It is essential to ensure that a strong intellectual property (IP) framework is in place as South Africa moves from a resources to a

knowledge-based economy, Derek Hanekom, the Minister of Science and Technology, said yesterday.

The minister was making the opening address at the 3-day Creating and Leveraging Intellectual Property in Developing Countries (CLIPDC) conference in Durban yesterday.

The conference is being attended by government officials, policy experts, academics and entrepreneurs from South Africa and Africa, and developing and developed countries.

“Intellectual property can be an effective lever for development, particularly for a country like ours, with the commitment we have made to migrate from a resource-based economy to a knowledge-based one,” Hanekom said.

“Over the years, the engine of wealth creation has been shifting from physical, tangible assets to intellectual capital, or intangible assets, he said, adding that competitive advantage was created “through the strategic management and use of IP.”

Countries that had introduced strong IP protection had flourished, Hanekom said.

“International benchmarking exercises clearly indicate that countries such as South Korea and China have developed their economies primarily through government intervention in their local systems of innovation to build on their competencies in manufacturing. There is a strong correlation between their economic growth and their patenting rate.”

IP VITAL FOR SUSTAINED DEVELOPMENT

ISSUE 01

By RAYMOND JOSEPH

The IP system was an important catalyst for developing an indigenous technology by Korean companies, several of which have become global market leaders. It has also seen the country transform poor farming economy in the 1960s, with a per capita income of less than US $100 to today’s highly industrialized country with a per capita income of US $12,000.

IP was a relatively new concept for many developing countries and public research institutions and South Africa had only passed enabling legislation in 2010, with the National Intellectual Property Management Office (NIPMO), subsequently set up to implement the new Act.

“The introduction of this legislation was brought about by the realisation that South African publicly financed research institutions collaborate on a global scale with countries that have strong IP regimes. In cases where our IP regimen shows signs of not being watertight, IP may be lost through collaboration agreements,” Hanekom said.

Failures to protect IP could result in billions of dollars in lost revenue, he said, citing the dolos, invented by East London engineer Eric Merrifield to protect harbours by dissipating wave velocity.

“It was never protected and it is found all over the world today and is worth billions,” Hanekom said. Our efforts to create a strong IP regime are geared towards ensuring that such avoidable losses never again occur.”

Minister of Science and Technology Derek Hanekom (Left) and Astrid Ludin, Commissioner of CIPC (right) opened up the conference

For inventor Michael Suttner his eureka moment in his search to invent a low cost

lighting source came when he spotted a simple water filter screwed into a plastic bottle.

He realised that before him was the solution to the conundrum that brought together the different elements he had already discovered, into his uniquely African lighting solution.

These included flexible, rapid charging solar panels that give 40 hours of light after eight hours of charging in sunlight and have a life of four to five years, plus a micro lithium ion battery.

“I saw the filter fitted into the water bottle and everything I had been investigating and thinking about suddenly crystallised in that moment,” says Suttner.

He already knew the World Health Organisation stats of how the poorest people in Africa, with an average salary is $1 to $2 a day, were spending 20 percent of their daily income on lighting, equating to a mind boggling R380 billion annual spend. And, again according to the WHO, how 2 million

LIGHTBULB MOMENT IN A cOkE BOTTLE

By RAYMOND JOSEPH

people were dying each year of pneumonia induced by paraffin fumes.

It also answered two other big problems Suttner, a mechanical engineer by training, was trying to solve: how to distribute his product without incurring huge manufacture and transport costs?

Known as The Lightie, his simple, but ingenious, light is designed to fit into an easily available receptacle – the ubiquitous plastic cool drink and water bottles found all over Africa.

His aim is to produce the product in South Africa and is working on a cost price of $2 to $3 and a retail price of $8 to $10 making it, with the savings on paraffin and candles, very affordable to even the poorest.

“Coca Cola is available all over Africa, so there is no shortage of plastic bottles and I also hope to do a distribution deal with them for the actual product,” said Suttner, who has been chosen to pitch his product for seed funding at this week’s CLIPDC conference.

