CHAPTER 8

POLICIES, CHALLENGES AND

ISSUES IN ENTREPRENEURSHIP

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 INDUSTRIAL POLICIES IN MALAYSIA
There are major 4 types of Industrial Policy in
Malaysia, each characterized by the different
objectives:

1.Wealth Redistribution Industrial Policy

2.Export Promotion Industrial Policy
3.Import Substitution Industrial Policy
4.Response to Globalization Industrial Policy

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 What is Intellectual Property?

Trade
Patents Copyrights Trademarks
Secrets
 PATENTS AND INTELLECTUAL PROPERTY RIGHTS
Intellectual Property Protection
⚫ Intellectual Property:
◦ Is any product of human intellect that is intangible but has
value in the marketplace.
◦ It is called “intellectual” property because it is the product
of human imagination, creativity, and inventiveness.

⚫Importance
◦ Traditionally, businesses have thought of their physical
assets, such as land, buildings, and equipment as the most
important.
◦ Increasingly, however, a company’s intellectual assets are
the most important.
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• Intellectual property protection in Malaysia comprises of
patents, trademarks, industrial designs, copyright,
geographical indications and layout designs of integrated
circuits.

• Malaysia is a member of the World Intellectual Property

Organization (WIPO) and a signatory to the Paris
Convention and Berne Convention which govern these
intellectual property rights.

• Malaysia provides adequate protection to both local and

foreign investors. Malaysia's intellectual property laws are
in conformance with international standards and has been
reviewed by the TRIPs Council periodically.
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 Patents

⚫An applicant may file a patent application directly if he is

domicile or resident in Malaysia.

⚫A foreign application can only be filed through a registered

patent agent in Malaysia acting on behalf of the applicant.

⚫ A patent does not give its owner the right to make, use, or sell
an invention: rather, the right granted is only to exclude others
from doing so.

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⚫Similar to legislations in other countries, an invention is
patentable if it is new, involves an inventive step and is
industrially applicable.

⚫In accordance with TRIPS, the Patents Act stipulates a protection

period of 20 years from the date of filing of an application.

⚫The owner of a patent has the right to exploit the patented

invention, to assign or transmit the patent, and to conclude a
licensed contract.

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TRADEMARK

NUR SYAMIMI BT HANAPI

161332345
EXAMPLE
 ADVANTAGES ??

USERS/
PERSON/
CONSUMERS
ENTERPRISE
 Copyrights
⚫Copyrights

◦ A copyright is a form of intellectual property protection

that grants to the owner of a work of authorship the
legal right to determine how the work is used and to
obtain the economic benefits from the work.
◦ Things such as operating manuals and sales brochures
are eligible for copyright protection.

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What is Protected By a Copyright?
Subject to Certain Restrictions

Musical
Literary works
compositions

Computer software Dramatic works

Pictorial, graphic,
Pantomimes and
and
choreographic works
sculptural works

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 Copyright
⚫The Copyright Act 1987 provides comprehensive protection
for copyrightable works.

⚫The Act outlines the nature of works eligible for copyright

(which includes computer programs), the scope of protection,
and the manner in which the protection is accorded.

⚫There is no registration of copyright works.

⚫Copyright protection in literary, musical or artistic works is for

the duration of the life of the author and 50 years after his
death. In sound recordings, broadcasts and films, copyright
protection is for 50 years after the works are first published or
made.
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 ISSUES ON MERGING AND TAKEOVERS
• In business or economics a merger is a combination of two
companies into one larger company.

• Classifications of mergers
◦ Horizontal merger - Two companies that are in direct
competition and share similar product lines and markets.
◦ Vertical merger - A customer and company or a supplier
and company. Think of a cone supplier merging with an ice
cream maker.
◦ Market-extension merger - Two companies that sell the
same products in different markets.
◦ Product-extension merger - Two companies selling
different but related products in the same market.
◦ Conglomeration - Two companies that have no common
business areas.
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• An acquisition, also known as a takeover or a buyout, is
the buying of one company (the ‘target’) by another.
• An acquisition may be friendly. An acquisition may be
friendly or hostile.
Friendly

The companies cooperate in negotiations

Hostile

The takeover target is unwilling to be bought or the target's

board has no prior knowledge of the offer
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 ISSUES ON LAWS AND
ENTREPRENEURSHIP

⚫Entrepreneurs must learn quickly that there are many

legal issues they must face in setting up and running a
new business, establishing a non-profit organization,
bringing a product to market, or financing the venture.

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⚫Our government has established proper Trade Mark laws to
protect the trade marks and brand names of companies and
products,

⚫ Patent laws to protect the designs and inventions of

entrepreneurs and stringent

⚫Copyright laws to protect the intellectual properties of the

creator, designer or writer.

⚫ If an individual is not able to pay its debts, the creditor has

rights to sue him for bankruptcy. All the procedures of
making an individual bankrupt is govern by the Bankruptcy
Laws and Regulations.

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Thank You

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