Connect with us

Trademarks

Trademark registration is a critical first step in the building of your brand. Protect the valuable intellectual capital of your business.

Faan Wolvaardt

Published

on

trademark sign

A trademark registration gives its proprietor the exclusive right to use that mark. Such a right is nothing other than a concession or a legal monopoly.

Generally, the law is reluctant to grant monopolies – when they are granted, they tend to be restricted. The law will therefore interpret monopolies in a restrictive way. Because of this, patents and copyright, for example, have a restricted term or life.

Trademarks, by contrast, do not have a restricted term and may be renewed indefinitely. However, the extent of the monopoly is restricted by requiring that a trademark be registered in a specific class or classes. There is another reason for registering trademarks in such classes: to simplify the administration of the registration process.

South Africa uses the “International Classification of Goods and Services” which is applied in most countries. This classification regime is regulated by the provisions of the Nice Agreement and consists of 45 classes. There are 34 classes of goods and 11 classes covering services. Roughly speaking, the classes group together goods or services that emanate from, or belong to, the same or related industries. For example: metal building materials and other goods from common metal belong together in one class, while building materials not made from metal belong together in another class.

When you apply to register a trademark, the application must be filed in a specific class or classes. Local practice requires that an application may cover goods or services falling in only one class. The costs for filing and registration increase by the number of classes covered, and that makes it important to cover only the classes that are really important.

Trademark law requires that an applicant for registration of a trademark must have a present and definite intention to use the mark in relation to the goods (or services) covered by the application. This means that one cannot validly register a trademark for all goods or in all the classes unless there is a present intention for use in relation to such goods or classes of goods. Hence, it is necessary to consider precisely what the goods of interest are and to register only in the appropriate classes.

There is a requirement that a registered trademark must be used. If it is not used, the holder of the monopoly can be forced to vacate the monopoly to make place for someone else who needs to use it.

Registering a Trademark

Trademarking can protect your business’s valuable intellectual capital such as its brand name, slogan, logo or even a specific shape relating to your business (the most obvious example is the Coca-Cola bottle). Once registered, no one can use that trademark or something that is similar without risking legal action.

If it meets all these requirements, you can pay to have a special preliminary search conducted on the Trademarks Register (fill in form TM2) to make sure that there are no existing prior rights of a similar mark which could prevent the registration of yours. CIPRO (Companies and Intellectual Property Office), which administers the Register, charges R85 for this service, which takes approximately seven days.

Once it’s clear that your mark does not clash with another registered trademark, you can proceed to registration. To do so you need to complete three copies of form TM1 and pay CIPRO R266 for each application. You need to make a separate application for each class of goods and services (eg. manufacturing and selling computers are two separate classes). Your application will be allocated an application date and number. Bear in mind that you need to renew your trademark every ten years, which costs R121.

Ensure Your Trademark:

  • Is distinctive (it distinguishes you from other businesses)
  • Is a sign that indicates the
  • “kind, quality, quantity, intended purpose, value, geographical origin or other characteristics of your goods or services”
  • Is not something that has become customary in your field of trade
  • Is not offensive and doesn’t go against the law.

Trade marks manager at Bowman Gilfillan.

Advertisement
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Leading

9 Ways To Get Employees To Buy Into Your Vision

Your business is your dream come true, now it’s time to include your employees in your vision to drive future success.

Nicholas Bell

Published

on

leadership-advice

Your vision statement is the foundation of your business. It is the baseline against which all strategic planning is assessed and the benchmark against which all results are measured. However, as important as it is to have a vision when it comes to business success, it is equally important to get your employees to buy into this vision to ensure that success.

Here are nine ways to get your employees to buy into your vision by making it their dream, as much as it is yours…

  1. It must be believable – Your company vision needs to be within the realms of possibility otherwise people just won’t believe in it. It must be steady, achievable and relevant.
  2. It must be inclusive – Employees need to see how they can play a part in achieving this vision to make it relatable and inclusive. If they don’t understand what the business does, they won’t care how well the business does.
  3. It must be reinforced – Talk about your vision all the time. Don’t assume everybody has read it or is familiar with it as new people may not have seen it and older people may have forgotten. Constant communication is critical to ensure everyone is, literally, on the same page.
  4. It must be transparent – Make sure your communication around your vision is open and clear. Talk about it with clients, with all staff members, at all meetings and keep on talking until everyone understands it. When a vision is tangible and accessible it is far more achievable than when it is ethereal and vague.
  5. It must be practical – Don’t make flamboyant statements that are almost impossible to achieve like, ‘We will be number one in X!’. Be practical. It doesn’t matter if you’re not number one, it does matter  that  your vision is practical.
  6. It must be shared – Connect people’s careers to the vision by creating opportunities for them. Show them how the work they do is tied back to the vision and the business. If the business is only about profit and customer, then employees often don’t see how they fit in or why they are important. Create opportunities for them and they will be inspired to achieve your vision.
  7. It must be people-centric – People make up the core of your business. It is bigger than just one person or one idea. So, give them something to aspire to with a realistic, practical and human company vision.
  8. It must have purpose – Embed your vision and its values into the way you do business. The way you treat your employees and your customers and the choices you make should all reflect your vision.  Take it beyond just ‘We want to make money’ and show how your vision positively affects your community and others.
  9. It must be visible – Put your vision on doors, in emails, on letterheads, in proposals. Show what you stand for at every opportunity. Employees need to feel that there is a cohesive plan for the future. This will not only drive engagement but it will keep them steadfast when times get tough – they believe in the ship too much for it to sink.

