Image credit: Fastcabling
Kota Kinabalu: Many small and medium enterprises (SMEs), especially in the food and beverage (F&B) and hospitality sectors, still do not understand the importance of intellectual property (IP) as a resource for business growth.
The Ministry of Domestic Trade and Costs of Living (KPDN) Secretary-General Datuk Seri Mohd Sayuthi Bakar said this situation exposes SMEs in these sectors to the risk of financial losses.
He noted Statistics Department data show SMEs accounted for 96.9 per cent of all registered businesses in the country last year, highlighting their significant contribution to the economy.
“However, many SMEs still do not grasp the importance of intellectual property as a resource for business growth. This is particularly evident in the F&B and hospitality sectors, where innovation, creativity and uniqueness are crucial for their business success.
“Neglecting intellectual property aspects can have significant repercussions, even for well-established companies,” he said at the launch of the World Intellectual Property Organisation (WIPO) Intellectual Property Management Clinic (IPMC) for Sabah entrepreneurs in the F&B industry here Monday.
The programme, organised by the Malaysian Intellectual Property Corporation (MyIPO) and WIPO, was attended by 15 companies from the F&B industry in the State. It is meant to help them protect and optimise their intellectual property assets.
Mohd Sayuthi mentioned that the failure of companies to patent their trademarks, innovations or technologies could result in competitors copying their products and profiting significantly.
He cited a leading electronics manufacturer that once pioneered the audio and video equipment sector but failed to secure patents for several technologies they developed.
“As a result, competitors were able to replicate their innovations without legal barriers and eventually outpaced them in the market.
“This mistake cost them potential revenue from licensing and forced them to compete when other companies could replicate their innovations at a lower cost,” he said.
He also highlighted the success of the IPMC programme, which saw a traditional herbal drink entrepreneur from Indonesia strengthen their business not only domestically but also in international markets.
He expressed confidence that similar success could be achieved by SMEs in the F&B industry in the country, including those from Sabah, through the guidance of the IPMC programme, which has also been held in Brunei and Laos.
IPMC, introduced in 2021, was implemented in collaboration with the Asean Business Advisory Council, the Asean Secretariat and the Japan Patent Office (JPO).
Meanwhile, MyIPO statistics show that 469,688 trademark applications, including 134,315 from the F&B sector, have been recorded from January 2012 to September 2024.
Source: https://www.dailyexpress.com.my/news/244401/small-businesses-taking-ip-lightly/