Amidst the reshaping of the global innovation landscape, the value of intellectual property (IP) has transcended beyond mere legal significance, evolving into a core strategic asset that drives sustained economic growth and empowers enterprises to gain a competitive edge. In Asia, the Chinese Mainland and Hong Kong have leveraged their late-mover advantages and successfully transitioned from followers to leaders in the IP field.
From December 4 to 5, the 15th Business of IP Asia Forum (BIP ASIA), jointly organized by the HKSAR Government and Hong Kong Trade Development Council, was successfully held in Hong Kong. Centered on the theme “Leverage IP to Finance Business Growth,” the forum brought together policymakers, experts, scholars, and business leaders from international organizations, government departments, multinational corporations, and academic institutions across over 30 countries and regions worldwide. They engaged in in-depth discussions on how to effectively leverage IP to drive industrial upgrading and attract strategic investments, thereby injecting robust momentum into the sustainable development of regional economies.
During the forum, Mr. Michael Lin, a board member of the International IP Commercialization Council (IIPCC), granted an exclusive interview. IIPCC (www.iipcc.org) is an apolitical, non-profit, non-governmental organization and think tank with about 40 local chapters around the world. Drawing upon his nearly three decades of experience across multinational enterprises, IP firms, and non-governmental organizations, he shared profound insights on topics such as the achievements in IP commercialization in Asia, challenges in corporate strategic management, pathways for building innovative ecosystems, and key sectors for future IP empowerment. His perspectives presented a multi-dimensional vision for the development of IP in Asia.
The Commercialization of IP in China: A World-Class System Forged in Only 30 Years
“The current worldwide IP regimes all originated in Europe hundreds of years ago. In comparison, in the Chinese Mainland, the establishment of IP legal system and the development of IP ecosystem were relatively delayed. Yet in just about forty years, the Chinese Mainland has achieved remarkable accomplishments,” Michael Lin recalled. “In 1999, the third year after Hong Kong’s return, when I first came to the Chinese Mainland to engage in patent-related work, the market was still in its infancy. Today, China has built a world-class IP system.”
How has the Chinese Mainland achieved leapfrog development in its IP undertakings and industry? Michael Lin attributes this success to a robust legal framework and continuous policy refinement. “To date, China has revised various IP laws—including the Patent Law, Trademark Law, and Copyright Law—multiple times. On average, every 4-5 years, the IP legal system undergoes updates and refinements based on economic conditions, market demands, and practical legal experiences.” Michael Lin emphasized, “This high-frequency, high-quality legal revision process is highly aligned with China’s rapid economic growth and has provided a solid policy foundation for the commercialization of IP by Chinese enterprises.”
Today, China has become a core force in the global landscape of scientific and technological innovation. As the world's largest filer of IP applications, China has achieved remarkable results in securing IP rights across critical sectors such as 5G, 6G, and pharmaceuticals. “The core value of IP lies not in registration, but in utilization. IIPCC has always upheld the principle that ‘IP gains value through usage.' When enterprises engage in product and service transactions based on IP, they not only achieve higher profit margins but also drive overall economic growth and create more job opportunities for society as a whole.”
Regarding Hong Kong, Michael Lin stated that IIPCC chose in 2014 to establish its headquarters there precisely because of its role as a hub for Asian economic and trade activities. “As an international financial center and an IP hub, Hong Kong plays a unique role in connecting the Chinese Mainland with global markets. By integrating resources from both the East and the West, Hong Kong provides a convenient gateway for IP in the Chinese Mainland to go global and for international IP to enter China,” Michael Lin said. “Today, from policy incentives at the government level to the growing awareness at the corporate level, a positive interaction has been established between the Chinese Mainland and Hong Kong. The complementary strengths of the Chinese Mainland’s industrial foundation and Hong Kong’s international advantages will foster an innovation ecosystem that excels in both scale and quality, especially with the newly-established GBA (Greater Bay Area).”
