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Presentation to: Portfolio Committee on Trade and Industry and the Select Committee on Economic Presentation to: Portfolio Committee on Trade and Industry and the Select Committee on Economic and Foreign Affairs 14 May 2002

Companies and Intellectual Property Registration Office (CIPRO) CIPRO Overview (Adv. FDM Malunga) 14 May Companies and Intellectual Property Registration Office (CIPRO) CIPRO Overview (Adv. FDM Malunga) 14 May 2002

Contents • Background to formation of CIPRO – History – Establishing CIPRO as Business Contents • Background to formation of CIPRO – History – Establishing CIPRO as Business Agency (Trading Entity) • A drastic new strategy – Vision – Mission – Strategic goals • • Functional Structure Offerings/Products Projects Statistics

BACKGROUND BACKGROUND

Formation of CIPRO A merger in 2001 of: South African Companies Regulatory Office (SACRO) Formation of CIPRO A merger in 2001 of: South African Companies Regulatory Office (SACRO) & South African Patents and Trademarks Office (SAPTO)

CIPRO Business Agency • Principle approval by Cabinet - May 2001 • Trading entity CIPRO Business Agency • Principle approval by Cabinet - May 2001 • Trading entity approved by National Treasury March 2002 • CIPRO Management board established • Appointment of board members - under way • Establishement of new structure under way including Group support services • Programme Management Office (PMO) established to support the establishment of the trading entity and operations OFFICIAL LAUNCH 30 JULY 2002

A DRASTIC NEW STRATEGY A DRASTIC NEW STRATEGY

Vision: Gateway to economic participation Gateway: Economic: Participation: ØOne-stop shop ØGlobal participation ØEmpowering business Vision: Gateway to economic participation Gateway: Economic: Participation: ØOne-stop shop ØGlobal participation ØEmpowering business (SMME, others) ØEnd product ØGrowth ØEmpowerment Success ØQuality ØSMME, BEE

Mission: CIPRO will facilitate economic empowerment through: Ø Striving to achieve and maintain world Mission: CIPRO will facilitate economic empowerment through: Ø Striving to achieve and maintain world class status Ø Efficiency, service excellence and achieving customer satisfaction Ø Stimulating economic growth and promoting investor confidence in synergy with the DTI Ø Synchronising relationships and partnering with stakeholders on Issues of common goal Ø Providing consolidated products and services at a central point Ø Registration, promoting and maintaining of Intellectual Property Rights and Business Entities through a legal framework that provides protection and the flow of information Ø Generating, sourcing, sharing, interpreting, protecting and disclosing information Ø Optimising opportunity for personal growth of CIPRO people and providing organisational development that facilitates a culture of performance

Strategic Results Areas 1. Providing a regulatory framework for economic participation 2. Organisational transformation Strategic Results Areas 1. Providing a regulatory framework for economic participation 2. Organisational transformation 3. Customer interface 4. Forming business partnerships 5. Moving towards self-sustainability

Strategic Results Areas (1) : 1. Providing a regulatory framework for economic participation Including: Strategic Results Areas (1) : 1. Providing a regulatory framework for economic participation Including: Ø Ø International agreements (IPR) Regional cooperation (SADC) Registration, a legal responsibility that is mandated Playing a role in the larger regulatory effort as a partner with other regulatory bodies

Strategic Results Areas (2): 2. Organisational transformation Including: Ø Developing efficient and effective business Strategic Results Areas (2): 2. Organisational transformation Including: Ø Developing efficient and effective business processes, especially full e-lodgement Ø Putting effective business systems in place Ø Utilising appropriate technology to perform effectively Ø Developing the right skills base required for efficient operation Ø Establishing and practicing corporate governance Ø Establishing change management procedures

Strategic Results Areas (3): 3. Customer interface Including: Ø Customer relationship management Ø Marketing Strategic Results Areas (3): 3. Customer interface Including: Ø Customer relationship management Ø Marketing Ø Branding ØCreating awareness through education