Michael Suttner with his invention, in front of a shack, the kind of home in which many of his target audience live

Julia Hill @MsfJuliaHillRussia’s Boris Simonov describes his country’s new system for electronic patent examination, says South Africa welcome to technology #CLIPDC Geekulcha @Geekulcha“You can’t really depend on one patent. Build a portfolio of patents” ~@mcleansibanda #clipdc Innovation Café @cafe_innovationIt appears as though organisations are getting hungry for innovation through social collaboration! #CLIPDC SharonK: Editzone101 @Editzone101Ambiguity of inventions result in bad quality inventions #clipdc Julia Hill @MsfJuliaHill#BRICS #IP offices take the stage at #CLIPDC. Can @the_dti use this cooperation to #FixPatentLaw in South Africa to promote access to meds? Socially Acceptable @SocialyAceptbleThe patent system is meant to be an enabler says Mclean Sibanda at#Clipdc Mwena tweets @MwenaFiluWhat makes a quality patent: phillips and sasol’s view an eye-opener plus practical examples on good and bad patents #CLIPDC The Innovation Hub @InnovHub#clipdc Our CEO @mcleansibanda is currently moderating a panel “a corporate view of what makes a quality patent” #IP Geekulcha @GeekulchaPatents are an expensive process but are a great way of protecting your product #clipdc Given Mavhase @Giv_Mavhase“A strong IP regime boosts investment” Min of Science & Technology D. Hanekom #CLIPDC Southern Sun Elangeni Hotel Durban Socially Acceptable @SocialyAceptbleTraditional or indigenous knowledge is an imporatant part of Intellectual Property in a country explains Min Derek Hanekom at#CLIPDC IT Varsity @ITVarsityLooking forward to an exciting few days at opening of #CLIPDCbeginning today! Delegates from the world will connect and collaborate with us

WORD ON THE TWEET

Not too complex – and with an extremely clear scope.

These were two of the key criteria named by industry players yesterday, when asked what makes for a good quality patent.

Speaking during the panel discussion, A Corporate View of What Makes a Quality Patent,

three industry leaders also cited the value of a patent, as well as its legal and protection value as key criteria which they apply in considering patents.

The three - Roy Waldron (Chief Patent Counsel, Pfizer Corporation), Maaike Van Velzen (IP & Standards General Manager, Phillips Group Innovation, Netherlands) and Morne Barradas (Lead IP Legal Advisor: Risk and Compliance, Sasol Group Services, Sasolburg, South Africa – shared their insights with moderator McLean Sibanda, CEO of The Innovation Hub of Gauteng-Province and President of the International Association of Science Parks.

“There are many aspects to what makes a quality patent,” said Van Velzen.

“It is also about the portfolio that it is a part of. Generally you would have a portfolio of patents protecting your innovations, starting with the broad scope patents, going through to the more specific embodiments that you really need to make the invention work.

WHAT MAkES A QUALITY PATENT?By SUE SEGAR

“The quality of the patent is, for example, in how the scope is in relation to the invention you have made. There must be clear and concise terminology used – it must be very clear what the scope is and what you are trying to protect and that there is true enablement; that there is information in the patent on how you would work the invention and how it really could be embodied in the product in the end.

“Those are important aspects of quality of patents. Looking at portfolio, it is also important to look into the geographic spread. Usually we would look into portfolios that have a global spread as those are the ones that are most valuable in terms of IP protection.”

Barradas said that, from Sasol’s perspective, a key factor to consider would be the value connected to that patent. “This includes the legal value - so it must be an enforceable patent. It must also meet the novelty and inventive steps as these are obviously major patentability criteria.

“It must also have protection value – so that it actually protects your technology in relation to your business strategy.

“Where exactly they fit into your portfolio would determine which are your more valuable and less valuable patents.”

Another factor to consider in terms

of patents, Barradas continued, was the commercial value of a patent. “One must look at where the patent paves the way for joining efforts and joint research collaboration or partnering. It can also assist in licensing and cross-licensing when it is addressing a specific competitor problem.”

Waldron painted a picture of a complex set of patenting needs in the pharmaceutical arena.

“When we look at the particulars of the pharmaceutical sector, we start right at the beginning: we work with small molecules and biologics that have therapeutic effects. We don’t just develop these … we also devise mechanisms for introducing them into the body, formulations and new ways of using biologics, all aimed at having a therapeutic effect.”

A good patent in the pharmaceutical industry had to address the entire process of

development, Waldron said.“A patent is a right to exclude competitors

from practicing your technological advance for a certain period of time. That right to exclude is only as good as the environment, particularly the legal environment, in which it finds itself…

A quality patent is a patent that can stand up in court – valid and enforceable and results in measures that actually compel a competitor to not reproduce your invention at the same time as you are producing it.”

