the role of the african regional intellectual property

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Property in Building Brand Property in Building Brand Value Perception in the Global Value Perception in the Global Market Market Leonard Madzingaidzo (Ph.D) Executive Director - Technical Scientific & Industrial Research & Development Centre P. O. Box 6640 Harare Zimbabwe Email:[email protected] [email protected] WIPO-ARIPO Sub-Regional Training of Trainers Program on WIPO-ARIPO Sub-Regional Training of Trainers Program on Effective Intellectual Property Asset Management by Small Effective Intellectual Property Asset Management by Small and Medium Enterprises and Medium Enterprises ARIPO Headquarters Harare, Zimbabwe ARIPO Headquarters Harare, Zimbabwe 26 – 28 November 2014 26 – 28 November 2014

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Page 1: the role of the african regional intellectual property

The Role of Intellectual Property in The Role of Intellectual Property in Building Brand Value Perception in Building Brand Value Perception in

the Global Marketthe Global Market

Leonard Madzingaidzo (Ph.D)Executive Director - Technical

Scientific & Industrial Research & Development CentreP. O. Box 6640

Harare Zimbabwe

Email:[email protected]@gmail.com

WIPO-ARIPO Sub-Regional Training of Trainers Program on Effective Intellectual WIPO-ARIPO Sub-Regional Training of Trainers Program on Effective Intellectual Property Asset Management by Small and Medium EnterprisesProperty Asset Management by Small and Medium Enterprises

ARIPO Headquarters Harare, ZimbabweARIPO Headquarters Harare, Zimbabwe26 – 28 November 201426 – 28 November 2014

Page 2: the role of the african regional intellectual property

Presentation Outline

• Introduction• Intellectual Property• What is a Brand?• Brand Value• The TRIPS Agreement• Case Study: India• Other International Examples• Example from Zimbabwe: SIRDC• Concluding Remarks

Page 3: the role of the african regional intellectual property

IntroductionIntangible assets comprise over 50% of the value of many firms, large and small.

Intellectual Property is a major asset which if leveraged and managed effectively can contribute in increasing brand of firms and wealth of nations

Success today depends on harnessing the power of human mind…to create wealth

To generate wealth from intellectual property requires appropriate laws, systems, enforcement mechanisms and competencies

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Intellectual Property

What is Intellectual Property?

Intellectual property refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce. (from WIPO)

Therefore, Intellectual property belongs to the intangible asset category.

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Intellectual PropertyIntellectual Property

– Industrial Property Rights

– Copyright and related rights

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Industrial PropertyIndustrial Property

The protection of industrial property has as its object:

– Patents– Utility Models– Industrial Designs– Trademarks, Collective marks, Certification marks– Service Marks, Trade names– Geographical Indications, Indication of Source or Appellation of

Origin– Repression of Unfair Competition

Page 7: the role of the african regional intellectual property

CopyrightCopyrightThe protection of copyright & neighboring

rights has as its object:

– Literary works (novel)– Artistic works (sculpture)– Computer programs (Windows)– Performance of artists (Opera)– Rights of phonogram producers (EMI)

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Intellectual Property = AssetIntellectual Property = AssetGives a competitive advantage

– Can block competitors, or– Delay their market entry

A tradable asset = a way to generate income

– Can be sold, licensed, inherited– A basis for technology-based deals

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What is a Brand?Branding means developing unique attributes so that your products are instantly recognisable, memorable and evoke positive associationsStrong, well-known products provide companies with a real competitive advantageThe right name helps to sell products and servicesIt bestows individuality and personality, enabling customers to identify with your offeringsIt makes products and services tangible and real

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Page 10: the role of the african regional intellectual property

What is a Brand?What is a Brand?

