A company's stable of intellectual property (IP) rights can arguably be viewed as a barometer of how innovative a business is – and it seems a lot of economic activity is currently associated with IP intensive industries.

Recent studies to determine the economic impact of IP intensive industries in US and European markets suggest that businesses have been transforming and restructuring to make IP rights their primary on-book assets.

To remain competitive, local businesses and manufacturers need to be able to generate company value outside a traditional fixed asset type business structure.  By providing monopoly-style access to local and overseas markets, which is especially important in highly competitive industries, IP rights are hot property.

The rise of intangibles

Intellectual property rights are traditionally referred to as "intangible" assets, as in many cases, they lack the real and tangible characteristics of a fixed asset. These include a huge range of things from brand names to industrial designs, proprietary production processes to database rights and many more.

Current research shows that over the last few decades, the centre of corporate wealth has been shifting from tangible, physical assets and capital, to "intangible" or knowledge-based capital.

Charting this shift, a comparison of Standard & Poors 500 companies shows that in 1978, the asset distribution of corporations was 95% tangible assets and 5% intangible assets.  In 2010, however, this distribution had been turned on its head, with 20% tangible assets compared to 80% intangible assets.

While an 80/20 mix of intangible versus tangible assets may not be appropriate for all businesses, a regular IP review might assist a business to follow and manage a similar asset shift. 

Whether it's the reputation of the brand, or a new design for a time-saving piece of factory machinery, an IP review can identify potential areas where investment can be made to capture or establish new IP for the business, and generate increased economic activity.  Indeed, valuation of IP rights is now a regular function of major accounting practices.

Intellectual Property as a financing mechanism

Intangible assets can have enormous value - Microsoft recently purchased Nokia's mobile phone business, and a suite of IP rights, for $7.2 billion; and Apple was awarded $1 billion in damages against Samsung in the 

US for infringement of IP rights.  But value doesn't have to come through buying and selling, or contentious Court action.

IP rights can be used to generate regular income through sales or licensing. Consider the revenue generated from the Cochlear Implant or the ladder and access systems produced by Hedweld Engineering Pty Ltd. Or other forms of IP rights such as the broadcast rights of major sporting events or the sale of a proprietary product, such as the Dyson vacuum cleaner or a pharmaceutical.  Pfizer has made tens of billions of dollars from Viagra.

Securing local and international markets

Several mechanisms can assist companies locally, while improvements to the IP system in China and a new Global Patent Prosecution Highway program are good news internationally.

Government funding, grants and R&D tax incentives are all available to assist Australian businesses to foster and develop their knowledge-based capital, both locally and overseas.

In China, once a safe haven for infringers and counterfeiters, an overhaul of the IPR enforcement system, and an increasingly affluent population – a major consumer market in itself – means that China is now emerging as an important destination for protecting intellectual property.

Filing patents overseas was made easier this year, with 13 countries, including the US EU and UK , signing the Global Patent Prosecution Highway (GPPH) which fast tracks the examination process for corresponding applications across participating patent offices, minimising the costs associated with protracted international patent prosecution.

The business value of IP rights internationally is significant and businesses should be taking steps to review their IP rights (IPR) portfolios and strategies.  To remain competitive and viable, companies should be investing more in development and innovation.

Integrating an IP strategy into the business can increase local market share and open more secure options for international markets.  Although not a definitive measure in its own right, the more IP intensive an industry is, the more likely it is to be trading internationally.

For more information on this article, contact:

Damon Henshaw Partner and Patent Attorney at Davies Collison Cave

T  8869 6200

E  dhenshaw@davies.com.au

Small to medium enterprises (SMEs) are the engine room of the Australian economy. They account for 96 per cent of businesses and employ more than five million people. 

St George Bank recognises the important role SMEs play to the nation and is passionate about supporting them with a number of innovative initiatives.

The Kick-Start Pop-Up initiative is the latest of these, and will see a number of small business owners across the country set up their business in a high-traffic retail space, funded by St.George.

The retail spaces will be set-up in select Westfield shopping centres in Sydney, Brisbane and Perth during October and November 2014, with further sites to be announced as the program builds momentum into 2015. 

The Pop-Up program adds to a range of Kick Start initiatives launched by St.George in the past 12 months, including the Kick Start Business Hub, a series of $10,000 grants to aspiring small business owners and an additional $2 billion allocated to small business lending.

St George is encouraging Australia’s entrepreneurs enter the new Kick Start Pop-Up initiative for a chance to win a retail space in one of Australia’s busiest shopping malls.

Each Pop-Up shop will include

• Exclusive use of a 3m x 5m pop-up shop in a high-traffic Westfield shopping centre for seven days: Parramatta in Sydney, Carousel in Perth and Carindale in Brisbane
  
• A fit-out for the pop-up shop including personalisation to the winner’s brand
  
• A marketing workshop with creative and strategy experts at GPJ 
  

Novotel Sydney Parramatta is excited to announce the refurbishment of all 11 multipurpose conference and event spaces all rooms directly facing the hotel’s beautifully sunlit atrium and its pillarless ballroom, is the largest in Parramatta!

The refurbishment will create a modern and fresh feel for your next event with the installation of new wall paneling, fresh carpet, state of the art AV equipment, banquet tables and furnishings to compliment. The modern technology and features in the rooms provide an unforgettable experience for your guests and clients. The major improvements will carry on to the bathrooms on ground floor and level one, uplifting the area and complementing the contemporary vibe and look of the hotel.

