Will a new IP law attract more patent registrations?

The following article was suggested by one of our readers—if theres an idea you would like us to cover, please submit it here. The government is in advanced stages to review the existing intellectual property (IP) law that was gazetted in 2009, as the country seeks to close gaps identified, according to a highly placed source. Besides the existing gaps, the law is meant to adapt some of the principles in the international legal instruments, conventions and treaties that govern IP matters so as to ensure that it responds to the needs of local creators as well as international business community. “The draft has been finalized but it has to go through the normal registration drafting process. It is at the level of being submitted to the cabinet,” the reliable source who preferred anonymity said. What it means Speaking to The New Times in an exclusive interview, Richard Kayibanda, Registrar General at Rwanda Development Board (RDB) noted that the new law will among others ensure that local firms can have protection beyond the country’s borders. Kayibanda highlighted that the government has so far ratified a number of international conventions enabling the copyright holders to protect their IP assets in other countries. “All that is being done to ensure that we have a more conducive regulatory environment for IP protection,” adding, “So if there are no mechanisms to help them protect their IP rights beyond the borders of the country, then they would not survive.” Kayibanda however decried that, even though the country has, for a couple of years, witnessed a positive trend, “there is still a long journey to go.” For instance, based on the current numbers, Kayibanda highlighted that there is still lower participation from local firms compared to foreign investors. From a legal perspective, however, Pius Nkunda, a lawyer with expertise in IP matters, doesn’t think that the reluctance of local firms was due to the loopholes in the present law. Rather he points out, “The reluctance was more as a result of lack of awareness and negligence from firms.” He added, “But still, there are some areas that I would like to see extensively addressed in the new law like issues of parallel imports.” According to Nkunda, there has relatively been good progress in terms of IP protection since the enactment of the IP Act in 2009. “But there is still need for more sensitization and training in learning institutions, private sector and professional bodies and through various media outlets about the importance of IP protection. Additionally, IP enforcement agencies need be regularly trained in this specialized area because there would be no purpose of registration if enforcement does not happen properly.” Alternatively, he argues that there is need for more involvement from associations of artists, association of manufacturers in protecting their creations and fighting any possible counterfeits. International IP day with a focus on SMEs Every year on April 26, the world celebrates International Intellectual Property Day and according to Kayibanda, in Rwanda, they have organized a number of activities in that regard. In Rwanda, like the rest of the world, the day will be observed under the theme ‘IP and SME’s taking your ideas to market’. Reports indicate that SME’s constitute more than 90 per cent of the business globally. “Protecting IP allows the business to be able to put on the market its services without others having to imitate and financially gaining from the same.” In Rwanda, he said, majority of the SMEs lack knowledge of IP law as well as expertise leaving many with no interest in registering their patents. While it is early to consider this year’s numbers, Kayibanda said that a total of 4098 IP assets were registered in 2020, down from 6461 in the previous year mainly due to the pandemic. He pointed out that out of those registered majority are from foreign investors. “So there is that, lack of knowledge, lack of expertise, but in terms of financial cost it is not expensive,” Kayibanda. Compared to the rest of the region, Kayibanda asserts that the government of Rwanda has the lowest financial cost of registering a patent. “Previously, the cost to register a patent used to be Rwf150,000 but now it is Rwf30,000. Generally, if you look at the fees, they are the lowest in the region.” Other measures put in place to inspire uptake by the local include, building local capacity. “We have been working with African Regional Intellectual Property Organization and World Intellectual Property Organisation to build local capacity.” In 2018 and 2019 we trained local patent drafters, he added. “From the start-ups to the academia, including some IP attorneys. The number is still small but at least we have a small number of people who can help local firms to draft some of these complex documents,” he said. SMEs speak out Entrepreneurs should seek to understand IP laws at a very early stage of their SMEs, I believe that this will encourage the spirit of creating new products & services and may even help form a healthy competition among innovators. This is according to Kevine Kagirimpundu, CEO and co-founder of famous local brand, Uzuri K&Y. On the other hand, Kagirimpundu thinks that “There is lack of understanding on what the structure of the law, entrepreneurs have to put so much effort to find out how the law can protect them and sometimes they find out about this law when they face related issues.” “SMEs should consider registering their creations because patents may stop others from commercially exploiting their creations, this is also very critical to SMEs in the creative industry.” Week-long activities To mark the IP day, RDB has organized week-long awareness-related activities, Kayibanda said. “Most of the events are virtual because of the Covid-19 pandemic, we have IP consultations and other webinars being organised”. In addition, he said, “We are coordinating with WIPO to ensure that local SMEs can participate in these webinars so that they learn how to use IP in their businesses.” The World Intellectual Property Organisation (WIPO) defines intellectual property as “creations of the mind, such as inventions, literary and artistic works, designs and symbols, names and images used in commerce.” In Rwanda, intellectual property is protected under Law N° 31/2009 of 26/10/2009 and Law N° 50/2018 of 13/08/2018 Amending Law N° 31/2009 Of 26/10/2009 on The Protection of Intellectual Property. This law protects the work of inventors, innovators, creators of industrial designs, creators of layout designs of integrated circuits, creators of distinctive signs used in trade, authors of literary, artistic and scientific works, performers, phonogram producers and other authors and creators of original intellectual content. For a company’s products to be protected, they are required to seek and have a patent giving them legal monopoly granted to make use and sell its invention, and to exclude others from doing so. However, in Rwanda, a majority of firms especially start-ups and Small and Medium Enterprises do not have patents over their creations. This has seen some fall victim when other brands replicate their designs.

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Will a new IP law attract more patent registrations?