Use the power of branding to imbue your products with personality and meaning, ensuring they achieve a prominent place in the marketplace

Therefore, choosing the right company name, product name, logo, packaging, and promotional activity all to convey a personality and build a BRAND

Intellectual Property Rights can be used to protect your brand and prevent others from cashing in on its success

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Brand ValueBrand ValueCompanies spend millions of dollars

establishing brand names and trademarksSignificantly more is spent on research

developing products, processes, designs, and formulas

This makes such intellectual and industrial properties valuable assets of the company

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Brand ValueBrand Value Brand names such as Coca Cola, Gucci, and computer

software are invaluable For instance: the Marlboro brand was once estimated at

$33billion, Kellogg’s $9billion, Microsoft $9.8billion, and Levi $5billion

These companies have all experienced cases of infringement of their IP

Through IP companies can protect their valuable assets and keep constant vigil against piracy and counterfeiting

12

Page 13: the role of the african regional intellectual property

Brand ValueBrand ValueAccording to a study by R.T. Green & T. Smith (2002) published in the Journal of International Marketing. Counterfeits and pirated goods come from a wide range of industries namely apparel, automotive parts, pharmaceuticals, books, films, CDs, Computer Software, etc..At one time estimates showed that more 10 million fake Swiss timepieces carrying the famous Cartier and Rolex brands were sold every year racking illegal profits up to $500m Estimates indicate that unauthorised use of U.S. patents, trademarks, and copyrights amounted to $60b annuallyOwners of brands are at risk of losing revenue from the illegal use of their brands while countries lose millions of jobs

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Brand ValueBrand Value Counterfeits can destroy brand value because the counterfeit

product sometimes fails to perform or does not meet quality expectations

In the case of counterfeit drugs active ingredients are often missing or in wrong quantities and in some cases harmful ingredients are used causing physical harm to consumers

Pharmaceutical manufacturers association estimated that 2% (about $6billion) of the $327billion worth of drugs sold each year were counterfeit

In some African & Latin American countries as much as 60% of the drugs are counterfeit

According to a WHO estimate - 8% of bulk drugs imported in to the U.S. were counterfeit, unapproved or substandard (K Capell & S Timmons, 2001, Business week) 14

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Brand ValueBrand Value

Failure to protect IP adequately in the global marketplace can lead to the legal loss of rights in potentially profitable markets

Some companies have found their assets appropriated and profitably exploited in foreign countries without license or reimbursement

There are cases where companies have legally lost the rights to trademarks and have had to buy back these rights or pay royalties. e.g. McDonald’s case in Japan

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Examples of IP AssetsExamples of IP Assets

• Brand (goodwill/indication of origin …) Trademarks

• Technology Patents

• Product external features Design registration

• New plant varieties • Plant Breeders Rights • Plant patent

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Patents As Sources of Information

17

Patents are a vital source of critical information in all technology areas

They provide valuable information that help in– Developing patent non-infringing products and

processes– Evaluating IP landscape for identifying ideas, planning

R&D strategies and pipelines– Monitoring competitor strategies– Identifying in- and out-licensing opportunities– Doing due-diligence

Monitor patent filing, issues and maintenance information constantly.

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The Cycle of Innovation and CompetitionThe Cycle of Innovation and Competition

18

Branded Company Innovates, Creating Value via Technological Breakthroughs

Branded Company Rewarded with Monopoly Position

Patent Expiration = Generic Industry Opportunity to Create Value via Competition

Branded Company Loses Revenue on Older Products, Necessitating Plan to Replace $’s

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Why IP Needs ProtectionWorks of the human mind - inventions-patents, trademarks, industrial designs, geographical indications, books, films,

musical works, etc.