Michael Daviss, General Manager of Novotel Sydney Parramatta says "I am looking forward to being able to deliver a new meeting and events product to our loyal client base and new business partners along with special events such as weddings as the new space delivers the 'wow' back into Parramatta"

Novotel’s pillarless ballroom which accommodates to 550 people is a versatile conference and event space fit for anything from training seminars to weddings. This space along with the other conference areas will be refitted with new HD format projection equipment with HDMI compatibility and more.  Guests at your next event, can also take advantage of the high speed WIFI internet facilities, provided by the newly installed and dedicated 20/20 pipe allowing up to 600 conference guests usage at one time, using just one password! The pre - function area and atrium allows for endless opportunities and can seamlessly be transformed to suit an exhibition event in the day to social events in the evening.

This exciting change will be completed in full come, November, and Novotel want to invite you to experience this spectacular space for yourself. For any of your event enquiries, please contact the hotel’s conference and events team on h8787-sb4@accor.com or 02 9890 0859. Keep in mind; you could be having your Christmas party in one of these fabulously transformed spaces! 

Students at University of Western Sydney (UWS) now have an opportunity to gain real life work experience under a new partnership with Bankstown City Council.

This follows today’s official signing of the partnership between the two organisations after working together informally on previous occasions.

One of the first projects to roll out of the partnership involves students from the Graduate School of Management who are assisting Council’s Bankstown Business Advisory Service (BBAS) with research into the local food services industry.

• The establishment of an e-food guide for Bankstown;
• Establishing links between the different food businesses in this sector;
• Create a network where like-minded businesses can share ideas;
• Identify opportunities for local food businesses to tap into the export market; and
• Helping businesses access services provide by BBAS to support local businesses.

Mayor Khal Asfour said the project enables students to gain life experience with real outcomes.

“Our students are our future leaders and the winners in this partnership,” Mayor Asfour said.

“They will be out in the field talking to companies and coming up with real strategies that will benefit Council and our local business community.

“But from a strategic city-wide perspective, this partnership will ensure we can facilitate discussions between local businesses and UWS so courses are tailored to meet the real needs of employers and therefore genuinely improve the job opportunities for graduates.”

UWS Vice-Chancellor, Professor Barney Glover, said the partnership will support the economic, cultural and social development of the City and broader Greater Western Sydney region.

"UWS has had a long-standing, productive relationship with Bankstown City Council and, following today’s announcement, will see our two organisations work even more closely on initiatives that will have a positive impact not only on our teaching and research, but the broader community,” said Professor Glover.

“The partnership will involve collaboration across a variety of areas but with a particular focus on promoting local business and industry and creating new opportunities for knowledge-based employment.”

This year’s WSBC State of The Region Address with the Hon Mike Baird MP, Premier of NSW saw a great turnout of more than 460 business leaders from Western Sydney.

With a 50% increase in attendance from last year, this key event in the WSBC year clearly drew a lot of interest with its new format and demonstrated WSBC's continued transformation to provide better engagement and connections for its members.

Our Premier shared key priorities in the region, discussed the progress made thus far and detailed Government’s plans to transform Sydney’s West. 

With the population forecast to almost hit three million by 2031, he said his government was the best placed to deliver the jobs, housing and infrastructure needed to underpin the economy.

“It is a challenge but I prefer to see it as a once in a generation opportunity,” he said.

“We need to build more infrastructure than we have ever seen before.”

On the jobs front, Mr Baird cited examples of his government laying the foundations for value added jobs growth. In the south west region, he said the second airport at Badgerys Creek Creek will anchor future job creation of as many as 57,000 jobs.

“That is going to be the lifeblood of employment in this great region, in this great city,” he said.

He said the government was in discussions with a global aeronautic services firm who had flagged a $250 million investment in the region which would create thousands of skilled and graduate job opportunities.

Other incentives to boost job growth included cuts in payroll tax, reduced workers compensation premiums and a rebate for employers who take on new employees. To meet the huge demand for new housing in western, he said more than a million new dwellings are needed by 2031.

“How the government responds to this will define not only the economy but I think it defines the overall opportunities in this region,” he said.

He said his government’s incentives including the Housing Acceleration Fund and the First Home Owners Grant were key drivers of housing growth in the region.

“The growth in housing is definitely underway and we are seeing that across all parts of Western Sydney,” Mr Baird said.

Building the necessary infrastructure to cater for the population explosion in the west is one of the greatest challenges facing the government, he said.

Mr Baird listed the $30 billion worth in transport, roads, health and schools infrastructure projects earmarked for the west over the next decade.

“You don’t realise how significant the investment in infrastructure [in Western Sydney] is going to be in the next ten year. It is almost unprecedented,” he said.

“If we are successful in implementing this, then not only will Western Sydney thrive, but Sydney will thrive, the State will thrive and the opportunities of the next generation will be forged over the next ten years.”

WSBC is delighted to be working closely with the Premier's team to ensure that Western Sydney businesses benefit from these plans and will keep member informed of developments.

The State of The Region Address was proudly supported by event partners Penrith Panthers Group, NRMA, the University of Western Sydney and media partner, News Corp Australia. These event partners were also involved in a Q&A with the Premier and WSBC General Manager on stage as part of the new format.

To see more pictures, please visit our Facebook Page and feel free to tag yourself!

Otherwise, we’re happy to hear your comments on the event and look forward to seeing you at our upcoming events.

Over 600 Australian children are diagnosed with cancer every year and sadly, on average. Three die every week.

So we're riding to change that!

Great Cycle Challenge asks riders across Australia to take on their own personal cycling challenge throughout October to fight kids' cancer!

It doesn't matter if your challenge is to ride 25 kilometres or 2,500 kilometres on your bike or a spin bike, the event is all about setting yourself your own personal goal, getting fit and raising funds towards research into treatments and a cure for childhood cancer.

- See more at: www.greatcyclechallenge.com.au