WIPO-TCCIA WORKSHOP ON INTELLECTUAL PROPERTY FOR BUSINESS FOR SMEs Dar-es-Salaam, Tanzania, May 10 and 11, 2005 Why do SMEs Need Intellectual Property Tools: Objectives, Programs and Activities of the Small and Medium-Sized Enterprises (SMEs) Division of WIPO Christopher M. Kalanje, Consultant, SMEs Division, WIPO OVERVIEW Facts About SMEs contd. • No universally accepted definition • Criteria used include – Level of sales revenue (turnover); Number of employees; Value of physical assets; Debt facilities; Ownership structure etc. • Decision is on government/institution based on one or more criteria Facts About SMEs contd. SMEs by number of employees 500 450 400 350 300 250 200 150 100 50 0 Tanzania Kenya Micro EC Small US Medium Facts About SMEs contd. – Tanzania • Micro- Capital > TShs. 5m (approx. USD 5K); Small- Capital TShs. 5m - 200m (approx.USD 5K - 180K); Medium- Capital TShs. 200m 800m (appr. USD 180K - 730K) – European Communities • Micro- Annual Balance Sheet EUR. 2m (approx.. USD 2.5m); Small- Balance sheet EUR. 10m (approx. USD 13m); MediumBalance sheet EUR. 43m (approx. USD 56m) Facts About SMEs contd. Job Creation Innovation SMEs Trade Investment Social Tranquility Economic Growth Facts About SMEs contd. • SMEs form the bulk of enterprises in most economies • SMEs contribution toward economic growth of countries is widely recognized • SMEs have the potential of doing better than their current performance Why SMEs and IP • Studies show that SMEs do not effectively use IP • SME users of IP system are often limited to high tech, biotech, information and communication technologies enterprises • Increasingly large companies include SMEs in their cooperate strategies Why SMEs and IP contd. Globalization Revolution in ICT Change in strategy; - Shedding away - Effective use and managing of information Why SMEs and IP contd. • Removal of trade barriers has increased competition both local and international • The playing field (market) is more “bumpy” i.e competitors differ in size and assets, financial capacity, human and organizational capacity e.t.c. Why SMEs and IP contd. • Price and location are taking back seat as main factors of competitive advantage • Efficient management practices, creative and appealing designs and ability to market are becoming a necessity if one wants to succeed in the market place • Technological edge plays critical role especially in high-tech industries Why SMEs and IP contd. INTANGIABLE ASSETS in particular INTELLECTUAL PROPERTY TAKING A CENTRAL STAGE Why SMEs and IP contd. Stimulate investment in new areas of R & D INTELLECTUAL PROPERTY Facilitate identification of products by consumer i.e consumer royalty Facilitate partnerships Enhances competitiveness WIPO Activities for SMEs • WIPO SME Division: Established in October 2000 • Objective: To strengthen the capacity of governmental, private and civil society institutions worldwide to formulate and implement policies and strategies for meeting the IP needs and concerns of SMEs WIPO Activities for SMEs contd. Gather and provide processed information Focus on new areas STRATEGY Strengthen outreach activities of IP offices Create simple, SME-friendly products WIPO Activities for SMEs contd. - Taking IP issues to non-traditional audience - Bringing business community to IP events - Launching SME web site www.wipo.int/sme WIPO Activities for SMEs contd. - Launching e-newsletter - Reaching out to partners e.g. Chamber of commerce, SME associations, SME support institutions etc. - Contributing articles to WIPO magazine WIPO Activities for SMEs contd. Products (Guides) – Making a Mark: An Introduction to Trademarks for Small and medium-sized Enterprises” (Arabic, Chinese, English, French, Italian, Portuguese, Russian and Spanish) WIPO Activities for SMEs contd. – Looking Good: An Introduction to Industrial Designs for Small and Mediumsized Enterprises” (Arabic, English, French, Italian, Portuguese and Spanish) WIPO Activities for SMEs contd. • Translation and customization: Under way, – 16 Countries members of the OAPI*, Kenya, Tanzania – Algeria, Egypt, Israel, Lebanon, Morocco, Tunisia * L'Organisation Africaine de la Propriété Intellectuelle (Benin, Burkina Faso, Cameroon Central Africa, Congo, Cote d'Ivoire, Equatorial Guinea, Gabon, Guinea, Guinea Bissau, Mali, Mauritania, Niger, Senegal, Chad and Togo) WIPO Activities for SMEs contd. – Australia, India, Indonesia, Malaysia, Mongolia, New Zealand, Philippines, Vietnam – Canada, Czech Republic, Estonia, Finland, Hungary, Ireland, Italy, Malta, Poland, Slovakia, Spain – Argentina WIPO Activities for SMEs contd. • Guides under preparation – Inventing the Future (Patents) – Creative Expression (Copyright) – IP Valuation – Domain Names – Trade Secrets – Patent Information WIPO Activities for SMEs contd. • Joint publications with International Trade Centre (ITC) – Marketing Crafts and Visual Arts: The Role of Intellectual Property. A Practical Guide (English, French and Spanish) WIPO Activities for SMEs contd. – Secrets of Intellectual Property: A Guide for Small and Medium-sized Exporters (English, and Spanish) WIPO Activities for SMEs contd. – Exchanging Value: Negotiating Technology License Agreements: A Training Manual WIPO Activities for SMEs contd. • Exporting Automotive Components: A Guide for Small and Medium-sized Enterprises WIPO Activities for SMEs contd. – Secrets of the Pharmaceutical Industry: A Guide for Small and Mediumsized Exporters ( A Chapter on IP is under preparation) WIPO Activities for SMEs contd. • Other Publications (commissioned to external experts) – Guía del Empresario: Marcas e Indicaciones Geograficas – Intellectual Property Rights for the Toy Industry in India (Funded by UNIDO)* – Intellectual Property Rights for Machine Tools Industry in India (funded by UNIDO) • * United Nations Industrial Development Organization WIPO Activities for SMEs contd. • CD-ROM Products – South Asian Association for Regional Cooperation (SAARC) CD-ROM on IP for SMEs: The project is expected to be completed 2005 – “IP Panorama”: Multi-Media Interactive CD-ROM Product (in collaboration with Korean Intellectual Property Office-KIPO and Korean Inventors Promotion Agency- KIPA WIPO Activities for SMEs contd. The SMEs web site has been linked to several business and academic web sites Feedback Increased interest on IP issues evidenced in non-traditional IP activities Increased collaboration with other institutions Conclusion Increased awareness and effective use of IP system Enhance SMEs competitiveness Positive impact in economic development Finally