INTERVIEW QUESTIONS

AND ANSWERS ON
IP COMMERCIALIZATION
Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
ABOUT JOHN C. TITAN
John is a practicing CPA-IP Lawyer, Businessman, and Academician.

As a businessman, he manages over 500 barong outlets nationwide, mostly

in SM; 38 condominium units; and now in the process of establishing review
centers for all courses, nationwide. As a lawyer, he leads TITAN LAW with
group of lawyers coming from local and foreign jurisdictions. Moreover, as an
academician, he is the dean of college of business management education of
one of the colleges in Manila.

Prior, he worked for large multinationals as managing executive for finance, Atty. John C. Titan
accounting, corporate sales, and customer support, for over 20 years.

For LLM in IP, he graduated from University of Strasbourg, France.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
 QUESTION #1

To start off, may you please share with us your experience in the
commercialization of IPs in the Philippines? Perhaps we may touch
on the industries you are exposed to and the usual IP assets that
are commercialized.
© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q1 ANSWER:
Converting intellectual property (IP) into marketable products and services is essential for promoting innovation and
advancing economic development in the Philippines. This practice, referred to as intellectual property commercialization,
entails rendering assets like patents, trademarks, and copyrights valuable in the marketplace.

In the context of the Philippines, intellectual property commercialization significantly contributes to fostering innovation,
supporting entrepreneurship, and facilitating overall economic expansion. The subsequent points highlight key aspects
of IP commercialization in the nation:

1. Laws and Regulations: To champion the rights of creative thinkers and innovators, the Philippines has put in place
laws and rules. A significant one is the Philippine Intellectual Property Code, which manages things like patents,
trademarks, copyrights, and various forms of intellectual property. Think of these legal safeguards as guardians, making
sure that the imaginative ideas and creations of individuals stay secure. It's a way of cultivating a safe haven for inventive
minds in our community, ensuring that their hard work and unique contributions get the recognition and protection they
rightfully deserve.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q1 ANSWER:
2. Intellectual Property Office: The government agency tasked with handling and upholding intellectual property rights
in the country is the Intellectual Property Office of the Philippines (IPOPHL). Aside from overseeing the registration and
protection of copyrights, trademarks, and patents, it also actively contributes to fostering the utilization and
commercialization of intellectual property.

3. Technology Transfer and Licensing: Technology transfer and licensing agreements are common components of IP
commercialization. To get innovations onto the market, businesses, research institutes, and universities participate in
technology transfer. Businesses are able to use and profit from intellectual property developed by others through
licensing.

4. Support for Innovation and Entrepreneurship: IP commercialization is facilitated by innovation and entrepreneurship
programs that are supported and incentivized by the Philippine government and other organizations. These programs are
meant to assist companies and innovators in navigating the challenges of intellectual property protection and
commercialization.

5. Challenges and Opportunities: Although the Philippines has advanced in IP. There are still issues with protection and
commercialization, like the need to improve IP awareness, enforcement, and technology transfer capabilities. But there
are also chances for companies to thrive both domestically and globally by utilizing their intellectual property assets.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q1 ANSWER:
6. International Collaboration: Considering that intellectual property is a worldwide
concept. Partnerships and international cooperation are crucial to the Philippines'
efforts to commercialize its intellectual property. This entails conducting business
internationally, establishing partnerships with foreign organizations, and taking part
in international innovation networks.

In conclusion, IP commercialization in the Philippines is a complex process involving

international cooperation, technology transfer, regulatory frameworks, and
entrepreneurship support. As the nation keeps its attention on promoting innovation
and growth of the economy. In order to use intellectual property for the benefit of
enterprises and the economy, IP commercialization will be essential.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
 QUESTION #2

Traditionally, people would think that IP registration is just about

protecting exclusive rights of product in terms of manufacturing or
distribution, so that no one else could get it. Literature has shown that
there are different ways/models to extract more value from IP than just
mere protection (e.g. licensing, securitizing, etc.).
a) Why do you think it is important for MSMEs to explore alternative methods of
commercializing their IP?
b) What can be done to increase awareness for MSMEs that they have IP
assets that could potentially be value generating?
© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
 a) Why do you think it is important for
MSMEs to explore alternative methods of
commercializing their IP?