IPR Protection acts as spur to human creativity, serves as incentive

Confidence in the IP system acts as stimulus to creativity and innovation

New or original knowledge provides basis for creating sustainable business and competitiveness

Page 20: the role of the african regional intellectual property

Why IP Needs ProtectionWhy IP Needs Protection

• Knowledge component - predominant element in differentiating one enterprise from others

• Protecting such knowledge is key to preventing free riding

• Enterprises need IP system to protect their manufacturing secrets

• Understanding importance of various forms of IP system is of crucial importance for success in the marketplace

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Why IP Needs ProtectionWhy IP Needs Protection

Enterprises need to utilize IP assets effectively to ensure quality of their products

IP has become an important instrument of economic and trade policies

Protection of IPRs enables countries to participate actively in international trade

IPR protection linked to competitiveness in international trade

IPR protection seen as determining factor in safeguarding results of technological developments

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Why IP Needs ProtectionWhy IP Needs Protection

IP is an important and effective policy instrument of cultural, social, economic and technological concerns

Developing internationally competitive products requires higher levels of investment in technology

Incentive and reward required to spur such investment

Key component of the infrastructure required for economic growth

Promotes social-economic development

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Why IP Needs ProtectionWhy IP Needs Protection

Promotes development of national indigenous technological capacity

Generates export opportunities through enhancement of competitiveness

Helps attract foreign investment e.g., through joint ventures

Socio-economic benefits of IP protection stem from qualitative competitiveness of products produced and delivered through use of IP system

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Why IP Needs ProtectionWhy IP Needs Protection Effective IP protection stimulates creativity and innovation by

providing reward for it

Competitiveness that the system generates helps create jobs

IPR protection rewards the inventors and creators

Strong national and institutional IPRs systems help in attracting FDI, technology transfer and licensing - China has emerged as a large destination of FDI due to stated policy of IP Protection

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IP Assets a ToolIP Assets a Tool

IP is an important tool for social development, economic growth and wealth creation

“IP assets have emerged as an important factor in Corporate Strategy”

Dr. Kamil Idris

Intellectual Property - A Power Tool for Economic Growth

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Economic Benefits of IP Asset Economic Benefits of IP Asset ManagementManagement

Macroeconomic level

– Increase GDP and competitiveness

– Enhance exports of high value

– Stimulate R&D– Reduce brain drain by

providing incentives– Help address national

human needs– Develop national brand

and cultural identity– Attract beneficial FDI and

local investment– Job creation

Microeconomic level

Create portfolios of IP as a source of comparative advantage

Enhance products and promote brand value

Enhance corporate value Avoid and defend against

litigation Provide incentives and

recognition

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IP Creation CycleIP Creation Cycle

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Further Investment Further Investment in R&Din R&D

Patent Patent GrantGrant

CommercializationCommercialization

ProfitProfit

(Recuperation (Recuperation of capital)of capital)

Patent Patent ApplicationApplication

IP IP (Invention) (Invention)

as a result of as a result of ResearchResearch

Economic GrowthEconomic Growth

University and University and R&D R&D

ResearchResearch

Invention Invention DisclosureDisclosure

&&

Decision of Decision of protectionprotection

MarketingMarketing

LicensingLicensing

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The TRIPS Agreement

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The Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement was

negotiated to foster technological innovation and transfer and dissemination of technology

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TRIPS

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The World Trade Organization (WTO’s) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)

– negotiated in the 1986-94 Uruguay Round

– introduced intellectual property rules into the multilateral trading system for the first time.

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Why TRIPS?

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– Ideas and knowledge are an increasingly important part of trade

– Many products that used to be traded as low-technology goods or commodities now contain a higher proportion of invention and design in their value

– Creators can be given the right to prevent others from using their inventions, designs or other creations

– and to use that right to negotiate payment in return for others using them

– “intellectual property rights”

Page 31: the role of the african regional intellectual property

What is TRIPS?an attempt to narrow the gaps in the way IP

rights are protected around the world, to bring them under common international

rulesminimum levels of protection

dispute settlement system for trade disputes over intellectual property rights

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What is TRIPS?