The Upgrade of Corporate IP Strategy: From Pursuing Quantity to Focusing on Value
As the importance of IP becomes increasingly prominent, Asian enterprises are paying greater attention to the strategic management of their IP assets. However, significant shortcomings in practice still need to be addressed. Drawing on years of industry observation, Michael Lin pointed out three core deficiencies currently prevalent among Asian companies in this field.
First, the lack of forward-thinking in IP planning often leads companies to focus on the present while neglecting the future. “Many enterprises only apply for patents and trademarks for products currently in production, unwilling to invest in IP for technologies not yet implemented or future products. They often realize they have missed opportunities only when product iterations or market expansions occur. In contrast, some strategically-minded companies proactively secure a large number of IP assets that they may not use immediately but that align with industry needs,and achieve sustained cash flow through licensing agreements. This exemplifies higher-level thinking in IP strategic management,” Michael Lin explained. “Such cases encourage us to adopt a future-oriented approach in IP planning, integrating IP strategy with the company's long-term strategic goals to ensure coverage of current products, future iterations, and potential technological directions.”
Second, some enterprises have fallen into the “quantity trap,” prioritizing performance metrics over strategic planning. “In the Chinese Mainland, governments at various levels used to take the number of IP applications within their jurisdictions as a key indicator of innovation capability. This has led some companies to blindly pursue quantity in IP filings to meet government evaluations and secure policy support, while neglecting their quality and commercial potential. It is understandable because quantitative metrics are the most straightforward way to assess performance. However, evaluating the quality of IP is often subjective—much like art appreciation—making it difficult to establish uniform standards. Therefore, companies must clearly recognize that the core value of IP lies in its ability to generate incremental value. Even a single core patent that drives rapid growth in sales far outweighs hundreds or thousands of unused,low-value ‘junk patents,'” Michael Lin candidly stated. “Companies should adopt a quality-first approach to IP management, focusing applications on core technologies and high-value business areas, and avoid the blind pursuit of quantity. This is both a strategic advantage while also reducing IP-related expenditures.”
Third, some small and medium-sized enterprises (SMEs) and startups exhibit weak awareness of IP protection and insufficient risk-bearing capacity. “In entrepreneurial hotspots, startups and SMEs often prioritize rapid market entry but overlook corresponding IP planning. After leveraging first-mover advantages to launch new products, innovative companies are sometimes replicated and displaced by larger enterprises due to inadequate or untimely patent applications or failure to protect their innovations through trade secrets, ultimately losing market share. It must be understood that for startups and SMEs, IP is not only a tool to protect innovations but also a bargaining chip in competition with larger companies. Even if they cannot compete independently, such enterprises can still secure fair returns by selling IP assets or licensing them to others.”
“As an international organization dedicated to IP commercialization, IIPCC serves as a bridge in helping enterprises improve their IP strategic management,” stated Michael Lin. According to his introduction, IIPCC members include lawyers, inventors, entrepreneurs, scholars, judges, and others, bringing together expertise in technology, business, law, and various other fields, enabling the provision of comprehensive IP education for governments, organizations, individuals, and industries. To address the IP-related challenges faced by SMEs, IIPCC organizes training sessions, case studies, and other activities through its regional chapters, helping enterprises understand how to deeply integrate IP with their business models. For large companies, IIPCC actively promotes cross-industry IP cooperation and resource integration, contributing to the development of a healthy IP ecosystem.
