An analysis of the benefits of Patents registrations to the Nigerian Economy.

1. INTELLECTUAL
PROPERTY: PATENT
REGISTRATION AS A
TOOL FOR ECONOMIC
DEVELOPMENT
ADAEZE P. NWOBA

2. PRESENTATION OBJECTIVES
WHAT IS IP?
NIGERIAN PATENTS
IP AND THE ECONOMY
CHALLENGES OF PATENTS IN NIGERIA
POLICY RECOMMENDATIONS

3. Opening statement
• Now, more than ever, countries are transitioning from resource-
based economies to knowledge-driven economies.
• Nigeria has seemingly joined the bandwagon, as national
stakeholders are beginning to recognize the role of intellectual
capital as a catalyst for sustainable economic growth.
• This trend has become even more prominent considering the recent
coronavirus pandemic and the continued resilience of the knowledge
economy amid the drastic decline in oil prices.
• At the center of this renewed thirst for intellectual capital is the
primary footstool of innovation − the small and medium enterprise
(SME) sector.

4. What is Intellectual Property?
• Invention is not only the child of necessity, but the mother of human civilizations
• Intellectual property (IP) is an umbrella term referring to creation of the mind and expression:
inventions, literary and artistic works, symbols, names and images used in commerce.
• Main types of registrable Ips in Nigeria:
• Trademark – Trademarks Act 1965
• Industrial Design – Design and Patent Act 1970
• Copyright – Nigerian Copyright Act (Amended) 1999
• Patent – Design and Patent Act 1970
• International treaties and conventions on IP: Paris Convention for the Protection of Industrial
Property, the Berne Convention for the Protection of Literary and Artistic Works, the Madrid
Agreement Concerning the International Registration of Marks and the Protocol Relating to the
Madrid Agreement and the Agreement on Trade-Related Aspects of Intellectual Property Rights
(“TRIPS”) and WIPO-WTO Cooperation, among others.

5. Why Should IP Be Registered?
• Lockean “fruits of labor” argument: John Locke argued
IP is the fruit of one’s labor thus the inventor should be able
to own/commercialize/enjoy the fruit of his or her Labour.
Yet, some would see nothing wrong in pirating or making
count
• Incentive theory: Connects IP protection to the future.
This theory states that IP protection provides an incentive to
make new inventions, without which, society will not have
the high productivity and economic growth that generates
prosperity.
• Economic growth: Evidence has shown strong
intellectual property rights lead to increased trade flows,
foreign direct investment, creation and diffusion of
technology and other areas of international commercial
activity.

6. Patents
• Patents have evolved from the desire of inventors to have state protection for their know-
how against infringers in exchange for the inventor’s disclosure of their knowledge of such
inventions to the state.
• The patent system has now become a means to encourage disclosure of the invention in
order to facilitate further research and to ensure that new knowledge is made available for
economic development.
• A patent is a right granted to anyone who invents any new and useful process or
fundamentally impresses an existing process.
• An invention under the Nigeria Law is patentable if it is new, results from inventive activity
or an improvement of an already existing patent and is capable of industrial application.

7. Examples of
Global Patents
• Patent Name: "Peer to peer information
exchange for mobile communications
devices“ (Bluetooth) Jaap Haartsen 1994,
• Patent Name: “Navigation system using
satellites and passive ranging techniques”
(GPS); Roger L. Easton 1974
• Patent Name: "CRISPR-Cas systems and
methods for altering expression of gene
products“; (Gene Editing) University of
California
• Patent Name: "Electronic device“
(Iphone); Apple 2007

8. EXAMPLES OF
NIGERIAN PATENTS
• EMERGENCY AUTO TRANSFUSION
SYSTEM (EAT-SET): COL. OVIEMO
OVADJE (RTD.)
• COMPACTOR (HOSPITAL IN A BOX):
DR. SEYI OYESOLA
• INYE-1: SAHEED ADEPOJU
• ZEER POT: MOHAMMED ABBA

9. Benefits of Patents registration for the Nigerian
Economy
• The exclusivity patents registration bring allow the inventor to earn royalties and generate
income from licensing their IP assets. EUIPO 2021 Report has shown that SMEs that
possess Patent rights generate up to 68% more revenue than SMEs that do not.
• With AfCFTA, creatives and investors can have access to a larger market by extending the
territorial recognition and protection of Patents to its 54-signatory member territories.
• Investor confidence is boosted when businesses can demonstrate that they have protected
their valuable Patent assets.
• FDI leads to job creation, technology spillovers, increase in knowledge acquisition by locals,
exposure to international trade and creates competition in the local market