BRICS in the wall ... a five nation video hook-up during an interactive session at the CLIPDC conference yesterday looked at the different initiatives being undertaken by BRICS patent offices, as well as areas of potential co-operation.The high-powered panel consisted of (from top left) Boris Simonov, Director General of Federal Service for IP, Russia, Denise Gregory, Director of Cooperation for Development, INPI, Brazil, Chaitanya Prasad, Controller General of Patents, Designs and Trademarks, India and Wu Kai, DG of the International Cooperation Department of SIPO, China. Astrid Ludin, Commissioner CIPC of South Africa was also on the panel.

I t is essential for Intellectual Property systems throughout the world to strive to benefit not only the “large” players but also the “small”

players in industry, because small and medium enterprises are the future economic engine of the US, Europe and the rest of the world.

This was the strong view put across by Mark Guetlich (Senior Counsel for International Policy and Government Affairs, US Patent and Trademark Office) yesterday.

Guetlich was speaking during the panel discussion entitled The Effect of the National Patent System on the Perceived Investment Value of a Patent at the CLIPDC Conference, currently underway in Durban.

”I cannot emphasise enough the importance of accommodating an Intellectual Property system, copyrights, trademarks, industrial design and patents … all for the benefit of large players and small players, not favouring one over the other, for procurement and for enforcement.

“It is a very delicate balance but it is one that is essential because small medium enterprises are the economic engine of the US in the future,” Guetlich said.

“Supporting this innovation cycle is what we are fundamentally about. It is why we made changes to the American Invents Act, to fine-tune the US system.”

Guetlich, who shared a platform with Stephen Sammut (Professor at the Wharton School of Business and Burrill Venture Partner, James Pooley (Deputy Director-General: Innovation and Technology Sector at the World Intellectual Property Organisation (WIPO) and Elena Zdravkova (Senior Manager, Patents and Designs, Companies and Intellectual Property Commission, South Africa.)

Guetlich, who spoke extensively about the recent (March 2013) reconstitution of the US patent laws into America’s new American Invents Act, said the changes had developed over “several decades of discussion” in the US.

“It is not something that happened turning on a quick discussion. Much debate and consultation and effort went into it. After years of public and legislative debate, the US did not change the fundamental aspects of the Constitution, but it did update something very important that the US has developed which is that, for the first time ever, they converted to a First to File system.

“This now brings all countries in the world together in alignment and fundamentally on the same page. No longer is there a US First to Invent system.

IP cAN BENEFIT SMALL PLAYERS TOO

By SUE SEGAR

“We are all First to File systems. That opens up an opportunity that is significant across all countries. “Every country is developing its own national IP systems but we must also be aware of the world-wide multi-national environment that we live in that is part of a world-wide economy. The alignment of laws must exist for that multi-national economic environment to exist.”

Guetlich said as the US developed its AIA, a number of issues had come to light:

“It is no longer something that is perceived as only constructed for large industry. One of the key components of the AIA is to level the playing field for large enterprise as well as the small inventor and we also take specific account of the micro entity, the individual inventor. One key aspect of that is the fee system that graduates those three levels. “Fundamental aspects like this are absolutely critical to make the patent system, and the Intellectual Property system accessible and available to all inventors and all innovators.”

Guetlich said the changes were the first made in the system in 150 years. “So it is not a constant evolution. It is a very studied process and we encourage South Africa to participate in that studied process and we look forward to that continued discussion together.”

The Pretoria-based Zdravkova said that, in applying principles developed n the US in South Africa, it was crucial to consider the

differences in economic development. “Nevertheless, some of those principles have helped us as we move to change our law in such a way that we can reap economic benefits for all citizens.”

PROTEcTING INDIGENOUS kNOWLEDGE

T he hijacking of rooibos and hoodia by foreign companies highlights the

need to protect indigenous knowledge and plants, says traditional medical practitioner Ephrahim Mabena.

Mabena heads up the Mamelodi-based Mothong Heritage Trust, which has partnered with several government departments and academic institutions to protect and exploit indigenous knowledge.

The Cosmeceutical collaboration has resulted in a pilot project that has seen the creation of a range of cosmetics, including sunscreen and wrinkle creams, made from indigenous plants.

The project, which is showcasing its products at this week’s CLIPDC, has already seen five students receiving bursaries to study agriculture and has created 80 short term community jobs collecting plants and clearing a site to establish an indigenous plant nursery.

