WIPO launches action plan on intangible asset financing

Small and medium-sized enterprises are an important driving force for economic and social development. SMEs account for about 90% of global enterprises, provide more than 50% of employment opportunities, and occupy an important position in the global economic landscape. SMEs play a vital role in promoting innovation in various industries, including healthcare. For example, academic research groups and small and medium-sized enterprises are the driving force of early antimicrobial drug research and development. These companies are responsible for the development of more than 75% of antibacterial and antifungal drugs.

WIPO Action Plan on Intangible Asset Financing:

In the first element, WIPO aims to raise awareness of the potential for intangible asset financing through a series of dialogues with leaders in finance, business and IP. WIPO has now held two meetings, one in November 2022 and the second in November 2023. To strengthen the impact of these dialogues, WIPO has also established an Expert Consultative Group (ECG) as a complement to examine the challenges related to obtaining intangible asset financing. These meetings will provide a platform for open discussions with the aim of generating potential solutions. The first ECG will be held in October 2023 to examine how intellectual property can be valued to obtain financing.

The second element of WIPO’s action plan aims to examine how IP is currently being used to increase access to capital. WIPO has released a new report series, Unlocking IP Finance: Country Perspectives, tracking measures taken by countries such as China, Jamaica, Singapore, Switzerland and the United Kingdom to enable/promote IP financing. These reports not only build a knowledge base but also encourage other countries to engage in this area.

The final element of WIPO’s action plan provides support to stakeholders and players within the intangible asset financing ecosystem. IP owners need practical tools to improve their access to debt and equity financing. Investors who are not familiar with IP need to better understand the potential value of these assets and how to liquidate them in the event of a default. First, WIPO will establish a practical financing toolkit to help borrowers and lenders communicate more effectively. WIPO has also launched an IP financing pilot, which focuses on supporting financial institutions interested in providing IP financing solutions.

WIPO actively advocates the identification and utilization of intangible assets to obtain financing, while fostering a supportive innovation ecosystem to help SMEs innovate.