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The TRIPS agreement covers five broad issues:

– basic principles – protection to intellectual property – enforcement of intellectual property – settlement of disputes on intellectual property between

members of the WTO– special transitional arrangements during the period

when the new system is being introduced

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TRIPS: Basic Principles

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national treatment – treating one’s own nationals and foreigners equally

most-favoured-nation treatment – equal treatment for nationals of all trading partners in the

WTO

intellectual property protection should contribute to technical innovation and transfer of technology– Both producers and users should benefit, and economic and

social welfare should be enhanced

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TRIPS: Protection of IP

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The TRIPS agreement ensures that adequate standards of protection exist in all member countries for:– Copyright – Trademarks – Geographical indications – Industrial designs – Patents– Layout-designs (topographies) of integrated circuits– Undisclosed information, including trade secrets

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TRIPS: Enforcement of IP

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The agreement says governments have to ensure that intellectual property rights:– can be enforced under their laws– penalties for infringement are tough enough to deter further

violations– procedures must be fair and equitable– not unnecessarily complicated or costly– should not entail unreasonable time-limits or unwarranted

delays– ability to ask a court to review an administrative decision or to

appeal a lower court’s ruling

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TRIPS: Enforcement of IP

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The agreement also prescribes:– how enforcement should be handled, including rules for

obtaining evidence, provisional measures, injunctions, damages and other penalties

– that courts should have the right, under certain conditions, to order the disposal or destruction of pirated or counterfeit goods

– that wilful trademark counterfeiting or copyright piracy on a commercial scale should be criminal offences

– for assistance of customs authorities to prevent imports of counterfeit and pirated goods

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TRIPS: Transitional Arrangements

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To ensure that their laws and practices conform with the TRIPS agreement:

– developed countries were given one year, until 1996– developing countries and (under certain conditions)

transition economies were given five years, until 2000– least-developed countries have 11 years, until 2006,

which has now been extended to 2016 for pharmaceutical patents.

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TRIPS: Transitional Arrangements

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– 10 years (until 2005) to developing countries to provide for product patent protection

– however, for pharmaceutical and agricultural chemical products, during the transition period:

the country must accept the filing of patent applications from the beginning of the transitional period, though the patent need not be granted until the end of this period (‘mailbox’)

exclusive marketing right for the product for five years, or until a product patent is granted, whichever is shorter, during the transition period

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Copyright

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ensures that computer programs will be protected as literary works

outlines how databases should be protected expands international copyright rules to cover

rental rights– Authors of computer programs and producers of sound recordings must have

the right to prohibit the commercial rental of their works to the public– performers must also have the right to prevent unauthorized recording,

reproduction and broadcast of live performances (bootlegging) for no less than 50 years.

– Producers of sound recordings must have the right to prevent the unauthorized reproduction of recordings for a period of 50 years

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Trademarks

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The agreement: defines what types of signs must be eligible for protection as

trademarks

what minimum rights conferred on their owners must be

says that service marks must be protected in the same way as trademarks used for goods

marks that have become well-known in a particular country enjoy additional protection

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Patents

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patent protection must be available for inventions– for at least 20 years– for both products and processes– in almost all fields of technology

patents can be refused if an invention – is contrary to public order or morality– involves diagnostic, therapeutic and surgical methods, plants

and animals (other than microorganisms), and biological processes for the production of plants or animals (other than microbiological processes)

– is not fully disclosed or the best mode for carrying out the invention is not indicated

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Patents

42

Plant varieties must be protectable by patents or by a “sui generis” system (such as the breeder’s rights provided in the UPOV

In order to prevent abuse of exclusive rights or to meet national emergencies, “compulsory licenses” may be granted

– allowing a competitor to produce the product or use the process under license

– under certain conditions aimed at safeguarding the legitimate interests of the patent-holder

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Patents

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If a patent is issued for a production process, then the rights must extend to the product directly obtained from the process.

Under certain conditions alleged infringers may be ordered by a court to prove that they have not used the patented process.

patents can be refused if an invention – is contrary to public order or morality– involves diagnostic, therapeutic and surgical methods, plants

and animals (other than microorganisms), and biological processes for the production of plants or animals (other than microbiological processes)

Page 44: the role of the african regional intellectual property

Patents

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The Doha Ministerial Conference in November 2001:

– agreed that the TRIPS Agreement does not and should not prevent members from taking measures to protect public health

– underscored countries’ ability to use the flexibilities that are built into the TRIPS Agreement.

