HKIPX Corporate Governance

Sound governance plays an integral role in our ability to achieve progress. HKIPX has established a policy for the intellectual property that provides direction for improving the IP eco-system worldwide and sets the expectations for the behaviors of those working for us.

HKIPX’s IP policy states, among other things, that “HKIPX is committed to continually improving its performance” and that we will promote a corporate culture where full compliance with securities and financial regulations is the minimum level of acceptable performance. By operating beyond minimum requirements in selected IP areas and using resources more efficiently, HKIPX will:

•  improve our impact on the IP protection and trading infrastructure

•  encourage innovation for a better world and future generations

•  realize reduced operating costs

•  participate in the development of IP public policy and regulations

•  enhance the reputation of the company

•  strengthen customer satisfaction

•  offer our employees an intellectually responsible place to build their careers.

HKIPX is committed to continually improving its performance. We will demonstrate leadership in the intellectual property industry and achieve sustainable growth by addressing the need for rewarding innovation, affordable and reliable transaction solutions through HKIPX trading platforms as well as other initiatives.

Since its inception, HKIPX has pursued a proactive strategy that builds on four fundamental elements: regulatory compliance, risk management, resource stewardship and leadership on key intellectual property issues.

Regulatory Compliance

HKIPX’s strategy begins with a commitment to in compliance with all local and international laws and regulations governing the protection and transaction of intellectual properties. Our regulators, our investors, our customers, our employees and the communities where we operate expect us to meet the requirements of the law, as we expect no less of ourselves.

Risk Management

HKIPX must effectively manage IP legacy issues, such as prevalent worldwide piracy. We identify and address these historic issues, while also taking action to prevent and minimize the risks that may arise from of our current operations, while creating opportunities to enrich IP holders.

Resource Stewardship

Through more efficient use of IP resources, we also lower the cost to trade and deliver IP products. Our in-house trade efficiency and IP promotion programs are examples of our efforts on this strategy component.

Leadership

Our focus is on leading by example and contributing to the development of market-driven IP trading and IP policy as it relates to innovation, IP protection, IP asset management and commercialization and fair trading practices.

The foundation for achieving our goal of going beyond compliance is the HKIPX Corporate Policy, a core set of principles that guide our decision-making. To execute this policy, we have established a management program or system (MS) that assigns roles and responsibilities at each level of our organization. The MS is an integral part of the HKIPX Management Model, the framework for the way we do business at HKIPX.

Consistent Accountability

As a function of governance, HKIPX tracks a number of performance metrics that are reviewed by senior management on a quarterly basis. We hold ourselves to a goal of 100% compliance with all applicable laws and regulations. We strive to go beyond compliance to deliver superior value for our customers, employees, investors and the communities we serve.

Governance and Oversight

As part of this responsibility, oversight committees of the Board of Directors annually review the performance of each business. While our company’s Chief Executive Officer, is ultimately responsible for setting our annual IP trading performance goals, operational accountability is assigned to the heads of the operating Business Units. Our Vice President has responsibility for oversight of our fair trading policy, corporate strategy and programs.

Audit Program

HKIPX implements an Audit Program to evaluate compliance and to identify improvement opportunities in the areas of intellectual property. HKIPX annually engages a certified external audit firm to provide an independent review of compliance with regulatory requirements in program areas, such as innovation, IP protection, anti-piracy, IP assets management, fair trading and risk disclosure.

As an additional means of compliance evaluation, HKIPX regularly conducts self-assessments, inspections and additional performance monitoring on its own.