program

Designated economy experts to prepare inputs on and topics for program content

Topics for FGD-workshop

Feb 2017

Preparatory, logistical, and administrative arrangements

PH economy in coordination with APEC Secretariat

Engagement contracts (i.e. venue, accommodation, etc.)

Mar 2017

Send out of invites to select member economies

PH economy in coordination with APEC Secretariat

Database of invites (i.e. invitees, sent/confirmed invites, etc.)

June 2017

Conduct of IP Valuation, Financing and Leveraging FGD-Workshop

Ph economy as host; Partner economies to identify potential participants capable of becoming trainers;

1. Warm bodies of advocates for the inclusion of IP assets in business financing transactions

2. Documented exchange of best practices

3. Increased knowledge of IP valuation and financing and leveraging fundamentals

4. Pool of potential of IP valuators

5. Trainers’ training Module to be used for Phase 2

Jul-Sep 2017

Phase 2

Trainers’ Training

Tapping of same experts from Phase 1

Inviting same participants from Phase 1

PH economy to host in

Collaboration with APEC Secretariat

July 2017

Re-contracting of Experts in Phase 1

Coordination with APEC Economies where experts come from

Contract of Services

August 2017

Preparatory, logistical, administrative arrangements 

Implementation of trainer’s training;

PH economy in collaboration with APEC Secretariat and partner economies

Engagement contracts (i.e. venue, accommodation, etc.)

September-November

2017

Consolidation of Training outputs

PH economy in Collaboration with APEC Secretariat;

Partner economies to provide pre-inputs for drafting guidelines and policy measures;

Experts to evaluate pre-inputs from partner economies

1. Dissemination of inputs and proceedings during training

2. E-publication of best Practices

3. IP valuation manual

4. Pool of IP valuators

Risks

Accepting intellectual properties as assets for business start-ups has just recently gained ground.  IP valuation, therefore, is a challenging idea which only more developed economies has expertise in.  The availability of experts and developing a pool of trainers might be one of the hurdles that need to be overcome.  Furthermore, the quality of the output will highly depend on the level of expertise that APEC will be able to contract.  Congruent to the quality of the experts is the quality of the participants.  To ensure that the optimal results will be attained from the Project, experts and participants will have to meet qualifications critical to the attainment of the objectives of the Project. 

Qualifications of the experts may include accomplishments pertaining to IP valuation and policies on IP financing lobbied with their governments.  On the other hand, qualifications of participants may include their multiplier effect, i.e. a) does the office they belong to have the mandate to develop and advocate for policies pertaining to IP valuation and financing? b) does the position level of the participant have access to policymakers so that the implementation of IP financing in their economies will be facilitated? and c) is the participant a trainer such that there will be a rippling of the knowledge learned by the participant to more people? 

To manage the risks, two things should be done: 1) Invitation will be directed to experts who have necessary experience or extensive background in valuation and financing to train future IP valuators. 2) Invitation will also be directed to participants who should be at senior level with exposure to or influence in policy making, and who should be willing to share in their respective economies the knowledge and skills acquired through this Project. (Also, one of the participants should be a female.) This is to ensure a multiplier effect, such that a bigger pool of IP valuators will be trained locally within the economy. For this purpose, Philippine economy will organize the participants into a group, and will include in the seminar-workshop the crafting of a proposed workplan which will be accordingly monitored.

Monitoring and Evaluation

Indicators directly arising from the project implementation are: a) 11 developing economies participate in the workshops; b) 22 trained IP valuators; c) 1 focus group discussion; d) 1 trainers’ training; e) Trainers’ training module on IP Valuation, Financing and Leveraging IP Assets; and f) e-publications in the APEC website of best practices on IP Valuation Mechanism, IP valuation seminar session reports, workshop outputs, contact details of participants and IP Valuation resource speakers and experts. 

However, more critical than the above indicators are indicators that do not directly result from the trainings such as the consideration of recommended mechanisms arising from this Project relating to IP financing by the economies that participated in the trainings.  Such mechanisms should pave the way for opening financing opportunities for inventors and MSMEs and assisting them in utilizing their IP assets as a key business tool.  It would thus be worthwhile to also monitor APEC economies that will adopt IP valuation and financing mechanisms, and track the number of beneficiaries or entities that are helped by the available financing opportunities. 

By and large, apart from availability of financing opportunities in APEC economies, success of this Project can also be gauged in terms of a) increase in the use of IP valuation tools among MSMEs in the APEC economies; b) increase in IP utilization in business activities and decisions of MSMEs in APEC economies; and c) increased reflection of IPs in the financial statements of MSMEs as assets with corresponding valuation which can be monitored by the IP Valuation Technical Working Group of the Intellectual Property Office of the Philippines (IPOPHL). 