“The government started the projects because they wanted indigenous knowledge holders to work with educational institutions,” says Mabena. Among those

By RAY JOSEPH

collaborating with the Mamelodi community in the pilot project are the CSIR, the departments of Science and Technology and Agriculture and the universities of Pretoria, Cape Town and KwaZulu-Natal.

“In the beginning people were very worried that their indigenous knowledge would be stolen because of exploitation that happened in the past, but now they can see there is nothing to worry about and how they can benefit,” says Mabena. “We are learning lots about processing, packaging and marketing our products and protecting our intellectual property.”

He said they had learned “a lot from hoodia” – a cactus indigenous to South Africa that was widely exploited without the Khoisan, who had used it for centuries, benefitting.

“This project has armed us with the knowledge to protect ourselves,” says Mabena. “But it is sti l l going to be a long process because lots of indigenous knowledge holders cannot read or write.” Hoodia parviflora

Stephen Sammut

Mark Guetlich

WELcOME TO THE DELEGATES

C hristiaan Taljaard has been an inventor most of his l ife – and now he’s set his

sights on producing low cost solar energy solutions to bring l ight and power to poor households across Africa.

Other products under development are solar powered TVs, fridges and stoves and his products currently use 54 percent local content, with a target to take this up to a minimum of 75 percent.

And an important part of the strategy of his company, Ecovest, is to also develop a model that turns small businesses – l ike spaza shops – into suppliers and agents for his products.

“We did our research and set out a business case, and then we made the product f it. The entire process was demand driven,” said Taljaard. “We have moved beyond the development stage and are now into the growth stage.”

“What we have set out to do is to deal with primary needs using micro energy solutions for l ighting, heating and cooking and our target is people l iving off grid and we deal with primary needs,” says Taljaard.

In South Africa there are hundreds of settlements without access to power, with inhabitants dependent on candles

POWER TO THE PEOPLEBy RAY JOSEPH

for l ighting and paraffin or wood fires for cooking, he says.

“In Africa 600 mill ion people use candles for l ighting and poor South Africans can easily spend R100 a month on candles.

“Our solution entails fitting a five watt solar panel on the roof and a controller inside your shack. The light costs R495 and after six months it’s paid for and then your lighting is free from then on. The TV kit, which includes the TV, a solar harvest device and a battery system costs R3730, while a solar powered fridge will cost around R4,500.

Part of the Ecovest strategy is to create micro entrepreneurs. So if you can’t afford the full kit, you can buy just the light and swop out the depleted battery for a charged one at the local spaza shop – as you would a gas canister – for a mere R1.50.

The systems, which are all metal, can be manufactured off grid from a kit anywhere in the world and Taljaard hopes to interest African governments in setting up plants at a cost of around R475,000.

“Everything can be manufactured on site without the need for power.” Christiaan Taljaard, inventor of low cost solutions to power Africa

LESSONS FROM GLOBAL ENTREPRENEURS

T he last session of the day at any conference traditionally host the least

exciting speakers or thought-leaders. That certainly was not the case at the end of the first day of the CLIPDC Conference.

The distinguished panel included Professors Robert Langer and Alexander KIibanov who joined the Conference via video l ink from the Massachusetts Institute of Technology (MIT).

Moderating the session was conference co-chair Sherry Knowles – Principal of Knowles IP Strategies and also on the panel was Professor Dennis Liotta of Emory University.

The objective of the session: To understand how great entrepreneurs made global impacts through their consistent learning and development.

The panellists related their own first foray into their related industries and the journeys they had taken to create products or ideas that benefitted many and, prompted by the great facilitation of Knowles, shared wisdom

By NAZAREEN EBRAHIM

to emerging and aspiring entrepreneurs in Africa and the Developing World.

Langer was clear in his advice on how to put together a company if one is an aspiring entrepreneur. “You want to start building that ecosystem. Start to build a plan for the future. Try to get people to make investments in South Africa. Also strengthen your universities; tremendous innovation comes out of universities where learning and development is robust and drives entrepreneurship.”

Klibanov was equally strong in his response. “With public policy and Government agencies, you want to start today. The idea that you run with doesn’t have to be something you invented. You can identify technologies developed by others; identify that unmet need and create the solution. Ensure that you have a business plan and then identify the best people to

Professor Dennis Liotta of Emory University

work this solution. Always keep an eye on the process, have an exit strategy and most importantly, protect your IP.”