The Cultivation of an IP Innovation Ecosystem: Rooted in Education, Powered by Policy and Market
IIPCC seeks to empower the entire SME ecosystem via showcasing the benefits of strategic use and possibilities of IP in business. A healthy and efficient regional innovation ecosystem requires the synergistic efforts of institutional safeguards, market incentives, and social consensus. “First and foremost, education forms the foundation for building an innovation ecosystem. A key goal is to educate businesses to proactively recognize the value of innovation and IP,” Michael Lin stated, “IP education must be differentiated. For instance, for scientists and technicians, the focus should be on specific methods for patent applications and technology protection; for business personnel and managers, education should center on the market value and profit models of IP; for marketers, training should start with how to enhance brand credibility through IP endorsement. Currently, some provinces and cities in China have begun exploring incentive mechanisms for IP education. Shenzhen, Shanghai's Pudong district, and other areas offer IP education subsidies to encourage companies to conduct comprehensive IP training for all employees. This is a very positive initiative. Of course, IP education is a long-term endeavor requiring sustained investment. It took Western societies over 400 years to develop a mature IP system and culture. Asian countries, especially China, still need to patiently cultivate this mindset, further advancing the integration of IP concepts into public awareness. But overall, it is often the interplay between multiple categories of IP which leads to a company’s sustainable, competitive advantage”
Michael Lin further pointed out that at policy level, government departments need to shift from quantity-based assessments to quality-oriented approaches. “In the past, the Chinese government stimulated market vitality rapidly by setting targets for the number of IP applications, making the once unfamiliar concept of ‘IP’ widely recognized. This is an achievement that cannot be overlooked. However, as the market matures, the design of IP policies must evolve accordingly. Moving forward, government departments could consider exploriong establishing a multi-dimensional IP evaluation system, incorporating factors such as commercialization revenue, technological influence, and licensing status into assessments. This would guide enterprises to shift their IP strategies from pursuing quantity to pursuing value. Of course, assessing the quality of IP is a global challenge. The development of evaluation criteria is a gradual process that combines active industry association participation with real-time market feedback to forge a shared understanding of value.”
“Last but not least, it's essential to note that market incentives remain the core driver of an innovation ecosystem. IP that does not enter the market or does not confer a competitive advantage is a waste of money and resources,” stated Michael Lin. “The data speaks for itself: globally, companies with robust IP strategies consistently command higher profit margins, faster growth rates, and longer survival cycles. This market-driven positive feedback serves as the most effective motivator for corporate innovation. Moving forward, we should focus our efforts on accelerating the free flow and monetization of IP through measures such as refining IP trading markets, licensing, financing mechanisms, etc.”
The Outlook for IP Sectors: High-Tech Fields Drive Growth, Holistic Innovation as Key to Breakthroughs
Looking ahead, which technologies or industries will achieve rapid growth through IP empowerment? Michael Lin offered a clear answer: “I believe that IP-intensive fields such as artificial intelligence, robotics, medical science, genetics, biochemistry, pharmaceuticals, 5G/6G, electric vehicles, and batteries hold immense growth potential. Taking the 5G/6G sector as an example, the accumulation of patent portfolios directly affects market participants' industry influence. Those with more core patents will gain the upper hand in shaping technological standards and market competition.”
“In addition to the aforementioned cutting-edge technology fields, industries such as fintech and medtech will also deeply benefit from the empowerment of IP,” Michael Lin continued. “In fact, almost no industry today can remain untouched by the influence of IP. The difference lies only in the extent and manner of its impact. For companies to stand out and survive future competition, they must integrate IP into their corporate DNA and embed holistic innovation into every department and every process—not only in technology R&D but also in areas such as marketing, logistics, and human resource management.”
“Over the course of my nearly 30 years career, I have witnessed China's journey from once being perceived as a nation with limited IP influence to its emergence as a powerhouse in the field. The surge of innovative vitality in the Chinese market has been nothing short of astonishing,” Michael Lin concluded. “From my observations, the development of China's IP system and market should not blindly replicate Western models. Instead, it must align with its unique cultural and economic characteristics—further emphasizing quality over quantity in IP creation, deepening IP education across all levels, refining IP transaction and financing mechanisms, and building a locally adaptive ecosystem. This will ensure that IP truly becomes a core driver of high-quality, sustainable economic growth. I am confident that as IP awareness spreads and strategic management capabilities improve, China and Asia will assume an increasingly pivotal role in global competition, contributing Eastern wisdom to the world's innovation landscape.”
