SMEs urged to register intellectual property rights

EXPERTS have called upon small and medium enterprises (SMEs), who are increasingly demonstrating innovation that drives economic growth, to register their intellectual property rights (IPR) to safeguard their designs and trademarks. This crucial step will prevent the loss of their creations to other individuals or companies.

The importance of IPR registration was highlighted at the Confederation of Zimbabwe Industries (CZI) intellectual property rights (IPR) for manufacturing entrepreneurs and SMEs launch, held in Bulawayo on Tuesday.

The event was facilitated by Intellectual Property Lawyer Mrs Brenda Matanga, who explained the significance of having registered IPR and guided SMEs on the registration process.

Mrs Matanga noted that small businesses have often overlooked IPR, mistakenly believing it is relevant only to large corporations.

“There is a perception among small businesses that intellectual property is not important and not relevant to their operations. However, today’s attendees have gained the understanding that intellectual property rights are crucial for business competitiveness,” Mrs Matanga stated.

“If small businesses aspire to scale up and gain market credibility, they must ensure their IPR are protected, encompassing trademarks, patents, industrial designs, and copyrights.”

Mrs Matanga emphasised that SMEs are showcasing innovations that should not be underestimated.
During her presentation, Mrs Matanga offered practical advice to SMEs, urging them to refrain from exhibiting their innovations without prior IPR protection.

She pointed out that some large exhibition events attract individuals specifically seeking to pilfer ideas from others.

Furthermore, she advised SMEs to avoid divulging excessive information, such as critical recipes, which could be exploited by others to produce similar products, potentially driving the original creators out of business.

“SMEs often possess innovative ideas but lack sufficient funding, making them vulnerable to larger companies that can adopt, refine, and dominate their small market share,” she said.

“Therefore, it is imperative for SMEs to protect their IPR, ensuring that any unauthorised replication will necessitate compensation.”

SMEs have become vital contributors to numerous economies, generating innovative solutions that address local challenges. The sector also makes substantial contributions to the economy through job creation and the provision of diverse goods and services.

Bulawayo Chamber of SMEs chairperson Mr Coustin Ngwenya commended CZI for organising the event, recognising it as an eye-opener for SMEs. He estimated that nearly 90 percent of SMEs lack registered IPR for their products.

“This workshop has broadened our understanding. SMEs often find themselves at a disadvantage in this area, with larger institutions tending to benefit,” he said.

Mr Ngwenya cited an example of an SME in Victoria Falls involved in sculpture production, whose unique designs were registered under the IPR of a UK-based client. Consequently, the client ceased direct purchases from the SME, and the SME struggled to find alternative markets due to the IPR ownership issue.

Bulawayo Leather Cluster chairperson Mr Fungai Zvinondiramba highlighted that SMEs often lack the financial resources to commercialise their ideas, inadvertently benefiting others. He stressed that registering their intellectual property would enable them to benefit financially if others utilise their innovations.

“IPR is often perceived as the most expensive aspect of business. You encounter SMEs claiming to be broke, yet they possess unregistered IPR that lacks valuation, while others can readily recognise its potential,” Mr Zvinondiramba said.

Bulawayo Leather Cluster chairperson Mr Fungai Zvinondiramba

“Understanding IPR can significantly mitigate the risk of financial distress for SMEs, as they recognise the inherent financial value of their generated ideas.”

The lack of intellectual property rights protection has exposed businesses in the SADC region and the African continent to various challenges, including the appropriation of product ownership by manufacturers from other nations.

Consequently, the region has experienced a loss of competitive advantage, jobs, revenue, brand damage, disincentives for innovation, reduced research and development, and stifled creativity.

Protecting IPR is particularly crucial as the continent implements the African Continental Free Trade Area (AfCFTA) agreement, which aims to eliminate tariffs on 90 percent of goods traded between member states over a 10-year period.chronicle