the african ip trust

17
The African IP Trust What it is and Why it is Needed Meg Brindle, PhD, and Ron Layton, Chief Executive Officer, Light Year IP

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Page 1: The African IP Trust

The African IP Trust What it is and Why it is Needed

Meg Brindle, PhD, and Ron Layton, Chief Executive Officer, Light Year IP

Page 2: The African IP Trust

What is the African IP Trust?

n  An umbrella organization to educate and enforce the rights of African farmers, producers and artisans whose incomes are diminished, and poverty reinforced by their Intellectual Property being stolen.

Page 3: The African IP Trust

The AIPT supports IP Value Capture

n  The AIPT seeks to achieve a better negotiating position for African farmers and producers. Its goal is to improve income and the stability of higher income by re-establishing the Intellectual Property rights of African farmers and producers. It does so through supporting IP Value Capture opportunities designed and implemented by Light Years IP’s method of IP Value Capture.

n  To learn more about IP Value Capture, see www.lightyearsip.net or the power point slides on IPVC on the African IP Trust website (www.africaniptrust.org)

Page 4: The African IP Trust

Why does it matter? n  Africans receive 3-5% of the retail value of almost all of

their distinctive export products

n  Farmers, producers and artisans lose $1.4billion/year in just 14 products analyzed*

n  Light Years IP has assisted Ethiopian coffee farmers to receive $US 100 million more in income via IP Value Capture in 2008 and advanced to $200million.

n  An established African IP Trust will sustain these gains and negotiate a better position for Africans.

n  *Distinctive values in African exports, LYIP, p. 16

Page 5: The African IP Trust

Producers 3%

Exporters 2%

Importers 35%

Retailers 60%

For 3 Ethiopian Fine Coffees, retail value totals $2,000m p.a., but 4 million

people live on 3% of this amount

Ethiopian Coffee

Page 6: The African IP Trust

IP Value Capture results

Producers 6% Exporters

4%

Importers 30%

Retailers 60%

Page 7: The African IP Trust

The role of the AIPT n  To serve as an active lobbying

group when IP Value Capture strategies are implemented

n  To serve as an educating arm to other prominent, high-profile individuals

n  To intervene on behalf of farmers and producers when there is resistance to new IP business strategies

n  To support African farmers and producers -- the Maasai and Ugandan shea butter producers.

To engage a network of powerful others who together can stand up for African IP rights.

For too long, African IP has been taken and exploited. It is time to stand together for fair IP and fair means adequate IP income returned to the rightful owners.

Page 8: The African IP Trust

Why is an AIPT needed? n  In Ethiopia, IPVC achieved gains of $200million

back to Ethiopian coffee farmers – the rightful owners of the distinctive brands

n  Income gain ONLY achieved after overcoming serious, protracted resistance

n  There are interests and pressures working to reduce gains by African producers who assert their rights

n  The AIPT will serve to support producers to overcome resistance and sustain income gains as the IP Value Capture that served Ethiopia, serves other African farmers and producers.

Page 9: The African IP Trust

Support for the AIPT

n  The US Government has awarded a grant to establish an African IP Trust to Light Years IP to:

n  Seek to extend the gains made by fair Intellectual Property

n  Educate African stakeholders about IP

n  Improve awareness and understanding of IP rights

n  Actively lobby and support one stakeholder group so far – the Maasai and extend this support to others.

Page 10: The African IP Trust

The AIPT is based on IP Value Capture

n  IP Value Capture assesses the way distinctiveness translates into major price differences in retail markets and

n  Where in the supply and distribution chain farmers, producers and artisans can “capture” more of that price value to

n  Return more income to the rightful owners of the distinctiveness.

n  We use IP but couple it with business strategies long used by corporations. ( See IPVC power points on the website: www.africaniptrust.org)

Page 11: The African IP Trust

10.0% 90.0%

Foreign Market Ethiopia

After Value Capture

2.5% 97.5%

Ethiopia Foreign Market

Former Market Scenario

Ethiopia Case

2007

$ 100 Million

2008

$ 200 Million

2009

$300 Million (expected)

Increased Farmer Income

10/07/2012  

11  

Page 12: The African IP Trust
Page 13: The African IP Trust

Commodity markets are unstable

0

10000

20000

30000

40000

50000

60000

70000

80000

World Vanilla Export Price ($/Tonne)

Source: Food and Agricultural Organization of the United Nations

2/11/2009  –  Light  Years  IP  

¨  Price instability hurts Ugandan vanilla producers and exporters

¨  Lack of negotiation power

¨  Can lead to further income reduction

¨  Vanilla prices at historic lows

10/07/2012  

13  

Page 14: The African IP Trust

Commodity Prices v.Distinctive products

2/11/2009  –  Light  Years  IP  

0%  

20%  

40%  

60%  

80%  

100%  

120%  

140%  

2002   2003   2004   2005   2006   2007   2008   2009   2010   2011  

World  Vanilla  Price   Gourmet  product  price  

¨  Specialty market brands have rising prices

¨  Demand for niche market relatively constant

¨  IP Value Capture strategy is key

10/07/2012  

14  

Page 15: The African IP Trust

African Potential revenue increases

n  Kenyan Tea: $561,000,000*

n  Ugandan vanilla $90,000,000

n  Ethiopian coffee $1,600,000,000

n  Mozambique cashews $72,000,000

n  Malian Mudcloth $700,000,000

n  Tanzanian Blackwood $320,000,000

n  * Prices in US dollars based on LYIP analysis of retail prices v. farmer prices, considering export volume

Page 16: The African IP Trust

Additional African Products with IP

n  Madagascar Cocoa $25,000,000

n  Ethiopian leather $500,000,000

n  Sengalese Tuna $100,000,000

n  Namimbian Marula oil $1,700,000

n  Creative Industries $60,000,000

n  The Maasai name used with neither authority or advantage to the Maasai by Massai Barefoot Technology and Land Rover

Page 17: The African IP Trust

Thank you for reviewing the African IP Trust

n  The AIPT is a newly formed organization

n  It operates virtually

n  Its strength is in its valuable network

n  Please let us know your thoughts, opinions and insights as we work together to create a strong, lobbying group on behalf of improving income for very low income people.

n  Write to: [email protected] and [email protected]