Regional Innovation Development-IP and Economic Development in Africa

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1 Regional Innovation Development-IP and Economic Development in Africa Alhaji Tejan-Cole Legal Counsel, AATF LESI Global Technology Impact Forum (GTIF) Geneva, Switzerland January 21, 2014

2 Introduction In the increasingly knowledge driven economy, intellectual property is a key consideration in day to day business decisions.the existence of IP regimes in a given country plays a pivotal role in attracting the necessary investments. -Gift Sibanda, former Director General of the African Regional Intellectual Property Organization (ARIPO). A look at developments in Africa gives a snapshot of the factors that can either encourage or discourage IP related economic development.

the existence of IP regimes in a given country plays a pivotal role in attracting the necessary investments.

3 Positive Factors The TRIPS Agreement which came into effect on January 1, 1995, provided a boost to IP legislative and norm setting activities in African Member States of the WTO. WTO/WIPO legislative assistance. This has in turn boosted economic development in copyright industries such as music and film e.g. Nigeria, Ghana and Sierra Leone. The Nigerian film industry (informally known as Nollywood) is worth US$3.5 billion.

4 Positive Factors (Contd.) This link between increased IP legislative protection and economic development is seen in emergence of the flower industry in Kenya which is worth US$2.8 billion in market value and directly employs 2 million people. It is also seen in the increased use of branding and licensing strategies in Ethiopia (coffee) over 80 licensees in 8 countries with the aim of raising total coffee exports from US$400 million to around US$1.2 to US$1.6 billion per year. Similar branding strategies are being tried in other African countries such as Uganda (vanilla) and Tanzania (Blackwood). The use of IP legislative flexibilities (e.g. Breeder s Exemption) has also aided in the development of African seed production and distribution industries.

It is also seen in the increased use of branding and licensing strategies in Ethiopia (coffee) over 80 licensees in 8 countries with the aim of raising total coffee exports from US$400

5 Positive Factors (Contd.) WIPO s Regional Bureau for Africa has cooperated with many African countries in developing their IP policies and aligning such policies with national development plans. Such countries include Liberia, Mozambique, Rwanda, Senegal, Seychelles and Zambia. IP strategies have also been used by African corporate giants, such as South Africa s Sasol (chemical company), to enhance their international technological credibility through patenting and publications.

aligning such policies with national development plans.

6 Positive Factors (Contd.) The existence of regional IP offices such as the African Regional Intellectual Property Organization (ARIPO) (Harare and Banjul Protocols) and the African Intellectual Property Organization (OAPI) (Bangui Agreement). ARIPO s 18 Member States are mostly Englishspeaking while OAPI s 17 member States are mostly French-speaking. ARIPO patent filing covering Kenya and Uganda done under the Banana Bacterial Wilt Project (Taiwan s Academia Sinica License).

and Banjul Protocols) and the African Intellectual Property Organization (OAPI) (Bangui Agreement).

7 Positive Factors (Contd.) Publicly funded scientific research organizations have also been at the forefront in linking IP and economic development e.g. South Africa s Innovation Fund Commercialization Office. Such institutions usually form the largest concentration of skills and personnel in the fields of science and technology in Africa and have strong potential for IP creations. Patenting from South African institutions has been mainly concentrated on areas of technology linked to biomedical/biotechnology and ICT (Mc Lean Sibanda). A similar trend has been seen in the increased filings of new plant variety applications by National Agricultural Research Services (NARS) in Africa such as the Kenya Agricultural Research Institute (KARI).

Patenting from South African institutions has been mainly concentrated on areas of technology linked to biomedical/biotechnology and ICT (Mc Lean Sibanda).

8 Positive Factors (Contd.) Regional and national capacity building efforts have also enhanced the IP knowledge of users, agents and administrators of IP systems in Africa. Establishment by WIPO of specialized IT Platforms to foster access to knowledge e.g. Access to Research for Development and Innovation (ARDi)/Access to Specialized Patent Information (ASPi). These IT Platforms have assisted licensing related activities in Africa such as technology scouting and freedom to operate assessments.