– agreed to extend exemptions on pharmaceutical patent protection for least-developed countries until 2016

– agreed in 2003, to provide extra flexibility, so that countries unable to produce pharmaceuticals domestically can import patented drugs made under compulsory licensing

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Layout Designs of Integrated Circuits

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The basis for protecting integrated circuit designs (“topographies”) is the Washington Treaty on Intellectual Property in Respect of Integrated Circuits, which was adopted in 1989 but has not yet entered into force

The TRIPS agreement adds a number of provisions: for example, protection must be available for at least 10 years

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Industrial Designs

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Protection of independently created industrial designs that are new or original

Requirements for securing protection for textile designs are simple and not expensive

Industrial designs must be protected for at least 10 years. Owners of protected designs must be able to prevent the

manufacture, sale or importation of articles bearing or embodying a design which is a copy of the protected design

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Geographical Indications

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A place name is sometimes used to identify a product. This “geographical indication” does not only say where the product was made. More importantly, it identifies the product’s special characteristics, which are the result of the product’s origins

Well-known examples include “Champagne”, “Scotch”, “Tequila”, and “Darjeeling”

Using the place name when the product was made elsewhere or when it does not have the usual characteristics can mislead consumers, and it can lead to unfair competition. The TRIPS Agreement says countries have to prevent this misuse of place names

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Undisclosed Information

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Trade secrets and other types of “undisclosed information” which

have commercial value must be protected – against breach of confidence – and other acts contrary to honest commercial

practices – provided reasonable steps were taken to keep the

information secret

Test data submitted to governments in order to obtain marketing approval for new pharmaceutical or agricultural chemicals must also be protected against unfair commercial use

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Curbing Anti-Competitive Licensing

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terms of a licensing contract could restrict competition or impede technology transfer

governments have the right to take action to prevent anti-competitive licensing that abuses intellectual property rights

governments must be prepared to consult each other on controlling anti-competitive licensing

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Technology transfer

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Developing countries in particular, see technology transfer as part of the bargain in which they have agreed to protect intellectual property rights.

The TRIPS Agreement includes a number of provisions on this. – For example, it requires developed countries’

governments to provide incentives for their companies to transfer technology to least-developed countries.

Page 51: the role of the african regional intellectual property

TRIPS: Objectives

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Protection and enforcement of IP rights should contribute to the promotion of– technological innovation – transfer and dissemination of technology

to the mutual advantage of – producers and – users of technological knowledge

in a manner conducive to – social and – economic welfare, and

balance of rights and obligations

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INDIA as an Example

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The evolution of the Patent System in India, especially after the 1970s

is an example how a country can use meet the challenges and create

opportunities

Due to this, India has emerged as a global player in the pharmaceutical

industry, especially as a supplier of world-class generic medicines

across the globe

Now, Indian companies are moving up the value chain by investing

heavily in basic research.

Reference: Paper by Dr Dharam Vir, Ranbaxy Laboratories Limited

(2008): On Management of Intellectual Property & Technology Transfer.

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History of Patent Protection in India: Pre-1970

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1856 The Act VI of 1856 on protection of inventions based on the British Patent Law of 1852. Certain exclusive privileges granted to inventors of new manufacturers for a period of 14 years.

Provided for process as well as product patents in all areas 

1859 The Act modified as Act XV; patent monopolies called exclusive privileges (making, selling and using inventions in India and authorizing others to do so for 14 years from date of filing specification).

1872 The Patents & Designs Protection Act.

1883 The Protection of Inventions Act.

1888 Consolidated as the Inventions & Designs Act.

1911 The Indian Patents & Designs Act.

Page 54: the role of the african regional intellectual property

History of Patent Protection in India: Post-1970

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1972 The Patents Act (Act 39 of 1970) came into force on 20th April 1972.

