The Dynamic Role of IP Protection in Promoting Innovation & Economic Development in Emerging Markets by Nkiru Balonwu CEO, Spinlet Who is Spinlet? Africa s largest online music store Streaming via mobile app Downloads via url (www.spinlet.com)www.spinlet.com Over 2 million tracks in our library 45% African music Optimised for content delivery over low bandwidth Additional content management/monetisation on YouTube and RBTs Available on iOS & Android IP, Innovation & Economic Dev. Short talk aims to do the following Brief look at basic IP concepts Examine forms & purpose of IP rights Investigate correlation, if any, between IP and Innovation & Development Query our preconceptions Set of rules to establish relationship between individuals & their creative works. Dates back to ancient Greece, where chefs were granted monopolies over certain dishes for period of 1 year. Also, in ancient times, poets who plagiarised others were exposed and, if convicted, disgraced for their actions. What is IP? The primary forms of IP protection include: Copyright, Patents, Trademarks (Passing Off at common law), Trade Secrets, Industrial Designs, Geographical Indications Of these, Patents are usually associated with innovation (i.e. mechanical, electrical, chemical inventions and processes etc.) Benefits of IP Confers monopoly (i.e. exclusive rights) on the holder If people can freely copy, arguably, there is no incentive to invent. IS THIS TRUE, THOUGH? Is there a nexus between IPRs, Innovation & Economic Development? SOUTH KOREA In the 1960's South Korea's national wealth was at par with Afghanistan's. Today, Samsung, Hyundai and Kia are top brands in the tech and automobile industries. They are all South Korean companies. HOW? Track record of deliberate and unyielding investment in education: 2.6% of their GDP is spent on tertiary education. The OECD Average is 1.6%. Between 1969 and 1974, abolished middle and high school entrance exams, making education more accessible; SINGAPORE An island nation with few natural resources and as at 1970, they were a largely illiterate people. Today, they are a first world nation. HOW? Recruited top professors from around the world to increase the standard of education and bring a sense of prestige to the profession of teaching; and They instituted an intensive scheme of graduate pre- service teacher training WITH COMPETITIVE PAY & BONUSES. IPR and Development There is an argument that copying may be a necessary starting point for developing nations in terms of innovation. This means that overprotection of IPRs may prove detrimental for developing economies if their citizens are prevented from developing upon the knowledge and innovation of others. For instance, China has always had weak protection of IPRs, and are the most notorious copiers in the world, but are still known for innovation, and enjoying exponential growth. IPR and Development Contrast this with the correlation between IPR protection and innovation in developed economies. The high standards of originality for copyright protection in the music industry are arguably responsible for US leadership in the industry. e.g. The Estate of Marvin Gaye v Pharell Williams & Ors. (The Blurred Lines case); even a slight similarity was considered copyright infringemnt, whereas in Nigeria, the consensus is that due to weak enforcement of IPRs, imitation is easy, thus, many artists sound similar or even the same. Despite challenges in areas of education and infrastructure, Nigeria and other emerging African economies are innovating. With increased investment in education, infrastructure and research, the possibilities are limitless. Nigeria Nigeria's first and largest online distributor of music. Niche market: African store for Africans and lovers of African music Buzz Nigeria, in 2014, listed Spinlet as one of the "50 Most Innovative Nigerian Companies". Spinlet In an environment where illegal downloading is rife, Spinlet helps artistes monetize their content. Introduces a social aspect to music via sharable playlists and content availability on different social media. This is essential especially as the future of digital content lies in social networking. Makes payment easier. Users can pay for their subscriptions using their airtime and other convenient methods. Spinlet & Innovation Andela (coding school) - teaches local youths how to code and subsequently places them in software companies to use their newly acquired skills. Payment innovations that enable us to pay without ATM cards, or allow us to pay by capturing images etc e.g. Mpesa, PayAttitude and Pay with capture. Banking apps that enable account holders to carry out online transactions. Certain innovative diesel suppliers have an app to improve their service. Other Innovators in Nigeria CONCLUSION A correlation may indeed exist between the protection of IPR and innovation/economic development. It would appear that this correlation is more evident in developed economies, most likely due to other factors such as superior education, infrastructure and government support. For developing economies, however, increased investment in education, rather than more stringent IPR enforcement laws may prove beneficial. Thanks for Listening. Think Music