SME horizon

How SMEs can benefit from Singapore’s IP push

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Intangible assets and Intellectual Property (IP) play an important role in Singapore’s economic and industry transformation plans set out by the Future Economy Council and Emerging Stronger Taskforce. Since the 2013 IP Hub Master Plan, Singapore has built an IP ecosystem that supports innovation activities, and is well-connected to global markets. Currently, Singapore’s position as a global-Asia node of technology, innovation, and enterprise is supported by the Singapore IP Strategy (SIPS) 2030 is a national strategy that supports enterprises and the wider innovation community.

SMEhorizon speaks with Rena Lee, Chief Executive of the Intellectual Property Office of Singapore (IPOS) on what it means for Singapore to be a trailblazer in the area of IP and how SMEs can benefit from this.

How will SMEs benefit from Singapore’s emphasis on IP protection?

[Rena Lee] With a conducive business environment, supported by a strong intellectual property (IP) framework, Small and Medium Enterprises (SMEs) can benefit from the protection afforded by the law for their innovations. Such protection enables SMEs to generate revenue, for example, from product development, or through licensing and franchising their IP, which in turn, generates benefits for the economy. SMEs considering overseas expansion may protect their innovations through regional and global IP agreements.

With the rise of the digital economy, how is Singapore adapting its IP framework to protect innovations that are primarily digital or software-based?

Singapore’s IP framework offers protection for digital-related innovations. With digitalisation, virtual designs found in augmented reality, virtual reality, and mixed reality have gained popularity. In 2017, Singapore extended registered designs protection to cover virtual designs for non-physical products. Registered designs can safeguard innovations like icons, virtual designs, and more. Trade marks can be protected in the digital realm as well.

The digital economy has also impacted how content is created, distributed, accessed and used online. Singapore’s IP laws seek to strike a balance between providing strong and robust protection for the rights of creators while also allowing reasonable uses of works for purposes that benefit society.

For example, to support data-driven innovation, we introduced a new copyright exception for computational data analysis in 2021, which allows users to use copyright works for purposes such as text and data mining, sentiment analysis, and machine learning, so long as all necessary conditions are met – these include the need to have lawful access to the works in the first place.

This exception facilitates the use of training data for purposes such as developing new AI models while preserving and protecting the commercial interests of rightsholders, such as their freedom to conduct business based on licensing and subscription models for access.

We also introduced new rights for creators to ensure that copyright continues to be respected even with the rise of the digital economy. For example, creators now have a right to be identified whenever their works are used in public, which includes on the internet.

What are some of the unique IP challenges that Singapore faces with the rapid development of emerging technologies? How is IPOS addressing these challenges?

Emerging technologies like generative AI present unique IP challenges on issues such as authorship, inventorship, and infringement. The Intellectual Property Office of Singapore (IPOS) has been monitoring how other countries handle these issues and collaborates with partners for a better understanding. In February 2024, IPOS and the Singapore Management University Centre for AI and Data Governance published a study on global AI approaches. Additionally, IPOS International released a patent analytics report on trends and opportunities in this field.

The reports are resources for policymakers, lawmakers, technology players, IP creators, businesses, rights owners, and civil society to better understand the complex issues surrounding AI which can lead to more informed discussions for better policy making.

IPOS will continue to monitor global developments in the AI space to ensure that regulations aligned to the global IP system and relevant to Singapore can be established in a timely manner.

As Singapore SMEs look to expand across borders, how can IP be a facilitator in this journey?

IP can be a facilitator by providing SMEs protection over their products and services as they branch into new markets. It  provides them with a way to expand their business in new markets, for example, through licensing agreements which help protect their IP while allowing their products to be introduced in these new markets through overseas partners.

As IP is protected only within the country of registration, it is essential to safeguard one’s IP in the markets of interest. IPOS offers programmes for SMEs to protect and accelerate IP applications in key markets. SMEs can leverage IPOS’ network of over 30 Global Patent Prosecution Highway (GPPH) and Patent Prosecution Highway (PPH) partners.

Additionally, Singapore participates in global agreements like the Patent Cooperation Treaty, the Madrid Protocol for trade marks, and the Hague Agreement for industrial designs.

What role does IP play in attracting investment and driving innovation in Singapore’s tech startup space?

Other than assuring innovation rich tech startup companies that their innovations will be protected in Singapore, these companies also have some leeway to develop their innovations due to Singapore’s balanced regulatory regime.

For example, Singapore is closely monitoring developments in generative AI and takes a balanced approach in allowing the industry space to innovate while introducing timely regulations. Singapore is also creating a conducive environment for intangible assets valuation and financing which may eventually offer tech startups another source of funding as they can use their IP to raise capital.

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