1. SENIOR PATENT EXAMINER, ARIPO THE 10th COMESA BUSINESS DIALOGUE
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

2. 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

3. 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

4. MEMBERSHIP Botswana Gambia Ghana Kenya Liberia Lesotho Malawi
Mozambique
Namibia
Rwanda
Sao Tome & Principe
Sierra Leone
Somalia
Sudan
Swaziland
Tanzania
Uganda
Zambia
Zimbabwe
= 19
MEMBERSHIP

5. ARIPO Market: Population & GDP
 Population
GDP (2012)
Country
Nr (millions)
Growth rate (%)
(Billion USD)
Botswana
2,004
3,7
14.411
Gambia
1,791
6,3
0,917
Ghana
25, 366
7,9
40,711
Kenya
43,178
4,6
40,697
Lesotho
2,052
4,0
2,443
Liberia
4,190
11,3
1,492
Malawi
15,906
1,8
5,653
Mozambique
25,203
7,5
14,605
Namibia
2,259
5,0
12,807
Rwanda
11,458
8,0
7,103
Sao Tome & Principe
0,188
6,5
0,261
Sierra Leone
5,979
15,2
4,337
Somalia
10,195
2,6
1,306
Sudan
37,195
-4,4
51,453
Swaziland
1231
-1,5
3,861
Tanzania
50,4
6,9
28,249
Uganda
36,346
4,4
21736
Zambia
14,075
7,3
21,490
Zimbabwe
13,724
9,802
Total
6,25% (Aver.)
267,759.4
USA: trillion USD
China: trillion USD
Switzerland: billion USD
Nigeria: 244 Billion USD
South Africa: Billion USD
ARIPO Member States
Population:
GDP: 273 Billion USD
GDP growth rate: 5.3%

6. ARIPO Mandate
Patents and Utility Models
Industrial Designs
Marks
Copyright
Access and Benefit Sharing
Geographical Indications
TK and Expressions Folklore
Swakopmund
Protocol (2010)
Harare Protocol (1982)
Harare Protocol (1982)
Banjul Protocol (1993)
Plant Variety Protection
Awareness creation; training and capacity building, Training Programs at the ARIPO Academy [Masters Degree Programme in IP] sponsored by ARIPO and its cooperating partners such as WIPO, JPO EPO, SIPO, KIPO
Draft Regional Framework
National Frameworks
Draft Regional
Framework
Draft Regional
Framework
Council Min (2002)

7. 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 *?

8. 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

9. 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

10. 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

11. 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

12. PROTECTION THROUGH INTELLECTUAL PROPERTY
IPRs
Patents
Trademarks
Industrial Designs
Geographical indications
Copyright
Trade Secrets
Plant Varieties
Traditional Knowledge
Integrated Circuits
Topographies

13. Intellectual Property Rights
Patents or utility models
Copyright and related rights
Industrial design rights
Trademark
Layout-designs or integrated circuits
Geographical indications
Trade secrets
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

14. 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

15. 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

16. 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

17. Use of Industrial Designs

18. Use of geographical Indications
Branded vanilla, Branded Coffee and Branded honey

19. 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

20. VALUE OF SOME TOP GLOBAL BRANDS
VALUE (billions USD)
119
107 82 72 61
45,48
45,46
42,3
42,2

21. VALUE OF KENYA BRANDS

22. One product many IPR (1) Source: Japanese Patent Office
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

23. One product many IPR (2) 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

24. 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

25. 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

26. Exploiting IP Assets (1)
Sale or License
Joint ventures and strategic alliances
Business format franchising
Merchandising

27. Exploiting IP Assets (2)
Better bargaining position in licensing-in
Defensive patenting, publication and
Collateral for finance

28. 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

29. Franchising Examples

30. Merchandising Examples
Character merchandising
Personality Merchandising

31. 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

32. 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

33. 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)