Intellectual property is a driving force today in determining the success of corporations, countries, regions and the global economy. In particular, in the area of patents, the momentum towards such IP rights becoming a well-recognized asset class is outpacing the other types of intellectual property. There is a clear recognition and acknowledgement amongst the financial and banking community that the value of patent-based assets are strong indicators of the value of corporations and their earning potential.

Since the advent of the "Bowie" bonds in 1997, which involved the securitization of copyright-related royalties (future income) from the sale of 25 albums (287 songs) that David Bowie recorded before 1990, financial institutions have made great strides in the adoption of IP financing. More than 10 years later, this trend has also caught on the Asia, including in Greater China where all types of IP securitization products are being offered by major banks and financial institutions. Collateralization, bank debt as well as sale and lease-back are now available to IP owners who need to raise funds on the back of their patents, copyrights and trademarks. The financial community now realises the benefits of IP investing, with its equity-like returns including fixed-income protection, and it is no wonder that the market for structured financing of IP is vibrant and growing in Asia.

Embracing intangibles that add value to a company and providing important leverage beyond financials are critical to making an IP driven deal successful. Merger and Acquisition (M&A) activity in Asia is once again heating up. Recent deals suggest a strong M&A trend in the technology sector.

AIPEC supports the strong participation of Banks and Financial Institutions within our membership and in our events, including but not limited to taking a leading role in fund raising, securitization and M&A related trends and market developments. With the current economic downturn, now is the best time to form key alliances with major IP players including those within the technology industry.

Contact AIPEC on how you and your company can get connected to the major technology buy / sell players and related companies and firms in Asia.

"Well, when you're trying to create things that are new, you have to be prepared to be on the edge of risk."

--Michael Eisner, CEO The Walt Disney Company (1984-2005)