IP Models for Africa
Darren Olivier

Role of IP in Innovation
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•
•
•
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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 either
produces 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 Models
At 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 Models
contd
- 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 Models
contd
- 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 Models
contd
- 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

But
it starts with an audit.
it creates understanding, galvanises
interest, leads to control,
enables
opportunity

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