Q2 ANSWER:

It is imperative that MSMEs investigate alternate

approaches to intellectual property commercialization in
order to increase their income streams, penetrate new
markets, reduce risks, improve their value propositions,
maintain flexibility, and save money.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
b) What can be done to increase awareness for MSMEs that they have IP
assets that could potentially be value generating?

Q2 ANSWER:
For MSMEs to expand and remain sustainable, there needs to be a greater understanding
among them of their intellectual property assets and the potential value they hold. Here
are a few methods to make this happen:
1. Educational Workshops and Seminars; 6. Government Support Programs;
2. Collaboration with Business Associations; 7. Industry-Specific Initiatives;
3. Online resources and toolkits; 8. Networking events and Trade Shows;
4. One-on-One Consultations; 9. Incorporation IP Education into Business Support Services;
5. Case Studies and Success Stories; 10. Continuous Follow-up and Support.

Stakeholders can empower MSMEs to fully utilize their intellectual property for
commercial success by putting these methods into practice and raising MSMEs'
understanding of the value of their IP assets.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
 QUESTION #3

What are some of the usual roadblocks encountered by

businesses when desiring to commercialize their IP? Perhaps we
may also touch on the threat of piracy in the digital world.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q3 ANSWER:
Typical obstacles to IP commercialization include the following:
1.Lack of clear strategy
2.Financial constraints
3.Legal complexities
4.Market uncertainty
5.Difficult in monetization
6.Technology transfer challenges

Piracy is a serious concern in the digital age because of things like digital
piracy, counterfeit goods, jurisdictional issues, public perception, and
technological improvements.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
 QUESTION #4

Not all IP assets are expected to be significant generators of cash flows. For
instance, music andmedicine are likely to generate more cash flows than a
trademark or a piece of software.
Considering this, could the “less” cash flow-generating IP assets still be
commercialized? If so, whatkind of strategies or approaches would be effective?
© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q4 ANSWER:
Yes, it is still possible to successfully market intellectual property (IP) assets like
trademarks and specific software that are not anticipated to produce large cash flows.
The following are some tactics and approaches:
1. Licensing and Franchising
2. Brand Extension and Merchendising
3. Strategic Partnership and Collaborations
4. Defensive IP Strategies
5. Enhancing Market Positioning and Competitive Advantage
6. Building IP Portfolios
7. IP Monetization Strategies
8. Market Development and Expansions
In conclusion, successful commercialization plans entail exploiting intellectual property
(IP) creatively, strategically, and in ways that are in line with border company objectives
and market dynamics—even if some IP assets may not naturally provide sizable cash
flows.
© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
 QUESTION #5

Preliminary findings from our survey of Philippine MSMEs indicate that

the majority of intellectual properties owned are brands and trademarks.
Can you envision these assets being commercialized or generating value
for businesses in their early stages?

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q5 ANSWER:

Yes, in their early phases, brands and trademarks owned by MSMEs in the
Philippines can be commercialized and generate value. Establishing a
strong brand identity, obtaining trademark licenses, investigating avenues
for brand extension, establishing tactical alliances, safeguarding market
share, drawing capital, and contemplating global growth are some of the
ways they might achieve this. By taking these steps, a company can boost
sales, set itself apart from rivals, and ensure long-term viability.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
 QUESTION #6

Based on your experience, how efficient is the IP arbitration

process in the Philippines? Is the process swift? Is it costly?

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q6 ANSWER:
Like in any other nation, the effectiveness of intellectual property (IP) arbitration in the Philippines
can be influenced by a number of variables, such as the level of experience of the arbitrators, the
enforcement of arbitration verdicts, and the general legal framework surrounding IP protection.

The government organization in charge of managing and enforcing intellectual property rights in
the Philippines is called the Intellectual Property Office (IPO).
In addition, the government has ratified a number of international treaties and agreements
pertaining to intellectual property, including the TRIPS Agreement. (1999).

