Keynote address delivered by the Deputy Minister of Science and Technology Derek Hanekom, at the gala dinner of the inaugural conference of the National Intellectual Property Management Office (NIPMO) held in Cape Town

Programme director;
Conference delegates;
Ladies and gentlemen:

I am most honoured to be addressing this inaugural conference of The National Intellectual Property Management Office. I am told that there are delegates from no fewer than ten countries present, with an impressive line-up of local and international patent and innovation specialists, lawyers, policy makers and business representatives.

As you know, the theme of this conference is Accelerating Intellectual Property and Innovation in South Africa. I don't have the powers to change this theme, but I think the real challenge is not to accelerate intellectual property, but to find effective mechanisms to support and encourage more intellectual activity, invention and discovery, which will result in innovative solutions to our societal challenges, and increased innovation in our economy.

That would be in keeping with what we all know: intellectual property is but one instrument in our quest to move in the direction of an increasingly knowledge-based, competitive and growing economy.

It is our belief that an effective intellectual property regime that encourages intellectual endeavour and creativity offers a potentially powerful tool in the pursuit of innovation and competitiveness. We could cite many examples of the costs of inadequate intellectual property protection.

Actually, this is best expressed by Boris Johnson, the charismatic mayor of London. You know," he said, "sometimes I don't understand what's wrong with us. This is just about the most creative and imaginative country on earth – and yet sometimes we just don't seem to have the gumption to exploit our intellectual property.

We split the atom, and now we have to get French or Korean scientists to help us build nuclear power stations. We perfected the finest cars on earth – and now Rolls-Royce is in the hands of the Germans. Whatever we invent, from the jet engine to the Internet, we find that someone else carts it off and makes a killing from it elsewhere."

Having said this, we should be wary of excessive emphasis on the protection of knowledge, when this could run against the grain of the important principles of collaboration and the sharing of knowledge. The spirit of ubuntu must never be discarded. And let us consider these words of Richard Stallman, who may not reflect the dominant thinking in this hall:

"If you want to think clearly about the issues raised by patents, or copyright, or trademarks ...the first step is to forget the idea of lumping them together, and treat them as separate topics. Consider each one of these issues separately, and you have a chance of considering them well."

I'm not sure whether the timing of this inaugural conference is coincidental or not, but for those of you who don't know, September is celebrated as Heritage Month in our country. We can reflect with some pride on how, since the dawn of democracy, we have nurtured our diverse cultures and traditions, which are expressed in various literary, artistic and cultural works. These have found resonance across the globe. One of many examples that may be familiar to you is the award winning musical, The Lion King, and the famous song The Lion Sleeps Tonight. While millions were raked in by the producers, the composer Solomon Linda received a pittance for his creative contribution.

Despite the wealth of talent, creativity and energy we have in our country, and our abundant mineral and natural resources, we have not succeeded in reaching the required sustained economic growth levels to create enough jobs and livelihoods and to offer dignity to millions of unemployed and poor people in our country.

It is in this context that the Department of Science and Technology (DST) conducted a thorough analysis of critical areas where we believe science and technology has a significant contribution to make in addressing the socio-economic needs of the country.

After careful consideration of the gaps that exist in the national system of innovation, we have been able to reduce these by the creation of both legal and institutional instruments to assist in organising and channelling our energies in the right direction. It is for this reason that the Intellectual Property Rights from Publicly Financed Research and Development Act was passed in 2008. The Act and its regulations came into effect on 2 August 2010, and National Intellectual Property Management Office (NIPMO) was established soon thereafter.

The main objective of the Act is to "make provision that intellectual property emanating from publicly financed research and development is identified, protected, utilised and commercialised for the benefit of the people of the Republic, whether it be for a social, economic, military or any other benefit".

