Friday 12 April 2019
South Africa's Acute IP Information Gap
I have been busy this past month researching and speaking on the important relationship between IP, governance, business finance and accounting in the context of the collapse of Steinhoff involving irregularities in reporting on IP, the dramatic sale of EOH shares following the termination of Microsoft reseller license, the ongoing Makate drama involving the value of a payment for IP successfully taken to market by Vodacom and the reputational elements of allegations of copying by Woolworths. These examples exist against an international backdrop created by the dramatic Theranos demise, following revelations that its patented technology did not work.
The research included a collaboration with the CEOs of governance group FluidRock - Ronelle Kleyn and Adv Annamarie Van Der Merwe, time spent with the helpful Institute of Directors in Southern Africa's new CEO - Parmi Natesan, a great read of the new book by Janice Denoncourt "Intellectual Property, Finance & Corporate Governance", an analysis of Brand Finance's Global Intangible Asset Tracker 2018, various discussions with local financial guru and Managing Partner of Cartesian Capital - Anthea Gardner, assistance from Adams & Adams' Mark Beckman and progressive associate Nicholas Rosslee.
In summary, there exists an increasingly important IP information gap in financial disclosures in South Africa that is severely hampering business growth, cultural preservation and opportunity. The IP information gap exists across the business spectrum; large, medium and small businesses are affected. Whilst this is a global challenge, it is particularly acute in South Africa especially in the area of patents. South Africa's patent economy is woeful and stands in stark contrast to its capacity to innovate. It is extremely important to address this gap which starts with a concerted drive on IP education, self audits and the cultivation of an economy that understands the benefit of investing in IP to stimulate growth and further innovation, and also how to draft, use and interrogate an IP narrative in financial accounts effectively.
The slide deck for the seminar co-hosted with FluidRock at the Johannesburg Stock Exchange that attracted over 200 people can be found: here, the article published in Business Day: here, the PowerTalk interview with the award winning journalist Iman Rappetti: here, and the talented 702 Morning Show presenter Relebogile Mabotja: here.
This is an ongoing conversation that traverses a number of different disciplines. I am hoping that this is start of more on the subject for a richer understanding of how innovation and stakeholder interest can be made more transparent, open and effective through the use of IP.
Posted by Darren Olivier at 15:52:00