10. • The diagram above reveals that half of the top
10 economies by GDP also fall in the top 10
economies by International IP Index scores. This
reveals a positive correlation between economic
widespread proliferation include informal
prosperity and protection of intellectual property
rights.
• Nigeria has become a target destination and
transit route for counterfeit and pirated goods.
• Foreign and local traders flood the market with
cheap sub-standard fakes, while local
manufacturers illegally imitate products of
established brands.
GLOBAL ECONOMIES AND IP

11. Reality of the Nigerian Factor
• Data has shown a strong correlation between strong intellectual property rights and
economic development. Strong IP rights create an enabling environment for the
innovation necessary for economic stimulation.
• Unfortunately, Nigeria is home to one of the weakest intellectual property
protection regimes, which hampers growth prospects of our already weak economy.
• IP violation hinders economic growth by discouraging investment, decreasing
innovation, discouraging research and development, diminishing financial benefits
from creation, and may pose harm to consumers.

12. What hampers harnessing benefits of Patents
in Nigeria?
• In Nigeria, the registrar grants a patent without
thoroughly examining the actual invention.
• The only major examination carried out is to ascertain that
the documentation for the application was properly filed.
• The fact that one receives a patent grant in Nigeria does
not imply that the patent is valid.
• As the patent is open to challenge in court where the
patentee has the onus to prove the validity of the patent.

13. What hampers harnessing
benefits of Patents in Nigeria?
• There are no consolidated IP laws in Nigeria:
Patents and Design Act of 1990, the
Trademarks Act of 1990 and the Copyright Act
2004 (over 30 years old). Acts incompatible with
Trade-Related Intellectual Property Rights
(TRIPS), which introduced new international IP
rules and entered into force in 1995.
• Nigeria is not a strong IP-producing country.
According to WIPO figures, there were only
200 patents granted to Nigerians in 2018,
compared to 451 for South Africa.
• Patents granted to non-residents, i.e., foreigners,
in Nigeria, was 642, compared with 4,295 for
South Africa, which suggests more foreign
interest in South Africa than Nigeria.
• Inadequate appreciation of the benefits of IPR
protection in Nigeria

14. Statistics
• A weak IP protection regime hinders foreign direct investment(FDI), innovation, R&D and
technology transfer.
• The OECD discovered that the strength of a country's patent protection is positively correlated
to FDI inflows; a 1% increase in a country's patent protection correlates to a 2.8% increase in
FDI.
• OECD also discovered that a 1%increase in the strength of patent protection, correlates to a
nearly 1% increase in domestic R&D. In 2021, 0.2% of Nigeria’s GDP was committed to R&D.
• Patents assure consumers of the quality of the products they consume, many of which influence
human safety. Counterfeit goods like medicines, auto parts, food and beverages could cause
serious harm to consume

15. What hampers harnessing
benefits of Patents in Nigeria?
• Weak enforcement of Patents rights: Police, Courts,
Legislators, enforcement of contracts, corruption
• The Nigeria Industrial Revolution Plan (NIRP) states
that “Nigeria will respect all its intellectual property
commitments”, while the Federal Competition and
Consumer Protection Act recognizes the “validity of
a license granted by the proprietor of a patent”
(S.64). Creates the impression that “Nigerian
patents” are given preferential treatment over foreign
ones.

16. Policy recommendations
Harmonization and amendment of IP Laws
Intense awareness programs at innovative clusters like the Onitsha market in Anambra, Alaba International Market, Lagos, the
Kurmi market in Kano, Universities Science and Tech depts
A government program to encourage IP-backed financing: tech startups, MSMEs can use inventions as collateral (valuation
challenge can be solved by the creation of a standardized IP valuation model by the Trademarks, Patents, and Designs Registry)
Conduct of knowledge enrichment seminars for the Judiciary
Creation of a digital IP marketplace for innovators to sell or license their IP rights. Denmark adopted a similar strategy in 2007
with impressive results for its economy.
The platform will attract domestic and international investors who are interested in investing in Nigeria’s IP assets and can apply
to buy IP rights through the platform.
Increased collaboration between relevant government agencies: NIPC, CAC, FCCPC, NITDA, NOTAP
Creation of government sponsored innovation hubs to increase productivity of Nigerian inventions: Anambra State

18. Conclusion
• Robust property rights must exist before economic
exchanges can take place.
• Without rules on ownership and transfer of
properties, it’s difficult to engage in voluntary
commercial exchanges.
• Intellectual property rights provide incentives for
investment and wealth-maxim cooperation.
• IP Rights are a key legal foundation of a free market
economy..