1. 1 PILOT IP AUDIT IN KENYA OGADA Tom WIPO National Roving Workshops on Intellectual Property Strategy, Nampula, February 9-10, 2006

2. 2 STRATEGIC MANAGEMENT PROCESS Where we are now in terms of IP Situation analysis IP Audit Where we want to be in 10 years time IP vision, IP objectives IP Audit How to reach there in 10 years time IP strategies IP Policies IP programs Implementation Monitoring and Evaluation

3. 3 CONTENTSOF THE PRESENTATION INTRODUCTION METHODOLOGY RESULTS RECOMMENDATIONS

4. 4 INTRODUCTION

5. 5 Assignment In August 2004, WIPO Commissioned a Pilot IP Audit 5 Countries were involved Kenya Tanzania Ghana Nigeria South Africa Objectives Gain experience which would enable large scale IP Audit Exercise in several African Countries.

6. 6 Training Two day Training in Dar-es-Salaam (15-16th August, 2004) Points of agreement data collection instruments coverage industry sector duration of the exercise

7. 7 Research Team One Lead Researcher Six research assistants Nairobi Region– 3 RAs Mombasa Region– 1 RA Eldoret Region– 2 RAs

8. 8 Audit Objectives To assess the level of public awareness on IP To identify bottlenecks on generation, protection and commercial exploitation of IP assets. To review the existing IP laws and policies To assess the provision of IP services both by the national IP offices and as a professional IP Service provider To draw conclusions and make appropriate recommendations for National IP Policy or strategy

9. 9 METHODOLOGY

10. 10 Data collection instruments Over 239 questionnaires Reviewed relevant documents Studied articles from print media for the last 5 years Followed selected inventors for success stories Conducted interviews Made physical observations and verbal responses and comments

11. 11 QUESTIONNAIRES Set A for industries Set B R&D institutions Set C IP offices Set for Inventor/IP experts

12. 12 ADMINISTRATION OF QUESTIONNAIRE Industry 200 Universities and R&D institutions 20 IP offices 3 Related government institutions 7 Inventors/IP experts 9

13. 13 GOVERNMENT DOCUMENTS ON Informal sector and SMEs Industrialization Science and Technology Development Plans Investments Poverty Eradication Technical Training

14. 14 SUCCESS STORIES Inventors (9 individuals) Captured from IP Offices Industries (6) Selected based on the information from the questionnaires

15. 15 ARTICLES FROM THE PRINT MEDIA Obtained 66 Articles (1999-2004) Copyright infringement Counterfeits IP disputes IP and Medicines IP and SMEs Views on TRIPS and strong IP regime Inventions and innovation

16. 16 SOME RESULTS OF THE KENYAN IP AUDIT EXERCISE

17. 17 GENERAL RESULTS – ISSUES COVERED Level of public awareness on IP Commercialization of IP Professional services on IP National IP offices Ownership of IP and capacity building Views on TRIPS and strong IP Regime Infringement, Copyright and Counterfeit Creators of IP in the country Duration of judicial process IP service delivery

18. 18 2.1. Level of awareness Low IP awareness level Difficulties in understanding various IP elements Not knowing how and where to protect No IP Management Office in industry To much secrecy about IP Wrong perception of IP IP is complex IP is for lawyers SMEs and do not have capacity to invent

19. 19 2.2. Commercialisation of IP No link between inventor and investor IP asset not recognized as collateral IP valuation mechanism lacking Inventor lack business skills Fear of exploitation Lack of professional services Inadequate enforcement of IP laws

20. 20 2.3. Professional Service providers Patent Agents Few and found only in large cities IP services not core business Prices charged high and varies Need for regulations of entire services Poor representation in court Judiciary Lack IP awareness by court prosecutors and judges is a major handicap Competent Patent Drafters Few and thus high rates of abandonment and rejection Technology Managers- Non existent

21. 21 2.4. National IP Offices Not adequately known Registration process complex and long Decentralization of Services proposed Unrealistic expectation on IP Offices Provision of drafting services Policing of IP rights Enforcement of laws Financing of commercialization Rewarding of inventors Waiving of fees One stop shop for IP recommended IP Office to adopt private sector work culture

22. 22 2.5 Generators of IP Up to end of 2001 SMEs 116 Industry45 R&D Institutions14 Individual from universities2 University1 Secondary school1

23. 23 2.6. Plant Breeders Rights 1997-2003 275 applications filed by Kenyans 336 applications fil;ed by foreigners 108 Granted Impact of Plant Variety Protection Increased investment in breeding and commercialization Increased collaboration locally and internationally Increased number and range of improved varieties available for farmers

24. 24 2.7. Copyright Copy right Act 2001 Kenya Copyright Board Kenya Copyright Tribunal

25. 25 2.8. Counterfeits 2.8. Counterfeits Biggest problem Music Industry Creativity being killed Kenya loosing 60 million US$/a Publishing and Book Trade Piracy a big problem Economy loosing 4 million US$/a Movie industry Pirated a major problem Computers 77 % rate of piracy

26. 26 2.10. Duration of Court Cases Court cases takes too long Blue Band Vs Gold Band Trademark dispute 5 years

27. 27 3 RESULTS FROM INDUSTRIES

28. 28 3.1.Profile of Industries 3.1.1. Number respondents68 3.1.2. Company Categories Micro18 Small13 Medium19 Large18 3.1.3. Legal Status Limited companies40 Informal14 3.1.4. Company Type Manufacturing53

29. 29 3.2. Results 3.2. Results 3.2.1. Legal protection of IP Those who have protected42 % 3.2.2.Main Reasons for NOT protecting Not having IP to protect Lack of awareness Inadequate enforcement 3.2.3. Most utilised IP Trademark 3.2.4. Industry maintains IP register15 % 3.2.5. Having IP Policy 1

30. 30RESULTS 3.2.6. Incorporation of IP non-disclosure Agreements –With employees21 –With business partners15 3.2.7.Agreement with IP protection With business associatesless than 20 % 3.2.8. Use of professional advice in processing IP –Yes25 % 3.2.9. Budget allocation to IP –Less than 10 % of budget80%

31. 31 RESULTS 3.2.11. Main Obstacles to development and utilization of IP –High R&D costs –Unawareness of IP benefits 3.2.12. Impact of ownership on Business Performance Increase sales and reduce costs 3.2.13.Trade on IP –Only a few Companies have acquired IP from other generators

32. 32 3.3.SUCCESS STORIES 3.3.1. Company A Active in generation and protection of IP Has an IP Policy Uses patent agent and own services Commercializes IP Has IP non-disclosure agreements Maintains IP register 3.3.2. Company B Considers IP integral part of business strategy Has filed 16 trademarks and 9 industrial designs Has non-disclosure agreements Commercializes its IP 3.

33. 33 SUCCESS STORIES 3.3. Company C Spends t10-25 % of budge on IP Has 15 industrial desigm and 293 trademarks and service marks 3.3.4. Company D Has 218 trademarks 3.3.5. Company E Has 58 trademarks, 1 Patent Acquired license to product ARVs

34. 34 LOCAL INVENTORS THE FOLLOWING INVENTIONS FROM LOCAL INDIVIDUALS HAVE BEEN COMMERCIALISED Cockroach Killer Paste from waste material Rotating TV Aerial Condom dispenser Fertilizers mixture branded phymix

35. 35 RECOMMENDATIONS made on 1. IP awareness 2.IP Service Delivery 3.Strategies for promotion of Commercialization of IP 4.Professional IP service Providers 5.IP Training 6.IP Capacity building 7.Fighting counterfeits 8.Special Courts on IP disputes 9.National IP Strategy and Policy