Strategic Results Areas (4): 4. Forming business partnerships Including: Ø Ø the dti International Strategic Results Areas (4): 4. Forming business partnerships Including: Ø Ø the dti International business partners External stakeholders SADC, though influencing decisions

Strategic Results Areas (5): 5. Moving towards self-sustainability Including: Ø Moving towards financial independence Strategic Results Areas (5): 5. Moving towards self-sustainability Including: Ø Moving towards financial independence from treasury Ø Utilising surplus funds to promote economic participation: Ø SMME ØBEE ØWoman empowerment ØEmpowering rural communities Ø Contribute to economic growth

Our Values (1): 1. Business Values “Let’s be World class” Ø Ø Ø Customer Our Values (1): 1. Business Values “Let’s be World class” Ø Ø Ø Customer and stakeholder driven Do it right the first time Take ownership Use resources optimally Have pride in what we do

Our Values (2): 2. People Values ““Batho Pele” ” Ø Ø Ø Fostering motivated Our Values (2): 2. People Values ““Batho Pele” ” Ø Ø Ø Fostering motivated people to achieve healthy relations Mentor and develop people unselfishly Treat people with uncompromising truth Embracing cultural diversity New ideas shape our future

Alignment to the dti’s strategic objectives • Ensuring Black Economic Empowerment (BEE) • Improving Alignment to the dti’s strategic objectives • Ensuring Black Economic Empowerment (BEE) • Improving global competitiveness • Improving market access • Eradicating poverty and racial, gender and regional inequities • Nurturing Small, Medium and Micro Enterprises (SMMEs) • Improving growth in the SADC region • Improving operational efficiency • Encourage woman empowerment

Functional Structure Functional Structure

LEGAL FRAMEWORK LEGAL FRAMEWORK

Intellectual Property (Laws Administered) · Patents Act (Act 57 of 1978) · Trademarks Act Intellectual Property (Laws Administered) · Patents Act (Act 57 of 1978) · Trademarks Act (Act 62 of 1963 and Act 194 of 1993) · Designs Act (Act 57 of 1967 and Act 195 of 1993) · Copyright Act (Act 98 of 1978) · Registration of Copyright in Cinematography Films Act (Act 62 of 1977) · Merchandise Marks Act (Act 17 of 1941) – amended 2002 · Intellectual Property Laws Rationalisation Act (Act 107 of 1977) · Counterfeit Goods Act (Act 37 of 1997) · Performer’s Protection Act (Act 11 of 1967) · Unauthorised use of Emblems Act (Act 37 of 1961) · Stem van Suid-Afrika Act (Act 2 of 1959) · Vlaglied Copyright Act (Act 9 of 1974)

Companies (Laws Administered) · Companies Act (Act 61 of 1973) · Close Corporations Act Companies (Laws Administered) · Companies Act (Act 61 of 1973) · Close Corporations Act (Act 69 of 1984) · Share Blocks Control Act (Act 59 of 1980) · Business Names Act (Act 27 of 1960) · Rationalisation of Corporate Laws Act (Act 45 of 1996)

Other Legal Issues · Legislation needed · Enabling legislation for e-lodgement and e-disclosure - Other Legal Issues · Legislation needed · Enabling legislation for e-lodgement and e-disclosure - passed 2001 · Legislation iro effective ways of payment for services - to be passed 2002 · Legislation to introduce annual returns to secure and ensure ongoing database integrity - to be passed 2002 · Corporate law reform · Long term project to start during 2002 · DTI, through CCRD policy unit, to steer project involving Standing Advisory Committee on Company law · Intellectual Property · Copyright amendment bill · Various other ad hoc

PROJECTS PROJECTS

Projects (1) Initiated: • Conversion to a trading entity • CIPRO Business Plan & Projects (1) Initiated: • Conversion to a trading entity • CIPRO Business Plan & Strategy • Hand over project • Safety and Security • Establishment of PMO • Revenue Collection project • Financial system • Billing system • ICT Improvement Plan • IT Performance Team • Supplier Service Level Agreements • IT administration and management project • Company Registration • Benchmarking • Annual Returns