No products patents in pharmaceuticals, food and agrochemicalsPatent term: shorter of 7 years from the date of filing or 5 years from the date of grant

1994 India signs the GATT and TRIPS Agreements - obliged to grant product patents in all areas

1998 India becomes member of the PCT with effect from 7th December 1998

1999 On 26th March 1999, Patents (Amendment) Act, (1999) came into force with effect from 1st January 1995.

Mail-box applications

2002 The Patents (Amendment) Act 2002 came into force from 20th May 2003

Patent term 20 years from the date of filing

2005 The Patents (Amendment) Act 2005 came into force from 1st January 2005

Product patents in all areas

Page 55: the role of the african regional intellectual property

Case Study: RanbaxyCase Study: Ranbaxy

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• Amongst the top 10 global generic companies • Presence in 23 of the Top 25 pharma markets of the world• Ground Operations in 49 Countries• Products Available in over 125 Countries•Global Sales for the year 2005 at US$ 1178 Mn• International revenues contribute 75% to sales

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Strategic Growth DirectionStrategic Growth Direction

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US $ 1 Bn

US $ 5 Bn

US $ 2 Bn2004

2007

• Amongst the Top 5 generic Companies

• Significant income from proprietary products

2012

• Growth through

- Organic

- Inorganic

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Global PresenceGlobal Presence• Largest market• Robust product pipeline• Strong distribution network

• 2nd growth engine• Developing Pan - European presence• Key markets of UK, France & Germany• Presence in 21 of 25 EU countries• Acquisition of Terapia, an independent generics company in Romania in 2006, the largest acquisition of Ranbaxy so far

• Emerging markets• Strong home base in India • Estd. Infrastructure Brazil, Russia, China •and South Africa

EUROPE

BRICS

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Ranbaxy’s MissionRanbaxy’s Mission

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To Become a Research Based International Pharmaceutical Company

– Focus on Research

– Go Global

– Stay a Pharmaceutical company

Each key word in the Mission Statement has IP connotation

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Indian Pharmaceutical IndustryIndian Pharmaceutical Industry

Indian pharma sector meets almost 95% of country’s pharmaceutical requirements

Globally it ranks 4th in terms of volume and 13th in terms of value in 2005 ($ 6.5 bn)

It was expected to be 9.5 bn by 2010

Secured 22% global generic market

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Opportunities Created by IPOpportunities Created by IP– Significant boost to local R&D expertise– Opportunities for collaborative work, thus bringing in

cutting-edge technologies– Local companies can move up the value chain instead of

always working at bottom with very little return on investment

– Local companies can own IP, without too much capital investment (attract venture capitals, etc), which can then be leveraged.

– Companies in the third world such as Ranbaxy, are moving up the value chain by investing heavily in basic research.60

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Ranbaxy’s Patent Filings

61

127

185

170146

4986

32240

20

40

60

80

100

120

140

160

180

200

1999 2000 2001 2002 2003 2004 2005 2006

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Impact of the Patent Act of 1970

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Pharmaceutical Sector– India was able to develop a robust and self-reliant pharmaceutical industry

not much technology import– Well developed chemical infrastructure

Year Market share of Indian Cos.1970 10-20%1983 50%1993 61%

2003 ~70% Limitations:

– Restricted Indian companies to the domestic markets or to countries that did not have a strong patent system

– The relatively small (USD 5 billion) and very fragmented Indian market (top player has <6% market share) meant companies had to look outside India for growth

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IP Awareness

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Ranbaxy recognized very early that IP awareness is an imperative, not only in global context, but also nationally.

Change IP scenarios in various countries was anticipated and necessary action was taken well in time.

