Download HOW IPRs PROMOTES SME 1(Powerpoint)

HOW INTELLECTUAL PROPERTY RIGHTS
PROMOTES SMALL AND MEDIUM
ENTERPRISES
BY J N KABARE
SENIOR PATENT EXAMINER, ARIPO
THE 10th COMESA BUSINESS DIALOGUE
ADDIS ABABA, ETHIOPIA
25 TO 26 MARCH, 2015
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
ARIPO Market: Population & GDP
Population
Nr
(millions)
2,004
1,791
25, 366
43,178
2,052
4,190
15,906
25,203
2,259
11,458
0,188
GDP (2012)
Growth rate
(Billion USD)
(%)
3,7
14.411
6,3
0,917
7,9
40,711
4,6
40,697
4,0
2,443
11,3
1,492
1,8
5,653
7,5
14,605
5,0
12,807
8,0
7,103
6,5
0,261
5,979
10,195
37,195
1231
50,4
15,2
2,6
-4,4
-1,5
6,9
4,337
1,306
51,453
3,861
28,249
Uganda
Zambia
Zimbabwe
36,346
14,075
13,724
4,4
7,3
4,4
21736
21,490
9,802
Total
226.786
6,25% (Aver.) 267,759.4
USA: 14.99 trillion USD
Country
China: 7.318 trillion USD
Botswana
Gambia
Ghana
Kenya
Lesotho
Liberia
Malawi
Mozambique
Namibia
Rwanda
Sao Tome &
Principe
Sierra Leone
Somalia
Sudan
Swaziland
Tanzania
Switzerland: 659.3 billion USD
Nigeria: 244 Billion USD
South Africa: 408.2 Billion USD
ARIPO Member States
Population: 226.786
GDP: 273 Billion USD
GDP growth rate: 5.3%
ARIPO Mandate
Patents and
Utility Models
Industrial
Designs
Harare Protocol (1982)
Harare Protocol (1982)
Copyright
Access and
Benefit
Sharing
Council Min (2002)
Draft Regional
Framework
Marks
Banjul Protocol (1993)
Geographical
Indications
Draft Regional Framework
National Frameworks
TK and
Expressions
Folklore
Swakopmund
Protocol (2010)
Plant Variety
Protection
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
Patents
Integrated
Circuits
Topographies
Trademarks
Industrial
Designs
Traditional
Knowledge
IPRs
Plant
Varieties
Geographical
indications
Trade
Secrets
Copyright
Intellectual Property Rights
• Innovative products or
processes
• Patents or utility
models
• Cultural artistic and
literary works
• Copyright and related
rights
• Creative designs
• Industrial design rights
• Distinctive signs
• Trademark
•
Microchips
•
Denominations of goods
attributable to a geographical
origin
• Layout-designs or
integrated circuits
• Geographical
indications
•
Confidential business
information
• 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
VALUE OF SOME TOP GLOBAL BRANDS
BRAND
VALUE (billions USD)
119
107
82
72
61
45,48
45,46
42,3
42,2
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
• Invention of CD player
protected by patent
• Brand on CD player
protected by trademark
• Design of CD player
protected by industrial
design
• Music played on CD player
protected by copyright
(2)
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)
[email protected]