14 May 2002

Presentation to:

Portfolio Committee on Trade and Industry and the Select Committee

on Economic and Foreign Affairs

(Adv. FDM Malunga)

14 May 2002

Companies and Intellectual Property Registration Office (CIPRO)

CIPRO Overview

Contents

• Background to formation of CIPRO– History– Establishing CIPRO as Business Agency (Trading

Entity)

• A drastic new strategy– Vision– Mission– Strategic goals

• Functional Structure• Offerings/Products• Projects• Statistics

BACKGROUND

Formation of CIPRO

A merger in 2001 of:

South African Companies Regulatory Office (SACRO)

&

South African Patents and Trademarks Office (SAPTO)

CIPRO Business Agency

• Principle approval by Cabinet - May 2001• Trading entity approved by National Treasury -

March 2002• CIPRO Management board established• Appointment of board members - under way• Establishement of new structure under way -

including Group support services• Programme Management Office (PMO)

established to support the establishment of the trading entity and operations

OFFICIAL LAUNCH 30 JULY 2002

A DRASTIC NEW STRATEGY

Vision:

Gateway to economic participation

Gateway:

One-stop shopGlobal participation

Economic:

Empowering business (SMME, others)End product

Participation:

GrowthEmpowerment SuccessQuality SMME, BEE

Mission:

CIPRO will facilitate economic empowerment through:

Striving to achieve and maintain world class status Efficiency, service excellence and achieving customer satisfaction

Stimulating economic growth and promoting investor confidence in synergy with the DTI Synchronising relationships and partnering with stakeholders on Issues of common goal

Providing consolidated products and services at a central point

Registration, promoting and maintaining of Intellectual Property Rights and Business Entities through a legal framework that provides protection and the flow of information Generating, sourcing, sharing, interpreting, protecting and disclosing information

Optimising opportunity for personal growth of CIPRO people and providing organisational development that facilitates a culture of performance

Strategic Results Areas

1. Providing a regulatory framework for economic participation

2. Organisational transformation

3. Customer interface

4. Forming business partnerships

5. Moving towards self-sustainability

Strategic Results Areas (1) :

1. Providing a regulatory framework for economic participation

Including:

International agreements (IPR) Regional cooperation (SADC) Registration, a legal responsibility that is mandated Playing a role in the larger regulatory effort as a partner with other regulatory bodies

Strategic Results Areas (2):

2. Organisational transformation

Including:

Developing efficient and effective business processes, especially full e-lodgement Putting effective business systems in place Utilising appropriate technology to perform effectively Developing the right skills base required for efficient operation Establishing and practicing corporate governance Establishing change management procedures

Strategic Results Areas (3):

3. Customer interface

Including:

Customer relationship management Marketing Branding Creating awareness through education

Strategic Results Areas (4):

4. Forming business partnerships

Including:

the dti International business partners External stakeholders SADC, though influencing decisions

Strategic Results Areas (5):

5. Moving towards self-sustainability

Including:

Moving towards financial independence from treasury Utilising surplus funds to promote economic participation:

SMME BEEWoman empowermentEmpowering rural communities

Contribute to economic growth

Our Values (1):

1. Business Values

Customer and stakeholder driven Do it right the first time Take ownership Use resources optimally Have pride in what we do

“Let’s be World class”

Our Values (2):

2. People Values

Fostering motivated people to achieve healthy relations Mentor and develop people unselfishly Treat people with uncompromising truth Embracing cultural diversity New ideas shape our future

““Batho Pele” ”

Alignment to the dti’s strategic objectives

• Ensuring Black Economic Empowerment (BEE)

• Improving global competitiveness

• Improving market access

• Eradicating poverty and racial, gender and regional inequities

• Nurturing Small, Medium and Micro Enterprises (SMMEs)

• Improving growth in the SADC region

• Improving operational efficiency

• Encourage woman empowerment

C o m p an ies

C lose C orp ora tio ns

D isc lo su re

C o m p an ies D iv is ion

P a te n ts

D e sig ns

T rad em arks

C o py r ig h ts

In te llec tu a l P ro per ty D iv ision

H u m a n R e so urces

F in an ce & P rocure m e nt

ICT

P ro je c t M an ag e m e nt O ffice

C o m m u n ica tio ns

Q u a li ty a ssu ran ce

L e ga l S erv ices

B us ine ss E n g ine e ring

C u s to m er C on ta ct

S up p or t S erv ices

C E OA d v . F D M M a lun ga

C IP R O B o a rd8 m e m b e rs

Functional Structure

LEGAL FRAMEWORK

Intellectual Property(Laws Administered)

Patents Act (Act 57 of 1978) Trademarks Act (Act 62of 1963 and Act 194 of 1993) Designs Act (Act 57of 1967 and Act 195 of 1993) Copyright Act (Act 98 of 1978) Registration of Copyright in Cinematography Films Act