Products and processes were designed to be free of any IP issue with respect to others’ IP

Also, organizational IP assets were to be protected under new patent laws

– As a tool for excluding competition

– Add value to products and processes: out-licensing opportunities

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IP Awareness

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IP knowledge must not reside in select pools; it must pervade the organization

All key functions must be keyed in so that their the activities are “IP enabled”

– Scientists– Manufacturing – Analytical teams– Regulatory & Quality Assurance– Marketing– Business Development– In- and Out-licensing– Sourcing teams

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Patent Portfolio Management

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All resources – money, time, and manpower are heavily involved– Maintaining a patent portfolio in several countries is an expensive

proposition An objective patent portfolio management policy needs to be in place in order to

employ these resources rationally Regularly review portfolio and identify – separate wheat from chaff Take hard decisions

– Patents need to have commercial value or at least potential– Look at the portfolio of patents and applications objectively and

dispassionately – Technical team’s input is all important while filing, but the business team

has a large say in national phase filings, maintenance, etc.– Kill what needs to be killed, at any stage

Put in place a publication strategy

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Globally Competitive Companies

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Becoming a global player, with a presence in the advanced markets, is an imperative for any Indian company in whatever area

– The size of the domestic market necessitates this

– In most areas, North America + EU + Japan account for more than 80% of the global market

Being IP compliant is a necessity to operate in these markets IP-savviness is the next step from being just IP-compliant Many of these are increasingly becoming cost conscious Many globally successful Indian companies have shown it is possible

to be IP-compliant and cost-effective at the same time.

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Promotes Research and Innovation

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A strong patent system ensures that there is an equitable return on investment on research & development

– Having a lax patent system is not one of the options being considered by governments for making medicines more affordable

– More and more innovative products and processes are coming out of smaller but nimble companies whose only asset is their IP

A lax patent system will ultimately ensure that any innovativeness is nipped in the bud; not good, not only for industry but for the public at large

– A case of killing the golden goose– Developing a new drugs cost USD 600-800 million from lab to market

A stronger patent regime abroad has actually helped Indian companies develop & hone their reverse-engineering skills

A stronger system at home will only promote greater innovations in India Several Indian companies have recognized this and have invested

considerably in R&D

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Moving Up the Value Chain

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Indian companies have moved up the pharmaceutical value chain in the last decade

– From manufacturing APIs using off-patent processes to discovering NCEs of their own

– At each stage, IP generated has been protected by patenting them

– This has provided Indian companies with opportunities for

Out-licensing products and technologies

Getting royalty payments Virtual exclusivities Garner a greater market share in

advanced markets through supply agreements

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Other International Examples Other International Examples

Iran:Iran: Advances in AgricultureAdvances in Agriculture Biotechnology Biotechnology MachineryMachinery PetrochemicalsPetrochemicals Brazil: Brazil:

Sugar refinerySugar refinery EthanolEthanol MachineryMachinery PharmaceuticalsPharmaceuticals AviationAviation

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Other International ExamplesOther International Examples

IndiaIndia ICTICT PharmaceuticalsPharmaceuticals

South Korea:South Korea: ICTICT AutomobilesAutomobiles AgricultureAgriculture MachineryMachinery

Page 71: the role of the african regional intellectual property

Other International ExamplesOther International Examples

China:China:All the aboveAll the above

Malaysia:Malaysia:Transition from Transition from

peasant to peasant to industrialized nationindustrialized nation

Agriculture Agriculture Automobile (Proton)Automobile (Proton)

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Example from Zimbabwe

Scientific and Industrial Research and Development Centre(SIRDC)

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Brief Background and Mandate

73

Established in 1993 through the provisions of the Research Act of 1986, amended in 1988

SIRDC falls under the Office of the President and Cabinet (OPC) The Centre is headed by a Chief Executive Officer (Director General) The Centre’s mandate is to:

• Carry out strategic research and development (R&D) for the benefit of manufacturing, service, agricultural, mining sectors

• Collaborate with local and international institutions to strengthen local R&D capacity and its application to industrial processes

• Adapt imported technology to suit local needs• Provide consultant services to local and regional enterprises• Serve as a repository and disseminator of information on technology

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Linking Research to Business(Commercialization)

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1. SIRDC Vision: To be the leading Centre for the development of Zimbabwe and the region through reduction to practice of technologically developed products and processes.