The Act also establishes the National Intellectual Property Management Office (NIPMO) as the office of the DST responsible for the implementation of the Act. Section nine of the Act enjoins NIPMO to promote the objectives of the Act, and stipulates that some of NIPMO’s functions include the monitoring, evaluation and review of the obligations of recipients in terms of the Act, and providing assistance to institutions for the establishment of offices of technology transfer and related capacity building.

As we all know, the realm of intellectual property law and management is informed by a series of international treaties that largely determine the manner in which developing countries can shape their social and economic policies in relation to intellectual property.

Meanwhile, there is a growing recognition that intellectual property policies should be integrated into national sector-specific policies such as agriculture and health, in order to achieve better alignment between development agendas and national imperatives. Intellectual property laws, including the registration of patents, should never be seen as an end in itself; rather, intellectual property regimes in developing countries should be supportive of development objectives.

Increasingly, the role that intellectual property has played in accelerating countries’ economic development has come under the spotlight. Developing countries will always be constrained in their efforts to industrialise, improve agriculture, and protect public health and the environment if the prevailing intellectual property system limits rather than encourages local competition and innovation.

It is important to note that the growth in government spending on Research and Development (R&D) in South Africa has not been matched by correlating outputs that are indicative of innovation activity. The focus has been predominantly on publications and conventional academic indicators for this increased spend, as opposed to innovation-related metrics aimed at measuring the potential intellectual property output derived, and its subsequent conversion into tangible products and services that impact on the socio-economic needs of South Africans.

The Intellectual Property Rights from Publicly Financed Research and Development Act is an attempt to correct this imbalance by ensuring that a proper management and legislative framework for publicly financed intellectual property is in place.

The establishment of NIPMO goes further, in the provision of a dedicated function aimed at assisting institutions to comply with legislation and in ensuring that government actively employs the intellectual property outputs from its investments in R&D. NIPMO is not intended to be a watchdog, but rather an instrument that facilitates and aids a thriving, well-functioning National System of Innovation.

Like any instrument that introduces change, it was to be expected that the Act would receive criticism and encounter some opposition. This feedback is welcome and bodes well for our democracy. No doubt we will gain wisdom and insight over time as we proceed with the implementation of the Act.

Several key activities have been initiated by NIPMO, including this event. Others include the promotion of the use of intellectual laws by small and medium enterprises, and the development of more businesses that are based on technological innovation and research and development. Ultimately, the success or failure of the application of the Act will be evidenced in the number of products, services that offer social or economic benefit to ordinary South Africans.

There is no doubt that the calibre of research conducted by our various universities and science councils is of a high standard and ranks among the best in the world. This is illustrated by the increasing numbers of publications and other academic indicators in world-renowned, peer-reviewed journals. The major challenge, however, lies in the translation of this research into tangible outcomes.

This is the space we must inhabit to ensure that we contribute to our country’s effort to boost economic development to better the lives of our people. One of our fundamental developmental objectives is to migrate from a primarily resource-based economy to a knowledge-based economy. We cannot be a proudly self-sufficient country if we continued to merely make use of the knowledge generated by other nations, without building capacity to generate knowledge that is indeed "Proudly South African".

As I said before, the Act is among a suite of interventions designed to address this gap. On its own, it would at best have limited success. It relies on the successful implementation of other measures, such as funding and incentives for increased R&D; a pipeline of applied research that addresses market needs; recognition and management of intellectual property rights, and a culture of innovation that is aligned to the socio-economic imperatives of the nation.

In conclusion, I would like to express our appreciation to NIPMO and all of you for your dedication and efforts to chart the way forward in this vital aspect of South Africa's development. I hope that you will enjoy your stay in Cape Town with its well-known hospitality and distinct mix of cultures, world-famous biodiversity and numerous heritage sites.

We are gathered at the foot of Table Mountain, which is in the running to become one of the new seven natural wonders of the world, and you may be able to see Robben Island, which has been declared a World Heritage Site, from your hotel room.

Enjoy these wonders while you are here, but above all, my you derive satisfaction from the knowledge that you have made a positive difference in participating in this conference.

Thank you.

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