HOW INTELLECTUAL PROPERTY RIGHTS PROMOTES SMALL AND MEDIUM ENTERPRISES THE 10 th COMESA BUSINESS...
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Transcript of HOW INTELLECTUAL PROPERTY RIGHTS PROMOTES SMALL AND MEDIUM ENTERPRISES THE 10 th COMESA BUSINESS...
HOW INTELLECTUAL PROPERTY RIGHTS PROMOTES SMALL AND MEDIUM ENTERPRISES
THE 10th COMESA BUSINESS DIALOGUEADDIS ABABA, ETHIOPIA
25 TO 26 MARCH, 2015
BY J N KABARE SENIOR PATENT EXAMINER, ARIPO
Overview
• Introduction to ARIPO• Old Vs New Economy
• Intellectual Property Rights (IPRs) and their use to promote SMEs
• Intellectual Property (IP) Audit• Other mechanisms of Exploiting IP
• Challenges Facing SMEs With Respect to IPRs• Measures Taken by ARIPO To Address The
Challenges
About ARIPO ARIPO: African Regional Intellectual Property Organization
Established: December 9, 1976 (as ESARIPO)
Instrument of creation: Lusaka Agreement (in Zambia)
Headquarters: Harare, Zimbabwe
Member States (19): Botswana, Ghana, Kenya, Lesotho, Liberia, Malawi, Mozambique, Namibia, Rwanda, Sierra Leone, Somalia, Sudan, Swaziland, The Gambia, Uganda, United Republic of Tanzania, Zambia and Zimbabwe
MEMBERSHIP
USA: 14.99 trillion USD
China: 7.318 trillion USD
Switzerland: 659.3 billion USD
ARIPO Market: Population & GDP
Nigeria: 244 Billion USD
South Africa: 408.2 Billion USD
Population
GDP (2012)
Country Nr (millions)
Growth rate (%)
(Billion USD)
Botswana 2,004 3,7 14.411Gambia 1,791 6,3 0,917Ghana 25, 366 7,9 40,711Kenya 43,178 4,6 40,697Lesotho 2,052 4,0 2,443Liberia 4,190 11,3 1,492Malawi 15,906 1,8 5,653Mozambique 25,203 7,5 14,605Namibia 2,259 5,0 12,807Rwanda 11,458 8,0 7,103Sao Tome & Principe
0,188 6,5 0,261
Sierra Leone 5,979 15,2 4,337Somalia 10,195 2,6 1,306Sudan 37,195 -4,4 51,453Swaziland 1231 -1,5 3,861Tanzania 50,4 6,9 28,249 Uganda 36,346 4,4 21736Zambia 14,075 7,3 21,490Zimbabwe 13,724 4,4 9,802
Total 226.786 6,25% (Aver.)
267,759.4
ARIPO Member StatesPopulation: 226.786GDP: 273 Billion USDGDP growth rate: 5.3%
ARIPO Mandate
Patents and Utility Models
Industrial Designs Marks
CopyrightAccess and
Benefit Sharing
Geographical Indications
TK and Expressions
Folklore
Plant Variety Protection
Harare Protocol (1982) Harare Protocol (1982) Banjul Protocol (1993) Swakopmund Protocol (2010)
Council Min (2002) Draft Regional Framework
Draft Regional FrameworkNational Frameworks
Draft Regional Framework
Old v New Economy (1)
• Industrial economy – focus on physical goods. Dependent on natural resources (finite)
• New economy – greater reliance on know-how, knowledge, human creativity
and innovation (infinite)– 1950 knowledge component in manufactured goods
20%, 1990s 70%, 2000s *?
Old v New Economy (2)
• In 1998 intangible assets constituted 80% of value of Fortune 500 companies.
