1. CHALLENGES & ISSUES: LOCAL CONTENT PRESENTATION ON LOCAL CONTENT DEVELOPMENT: MAY 2014 PRESENTER MR M NETSHITENZHE: CHIEF DIRECTOR, (the dti, South Africa)

2. PURPOSE  To share some of the challenges and possible solutions that are encountered in trying to develop Intellectual Property (IP) Right provisions and systems for local content creators.

3. DISCUSSION POINTS  Introduction  Development Agenda  Cultural Identity  Multi-cultural diversity  Legislative framework  Type of Government  Size of Internal Market  Trade Agreements  Regional Arrangement and National priorities  Developed Countries  Developing Countries  Succession of Government and their international Obligations  South Africa Legislative framework and enforcement  Conclusion

4. Introduction -It is an open secret that all types of government deal with broadcast media somewhat- Lyn Gailey 2012 (attached article) -Discussion will be based on three articles attached. One by Lyn Gailey, French Films Quotas and Privacy Policy about Music in Australia (27/05/2014).

5. Discussion  Development Agenda -South Africa must be bold and legislate on this matter like the EU, and other developed and developing countries. This will develop local industries without bordering on protectionism. France is a good example for enacting quota system for local play with a view to protect, develop and promote local industries. This is good for development as long as it is done within the applicable rules of the regional arrangement  Cultural Identity - Local content development can be done with deliberate purpose to stimulate cultural identity. Australia and New Zealand are good examples. In Australia this is done with a reflection of the Aborigines’ and Europeans’ cultures as per requirements of licensing conditions. In the case of New Zealand, it is forced not to reflect the cultural dimensions of the Aboriginal people. The reason is that it is threatened by big trading partners that it will be contravening its international obligations. THIS IS NOT TRUE!

6.  Multi-cultural diversity -In South Africa this is a Constitutional requirement and therefore to legislate for quotas and local content in that context. No international obligation will be flouted and Government should not enter into bilateral, regional or international agreements that undermine this perspective  Legislative framework  Type of Government - Both totalitarian and democratic government legislate for these issues  Size of Internal Market -United States and India are good examples of countries that have a big internal market and they seem not to be bothered to implement for quota system and local content. It is not known whether multi-diversity is properly reflected in those countries. Nigeria is promoting its film industry very fast it may go the Indian/US route, not known. Trade Agreements

7.  Regional Arrangement and National priorities -EU is a good example of a regional arrangement where these issues are catered for through directives. Member states are allowed to legislate within the regional arrangement. France’s quota/local content is 40% whilst that of the EU is 60%. SADC and AU should start to move in that direction.  Developed Countries Developed countries also do this- SEE ATTACHED LIST  Developing Countries -Developing countries do this in order to achieve their developmental needs-SEE ATTACHED DOCUMENT WITH SUCH COUNTRIES  Successive Government and their international Obligations -Government should not enter into international agreements that will make it difficult for a successive government to follow a developmental agenda

8.  South Africa - South Africa is still at an embryonic stages in these matters and it must move with ease as precedents are galore. In the area of Music, the dti is encouraged to persuade DOC-Postal-Telecommunications to legislate for a higher percentage (80%) and 50% for public and private radio stations. SADC and AU should also legislate and the EU model may be informative  Conclusion South Africa does not have reasons not to cater for these issues speedily.

9. THANK YOU