Singapore businesses encouraged to adopt intellectual property strategies

SINGAPORE companies can leverage their intellectual property (IP) for better growth, with two recent studies showing a positive link between IP and business performance.

The findings of these studies were released by the IP Office of Singapore (Ipos) on Wednesday (May 17), in conjunction with the 145th annual global conference of the International Trademark Association (INTA).

The conference is being held in Singapore’s Marina Bay Sands from May 16 to 20. It is the first time INTA is hosting its meeting in South-east Asia, with about 8,000 attendees expected at the mix of virtual and in-person events.

INTA chief executive Etienne Sanz de Acedo said: “The recent surge in the valuation of startups in this region not only points to a conducive climate for innovation, but also to an immense potential for IP growth.”

One of the two studies, focusing on Singapore’s 100 largest businesses, found that those with strong brands and patent portfolios had about twice the revenue, net profit and market capitalisation of those without.

These companies recorded a median revenue of about S$1.07 billion, 2.4 times that of their peers. Their median net profit was S$134 million, 1.8 times that of others; their median market capitalisation was S$2.5 billion, 2.7 times that of others.

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The other study found that for local firms with positive revenue and profits, owning IP rights was associated with better performance.

In the past decade, ownership of IP rights contributed to an annual average 5.9 per cent increase in revenue per invested capital and a 20.8 per cent increase in profit per invested capital.

One focus of this year’s INTA conference is on bringing more Singapore and Asian small and medium-sized enterprises (SMEs) into the IP ecosystem. There will be an IP and innovation track to discuss cutting-edge IP legal issues, and a business track on “the business of intangible assets”.

About 150 exhibitors are showcasing IP solutions, trends and strategies; a Singapore Pavilion features 20 global and local enterprises that use Singapore as an IP hub. These include multinational giants such as Procter & Gamble and Unilever, alongside local enterprises such as electronics company Razer, kaya toast chain Ya Kun and furniture brand Scanteak.

Edwin Tong, Minister for Culture, Community and Youth and Second Minister for Law, who graced the event, said: “Brands and IP help drive business performance and growth, especially in an increasingly competitive global marketplace where businesses need to differentiate themselves.

“We will continue to support businesses using their IP to grow in, from and through Singapore.”

The conference programme includes INTA’s inaugural innovation challenge, for which seven shortlisted companies pitched their business ideas to an international panel of experts in branding, brand valuation, intellectual property law and finance.

The seven companies include two Singaporean startups. (*see amendment note) Software company Glee Trees created software that reads name cards and generates customised messages; bespoke tailor shop Grateful Dress reduces waste by connecting customers directly to nearby tailors and dressmakers.

The winners, to be announced on May 19, will receive free business, legal and IP consultancy services with experts worth US$25,000.

INTA chief Sanz de Acedo expressed hope that the innovation challenge will bring more regional entrepreneurs into the ecosystem.

“Whether it’s to secure funding or international expansion, a startup must be able to leverage its brand and IP as strategic assets to navigate an increasingly competitive environment.”

*Amendment note: An earlier version of this story said that eight companies were shortlisted from hundreds to present their ideas in the innovation challenge, based on information from INTA. INTA has since clarified that seven companies made presentations, and there were not “hundreds”An earlier version of this story said that eight companies were shortlisted from hundreds to present their ideas in the innovation challenge, based on information from INTA. INTA has since clarified that seven companies made presentations, and there were not “hundreds” of applications.