Liotta, who was behind the development of one of the world’s most successful anti-retroviral drugs in the late 1980s in the midst of the Aids pandemic (and quipped that it came about through yet another mid-l ife crisis), provided a more dedicated approach. “Set up a cluster of development units around what you are doing. You are not asking your faculty to buy it out, but rather to invest into it. The only caveat: You need a focus. You need to have a focus and out of this, the impact could be significant.”

Moderator Knowles wrapped up the panel discussion by sharing her experiences from working through patent laws and policy making. “We need innovation, we need new drugs. You have to have laws to protect innovators and that’s why having strong laws means better access to better medicine.”

MINISTER cALLS FOR DEcISIVE AcTION

T he era of resource based economies was drawing to a c lose and i t wi l l

require a major reth ink by the deve loping wor ld i f they are to become knowledge based economies, Rob Davies, the Minister of Trade and Industr ies sa id last n ight.

“I t i s not only a quest ion of thought, but a lso the necess i ty to act with dec is iveness to ensure that our economies can der ive much required growth and the employment leve ls to combat poverty and inequal i ty,” he sa id.

Davies was address ing de legates at a g l i t ter ing banquet on the opening n ight of the Creat ing and Leveraging Inte l lectua l Property in Developing Countr ies (CLIPDC) conference in Durban.

The conference was “cruc ia l” to the deve loping wor ld as i t was yet to rea l i se the wealth that innovat ion and creat iv i ty could br ing to economies and a lso act as a spur to growth, he sa id.

The conference has brought together an ec lect ic mix of government po l icy makers, academics and entrepreneurs f rom both the deve loping wor ld and deve loped wor ld. They wi l l spend three days networking, learning and trading ideas around the i ssues of inte l lectua l property ( IP ) .

Davies announced the launch of a new CIPC IP Porta l , which was intended to become a “market p lace for innovators, t raders and se l lers of inte l lectua l property.

He a lso announced the launch of

By RAYMOND JOSEPH

the Techno-Preneurs Programme, which i s a partnership between the CIPC and the Technology Innovat ion Agency (TIA and wi l l a l low innovators in tech and other sectors to reg ister the ir ideas on a database.

Entrepreneurs whose ideas are accepted wi l l rece ive support to deve lop them further and they wi l l a lso be ab le to apply for funding to he lp them commerc ia l i se these ideas.

“The two offices will also support and capacitate these innovators – or potential innovators – in IP development, management, and also fund them where necessary.”

One problem was that deve loping countr ies were adopt ing IP systems from the deve loped wor ld that were not in l ine with the ir economic and deve lopmenta l rea l i t ies.

“For IP to be successfu l ly used as a power too l for economic and soc ia l growth, i t i s important that the power of partnerships between government, industry and the economic sector at the core of enabl ing instruments,” the minister sa id. This should inc lude strengthening capac i ty for po l icy coordinat ion and the establ ishment of sound IP systems and was re levant because governments spent s igni f icant amounts on research and academic inst i tut ions.

“I t i s important that what i s produced in research should be protected and

commerc ia l i sed to ensure improvement in our economies and innovat ion.”

The 5th BRICS Heads of State Summit in Durban ear l ier th is year endorsed a wide ranging Trade and Investment Cooperat ion Agreement that made spec i f ic provis ion for IP, Davies sa id. This inc luded:

* enhancing informat ion exchange on IPR leg is lat ion and enforcement; and

*promot ing cooperat ion between IPR off ices and jo int ly deve loping capac i ty programmes.

The DTI re leased the Draft Nat ional Po l icy on Inte l lectua l Property 2013 in September, which was intended, among other th ings, to br ing about an economic environment conducive to creat ing economic opportunit ies, deve loping a technology transfer s trategy to bu i ld domest ic opportunity and to engender conf idence and attract investment.

“Core to th is po l icy i s a lso rea l i s ing that the dynamics are changing so fast that i t i s necessary to ensure that we provide the necessary enabl ing environment for better opportunit ies and innovat ion, Davies sa id, adding:

“This po l icy a lso encourages coordinat ion between the government departments, agenc ies, academic and research inst i tut ions in the sphere of IUP to ensure that there i s uni ty of implementat ion and response to emerging chal lenges for an improved environment for innovat ion and soc io-economic prosper i ty.”

Rob Davies, Minister of Trade and Industries

This newsletter was produced by the team at HIPPO. www.hippocommunications.com

GLITz AND GLAMOUR