Jurisdiction - Singapore
Reports and Analysis
Singapore – SGX-ST Guidance Note On Disclosure On IPR.

3 June, 2013

 

 

In a bid to arm investors with clearer insights into the intangible assets of a listed company, the Singapore Exchange Securities Trading Limited (“SGX-ST”) had on 1 April 2013 issued a guidance note (the “Guidance Note”) on the disclosure of intellectual property rights (“IPR”) by companies seeking a listing on the SGX-ST and companies that are listed on the SGX-ST (collectively referred to as “companies” here). 


For companies that are seeking listing on the SGX-ST, the Guidance Note has clarified that they should disclose, in their prospectus, information on their IPR if their business is or will be materially dependent on such intellectual property rights. 

 

Likewise for listed companies, the Guidance Note has clarified that information that a listed company is or will be materially dependent on any IPR is considered “material information”, and taking into account commercial sensitivities, the listed company must announce such material information via the SGXNET. 


Requirements for Disclosure 


In making disclosure on its IPRs, companies should: 

 

(i) provide descriptive and quality content that explain the value of 
the relevant IPRs to their operations and business; 

(ii) ensure that lay investors are able to understand the information disclosed. This means that information on the relevant IPRs should be free from jargon with minimal technical language; and 

(iii) explain how the relevant IPRs fundamentally affect the company’s operations and business, as well as the overall impact on the profitability and prospects of the company and its subsidiaries. 

 

Feasibility of Disclosure 


Companies should take into account relevant commercial considerations as IPRs may contain trade secrets that are commercially sensitive. Companies should also consider other relevant laws and regulations that may prescribe requirements and restrictions on disclosures relating to IPRs. 


As such, where disclosing information on the IPRs may be prejudicial to the interest of the company and adversely affect its application for patents and licenses, the Guidance Note has suggested that companies consider the disclosure of the information without the inclusion of details that are commercially sensitive.

 

 

For further information, please contact:

 

Myra Tan, ATMD Bird & Bird

myra.tan@twobirds.com

 

Regulatory & Compliance International Law Firms in Singapore

 

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