WIPO Expert Highlights Need to Demonstrate Commercial Value to Unlock Intellectual Property as Capital

The Vietnam Intellectual Property Office, in partnership with the World Intellectual Property Organization (WIPO), convened a detailed exchange on September 30, 2026, focusing on policies and mechanisms to promote the exploitation and commercialization of intellectual property rights in Vietnam. On the sidelines, reporters engaged with Mr. Dixon Soh, a WIPO lawyer and expert consultant on IP commercialization, to explore how intellectual property can be effectively transformed into capital.

Mr. Soh identified the primary obstacle to IP commercialization not as a lack of valuation methodologies but rather the absence of actual transactions, market data, and mutual trust among stakeholders. He explained that intellectual property only realizes its value when integrated with business operations capable of generating cash flow.

"To prove ownership of intellectual property, a protection certificate is necessary, but it is only the starting point," Soh said. "Businesses must shift their mindset from mere protection to active exploitation, transforming IP into a revenue-generating tool."

He highlighted the urgency for businesses, especially those working with cutting-edge technologies like artificial intelligence (AI), to protect and commercialize their assets swiftly to maintain competitive advantages. "If not protected and commercialized promptly, groundbreaking technologies risk being copied, eroding business value," Soh warned.

Addressing concerns about valuation procedures, Soh clarified that intellectual property valuation is a subset of intangible asset valuation, which employs established methods such as cost-based, market-based, and income-based approaches. These are standardized internationally under the International Valuation Standards (IVS) and domestically in Vietnam through the Valuation Standards (VIS).

"Designing separate valuation processes specifically for intellectual property does not improve accuracy but adds unnecessary complexity," Soh stated. He also noted that assets developed with state funding might be priced lower to support economic or technological goals, a choice within the state's prerogative that does not alter valuation methodologies.

Soh emphasized that the true determinant of IP value is the presence of genuine market transactions involving willing buyers and sellers. The purpose of the transaction—whether for transfer, licensing, equity investment, or loan collateral—and the scale of the transaction, including market size and exploitation duration, also critically influence valuation.

"Valuing intellectual property in isolation is ineffective," Soh said. "IP acts as a multiplier for business opportunities. If an asset generates profits, its value is justified. Conversely, if it does not contribute to revenue or profit, a high valuation lacks basis."

Regarding funding for technology projects, Soh advised caution beyond the allure of buzzwords like "AI." He urged investors to scrutinize ownership rights, revenue generation, dependency on third-party platforms, and susceptibility to copying. "Technology opens the door, but funding is ultimately an investment in business operations," he explained.

Soh acknowledged that while Vietnam’s legal framework for IP protection is comprehensive, banks cannot rely solely on patent certificates to extend credit. "Patent certificates confirm rights but do not guarantee revenue generation," he said. Banks require evidence that the IP is linked to market-ready products generating cash flow to justify lending.

On risk management, Soh observed that no business is risk-free. Different countries adopt varying approaches based on market maturity. Early-stage markets often rely on state-backed guarantee mechanisms to assume lender risk, as seen in Singapore’s Intellectual Property Financing Programme and Malaysia’s similar models.

As trust and experience grow, markets evolve toward frameworks like the United Kingdom’s, where banks accept intellectual property itself as collateral. "This progression reflects increasing confidence in IP-backed lending," Soh concluded.

This dialogue underscores the multifaceted challenges and practical considerations in leveraging intellectual property as capital. It highlights the necessity of market transactions, business integration, and risk-sharing frameworks to unlock the full economic potential of intangible assets in Vietnam and beyond.