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

WHY SMEs and IPWIPO Activities

for SMEs

CONCLUSIONS

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.

050100150200250300350400450500

Tanzania Kenya EC US

Micro Small Medium

SMEs by number of employees

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); Medium- Balance sheet EUR. 43m (approx. USD 56m)

Facts About SMEs contd.

SMEs

Innovation

Trade

Investment

Social Tranquility

Job Creation

EconomicGrowth

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.

INTANGIABLEASSETS

in particularINTELLECTUAL

PROPERTYTAKING A CENTRAL

STAGE

Why SMEs and IP contd.

INTELLECTUALPROPERTY

Stimulate investment in new areas of R & D

Facilitate identificationof products by consumeri.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.

STRATEGYSTRATEGY

Focus on new areas

Cooperatio

n &

partners

hipTarget new audience

Create simple, SME-friendly products

Gather and provide processed information

Strengthen outreachactivities of IP offices

WIPO Activities for SMEs contd.

Mode of delivery

Mode of delivery

- Taking IP issues to non-traditional audience

- Bringing businesscommunity to IP events

- Launching SME web site www.wipo.int/sme

WIPO Activities for SMEs contd.Mode of delivery

Mode of delivery

- 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.

– Making a Mark: An Introduction to Trademarks for Small and medium-sized Enterprises” (Arabic, Chinese, English, French, Italian, Portuguese, Russian and Spanish)

Products (Guides)Products (Guides)

WIPO Activities for SMEs contd.

– Looking Good: An Introduction to Industrial Designs for Small and Medium-sized 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 Medium-sized 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.

FeedbackFeedback

The SMEs web site has beenlinked to several business andacademic web sites

Increased interest on IP issuesevidenced in non-traditional IPactivities

Increased collaboration withother institutions

Conclusion

Increased Increased awarenessawarenessand effective and effective use of IP use of IP systemsystem

Enhance SMEs competitiveness

Positiveimpact in economic

development

Finally