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21 – 22 February 2013 Kinshasa, Democratic Republic of Congo Fernando dos Santos Director General - ARIPO 1 Building a Strong Foundation for the Growth of Customized African Products and Services – Perspectives from ARIPO
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Outline African Products and Services African Products and Services Strategies to exploit African resources Strategies to exploit African resources Role of IP in adding value to African Products Role of IP in adding value to African Products Nr. 1: Branding - Trademarks Nr. 1: Branding - Trademarks Nr. 2: Branding - Geographical Indications Nr. 2: Branding - Geographical Indications Nr. 3: Copyright Nr. 3: Copyright Nr. 4: Designs Nr. 4: Designs ARIPO Objectives/Mandate ARIPO Objectives/Mandate About ARIPO About ARIPO Membership Membership Purpose and Objectives Purpose and Objectives ARIPO Mandate ARIPO Mandate Some IP Related Tips to Add Value to African Products Some IP Related Tips to Add Value to African Products 2
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African Products and Services Africa: Availability of arable and fertile land Very rich in traditional and cultural heritage Abundant biodiversity and genetic resources These provide the continent with unique products which can be customized using intellectual property as a tool to benefit its own people. 3
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Strategies to exploit African Resources Strategy 1: Increase production and export commodities Result: oversupply and reduction of prices of commodities Strategy 2: Establishing new processing and manufacturing plants to add value to African products through processing Result: Africa industrialization was not achieved African processed products are not competitive 4
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Strategies to exploit African Products (2) Africa industrialization Value addition trough processing …. Not yet sufficient to add value to African products! 5
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6 Assembling Plain packaging Grinding Must be complemented…
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Pre -industrial eraIndustrial era The « knowledge economy »
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Role of IP in adding value Intangible assets are becoming more important IP management moves to the center of the management strategies Focusing on the intangible value of the African products seems to be the solution to add value to those products Leveraging on the image, name, reputation or unique quality of the African products means capitalising the intangible value of the African products 8
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Nr. 1: BRANDING! Don’t sell cocoa…sell branded chocolates! Branded vanilla Branded Coffee Branded honey 9
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Central role of brands in business strategies,, February 20, 2014 BIDCO company – Kenya Controls 61% cooking fat and 54% cooking oil market in Kenya Presence in 16 countries in Africa CEO, Mr. Vimal Shah, richest man in Kenya BIDCO brand was established in 1970 The Firm has acquired various brands that have given competitive edge locally: over 30 brands BIDCO bought KIMBO (Unilever) and ELIANTO (Unga, Ltd) 10
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Nr. 2: Geographical Indications Designation used on goods that have a specific geographical origin and possess qualities or a reputation that are due to that location. GIs consists of the name of the place of origin of the goods. Agricultural products have qualities that derive from their place of production and are influenced by specific local factors, such as climate/soil. Examples: 11
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Potential GIs in Africa Kenya: Black Tea, Arabic Coffee, Cut flowers, Kiisi soap, Stones, Ornaments, Wamuny Handcrafts, Fermented Liquors and Wild Silk Kenya: Black Tea, Arabic Coffee, Cut flowers, Kiisi soap, Stones, Ornaments, Wamuny Handcrafts, Fermented Liquors and Wild Silk Mauritius: Damerara Sugar, Baie Topaz, Red beans, Piment Rodrigues, Bois Cherie tea, Tai SO litchi, Cut Flowers Roddrigues Honey, Rhum st Aubin, Café de Charmarel Mauritius: Damerara Sugar, Baie Topaz, Red beans, Piment Rodrigues, Bois Cherie tea, Tai SO litchi, Cut Flowers Roddrigues Honey, Rhum st Aubin, Café de Charmarel Rwanda: Coffee Rwanda: Coffee Uganda: Vanilla Uganda: Vanilla Zambia: Honey Zambia: Honey Zimbabwe: Tea, Fruits Zimbabwe: Tea, Fruits Source: M. Blackeney, Source: M. Blackeney, Study on potential GI goods in some African countries, 2011 12
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Creative/Cultural Industries Industries that combine the creation, production and commercialization of contents which are intangible and cultural in nature (UNESCO) UNCTAD CLASSIFICATION: Traditional cultural expressions: arts/crafts, festivals, celebrations Cultural Sites: archaeological sites, museums, libraries, exhibitions Visual arts: paintings, sculptures, photography, antiques Publishing and print media: books, press, other publications Design: Interior, graphic, fashion, jewellery, toys Performing arts: live music, theatre, dance Audiovisual: film, TV, radio New media: Software, video games, digitalised creative content Creative services: architectural, advertising, cultural, recreational 13
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Potential of Creative Industries Market size Worldwide: 2.2 Trillion Dollars/year Accounts for 7% World’s GDP Africa has a comparative advantage in creative industries Africa share in creative economy: less than 1%! (North African countries and South African reaping more) Nollywood (Nigeria) : $500m revenue/year (5% GDP) ; 1 million jobs African entrepreneurs must embrace African creators to harness from their creativity and generate wealth in the continent 14
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Designs Designs are what makes a product attractive and appealing; hence, they add to the commercial value of a product and increase its marketability. 2014: Cape Town designated “World Design Capital” Recognition to cities that have effectively employed design as mechanism through which to improve social, cultural and economic life. This suggests that Africa should use the cultural element of design as a tool for progress 15
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ARIPO Objective/Mandate Patents and Utility Models Industrial Designs Trademarks Copyright Access and Benefit Sharing Geographical Indications TK and folklore Plant Variety Protection Harare Protocol (1982) Banjul Protocol (1993) Swakopmund Protocol (2010) Council Min (2002) Draft Regional Framework National Frameworks Regional Framework (2014?) 16 Objective: Harness and pool resources together on intellectual property related matters Africa.
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About ARIPO ARIPO: African Regional Intellectual Property Organization Established: December 9, 1976 (as ESARIPO) Instrument of creation: Lusaka Agreement (in Zambia) Headquarters: Harare, Zimbabwe Member States (18): Botswana, Ghana, Kenya, Lesotho, Liberia, Malawi, Mozambique, Namibia, Rwanda, Sierra Leone, Somalia, Sudan, Swaziland, The Gambia, Uganda, United Republic of Tanzania, Zambia and Zimbabwe COMESA Member States at ARIPO: 8 17
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Membership Note: Membership open to UNECA and AU Members 18
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Some IP Related Tips to Add Value to African Products Policy level: National/Regional development and innovation/industrial policies must prioritise IP Development branding strategies at the Regional/National Level Company Level: Incorporate IP approach into the business strategies Use IP tools: brands, GIs, Industrial Designs, Copyright to add value to the commodities produced Entrepreneurs Associations/Chambers of Commerce Promote awareness Promote use of IP by entrepreneurs 19
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Need to embrace Intellectual Property Rights as tools to add value and brand products and services for far better rewards and results for Africa overall economic development 20
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ARIPO Address: 11 Natal Road, Belgravia, Harare, Zimbabwe Tel: +263 4 794 065 /6/8/54/74 Fax: +263 4 794 072 Email: fsantos@aripo.orgfsantos@aripo.org mail@aripo.org Website: www.aripo.org a 21
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