IP Models for Africa

Darren Olivier

Role of IP in Innovation

• Patents• Copyright• Designs• Knowhow• Trade Marks

IP and the State

“IPR-intensive industries contribute 26% of employment and 39% of GDP in the EU”

“The entire U.S. economy relies on some form of IP, because virtually every industry eitherproduces or uses it.”

IP deal of the year

• $5 billion for the handset business

• >$2 billion for a non exclusive patent license

Tracking China

“In 2012, the number of civil IPR cases received by the courts rose by 46 percent to 87,419. So far in 2013, the growth has continued at an even faster rate...”

“..by 2015 Chinese companies will be filing 500,000 patents each year, ahead of the US with about 400,000, and Japan with 300,000.” China Daily

IP Based Business ModelsAt least 19 recognised (IP watchdog):

- Patent Licensing and Enforcement Companies (PLECs)- Privateers- Institutional IP Aggregators/Acquisition Funds- IP/Technology Development Companies- Licensing Agents

IP Based Business Modelscontd

- Litigation Finance/Investment Firms- IP Brokers- IP-Based M&A Advisory Firms- IP Auction Houses- On-Line IP/Technology Exchanges, Clearinghouses, Bulletin Boards and innovation portals

IP Based Business Modelscontd

- IP-Backed Lending Firms- Royalty Stream Securitization Firms- Analytics Software and Services Firms- University Technology Transfer Intermediaries- IP Transaction Exchanges & Trading Platforms

IP Based Business Modelscontd

- Defensive Patent Pools, Funds and Alliances- Technology/IP Spinout Financing Firms- Patent-Based Public Stock Index Publishers- IP Insurance Carriers

Recognition of IP in Africa

• IP Policy Traditional knowledge Exchange control Tax incentives Publically funded IP

Recognition by businesses

• The markers - increase in litigation, filings, IP departments, outsourcing• Rise of middle class consumer• Focus on Africa and technology transfer• Dealing with empowerment through licensing• Focus on innovation• Collaboration

Reality – still far behind

• Very few inhouse IP jobs• Dearth of legal skills (less than 200 fellows of SAIIPL)• Lack of IP officers on company boards• Government infrastructure not there• Lack of basic understanding of IP• Lack of IP management tools internally

it starts with an audit.

it creates understanding, galvanises

interest, leads to control,

enables opportunity

But

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