Basic Principles of Intellectual Property Rights at the KENGEN Eastern Hydro Communities of Practice & Innovation(COPI) Kamburu 16th March 2017. By Reuben K Langat Senior Patent Examiner. Kenya Industrial Property Institute rklangat@kipi.go.ke info@kipi.go.ke

Types of Property Tangible Property Fixed property such as Land or a House Moveable tangible property include car watches e.t.c Intangible intellectual property.

Introduction: What is Intellectual Property (IP)? IP refers to creations of the human mind. Such as inventions, literary & artistic works, and symbols, names and images used in commerce. These are thoughts or ideas in the intangible form which can be converted into tangible products and protected as private rights known as intellectual property rights(IPRS)

Intellectual Property Rights (IPRS) IPRS are a set of legal rights (monopoly) granted by national or regional governmental authority to creators of new ideas which are worth being protected

The Role of the Patent System Provides incentive to disclose, thus preventing hold out of new ideas for the benefit of society. Provides the inventors/ innovators an opportunity to recover Research & Development investment It gives an incentive to discover more

What are intellectual Property Rights? The main branches of Intellectual Property Rights are: Industrial Property Rights which covers; Patents & Utility Models(or short term patents) for inventions Industrial Designs for aesthetics features of a product

Intellectual Property Rights continued Trademarks – for signs capable of distinguishing goods(or services) produced by one enterprise from those of others Copyrights/Related rights-given to creators for their literary & artistic works(Databases, films, paintings, advertisements, maps & technical drawings sculpture, photographs)

Intellectual Property Rights (IPR) continued Plant Breeders Rights for new plant varieties Geographical Indications (sign used on goods that have a specific geographical origin & possess qualities or reputation that are due to the place of origin eg. Champagne, tequila.

Intellectual Property Offices Kenya Industrial Property Institute(KIPI) administers Industrial Property ( Patents, trademarks, Utility Models, Industrial Designs, and Geographical Indications Kenya Copyright Board (KECOBO) is responsible for copyright & Related right. Kenya Plant Health Inspectorate Services (KEPHIS) is responsible for Plant Breeders rights ( new plant varieties)

The Role of Kenya Industrial Property Institute To grant Industrial Property rights for Patents, trade marks, Utility Models, Industrial Design. To provide/disseminate Industrial Property Information to the public To promote Inventive & Innovative activities in Kenya To screen technology transfer agreements & Licenses

What is a patent? An exclusive legal right(Title) granted by Governmental Authority for an invention that is:New (novel) Non obvious (involves an inventive step) Capable of industrial application Duration: 20 years from filing date Territorial right Requires sufficient disclosure of the invention

What is an invention? An invention is a solution to a technical problem which may be a device, product method or a process that provides an incremental improvement of known technology, or (Technically complex solution to a problem) It is granted after sufficient disclosure and a claim of a technical solution to a problem.

What is a Utility Model? A utility model is an invention that is less technically complex used in industry, agriculture, environmental conservation and which may relate to structure or assemblages of articles. It is sometimes called petty or small patent or innovation patent or short term patent. They are incremental inventions or small adaptations to existing products . It must be new Be Industrially applicable

Patent/Utility Model Application Fees PATENT(Kshs) UTILITY MODEL (Kshs.) Filing fee (full specification 3,000 1,000 Provisional application filing fee 500 Publication fee Registration fee Examination fee 5,000 n/a Annual renewal fee -2nd year – (varies according to years) 2nd -20th year 1st -10th year

Differences Between a Patent & Utility PATENTS UTILITY MODELS Protection for 20 years Protection for 10 years Must meet three criteria for grant: (1) New (Novelty), (2) Inventive step (3)Industrial Application(useful) Must meet two criteria for grant: (1) New (Novelty) (2) Industrial Application (useful) Expensive to obtain & maintain Cheaper to obtain and maintain Advanced non obvious improvements (Technically complex inventions) Small adaptations to existing products . (Technically less complex inventions)

Industrial Designs Protection (ID) protects aesthetic features of a product(outward appearance) of a product e.g bottle containers, watches, packaging, cars etc. Must be new, original and have an individual character Adds value to the product by making it more appealing to consumers.

Industrial Designs Protection Enables customization of products to specific markets or target groups (e.g. women, children, etc.) It encourages fair competition & honest trade practices Industrial Designs strengthens brands Duration: 15 years subject to renewal every 5 years.

Examples of Industrial Designs

Importance of IP Protection to Companies Competiveness Competition by firms is based on ability to provide high value added products and services. Companies need to improve their efficiency, reduce production costs & enhance the reputation of their products by: Investing in research and development Acquiring new technology Improving management practices (TS) Developing creative and appealing designs (

Continuation of IP Protection to Companies competitiveness Patent protection gives them Market exclusivity (greater market share). To enable them recover Research &Development investments Facilitates licensing and Acquisition or sale of the technology through assignment. Advantageous negotiating tool during Mergers, Initial Public Offers (IPO)

Continuation of IP Protection to Companies competitiveness Higher market value and publicity IP protection can be used to raise funds from banks International expansion to access new markets–due to globalization& trade liberalization IP protection enhance the image or reputation of the company It is a sources of revenue stream through licensing.

Importance of Intellectual Property Rights for Company Competitiveness Companies have realized that new innovative ways of production are a key factor to maintain their competitive edge. To optimize this potential companies now protect their: innovative products as patents /utility models Artistic & Literary works & publication as copyright

Importance of Intellectual Property Rights for companies continued The companies have developed creative Designs as Industrial Design Rights Developed Distinctive Signs as Trademarks/Service marks Trade secrets for undisclosed Information of commercial value. These rights can create enormous property value and a strong competitiveness through monopolistic & exclusive nature

Factors determining the success of a new product in the marketplace The product that provides functional advantages easily succeed in the market Fair prices & Attractive design Reputation of brand (goodwill/loyalty) Available in the main retail shops Consistent product quality After-sales services

Technology & Company Competitiveness Only companies that continue to provide new and better products and services at the lower price will be competitive, profitable& maintain an edge in a market economy A better product may result from improved patented manufacturing process that increases cost effectiveness by reducing production time using fewer resources; Patented technology can give additional income from Licensing or assignment

Technology & Company Competitiveness A company can access technology through cross-licensing by negotiating cross-license agreement using own patents authorize each other to use under specified conditions. For companies it is advisable to obtain technology from others instead of investing time & funds to find a new solution; Technology & Company Competitiveness

Technology & Company Competitiveness It is cost effective, Saves time Rely on better manufacturing capacity of licensor A means of turning a potential infringer into an ally or partner

Conclusion Without intellectual property protection there is a strong risk that investments in R&D, product differentiation and marketing will be wasteful

Conclusion Intellectual property enables Companies to have exclusivity over the exploitation of their innovative products, their creative designs and their brands, thus creating an appropriate incentive for investing in improving their competitiveness Ignoring IP protection may prove too costly to the company in the long term.

THANK YOU FOR YOUR ATTENTION.