In the context of the Philippine Alternative Dispute Settlement Process, arbitration operates under
the guidelines set forth in the 2004 Resolution Act (Republic Act No. 9285). The steps involved in
conducting arbitration are described in this act. The availability of arbitrators with experience in IP
disputes, the promptness of the proceedings, and the enforcement of arbitration findings are some
of the elements that impact the efficacy of intellectual property (IP) arbitration in the Philippines.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q6 ANSWER:

Arbitration generally has a number of potential benefits for IP conflicts, including as

confidentiality, flexibility, and the option to select arbitrators who are knowledgeable
about IP issues. As with any jurisdiction, the effectiveness of IP arbitration in the
Philippines might, however, differ based on the particulars of each case as well as the
standard of the arbitration procedure.

It's crucial to remember that a number of variables, such as the particulars of the case, the
experience of the arbitrators, and the parties' willingness to abide by the arbitration
rulings, may affect how successful IP arbitration is in the Philippines. In order to fully
grasp the ramifications for their particular case, parties thinking about IP arbitration in the
Philippines should consult a lawyer.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
 QUESTION #7

The Philippines has recognized that IP assets are acceptable collateral for loans. through
the passage of Republic Act No. 11057, also known as the Personal Property Security Act
of (PPSA), which aims to lower MSMEs’ barriers to financing by broadening the scope of
assets that can be pledged as collateral.
Based on your observation, has this law paved the way for MSMEs to access more financing
through their IP? How so? Are there other relevant laws on IP that can benefit MSMEs?

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q7 ANSWER:
Yes, MSMEs can now obtain additional financing using their intellectual
property holdings thanks to Republic Act No. 11057 (PPSA). The PPSA
lowers obstacles to capital access by allowing MSMEs to use their
intellectual property as collateral for loans, thereby leveraging the asset to
get finance.

This law helps MSMEs by giving them collateral options that go beyond
conventional assets like real estate or machinery. They may now realize the
full potential of their intellectual property assets, which may not have been
taken into account when applying for loans.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q7 ANSWER:
Furthermore, MSMEs might gain from other applicable IP legislation as well:

1. Intellectual Property Code of the Philippines (Republic Act No. 8293):

• In the Philippines, intellectual property rights are protected and enforced under this law. It gives MSMEs the legal
tools to safeguard their intellectual property, including copyrights, patents, and trademarks, increasing the value and
desirability of these assets as loan collateral.

2. Technology Transfer Act of 2009 (Republic Act No. 10055):

• The transfer, distribution, and commercialization of technology created by R&D organizations supported by the
government are encouraged by this statute. Technology transfer agreements give MSMEs access to cutting-edge
technologies and intellectual property rights that can boost their competitiveness and growth as a firm.

All things considered, these rules give MSMEs the legal frameworks and tools they need to
safeguard, market, and use their intellectual property assets as a means of funding innovation,
growth, and finance.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
 QUESTION #8

Innovation has become a strategy to combat the competition of an increasingly

globalized world. In order to resist this competition, it is important to enhance the
efficiency, productivity and quality of their offerings. Yet, the Philippines significantly lags
behind companies such as Singapore when it comes to R&D investments (Source: World
Bank).
Given the lack of innovation in the market, do you think the PH market is fertile ground
for an IP market to exist?
© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q8 ANSWER:

Yes, the Philippine market might still be a fruitful field for an intellectual
property market, even with its slow pace R&D investments. Even if
innovation may not be as high as in nations like Singapore, intellectual
property (IP) can still be a key factor in raising a company's level of
production, efficiency, and quality. Innovation and the production of
valuable intellectual property can be encouraged by the existence of IP
protection laws and the acceptance of IP assets as suitable collateral for
loans. Thus, the Philippines can create a strong intellectual property
market to boost economic growth and competitiveness with the correct
assistance and incentives.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
 QUESTION #9

What is your view on IP-backed financing? Is the Philippine market

a conducive environment to offer IP-backed loans?

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q9 ANSWER:

Yes, IP-backed finance can be a useful tool for companies

looking for funding, and the Philippine market provides a
favorable climate for doing so, particularly given the framework
provided by laws such as the Personal Property Security Act
(PPSA).

