WIPO-TCCIA WORKSHOP ON INTELLECTUAL PROPERTY FOR BUSINESS FOR SMEs Dar-es-Salaam, Tanzania, May 10 and 11, 2005 Why do SMEs Need Intellectual Property Tools: Objectives, Programs and Activities of the Small and Medium-Sized Enterprises (SMEs) Division of WIPO Christopher M. Kalanje, Consultant, SMEs Division, WIPO

OVERVIEW Facts About SMEs WHY SMEs and IP WIPO Activities for SMEs CONCLUSIONS

Facts About SMEs contd. No universally accepted definition Criteria used include –Level of sales revenue (turnover); Number of employees; Value of physical assets; Debt facilities; Ownership structure etc. Decision is on government/institution based on one or more criteria

Facts About SMEs contd. SMEs by number of employees

Facts About SMEs contd. –Tanzania Micro- Capital > TShs. 5m (approx. USD 5K); Small- Capital TShs. 5m - 200m (approx.USD 5K - 180K); Medium- Capital TShs. 200m - 800m (appr. USD 180K - 730K) –European Communities Micro- Annual Balance Sheet EUR. 2m (approx.. USD 2.5m); Small- Balance sheet EUR. 10m (approx. USD 13m); Medium- Balance sheet EUR. 43m (approx. USD 56m)

Facts About SMEs contd. SMEs Innovation Trade Investment Social Tranquility Job Creation Economic Growth

Facts About SMEs contd. SMEs form the bulk of enterprises in most economies SMEs contribution toward economic growth of countries is widely recognized SMEs have the potential of doing better than their current performance

Why SMEs and IP Studies show that SMEs do not effectively use IP SME users of IP system are often limited to high tech, biotech, information and communication technologies enterprises Increasingly large companies include SMEs in their cooperate strategies

Why SMEs and IP contd. Globalization Revolution in ICT Change in strategy; - Shedding away - Effective use and managing of information

Why SMEs and IP contd. Removal of trade barriers has increased competition both local and international The playing field (market) is more bumpy i.e competitors differ in size and assets, financial capacity, human and organizational capacity e.t.c.

Why SMEs and IP contd. Price and location are taking back seat as main factors of competitive advantage Efficient management practices, creative and appealing designs and ability to market are becoming a necessity if one wants to succeed in the market place Technological edge plays critical role especially in high-tech industries

Why SMEs and IP contd. INTANGIABLE ASSETS in particular INTELLECTUAL PROPERTY TAKING A CENTRAL STAGE

Why SMEs and IP contd. INTELLECTUAL PROPERTY Stimulate investment in new areas of R & D Facilitate identification of products by consumer i.e consumer royalty Facilitate partnerships Enhances competitiveness

WIPO Activities for SMEs WIPO SME Division: Established in October 2000 Objective: To strengthen the capacity of governmental, private and civil society institutions worldwide to formulate and implement policies and strategies for meeting the IP needs and concerns of SMEs

WIPO Activities for SMEs contd. STRATEGY Focus on new areas Cooperation & partnership Target new audience Create simple, SME-friendly products Gather and provide processed information Strengthen outreach activities of IP offices

WIPO Activities for SMEs contd. Mode of delivery - Taking IP issues to non-traditional audience - Bringing business community to IP events - Launching SME web site

WIPO Activities for SMEs contd. Mode of delivery - Launching e-newsletter - Reaching out to partners e.g. Chamber of commerce, SME associations, SME support institutions etc. - Contributing articles to WIPO magazine

WIPO Activities for SMEs contd. –Making a Mark: An Introduction to Trademarks for Small and medium-sized Enterprises (Arabic, Chinese, English, French, Italian, Portuguese, Russian and Spanish) Products (Guides)

WIPO Activities for SMEs contd. –Looking Good: An Introduction to Industrial Designs for Small and Medium- sized Enterprises (Arabic, English, French, Italian, Portuguese and Spanish)

WIPO Activities for SMEs contd. Translation and customization: Under way, –16 Countries members of the OAPI*, Kenya, Tanzania –Algeria, Egypt, Israel, Lebanon, Morocco, Tunisia * L'Organisation Africaine de la Propriété Intellectuelle (Benin, Burkina Faso, Cameroon Central Africa, Congo, Cote d'Ivoire, Equatorial Guinea, Gabon, Guinea, Guinea Bissau, Mali, Mauritania, Niger, Senegal, Chad and Togo)

WIPO Activities for SMEs contd. –Australia, India, Indonesia, Malaysia, Mongolia, New Zealand, Philippines, Vietnam –Canada, Czech Republic, Estonia, Finland, Hungary, Ireland, Italy, Malta, Poland, Slovakia, Spain –Argentina

WIPO Activities for SMEs contd. Guides under preparation –Inventing the Future (Patents) –Creative Expression (Copyright) –IP Valuation –Domain Names –Trade Secrets –Patent Information

WIPO Activities for SMEs contd. Joint publications with International Trade Centre (ITC) –Marketing Crafts and Visual Arts: The Role of Intellectual Property. A Practical Guide (English, French and Spanish)

WIPO Activities for SMEs contd. –Secrets of Intellectual Property: A Guide for Small and Medium-sized Exporters (English, and Spanish)

WIPO Activities for SMEs contd. –Exchanging Value: Negotiating Technology License Agreements: A Training Manual

WIPO Activities for SMEs contd. Exporting Automotive Components: A Guide for Small and Medium-sized Enterprises

WIPO Activities for SMEs contd. –Secrets of the Pharmaceutical Industry: A Guide for Small and Medium- sized Exporters ( A Chapter on IP is under preparation)

WIPO Activities for SMEs contd. Other Publications (commissioned to external experts) –Guía del Empresario: Marcas e Indicaciones Geograficas –Intellectual Property Rights for the Toy Industry in India (Funded by UNIDO)* – Intellectual Property Rights for Machine Tools Industry in India (funded by UNIDO) * United Nations Industrial Development Organization

WIPO Activities for SMEs contd. CD-ROM Products –South Asian Association for Regional Cooperation (SAARC) CD-ROM on IP for SMEs: The project is expected to be completed 2005 –IP Panorama: Multi-Media Interactive CD-ROM Product (in collaboration with Korean Intellectual Property Office-KIPO and Korean Inventors Promotion Agency- KIPA

WIPO Activities for SMEs contd. Feedback The SMEs web site has been linked to several business and academic web sites Increased interest on IP issues evidenced in non-traditional IP activities Increased collaboration with other institutions

Conclusion Increasedawareness and effective use of IP system Enhance SMEs competitiveness Positive impact in economic development

Finally