(Act 62 of 1977) Merchandise Marks Act (Act 17 of 1941) – amended

2002 Intellectual Property Laws Rationalisation Act (Act 107

of 1977) Counterfeit Goods Act (Act 37 of 1997) Performer’s Protection Act (Act 11 of 1967) Unauthorised use of Emblems Act (Act 37 of 1961) Stem van Suid-Afrika Act (Act 2 of 1959) Vlaglied Copyright Act (Act 9 of 1974)

Companies(Laws Administered)

Companies Act (Act 61 of 1973)

Close Corporations Act (Act 69 of 1984)

Share Blocks Control Act (Act 59 of 1980)

Business Names Act (Act 27 of 1960)

Rationalisation of Corporate Laws Act (Act 45 of 1996)

Other Legal Issues

Legislation needed Enabling legislation for e-lodgement and e-disclosure

- passed 2001 Legislation iro effective ways of payment for services

- to be passed 2002 Legislation to introduce annual returns to secure and

ensure ongoing database integrity - to be passed 2002 Corporate law reform

Long term project to start during 2002 DTI, through CCRD policy unit, to steer project

involving Standing Advisory Committee on Company law

Intellectual Property Copyright amendment bill Various other ad hoc

PROJECTS

Projects (1)Initiated:• Conversion to a trading entity

• CIPRO Business Plan & Strategy

• Hand over project

• Safety and Security

• Establishment of PMO

• Revenue Collection project

• Financial system

• Billing system

• ICT Improvement Plan

• IT Performance Team

• Supplier Service Level Agreements

• IT administration and management project

• Company Registration

• Benchmarking

• Annual Returns

Projects (2)

• Market launch

• Moving of files and refurbishment

• Customer contact centre

To be initiated:• Data integrity project

• Disaster Recovery

• Automation of administration processes

• Establishment of Business Process Engineering

• HR issues

• Establish new business culture

• Implementation of performance management

DIVISIONAL ISSUES

Intellectual Property(Divisional Issues)

Achievements: Improvement in Software. Operations manager appointed in 2001. Correspondence system implemented and monitored. Clearing of backlogs in new applications (™). Clearing of backlogs in mail. Temps and students from institute helping until new staff is recruited. Automated certificates in Patents, Designs, Renewals and Assignments.

Clearing of backlogs: Business plan drawn up to eliminate the Trademark backlog stemming

from the 1980s. System problems that caused backlogs are being addressed

Benchmark revealed 5 year backlog in Netherlands

New Initiatives(Intellectual Property)

• Becoming an international player

• Electronic Searchable Patent Journal

• E-lodgement, IP searching facilities on Internet

• Automated Certificates for Trade Marks

• Bench-marking exercise to commence shortly

Companies(Divisional Issues)

• Record number of registrations• Backlogs with new registrations resolved• Functioning of helpdesks changed to better serve client

needs• New lay-out for reception area and refurbishment started• Sixty students trained on CO and CC registrations re

Para-Legal studies• Benchmarking exercise conducted• Companies project charter defined with quick wins from

benchmarking• Unit dealing with data integrity defined• Business division structured to enhance performance

New Initiatives(Companies)

• Simplify Names reservation procedure• Search for similar names only• Principal business to be irrelevant

• Review CIPRO processes to accommodate e-access

• Lodgment of single copy• Eliminate duplicate copy• Issue a certificate for the client

• Electronic disclosure requests

• Re-introduce annual returns• Enforce compliance• Data Integrity

STATISTICS

Offerings

• Registration of Companies• Amendments to Company information• Registration of Close Corporations (CC)• Amendments to CC information• Disclosure of Company & CC information

• Registration of Patents• Registration of Trademarks• Registration of Copyrights• Registration of Design• Disclosure of Intellectual Property information

• Name Reservations• Name Objections

Registrations (1999 to 2002)(Companies Division)

0

20000

40000

60000

80000

100000

1999 2000 2001 2002

New CC's

New Co's

86148

27776 31512 30140

7591969755

2002 CC registration figures are already 20 % more than the previous years, an estimated 100 000 registrations may take place this year.

35202

10927

Statistics for 1999 - 2002(Intellectual Property Division)

0

5000

10000

15000

20000

25000

30000

1999 2000 2001 2002

Trade MarkApplications

PatentsApplications

23846

7879

25617

7793

21904

10560

59233458

International Applications from selected developing countries

(Intellectual Property Division)

0

500

1000

1500

2000

2500

Rep

. O

fK

ore

a

Ch

ina

So

uth

Afr

ica

Ind

ia

Sin

gap

ore

Bra

zil

Mex

ico

1998

1999

2000

2001

South Africa has been dealing with PCT applications (international applications) since 1999.South Africa ranked third with PCT in 2001 after the Republic of Korea and China.

Statistics for 2002 (Intellectual Property Division)

Trade Marks Jan Feb Mar AprNew Applications 1356 1525 1405 1637Certificates 1143 1739 2664 4210Patents: New Applications 906 806 831 915Certificates 296 325 390 514Copyright: New Applications 8 6 6 6Certificates 17 3 0 4Design: New Applications 124 129 112 114Certificates 77 131 104 76

(Adv. FDM Malunga)

14 May 2002

Thank you - Questions ?