Matrade urges SMEs to register IP
KUALA LUMPUR: Small and medium enterprises (SMEs) in Malaysia must take steps to register their intellectual property (IP) to increase brand value.
In stating this, the Malaysia External Trade Development Corporation (Matrade) Chief Executive Officer Datuk Dzulkifli Mahmud said the IP level of awareness in the areas of trademarks, patents and copyrights was still low.
“In this era of digital economy and tough competition, we need to realise that IP is money, as it protects your innovation and creates value for the company, including for the application of loans, exports and free trade agreements.
“Some SMEs still do not see the importance of IP protection as they feel their product ingredients or substance cannot be the copied or stolen by other parties,” he told reporters here during the Seminar on Effective IP and IP Tax Management Strategies for Global Success-SMEs Perspective.
Dzulkifli said when disputes occur, owners of products may proceed to
In this era of digital economy and tough competition, we need to realise that IP is money, as it protects your innovation and creates value for the company, including for the application of loans, exports and free trade agreements. Datuk Dzulkifli Mahmud, Matrade chief executive officer
take legal action, but may not succeed, since they don’t own the IP rights.
According to the Intellectual Property Corporation of Malaysia (MyIPO) data, from 1986 to September this year, 16,075 applications from local companies was received for IP protection.
Of this, only 3,608 were approved, Dzulkifli said.
In contrast, applications by foreign brands in Malaysia were at 133,368 and 54,789 were approved.
“This staggering difference indicates the lack of awareness in IP protection among Malaysian companies,” said Dzulkifli.
Asked of the challenges and why SMEs are unaware of the importance of IP protection, Dzulkifli said most SMEs stated they did not have the time and find the processes complex, although it did not involve a hefty cost.
“All processes are standard and according to international guidelines.
It takes maybe about one per cent of their business investment, just like insurance, where you need to pay and invest in it, in case the IP gets stolen or copied,” he added.
Dzulkifli also said to increase the level of awareness of IP protection, it may be time to suggest an early education in schools on the subject of entrepreneurship.
He added that at the same time, there was the need to enhance cooperation with other related agencies to ease the process of registering IP. — Bernama