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BusinessWorld

Owning what we create: IP as the creative economy’s most underused asset

Early in my career, I learned that the most valuable thing a company owns rarely appears on its balance sheet. It is not the office or the equipment. It is the idea, the brand, the method, the story, the things competitors cannot copy and clients cannot get anywhere else. (It is also, to the quiet […]

Context & Analysis

Philippine businesses have long treated intellectual property as a legal compliance exercise rather than a strategic asset. For decades, the local financing landscape has been built around collateral that sits on a balance sheet: land, equipment, inventory, and receivables. Intangible assets like trademarks, copyrights, patents, and proprietary processes rarely qualify as loan security, leaving creators and innovators with limited access to growth capital. That structural gap is slowly shifting as the creative economy gains formal recognition within national development plans and export promotion strategies.

The Department of Trade and Industry has been integrating creative sectors into its trade roadmaps, while the Intellectual Property Office of the Philippines continues to streamline registration and enforcement mechanisms. Yet awareness remains uneven across the market. Many micro and small enterprises operate with unregistered brands or unprotected designs, exposing them to copycats, platform takedowns, and lost licensing revenue. Larger players and publicly listed firms face different pressures: investors increasingly scrutinize how intangible assets factor into valuation multiples, especially as digital services, content production, and software development expand their share of economic output.

What matters next is whether Philippine financial institutions will develop standardized IP valuation methodologies that satisfy both lenders and auditors. While regulators have encouraged alternative collateral structures to support small and medium enterprises, practical implementation requires risk models that account for infringement exposure, market lifecycle, and cross-border enforceability. Meanwhile, the Securities and Exchange Commission’s evolving disclosure expectations for technology and creative firms will likely push companies to clarify how they monetize proprietary assets beyond direct product sales.

For business owners, the immediate priority is documentation. Registering marks, securing copyright filings, and maintaining clear ownership records turn abstract creativity into bankable equity. For investors, tracking how Philippine startups and mid-market firms structure IP-backed financing, licensing deals, and joint ventures will reveal which sectors are maturing beyond domestic consumption. The creative economy will not scale on talent alone. It will scale when local capital markets learn to price what cannot be seen but can be owned.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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