Mr Lim Hng Kiang at Intellectual Property Management for C-Suite Seminar (IPMCS)

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Opening address by Mr LIim Hng Kiang, Minister for Trade and Industry, at Intellectual Property Management for C-Suite Seminar (IPMCS), on 12 July 2012, 9:30am, at Resorts World Convention Centre, Singapore

Dr Francis Gurry, Director-General, World Intellectual Property Organisation,

Mr Yoshiyuki Iwai, Commissioner, Japan Patent Office,

Dr Stanley Lai, Deputy Chairman, IPOS,

Distinguished guests,

Ladies and gentlemen,

Good morning. I am pleased to join you for the inaugural seminar on Intellectual Property Management for C-Suite, or IPMCS. Let me extend a warm welcome to our overseas friends and heads of the various ASEAN IP Offices.

This event is a collaborative effort between WIPO and the Intellectual Property Office of Singapore, or IPOS, to promote greater use of IP among businesses here and in the region.

Growing importance of IP in the global economy

The global IP industry has grown over the past 30 years. The value of intangible assets, of which IP is a major component, of S&P 500 companies has grown from 17 percent in 1980 to about 80 percent in 2011. In fact, over the past decade, worldwide royalty and licensing revenue derived from IP has more than doubled to over US$200 billion[1]. 

In 2010, global patent applications grew to almost two million, and trademark applications number more than three million[2].  This is a 40 percent increase compared to 2000. These trends are correlated to increasing globalisation and investments in R&D. 

In the Asia-Pacific Region, the growth of IP is even more significant. This is evident in the number of patent applications filed under the Patent Cooperation Treaty for multiple jurisdictions. Under this treaty, there were more filings for East Asia than for North America and Western Europe. This shows that the demand for IP services in this part of the world has increased.

Singapore’s Economy Bolstered by a Strong IP Regime

In line with global trends, the number of IP filings in Singapore is also growing. Between 2001 and 2011, patent filings have increased by 20 per cent to almost 10,000 in total, while trademark filings soared by 72 per cent to nearly 35,000[3]. 

According to the World Bank and the IMF's indicators, royalty and license fee payments in Singapore also grew from US$9 billion in 2006 to US$15.6 billion in 2010 – almost doubling despite the economic downturn in 2009. In the Asia Pacific region, Singapore is ranked third, after Japan and China, in royalty and licensing fees.   

R&D is an important part of Singapore’s economic strategy. For Singapore to stay ahead of global competition, we must continue to invest in innovation and assimilate IP management into our development strategies. Prime Minister Lee Hsien Loong announced that Singapore will be investing S$16.1 billion to support research, innovation and enterprise activities under the RIE 2015 plan. This was a 20 per cent increase from the budget allocated for 2006 to 2010. Our companies’ demand for IP services is growing in tandem with the growth of research and innovation activities in Singapore. In response, the government has put in place programmes to help businesses better leverage their IP for increased competitive advantage and to develop new products, services and revenue streams. 

The IP programme for SMEs was launched in 2007 to help SMEs develop IP strategies that would increase their business competitiveness under the guidance of IP consultants. To date, IPOS and SPRING have supported more than 400 projects under the programme, achieving a projected economic value-add of more than $780 million[4].  

To further assist businesses, IPOS and IE Singapore developed the IP for Internationalisation Programme to help Singapore-based companies develop IP management strategies as they expand overseas.

In addition, the government has introduced tax benefit schemes to support companies in their IP management efforts. In particular, the Productivity and Innovation Credit scheme allows businesses to be eligible for tax deductions to offset expenses incurred for IP registration and acquisitions.

Last year, we started the IP Intermediary Singapore programme to develop a network of IP partners and sources, locally and from abroad, to facilitate the flow of IPs to local enterprises. This is to help SMEs identify, source and use IP to enhance and develop innovation potential, as well as improve their business processes, products and services.

The outcome of our efforts thus far has been positive. Unique Gas Solution, or UGS, a local liquid petroleum gas supplier, is a good example of how SMEs have benefited from good IP management. After undergoing the IP Management for SMEs programme, UGS was able to identify and better leverage on its IP. As a result, UGS was able to scale their operations and grow their revenue from $6 million to $30 million within three years.  

Singapore’s reputation for a robust IP regime has not only facilitated the growth of local businesses, but also given global IP firms the confidence to choose Singapore as their base for long-term investments in R&D and innovation activities. These firms include Procter & Gamble, Rolls-Royce, Bayer and Thomson Reuters.

Developing Singapore as an Asian IP Hub

The World Economic Forum's Global Competitiveness Report 2011/2012 ranked Singapore second in the world and top in Asia in terms of IP protection. The Political & Economic Risk Consultancy Report 2011, as well as the International Property Rights Index 2012 has similarly ranked Singapore top in Asia for our IP protection efforts. 

We aim to build on this good foundation and develop Singapore as an IP Hub of Asia. Let me take this opportunity to share some of the concrete steps that we have taken so far.

Singapore is proactively strengthening its patent regime, and a key step in this direction is the move towards a positive grant system. This will align our patent regime more closely with established international jurisdictions and increase businesses' confidence in the quality of patents granted in Singapore. 

To support this system, Singapore is also developing capabilities to conduct indigenous search and examination for patent applications. Furthermore, Singapore will welcome foreign patent agents to undertake offshore patent work. 

To support the increase in IP transactions, Singapore is strengthening its IP dispute resolution capabilities. The WIPO Arbitration and Mediation Centre, the first of its kind outside of Geneva, was opened in Singapore in January 2010. The centre provides training and advice on arbitration, mediation and expert determination, and administers and facilitates hearings in cases conducted under the WIPO Rules in Singapore. It aims to cater to regional needs and to make WIPO's experience and expertise more accessible in the Asia Pacific Region.

At the same time, Singapore supports the ASEAN Patent Examination Cooperation initiative, which is a patent work-sharing effort to enable ASEAN Member States to use each other's patent search reports. This initiative will help expedite the patent filing process for applicants across borders and amongst countries in ASEAN.

Singapore has invested in infrastructure to build IP capabilities. The IP Competency Framework will be launched towards the end of this year. It will mastermind the development of the IP workforce in Singapore to support the manpower needs of IP firms and technology transfer offices of R&D set-ups. IP Academy, a subsidiary of IPOS, will work closely with the industry, local universities and international IP institutes to offer more specialised programmes and provide quality manpower to meet the market demand in the region.

An IP Steering Committee has also been set up to look into growing Singapore as a vibrant marketplace to transact and commercialise IP, with world-class IP capabilities and infrastructure. The committee comprises members from both the private and public sectors with expertise in IP. I look forward to their recommendations by early 2013.

Conclusion

Ladies and gentlemen, the inaugural IP Week @ SG is part of Singapore's efforts to bring together different stakeholders in the IP industry to come together to discuss and exchange insights and trends on IP management and commercialisation. As host of this event, Singapore is committed to foster such dialogue as well as facilitate collaboration and knowledge exchange. 

In closing, I would like to express my appreciation to Dr Francis Gurry for lending his support for this event.  WIPO has been an important partner in every step of Singapore’s IP journey over the years.

I wish everyone a rewarding and fruitful time. Thank you.

[1] Speech by Minister for Law, K Shanmugam, COS Debate 2012

[2] WIPO 2011 World Intellectual Property Indicators report: Global patent applications have grown to 1.98 million, and trademark applications stand at 3.66 million.

[3] Figures are cumulative.

[4] Incremental figure