A post project survey, as a follow-up activity, will be proposed to measure the medium term impact of this Project in the participating economies. The purposes of the survey will be: 1) Determine the extent of consideration by the participating APEC economies of the recommendations resulting from this Project; 2) Document how many and what are the institutions that benefit from the use of the manual developed on valuation and financing implemented by the participating economies; 3) Track possible increase in the use of IP valuation tools among MSMEs in the participating economies; 4) Track possible increase in financing opportunities and the number of beneficiaries made possible by the new policies introduced in the participating economies on valuation and financing among the MSME, IP and innovation sectors.

Linkages

The Project will need the support of the APEC SME Working Group.  The World Intellectual Property Organization (WIPO) may also be tapped to help provide experts on IP valuation and financing.  The Project Proponent will also coordinate with its co-sponsoring economies under IPEG who have proposals on IP utilization (valuation, financing and leveraging). 

There are no other APEC activities that focus on IP valuation practices that are facilitative and supportive of business activities bankrolled through the use of IPs as capital assets.  At the same time, practices and measures that open up financing opportunities to support business start-ups and spur greater innovation activities have yet to be firmly established in the APEC economies. 

However, projects to enhance financing opportunities for the MSMEs may be existing in other APEC working groups and this Project may be tied with such projects.  Coordination with ABAC’s FEWG and MSMEEWG lead staffers is therefore necessary before the project begins to maximize synergies and ensure that all APEC efforts are included in the work plan. 

The importance of intellectual property will only be realized by the developing economies of APEC if its economic value radiates to the IP owners and subsequently to the economy as well.  The entire region will also flourish with the development of its member economies.  Considering that the impact of the project will be felt by APEC economies; funds therefore should also come from APEC.

Sustainability

The APEC IPEG shall continue to get reports from the economies that participated in the Project to monitor the continuing activities undertaken.  Results and discussions from such activities will have to be documented and be made part of discussions in APEC IPEG meetings. 

At the end of the trainings, the Philippine secretariat, i.e. the IP Valuation Technical Working Group of IPOPHL, will have to develop and manage a web page, or an interactive platform, for the group of participants so that they, together with the experts, can continue to exchange information and discuss issues and concerns relating to IP valuation and financing.  Developments in the Philippine setting such as laws passed on IP Valuation or success stories with IP providing increased value to a business will be regularly posted.  Such exchanges are foreseen to trigger interest in other economies to follow what the Philippines is doing. 

Furthermore, outputs of Phase II of the Project include the production of the following which will make the results of the Project more sustainable:

a) E-publication of best Practices on IP Valuation, Financing and Leveraging of IP Assets for modeling of other APEC economies;

b)  Manual on IP valuation;

c)  Pool of IP valuators who will share their learnings in their respective economies. 

If necessary, a core group of advocates, initially within the Philippines with IPOPHL as lead convenor, will have to be organized to ensure the success of the project, as well as to ensure that IP is made an integral part of the value of a business and that this practice is shared with other economies.  IPOPHL then takes upon itself to monitor the developments on IP Valuation in other economies and to develop future projects that will address issues and concerns that may arise. Progression reports will be submitted to the APEC IPEG, APEC, ABAC and other relevant work groups for information and/or resolution.

Project Overseers

Atty Allan B. Gepty, Deputy Director General of the Intellectual Property Office of the Philippines will be the Project Overseer.  Atty. Gepty is the Philippine representative to the APEC IPEG.  In the Philippines, Atty. Gepty convened the First High-level Forum on IP Financing to push financial institutions to consider intellectual property portfolio in evaluating credit worthiness, credit lines and as assets that can serve as collateral for IP commercialization. He also initiated the IP commercialization program where inventors, universities and businesses can have a platform to meet and forge partnership in research and IP commercialization. Part of this program is the setting up of an IP depot, an online platform for offering IP for commercialization and submitting research task for possible studies. At present, an initiative is ongoing to draft a bill or rules for consideration of the domestic government  to set up an IP valuation mechanism to help assist banks or financial institutions in IP financing and commercialization. 

Other contact persons for this Project are: 

Atty. Leny B. Raz
Director, Bureau of Trademarks
Intellectual Property Office of the Philippines
Email: leny.raz@ipophil.gov.ph

Ms. Amelou E. Lim, or Mr. Adrian H. Sablan
Intellectual Property Rights Specialists
Technology Transfer Division
Documentation, Information & Technology Transfer Bureau
Intellectual Property Office of the Philippines
Emai:amelou.lim@ipophil.gov.phadrian.sablan@ipophil.gov.ph

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

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