HK: IP Trading's Key Role in Upgrading SMEs

The Hong Kong Trade Development Council (HKTDC) is committed to promoting the city as an intellectual property (IP) hub in the Asia-Pacific region, as it will provide ample opportunities for local professionals and small-to-medium sized enterprises (SMEs), says a senior HKTDC official. HKTDC's deputy executive director Raymond Yip said many Hong Kong people and even enterprises believe that IP trading is dissociated from their lives and they don't see how they could benefit from Hong Kong's position as an IP trading hub.

But, the fact is IP trading is closely related to local SMEs, especially those which are upgrading themselves from being an original equipment manufacturer (OEM) factory, Yip told China Daily.

"Like many electronic products manufacturers or exporters, they are using IP on a daily basis - from the techniques they are using to product designing," Yip explained.

He said as many OEM factories are planning to upgrade themselves by bringing in new technologies or acquiring other brands to produce more value-added products, IP trading plays a key role in the process.

Besides intermediaries and local professionals like lawyers and accountants who can benefit from IP trading, manufacturers, exporters, fashion designers, software developers, movie makers and IP owners themselves are also reaping the fruits from Hong Kong being an IP trading hub.

"I've noticed that a growing number of small business owners have been showing up at our IP forums recently because they want to know more about IP trading and how IP can help them improve their businesses," Yip said.

He pointed out that Hong Kong has its unique advantages as Asia's IP hub due to its close links with the mainland.

The mainland is the world's number one IP user because of the huge popularity of IP. Currently, the mainland's movie market is the second largest in the world after the US. The mainland is also an important IP owner as, in terms of the number of patent applications, the mainland market is second to none globally, said Yip.

Hong Kong is playing a key role in taking IP to the mainland market and helping Chinese firms to trade their IP in overseas markets.

The SAR is already an important import market for the mainland, especially in the technology sector.

Although the city is not particularly strong in IP development, Hong Kong is functioning as an IP trading center, with many IPs being sold to the mainland market via Hong Kong, Yip said. "Every year, more than $1 billion worth of IPs were sold to the mainland through Hong Kong."

He pointed out that, as an international city with a sound legal and financial system, Hong Kong also owns a pool of talents and professionals, giving international and mainland companies the confidence in trading IP as an intangible asset in the city.

"Hong Kong is well equipped to protect IP and help companies raise funds for IP acquisitions We also offer arbitration whenever a dispute in IP trading arises," Yip added.

HKTDC chief executive Margaret Fong Shun-man told China Daily in an earlier interview that since Hong Kong has certain advantages in protecting and trading intellectual properties, and with Shenzhen offering a pool of scientific and technological research talents, Hong Kong will promote its advantages to attract high-tech firms to move their research and development units to the SAR.

"We'll offer first-rate legal services on intellectual trading and property protection and mainland companies will be able to expand their markets abroad," Fong said.

It would also be an ideal and win-win situation as mainland high-tech firms can conduct research in a place where intellectual properties are well protected while being very close to their manufacturing base, said Fong.

On the other hand, Hong Kong is also helping mainland companies to acquire IPs in overseas markets.

The HKTDC has brought many companies from Fujian and Zhejiang, among other provinces, to visit other countries and search for investment opportunities like acquisitions of retail brands, technologies as well as licenses.

Yip said the HKTDC is focusing on promoting its fourth Business of IP Asia Forum, which kicks off on Thursday and is expected to attract more than 2,000 IP users, owners and intermediaries.

"The forum will provide a place for people to communicate and trade IPs," he said, adding that the council is also actively promoting asiaipex.com - an online platform for IP users and owners to communicate and trade.

(Source: China Daily)