(ip) hub master plan - Ministry of Law

1.2.2. To assist the formulation of the IP Hub Master Plan, feedback was invited from IP
rights holders, practitioners and the industry, as well as the general public. Study
trips to key IP markets like the US and roundtable discussions were also mounted
to gain insights into the opportunities and challenges for Singapore in the global IP
landscape.
1.3. SURVEYING THE IP LANDSCAPE
Global Trends
1.3.1. With the rise of the global knowledge-based economy, there is a growing
recognition in corporate boardrooms that IP is a strategic asset, and it is crucial for
businesses to systematically create, manage and leverage IP, in order to optimise
its value. According to Ocean Tomo, a well-established IP intermediary, the value
of intangible assets for S&P 500 companies – of which IP is a major component – is
now 80% of the total market value, up from 17% in 1975. 1
1.3.2. In the next decade, the IP industry is poised to undergo further growth and
development. The growth in IP activities is not confined to any particular
component of the IP value chain, and is evident across IP creation, IP protection, IP
exploitation and IP enforcement, as demonstrated by the rise in Gross Domestic
Expenditure on R&D (GERD), IP filings, royalty and licensing fees and IP disputes
respectively. Figure 1.1. shows the broad value chain or life cycle of IP.
IP Creation
Generating IP through research and development, or
focused innovation based on anticipated technology
trends or market needs.
IP Protection
Securing rights to IP, e.g. through filing with IP
offices.
IP Exploitation
Deriving commercial gains out of IP, e.g. through
licensing.
IP Enforcement
Taking actions against infringers of IP, e.g. through
litigation.
Figure 1.1.: The IP value chain.
1 Ocean Tomo, 2010.
http://www.oceantomo.com/media/newsreleases/intangible_asset_market_value_2010 (accessed Feb 2013).
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