As intellectual property (IP) is increasingly becoming the basis of modern economies, with many tangible benefits of ideas and developments no longer directly linked to physical products, South Africa’s copyright law needs to be amended to provide improved protection for innovators, says legal firm Spoor & Fisher partner Paul Ramara.
New developments and innovations are necessary for economies because they create new products and foster economic development, which, in turn, leads to new jobs and companies being formed. IP is, thus, a considerable economic asset, which is currently reflected on the balance sheet of many companies.
“South Africa must encourage its people to think about the benefits of innovation. Without innovation, we are going nowhere. We must recognise the importance of IP in our economies and improve IP protection to ensure that we protect our economic development and reap the benefits of IP.”
Changes to South Africa’s Copyright Act No 98 of 1979 and the Intellectual Property Laws Amendment Act No 38 of 1997 are needed, as they do not cater for modern realities, such as the problem of jurisdiction with regards to digital piracy and IP theft, which are often international in scope.
“Currently, a breach of IP rights requires the holder to prove the subsistence of copyright in his or her work. This means that, different to other types of IP, copyright is not registered with the result that a considerable onus rests on a copy- right owner to produce factual evidence to prove that copyright exists in a work before it is possible to delve into allegations and evidence on infringement.”
Further, the changing nature of economies and digital dissemination are resulting in more legal transactions being done online with the same convenience as peer-to-peer networks that illegally disseminated files.
However, the changing nature of economic activities is exposing gaps in existing legislation that protects ownership of and revenue resulting from the IP.
South Africa can draw on existing legislation from the UK and the US, and on international best practices with regards to the subsistence of copyright and dealing with digital piracy, says Ramara.
“IP theft and digital piracy have significant ramifications for the economy, especially in South Africa, where most artists, for example, rely solely on revenue from selling their music and art. This type of theft will result in fewer local artists, who will subsequently produce less art and music pieces, owing to their not receiving remuneration,” he warns.
Consumers must be made aware of the con-sequences of digital piracy and sensitised to its effects on the local economy.
All new companies, small businesses and artists should register the trademarks of their business as a starting point to protect their IP. This is especially important for start-up businesses because they may become successful, but then not have recourse to the law because they have not registered their trademarks and IP. We often tend to ignore IP, despite its significant financial importance and the importance to the reputation of a business.”
Companies who are unsure about IP and IP protection in their business or sector should consult an IP expert. Companies should register their trademarks, patents and designs as a starting point, concludes Ramara.
World IP Day took place on April 26, during which the life-changing innovations of innovators and artists were celebrated.