Intellectual property – it’s your right to protect yours
24/04/2009

Most industries have been formed around intellectual property, like the cell phone and the computer industries. The value of a business like Microsoft is in its intellectual capital, of which intellectual property forms a significant part.

For consumers, a brand guarantees a certain standard and quality in the products purchased or services provided, which serves to distinguish one product or service from another.

Intellectual property, although intangible, is a valuable asset on the balance sheet of any business - in many cases exceeding the fixed property of the business in actual marketable value.

Even in everyday life, intellectual property may not be as remote as we may think.

For example, one’s morning workout is in a pair of PUMA trainers and NIKE shorts and T-shirt. Back from the gym you toast WOOLWORTHS bread in a SALTON toaster – which enjoys design protection - get into the shower and use PALMOLIVE soap, brush your teeth with AQUAFRESH toothpaste before getting into your VOLKSWAGEN TIGUAN vehicle to go to work. This vehicle uses innovative charged engine technology like no other vehicle in its segment - made by using certain inventions which may be protected by patents. The design of the vehicle’s bodywork could be protected by a registered design. On the way you may listen to music on your iPod and talk, using BLUETOOTH communication, on your BLACKBERRY cell phone.

All of this is part of everyday life and, to a greater or lesser extent, is based on the fruits of someone else's ideas – an individual’s intellectual property.

Intellectual property rights include trade mark rights, copyright in artistic, musical and literary works, design rights in functional and aesthetic designs and patent rights for inventions.

Once individuals have created something that may be the subject of intellectual property, it becomes essential to ensure that this creation remains their property –- relying on registrations where possible – if they are to benefit from their intellectual efforts.

“Intellectual property rights have huge value. To the innovator or creator they provide a mechanism to recover research and development costs and to reward ingenuity,” says Chris Job, Chairman of Adams & Adams, leading intellectual property law firm.

“In South Africa, for example, the Kreepy Krauly case is a shining example. Had Ferdinand Chauvier, the creator of this internationally acclaimed pool cleaner not registered the fruits of his idea, he would probably not have reaped the benefits.”

“Today numerous retailers stock the Kreepy Krauly range of products. Kreepy Krauly exports to Canada, the United States, Europe, the Middle East, Africa, Australia and the Indian Ocean Islands. Over 1,5 million cleaners have been sold internationally.

“As intellectual property has such great value, it is important to concentrate on protecting it. From a business perspective, registered protection for the trade marks, patents and designs that you create is very important.

“Protecting and enforcing these rights is as important as registering them.”

“Counterfeiting is a serious crime in South Africa but prosecution of traders in counterfeit goods is becoming increasingly common, with prison sentences of up to three years per item seized and/or a fine of R5 000 per item on a first offence. On a second offence, it goes up to five years and/or R10 000 per item. This certainly augurs well for rooting out counterfeiting.

“The Commercial Crime Court’s recent sentence of a fine of R80 000 or one year imprisonment, plus a further two years imprisonment suspended for five years, for contravening the Counterfeit Goods Act, is reassuring.

“This sentence followed a substantial anti-counterfeiting operation conducted by Unilever over a year ago in Johannesburg, when Thornton’s Packaging was found to be in possession of 28 700 of 250g JOKO counterfeit tea boxes. The boxes were to be used for counterfeit tea brands.

“Each of us can make a contribution to stop counterfeiting and related crimes. We can do so by not purchasing counterfeit goods and not contributing to the welfare of the crime syndicates that are often involved in their sale. Furthermore, if you see fake goods, report them to the brand owner or authorities so that action can be taken,” says Job.
For more information visit www.adamsadams.com or phone 012 432 6000.
Chris Job
Partner
Adams & Adams
chris@adamsadams.co.za