Projects (2) • Market launch • Moving of files and refurbishment • Customer contact Projects (2) • Market launch • Moving of files and refurbishment • Customer contact centre To be initiated: • • • Data integrity project Disaster Recovery Automation of administration processes Establishment of Business Process Engineering HR issues • Establish new business culture • Implementation of performance management

DIVISIONAL ISSUES DIVISIONAL ISSUES

Intellectual Property (Divisional Issues) · Achievements: · · · · Improvement in Software. Operations Intellectual Property (Divisional Issues) · Achievements: · · · · Improvement in Software. Operations manager appointed in 2001. Correspondence system implemented and monitored. Clearing of backlogs in new applications (™). Clearing of backlogs in mail. Temps and students from institute helping until new staff is recruited. Automated certificates in Patents, Designs, Renewals and Assignments. · Clearing of backlogs: · Business plan drawn up to eliminate the Trademark backlog stemming from the 1980 s. · System problems that caused backlogs are being addressed · Benchmark revealed 5 year backlog in Netherlands

New Initiatives (Intellectual Property) • Becoming an international player • Electronic Searchable Patent Journal New Initiatives (Intellectual Property) • Becoming an international player • Electronic Searchable Patent Journal • E-lodgement, IP searching facilities on Internet • Automated Certificates for Trade Marks • Bench-marking exercise to commence shortly

Companies (Divisional Issues) • • • Record number of registrations Backlogs with new registrations Companies (Divisional Issues) • • • Record number of registrations Backlogs with new registrations resolved Functioning of helpdesks changed to better serve client needs New lay-out for reception area and refurbishment started Sixty students trained on CO and CC registrations re Para -Legal studies Benchmarking exercise conducted Companies project charter defined with quick wins from benchmarking Unit dealing with data integrity defined Business division structured to enhance performance

New Initiatives (Companies) • Simplify Names reservation procedure • Search for similar names only New Initiatives (Companies) • Simplify Names reservation procedure • Search for similar names only • Principal business to be irrelevant • Review CIPRO processes to accommodate e-access • Lodgment of single copy • Eliminate duplicate copy • Issue a certificate for the client • Electronic disclosure requests • Re-introduce annual returns • Enforce compliance • Data Integrity

STATISTICS STATISTICS

Offerings • • • Registration of Companies Amendments to Company information Registration of Close Offerings • • • Registration of Companies Amendments to Company information Registration of Close Corporations (CC) Amendments to CC information Disclosure of Company & CC information • • • Registration of Patents Registration of Trademarks Registration of Copyrights Registration of Design Disclosure of Intellectual Property information • • Name Reservations Name Objections

Registrations (1999 to 2002) (Companies Division) 86148 69755 27776 75919 31512 30140 35202 10927 Registrations (1999 to 2002) (Companies Division) 86148 69755 27776 75919 31512 30140 35202 10927 2002 CC registration figures are already 20 % more than the previous years, an estimated 100 000 registrations may take place this year.

Statistics for 1999 - 2002 (Intellectual Property Division) 25617 23846 21904 10560 7879 7793 Statistics for 1999 - 2002 (Intellectual Property Division) 25617 23846 21904 10560 7879 7793 5923 3458

International Applications from selected developing countries (Intellectual Property Division) South Africa has been dealing International Applications from selected developing countries (Intellectual Property Division) South Africa has been dealing with PCT applications (international applications) since 1999. South Africa ranked third with PCT in 2001 after the Republic of Korea and China.

Statistics for 2002 (Intellectual Property Division) Statistics for 2002 (Intellectual Property Division)

Thank you - Questions ? (Adv. FDM Malunga) 14 May 2002 Thank you - Questions ? (Adv. FDM Malunga) 14 May 2002