Integrating Intellectual Property Rights Into Islamic Finance: Opportunities and Regulatory Challenges

This study explores the conceptual and regulatory integration of intellectual property rights (IPR) into Islamic finance. This research looks at how Intellectual Property Rights (IPR) can fit into Islamic finance by using a method that combines legal and conceptual analysis, focusing on how things like copyrights, patents, and trademarks can be accepted under Shariah law. The findings underscore that IPR can be classified as māl mutaqawwam legally recognized property under Islamic law—thus qualifying as eligible collateral and investment objects in contracts such as mudarabah, sukuk, and ijarah. The study highlights opportunities in Islamic fintech, halal innovation, and IP-based financial instruments, particularly for startups and small and medium-sized enterprises (SMEs). Challenges persist in valuation methodologies, Shariah compliance assurance, and regulatory harmonization between positive law and fiqh muamalah. Based on the literature, case studies, and global best practices (e.g., Malaysia and UAE), the study recommends a hybrid regulatory model aligned with maqāṣid al-sharīʿah and calls for thematic fatwas, Shariah-compliant valuation tools, and cross-sectoral collaboration. This research contributes to the development of a sustainable and inclusive Islamic financial system centered on knowledge-based economies.