Kuala Lumpur, Malaysia, 29 September 2025
The World Intellectual Property Organization (WIPO) has launched its first-ever IP Finance Pilot Project, working with Malaysian Industrial Development Finance Berhad (MIDF) on a milestone in recognizing intellectual property (IP) as a financial asset.
The new IP finance initiative is part of WIPO’s effort to address a longstanding barrier for small and medium-sized enterprises (SMEs): the lack of recognition of IP assets in lending. By embedding IP into financing practices, lenders can make better-informed, lower-risk decisions, while giving SMEs a fairer chance to expand, compete, and innovate.
The Memorandum of Understanding (MoU) establishing the collaboration was signed by the Director General of WIPO, Mr. Daren Tang, and the Chief Executive Officer of MIDF, Mr. Mustafa Azizi. MIDF is one of Malaysia’s leading financial institutions, with recognized expertise in investment banking, development finance, and SME support.
From Dialogue to Action
This is the first IP Finance Pilot Project relating to the ASEAN-WIPO Memorandum of Understanding and follows up on WIPO’s announcement of an action-oriented approach during the WIPO IP Finance Dialogue, turning commitments into concrete action. Building on the ASEAN IP Finance Pilot Project launched in 2024, the collaboration with MIDF takes the next step by testing IP assessments and valuations in real lending scenarios.
Closing the Funding Gap through IP Assessments
To put this approach into practice, independent experts will assess selected companies’ IP portfolios using standardized templates from WIPO’s Hands-On IP Finance Guide: Securing Loans with Your IP. These assessments will provide a clear picture of ownership, market position, validity, and revenue potential. Where relevant, experts may also conduct formal IP valuations using common methods. The assessment reports will guide lending decisions, and feedback from MIDF will help WIPO refine its methodology and tools for future projects.
Laying the Foundation for an Innovative and Resilient Economy
Through this project, WIPO and MIDF are not only addressing the immediate financing needs of innovative enterprises and SMEs but also laying the foundation for a more resilient and dynamic economic landscape, where IP is fully recognized as a driver of sustainable growth and innovation.
WIPO’s Work on IP Finance
Most companies need capital to grow but few tap into one of their most valuable assets, their IP. Creative and innovative firms invest in developing intangible assets like brands, technologies, designs, and data, yet traditional banks and lenders typically ignore these assets when making financing decisions. This leaves IP-rich companies unable to draw on a significant source of value when they need capital most. This is where IP finance can make a difference.
Since 2022, WIPO has focused on moving IP finance from the margins to the mainstream through its Action Plan on IP Finance. A core pillar of this plan focuses on equipping participants in the IP finance ecosystem – from entrepreneurs to bankers to valuers – with practical tools and real-world experience. WIPO bridges theory and practice through targeted initiatives like our IP Finance Pilot Projects and efforts to promote best practices in IP valuation. This comprehensive approach enables intangible-intensive enterprises turn their intellectual assets into accessible financing, ultimately fueling economic growth built on creativity and innovation.