2. SIRDC Mission: To provide Zimbabwe and the region with technological solutions for sustainable development.

3. Aligning the Strategic Plan to the new business approach: Stage Gate® Process

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STAGE-GATE® PROCESSDRIVING NEW PRODUCTS TO THE MARKET

Stage1

Preliminary investigation

Gate2

2nd Screen

Stage2

Build Business case

Gate3

Decision on Business Case

Stage3

Development

Gate4

Post-development

Review

Stage4

Testing & Validation

Gate5

Pre-commercialization Business Analysis

Stage5

Full production & market launch

Post implementation review

Gate1

Initial Screen

Ideation

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Key Characteristics of SIRDAMAIZE 113:

It is a three-way hybrid with short anthesis silking interval (-1)

White dent grain, early maturity (+_ 136 days) and drought tolerance

Tolerance to major foliar diseases such as maize streak virus, grey leaf spot and maize rust

Also performs well under well-watered conditions

High yielding and suitable for drought prone regions in Africa and beyond

BRANDS DEVELOPED BY SIRDC

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SIRTECH Investments

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Four Business Units (SBUs) Four Business Units (SBUs) operated under SIRTECH:operated under SIRTECH:

1.1. SIRTILE: making low cost roofing SIRTILE: making low cost roofing tilestiles

2.2. SLATE: supplying schools with SLATE: supplying schools with science and laboratory and science and laboratory and teaching equipmentteaching equipment

3.3. SIRMET Founders and Engineers: SIRMET Founders and Engineers: using a 1.5 tonne induction furnace using a 1.5 tonne induction furnace to cast and machine spares and to cast and machine spares and components for the mining, components for the mining, agriculture, manufacturing, agriculture, manufacturing, construction, transports sectorsconstruction, transports sectors

4.4. SIRDAMECTIN: dual purpose animal SIRDAMECTIN: dual purpose animal antibiotic that kills both internal antibiotic that kills both internal and external parasitesand external parasites

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Roofin

g tile

s

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SIRMET Founders & Engineers

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SLATE – Supplying schools since 2003

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SIRDAMECTIN - Antibiotic for Livestock

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Gamma Juices:Gamma Juices:The SIRDC Stage® Gate team formulated more than 25 juices of international standards and quality but based on extracts from local fruits.Business plans in place.Ready for Commercialization.

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SIRDC Brands

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Concluding Remarks

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Creativity & Scientific R&D activities yield patents and other IPRs which are valuable economic assets

Measures of R&D activity include size of budgets, ownership of IP instruments (e.g. patents, trademarks, designs) or peer reviewed publications

Countries with strong IP management infrastructure have globally competitive industries and economies (e.g. USA, Germany, Japan)

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Concluding Remarks

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Based on 2006 Figures (US$Billion)Four largest spenders in R&D Were: USA: 343 EU: 231 Japan:130 China: 115

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Concluding RemarksIn terms of % GDP Top R&D Spenders were: Japan – USA – EU

With approximately 3.2%, 2.6% and 1.8% respectively

Developing country funding for R&D remains very poor hence the weak Intellectual Property Systems and Portfolios and, ultimately their inability to compete at industry, country and global level

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Concluding Remarks The national brands of the most developed countries are to a

greater extent derived from the powerful global brands of their corporations e.g. Coca Cola, PEPSI, NIKE, MICROSOFT, SAMSUNG, HYUNDAI, HONDA, TOYOTA, BAYER AG, SIEMENS, MERCEDES BENZ, etc..

Key stakeholders in government, industry and research in developing countries should therefore work to build the requisite IP infrastructure to attract FDI, spur economic development, and develop brands that can compete at home and abroad

SME’s must seize the opportunity and invest in IP so that economic benefits from their IP Assets accrue to the organization and the country through improved profitability, or through licensing and technology transfer activities in the global arena

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I Thank YouI Thank You