• “It is estimated that by 2007, as much as 90% of the value of the world’s top 2000 enterprises will consist of intellectual property”
• Source: Building and Enforcing Intellectual Property Value, An International Guide for the Boardroom 2003 Price WaterhouseCoopers
Old v New Economy (3)
• Globalization and trade liberalization has made it crucial for SMEs to become internationally competitive even when competing exclusively in domestic markets
• Application of knowledge, creativity and innovation key in competitiveness
Competitiveness of SMEs
• To be competitive SMEs need to constantly improve their efficiency, reduce production costs and enhance the reputation of their products and services by:
• Investing in research and development• Acquiring new technology• Improving management practices• Developing creative and appealing products and
designs• Effectively marketing their products and services
The Intellectual Property Rights (IPRs) System
• Provides SMEs exclusivity over the exploitation of their innovative products and services, creative designs and brands
• Thus creating an appropriate incentive for investing in improving their competitiveness
• Ensures a competitive market place, honest
trade practices and overall national development
PROTECTION THROUGH INTELLECTUAL PROPERTY
Intellectual Property Rights• Innovative products or
processes
• Cultural artistic and literary works
• Creative designs
• Distinctive signs
• Microchips
• Denominations of goods attributable to a geographical origin
• Confidential business information
• Patents or utility models
• Copyright and related rights
• Industrial design rights
• Trademark
• Layout-designs or integrated circuits
• Geographical indications
• Trade secrets
Intangible to Tangible
• By providing such protection the IP system gives the owner of those intangibles a right of exclusivity, the right to prevent others from using them
• Bringing intangible rights closer to tangible property
Use of Trademarks (1)
• An Italian businessman buys unmarked t-shirts from manufacturers of generic
clothing
• In a garage in the periphery of Rome,
he attaches his trademark (Pickwick®, which has a picture of a rebellious-looking teenager) and begins to sell them to retail stores
Case Study on Trademarks (2)
• Today the Pickwick® trademark is perceived by Italian teenagers as a synonym of style and quality
• Pickwick® has began to export its products across the globe
• Its trademark is its most valuable asset
Use of Industrial Designs
Use of geographical Indications
• Branded vanilla, Branded Coffee and Branded honey
18
Use of Trade Secret – Coca Cola
• Coca Cola formula said to be the best kept secret
• Formula kept in a bank vault• Can only be opened by a resolution of
the company Board of Directors
• Only a few people know the secret at any given time, their identities are unknown, they cannot travel together
BRAND VALUE (billions USD)
119
107
82
72
61
45,48
45,46
42,3
42,2
VALUE OF SOME TOP GLOBAL BRANDS
VALUE OF KENYA BRANDS
One product many IPR (1)
• Patent for the fountain pen that could store ink
• Utility Model for the grip and pippette for injection of ink
• Industrial Design: smart design with the grip in the shape of an arrow
• Trademark: provided on the product and the packaging to distinguish it from other pens
Source: Japanese Patent Office
One product many IPR (2)
• Invention of CD playerprotected by patent
• Brand on CD playerprotected by trademark
• Design of CD player protected by industrial design
• Music played on CD playerprotected by copyright
IP Policy
• Beyond exclusivity – IP rights are not only about exclusivity and the right to prevent others from using and exploiting them
• They are assets as important or even more important than physical assets (buildings, machinery)
• Like any asset they must be identified, protected, maintained, managed, exploited and enforced
IP Audit for SMEs
• Identify the IP assets of a company
• Have rights been acquired for them
• Are they been maintained
• Are they exploited optimally
• Is there any redundant IP
• Is there any infringement of third party rights
Exploiting IP Assets (1)
• Sale or License
• Joint ventures and strategic alliances
• Business format franchising
• Merchandising
Exploiting IP Assets (2)
• Better bargaining position in licensing-in
• Defensive patenting, publication and
• Collateral for finance
Licensing Example
• The inventor of the “can opening system” licensed the system to Coca-Cola at 1/10 of a penny per can. During the period of validity of the patent, the inventor obtained 148,000 UK pounds a day on royalties
Franchising Examples
Merchandising Examples Character merchandising Personality Merchandising
Challenges facing SMEs with respect to Use of IPRs• Enterprises worldwide and particularly in
Africa largely under-utilize the intellectual property system due to:
• Perceived lack of relevance of the IP system
• Perceived high costs and complexity of IP system
• Limited awareness of the IP system and its usefulness
• Lack of qualified human resources to use the IP system
Measures Taken By ARIPO to Address Challenges facing SMEs (1)• Put up a simplified IPRs filing and
protection system
• Upgraded ICT infrastructure for ARIPO and member states to enable on-line filing, processing and management of IPRs
• Awareness-raising through seminars and workshops targeting SMEs
Measures Taken By ARIPO to Address the Challenges facing SMEs (2)• Promotion, development and
harmonization of IPRs in the member states
• Provision of Technological Information Services through searches and publication(e.g. the ARIPO Journal)
• Capacity building and training (offer a Masters Degree in Intellectual Property)