Zimpapers Logo

Aleck Ncube

EMPIRICAL evidence shows that only a small percentage of SMEs, especially those in high technology sectors, such as in biotechnology and information and communication technology sector, actively use the IP system.

Researchers in some developed countries have concluded that several factors contribute to the non-use or under-use of the IP system by SMEs, these include.

These include lack of adequate human resources, perceived lack of relevance of the IP system, perceived high cost and complexity of the IP system and lack of awareness of usefulness of IP system.

Zimbabwean SMEs have a low level of awareness of the potential of the IP system, and understandably use it very little or not at all.

Basically one can identify two main reasons for low use of the IP system by SMEs in Zimbabwe. The first one is lack of awareness of the advantage and usefulness of the IP system.

Secondly, the infancy of the IP system in the sense that the country’s IP legislation stillneeds to be up dated so as to be in line with ‘current/modern’ IP legislation, which is inline with current international standards in the field of IP.

ICTs and Intellectual Property Rights

Intellectual Property plays an important role in the development of ICTs. It also affects how enterprises, not only SMEs, can benefit from using ICTs in their daily activities. Developments in ICTs can be said to be the backbone of the new economy, which is sometimes rightly referred to as the “information economy.”

This is the economy, which is driven by ideas, information and knowledge. Wealth creation is more determined by access to information and the ability to use information at hand to one’s advantage.

In the new economy, we are witnessing a change in corporate thinking where the market value of an industry is increasingly in its “intangible assets,” replacing the conventional thinking, which linked it to tangible assets.

With the help of ICTs we see how industries are changing their concepts of wealth creation by taking advantage of the information available.

The Internet, Mobile Communications, Video and Data conferencing, CD-ROM, Electronic Data Interchange (EDI) (EDI) is the exchange of business documents such as orders and invoices between computers run by trading partners.

Standardised messaging and business software allows purchasers and suppliers to handle transactions electronically via phone lines) and Networking are increasingly taking a central role in determining the competitiveness of an enterprise.

Today SMEs, which take advantage of such ICTs, in a conducive environment, can tremendously reduce their operating costs as opposed to their competitors.

Development of ICTs increases the intensity of competition since it removes some of the major barriers to trade, such as national boundaries and distance.

SMEs, which normally used to competeonly with domestic competitors, are suddenly faced with external/foreign competitors and not only foreign SMEs but also foreign multi-nationals.

At the same time such an environment also opens opportunities to SMEs.

It is now possible for SMEs at relatively lower costs to reach out to clients in markets, which till a few years ago were a far-fetched dream.

With a click of the ‘mouse’ SMEs can access information on the market, source of its raw material, possible partners etc.

In order to face the challenges and benefit from the opportunities brought about by the ICTs revolution, SMEs are advised to take a more serious look at intellectual property.

SMEs have to look at IP not as a mechanism to prevent others from taking advantage of a technology or entering a market but rather as a very useful business tool.

SMEs that are “IP-Smart” stand a better chance of reaping the benefits associated with ICTs.

E-Commerce and SMEs

E-commerce is a phenomenon in which enterprises use the Internet in their commercial activities.The dawning of the Internet era has made it possible for SMEs to trade globally.

For physical goods, the Internet can be used as a facilitator of business exchange.

Through the Internet SMEs can electronically get in touch with potential customers, negotiate, handle product orders and finally receive payments for the goods which wouldbe delivered using conventional ways, e.g., by postal services.

On the other hand, for intangible goods like music and software the Internet becomes not only a system for facilitating sales but also a system, which can effectuate delivery of the goods.

Today it is not a far-fetched idea if SMEs in Zimbabwe sell their products online to customers in the UK.

The barrier associated with distance from market has been considerably reduced and, in cases of intangibles, national borders disappear.

However, a presence in the Internet is very important if SMEs are to take advantage of e-commerce, this being the case before embarking on e-commerce it is worthwhile if SMEs,

(i) Identify and take stock of IP assets they own, for example, patents, patent applications, innovations, which they think are patentable, designs, web site designs, music, photos, technical writings, trade secrets, contracts, which they think can affect their IP rights, etc.

They should also seek legal assistance from a lawyer who is knowledgeable on IP. They should not forget to ask about the cost of getting an “IP audit.”

(ii) Take measures to protect their trade secrets. Most SMEs use trade secrets as business strategy some of them not knowing that such secrets can be legally protected.

(iii) Make sure, when they design their enterprise’s web site, that they know who owns the web site presentation and content and every aspect of IP in it.

This is more important if they have used the services of a consultant or other company in designing their web site.

Make sure that they acquire written permission to use other people’s material in their web site, including through links and framing.

(iv) Choose a domain name, which should preferably be distinctive and protectable under trademark law. It is important to make sure that the chosen domain name is not identical with or confusingly similar to the trademark of another company.

(v) Avoid making disclosures that would negatively affect or destroy their IP rights. This is because under many national laws patent protection may not be granted if an invention has been publicly disclosed even after a short period of time before filing the patent application.

(vi) Take special care when they enter into contracts. Contracts should be reviewed carefully before being signed. This is because through contracts, IP rights may be sold or licensed or even given away.

Bad contracts can result in litigation and unnecessary expense.

Apart from e-commerce there are several other benefits that SMEs can get by effectively utilizing the IP system and ICTs, these include, access to patent information.

Information contained in patent documents is a source of technical and commercial information to researchers and entrepreneurs.

The digitization and now the use of search engines/software have made the exercise of search and retrieval of necessary information much faster, easier and cheaper.

Access to new markets is enhanced through protecting a product by a suitable trademark in the process helping the SME to be associated with its products in far-off markets and also protecting its product from unscrupulous‘free riders’ or competitors who may want to take undue advantage of the SMEs goodwillin the market. SMEs with good trademarks can effectively use the Web to promote their products in distant markets and, in fact, sell their products online.