IP systems in Africa. Establishment by WIPO of specialized IT Platforms to foster access to knowledge

9 Negative Factors Public authorities have not taken full advantage of the potential benefits of the IP system-ip is not generally accorded a prominent place in the national political and economic agendas of African countries (Herman Ntchatcho, WIPO). There is usually a lack or weakness of institutional links between IP related ministries (e.g. science, industry, etc.) and institutions (e.g. universities, research institutes, chambers of commerce, etc.). Lack of adequate financial/material resources for African IP institutions (e.g. automated and online patent databases). Lack of, or poor implementation, of IP management policies.

There is usually a lack or weakness of institutional links between IP related ministries (e.g. science, industry, etc.) and institutions (e.g. universities, research institutes, chambers of commerce, etc.

10 Negative Factors (Contd.) The use of the IP system is still limited South Africa s innovation surveys indicate that the percentage of companies that have been granted a patent is fairly low, the use of patent databases as a source of technological information is very limited, and the use of the patent system by public research organizations (with some exceptions) has also been low (Dr. David Kaplan). This can be attributed to the very low awareness and understanding of the IP system. The shortage of skilled IP professionals also poses a serious challenge to the protection and commercialization of research results.

fairly low, the use of patent databases as a source of technological information is very limited, and the use of the patent system by public research

11 Negative Factors (Contd.) The absence of an examining patent office in South Africa has also been listed as a constraint to innovation (Dr. David Kaplan)- South Africa s draft National Policy on IP is now recommending substantive examination of patents. Despite the legislative progress highlighted earlier, there are still countries without modern IP laws or with outdated IP laws. Other countries with modern IP legislation have also had implementation issues.

David Kaplan)- South Africa s draft National Policy on IP is now recommending substantive examination of patents.

12 Case Study-AATF The African Agricultural Technology Foundation (AATF) is a non-profit organization that was founded in 2003 to access and deliver proprietary and associated agricultural technologies for sustainable use by smallholders in SSA. Major funders include the Rockefeller Foundation, DFID, USAID, Howard G. Buffett Foundation, and the Bill and Melinda Gates Foundation.

agricultural technologies for sustainable use by smallholders in SSA.

13 Case Study (Contd.) A constraint How to solve Broker Technology, usually royalty free Testing by African researchers and farmers Regulatory controls Deliver Agribusinesses Smallholder farmers Best practices Sustainable use Identify Adapt Steward

14 Case Study (Contd.)

15 Case Study (Contd.) The Water Efficient Maize for Africa (WEMA) Project is a PPP (AATF, CIMMYT, Monsanto, Kenya, Uganda, Tanzania, Mozambique and South Africa) aimed at developing and licensing royalty-free new African drought-tolerant and insectpest protection white maize varieties in SSA. Facilitated a record 69 WEMA quality hybrids entered into NPT /DUS advanced testing and registration programs in all partner countries in 2013 (KE= 31 in NPT 1 and 2). Received approval from Kenyan seed regulator for commercialization of first WEMA hybrid (WE1101) to be marketed through sub-licenses to seed companies under trademark: DroughtTEGO. Impressive seed company demand (14 Kenya sublicenses for first hybrid). The Cassava Mechanization and Agro-processing Project (CAMAP)-Brazilian cassava production technologies.

African drought-tolerant and insectpest protection white maize varieties in SSA.

16 Conclusion In order for developing countries including African countries to benefit from intellectual property protection, proactive approaches should be developed by such states towards taking full advantage of intellectual property tools. - Gift Sibanda THANK YOU

proactive approaches should be developed by such states towards

Theme II: CREATING, PROMOTING AND SUSTAINING AN INNOVATIVE ENVIRONMENT: Funding, Tax and Other Incentives for Promoting Innovation

Theme II: CREATING, PROMOTING AND SUSTAINING AN INNOVATIVE ENVIRONMENT: Funding, Tax and Other Incentives for Promoting Innovation African Conference on the Strategic Importance of Intellectual Property