Intangible Asset Finance

Most companies need capital to scale, grow and sometimes survive at some point. Yet when seeking finance, few companies tap into one of their most valuable assets, their intellectual property. To enhance access to finance on the strength of IP, governments and commercial concerns alike are experimenting with a range of initiatives and offerings.

Upcoming conversation on Intangible Asset Financing

Mainstreaming IP finance faces a number of challenges that will need action by a diverse set of stakeholders to overcome, including financiers, companies, governments and international organizations. To forge a path forward, WIPO will hold a High-level Conversation on Unlocking Intangible Asset Financing on November 1, 2022.

WIPO Report Series on Unlocking IP-backed Finance

To better track and learn from these experiences, WIPO launched a new report series on Unlocking IP-backed Financing, Country Perspectives.

The Series tracks how countries are tackling IP-Backed finance. Each report, developed in partnership with a local partner IP office, a local expert and WIPO, will provide an inside perspective of the situation on the ground. The reports reflect on successes and challenges, as well as the road ahead. This Series provides an opportunity to deepen our dialogues around IP-backed financing, sharing best practices and shedding light on what it will take to mainstream this area of finance.

The first report in the series shares Singapore’s journey and the holistic approach the country takes to IP financing. It explores how Singapore has positioned itself to support IP-backed financing, including by developing a robust legal framework and a whole of government approach. Among other initiatives, the pilot Intellectual Property Financing Scheme, is described in detail, where the government shared default risks with participating financial institutions that offered IP-backed loans. The report further describes Singapore’s efforts to create a supportive environment for IP-backed financing, including through disclosure, valuation, and secondary markets for intangible assets. With an eye towards the future, the report identifies challenges faced by the local ecosystem in expanding the availability of IP finance.

Unlocking IP-backed Financing: Country Perspectives - Singapore’s Journey

As the value of intangible assets including intellectual property (IA/IP) increases, governments are recognizing the need for enterprises to proactively protect, manage and commercialize them to derive maximum benefit for enterprises and the overall economy.

This report gives an account of Singapore’s IA/IP financing journey – the initiatives and the challenges faced, as well as the next steps on the journey to unlock IA/IP financing for innovative enterprises.

IP Finance in Japan: Challenges and Potentials

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Image: WIPO

A WIPO event highlighting preliminary findings of the Japan report on Unlocking IP-backed finance.

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Unlocking IP-backed Financing  Side Event WIPO Assemblies

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Image: WIPO

An interactive panel discussion on takeaways amongst participants of the Country Perspectives project.

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Additional reports in the series are underway and expected later in 2022. The Series is part of the work program of the IP for Business Division in the IP and Innovation Ecosystems Sector.