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
 QUESTION #10

One of the barriers to implementing an IP-backed financing program is the

lack of secondary markets for IPs. Understandably, such a market is
essential to give banks more comfort that they can liquidate the IP in the
event of a default. Do you think a secondary IP market can be created in the
Philippines? If so, what steps could be taken to create one?
© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q10 ANSWER:
Yes, it is possible to establish a secondary IP market in the Philippines. To make one, follow these
steps:
1. Establishing Clear Legal Framework: Create rules and policies that will make it easier to trade
intellectual property while maintaining the integrity and enforceability of all transactions.

2. Promoting Awareness and Education: Inform stakeholders about the advantages and procedures of
trading intellectual property, such as companies, investors, and financial institutions.

3. Building Infrastructure: Create exchanges or platforms expressly for the trade of intellectual property to
give buyers and sellers a reliable and transparent marketplace.

4. Standardizing Valuation Methods: To improve transparency and ease pricing in the secondary market,
standardize the processes for valuing intellectual property.

5. Encouraging Participation: Encourage companies to join in the secondary IP market by providing

incentives or support services; this will boost market activity and liquidity.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q10 ANSWER:

6. Enhancing IP Protection: For the purpose of defending purchasers' interests and reducing
transactional risks, strengthen intellectual property rules and enforcement protocols.

7. Facilitating Collaboration: To support the expansion of the secondary IP market, encourage

cooperation between governmental organizations, trade associations, financial institutions, and
legal professionals.

By putting these measures into practice, the Philippines can foster the growth of a
secondary IP market and boost investor and bank confidence in IP-backed financing
schemes.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
 QUESTION #11

What laws, initiatives, and programs from the EU do you think can
be implemented here in the Philippines to make IP-backed
financing work?

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q11 ANSWER:
The European Union (EU) has a number of regulations, policies, and programs that the
Philippines might adopt to increase the efficacy of IP-backed finance. Here are a few
examples:

1. Intellectual Property Finance Initiative (IPFI): The IPFI was created by the European Investment
Bank (EIB) and the European Investment Fund (EIF) with the goal of assisting creative SMEs by
offering loans secured by intellectual property. Governmental agencies, financial institutions, and
international development organizations might work together on similar projects in the Philippines
to provide SMEs with targeted funding utilizing their intellectual property assets as collateral.

2. Securitization of IP Assets: The securitization of intellectual property rights—packaging and

offering for sale to investors as securities—is a practice that the EU has investigated. In addition to
giving investors access to IP assets, this can give IP owners liquidity. Establishing IP securitization
procedures in the Philippines may open up new funding options for companies.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q11 ANSWER:

3. Intellectual Property Valuation Guidelines: In order to assist companies and lenders in

precisely determining the value of intellectual property collateral, the EU Intellectual
Property Office (EUIPO) has created guidelines and tools for asset valuation. IP-backed
finance transactions should be made easier by similar rules that are customized for the
Philippine environment and increase transparency and uniformity in IP valuation.

4. Legal Framework for IP Financing: EU member states have established legal frameworks
that recognize IP assets as eligible collateral for loans, providing clarity and certainty for
lenders and borrowers. The Philippines could enact legislation or amend existing laws to
formalize the use of IP assets as collateral and streamline legal procedures for IP-backed
financing arrangements.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
Q11 ANSWER:

5. Capacity Building and Technical Assistance: Programs sponsored by the EU offer training,
technical support, and capacity building to help SMEs make the most of their intellectual property
assets to secure funding and expand. Initiatives similar to this one in the Philippines might include
workshops, training courses, and advisory services to help firms, financial institutions, and
regulators become more knowledgeable, adept, and conscious of IP-backed finance.

6. Public-Private Partnerships: In order to advance IP-backed funding in the EU, cooperation between
public institutions, stakeholders from the business sector, and international organizations has been
essential. In the Philippines, public-private partnerships can be established to accelerate the creation
and execution of IP financing projects by leveraging resources, skills, and networks

The Philippines can improve the climate for IP-backed finance and promote innovation,
entrepreneurship, and economic growth by taking cues from these EU laws, initiatives, and
programs.

© 2024 Titan Law, Philippines, Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc
 THANK
YOU
Atty. John C. Titan, CPA, MIR, LLM, EMBAc, DBAc