Related: 22 Qualities That Make A Great Leader

Continue Reading

Business Landscape

Micro-Entrepreneurs Making An Impact in Less Developed Communities

The study reinforces the fact that we are living in a global world where the power of management technology can be used across the world for the betterment of mankind.

John Roberts

Published

on

south-africa-micro-business

One might well ask, “What do micro-entrepreneurs in urban and slum neighborhoods across Cape Town, South Africa have to learn from the elite business schools of the world?  It turns out that the answer to this question is: “Plenty.”

I recently had the honour of being Chairman of Judges of the prestigious Gary Lilien Practice Prize given by the INFORMS Society for Marketing Science, in conjunction with the Marketing Science Institute and the European Marketing Academy. The award winning study proves that the tools of marketing science can make a major positive impact in helping to grow disadvantaged economies like the ones in Cape Town.

The award winner was a 2016 study of 850 Cape Town entrepreneurs led by Stephen Anderson-Macdonald of Stanford University, Rajesh Chandy of the London Business School and Bilal Zia of the World Bank.  They tested three interventions when trying to gauge the best way to help small retailers in the slums of South Africa grow their business: The first group was given training in marketing and sales, the second group was given training in finance and accounting, and the third control group was given no assistance, being told that they would receive training on the next round.

The researchers found significant improvements in profitability from both types of business skills training, relative to the control. Monthly profits increased by 30-40% on average for both. However, more interestingly, the way these gains were achieved differed substantially between the two groups.

The small business owners who received marketing training tended to improve and become more profitable through a focus on growth. They increased sales, purchased extra stock and materials, and added more part-time sales staff. These entrepreneurs also implemented more marketing related business practices (e.g., market research, marketing tactics, sales tactics). By contrast, the finance group achieved similar profit gains but through an “efficiency focus” on lower costs and the use of more finance and accounting practices.  While both led to more viable businesses, in terms of employment and business activity, it was marketing that grew the pie.

Related: Attention Black Entrepreneurs: Start-Up Funding From Government Grants & Funds

The study shows that powerful 21st century tools are being used in the townships in South Africa and that they can be extremely effective. Anderson-MacDonald and Chandy’s suggested tools include:

  • Take time out from your day to day activities to think about your business. Don’t let your business be busyness.
  • Look at your business from the point of view of your customers and potential customers. Put yourself in their shoes so that you can feel the reaction that they have to your products and services.  That will help identify where you can meet their needs better and any unmet needs that they might have.
  • Look for leverage points in your business.  That is, where are the points where you can make the greatest change for the least amount of effort?
  • Think of the criteria of success for your business.  For any initiative to succeed, it has to satisfy four criteria.
    • Can I do this?  Understand your capabilities and how you are going to develop them.
    • Do I want to do this? Make sure you think about what you want to achieve and do those things which will get you to where you want to go.
    • Will customers value this? An analysis of the things that your customers value, need, want (such as consistency) and the things that they don’t (such as gold-plating) will help you.
    • Will the market let you do this?  Have a good feel for the size of the market, the competition, your supply and collaborators, the economic climate and other environmental factors.
  • Generate options creatively.  Take time to brain storm with your friends and family around new products and services, new customers and markets, opportunities to grow the value and frequency of purchase of your existing products, etc.  Successful businesses recognise opportunities that others fail to see.
  • When you have done your analysis, generated your options for growth, work out a migration path.  You have your vision, now you need that first step on the path to achieving it.  Undertake little pilot projects, start by picking the low hanging fruit (the easiest opportunity), and don’t be discouraged by early failures but learn from them as much as you can.

The study reinforces the fact that we are living in a global world where the power of management technology can be used across the world for the betterment of mankind.

Continue Reading

Entrepreneur Today

The Innovator Trust And Citi Are Searching For Black-Owned Smes Who Are Ready For Growth

The Innovator Trust, an enterprise development organisation, and the Cape Innovation and Technology Initiative (CiTi), Africa’s oldest incubator, are calling on Cape Town-based growth-stage ICT entrepreneurs to join the intensive 2-year enterprise development programme.

Entrepreneur

Published

on

the-innovator-trust

The ICT sector has gone from strength to strength and is one of the fastest-growing industries on the African continent. Yet African entrepreneurs are still finding it a difficult business landscape to navigate. That is why The Innovator Trust and CiTi, through exposure, training and mentorship, now aim to equip entrepreneurs and businesses in the sector with tools that will keep them on track, assist them to achieve their goals and create tech leaders of the future.

ICT entrepreneurs in need of mentorship, skills development and business support who have been operating for more than 2 years and are fiercely committed to growing their business, can now apply to the prestigious 2-year Innovator Trust programme, co-developed and run by CiTi at the Woodstock Bandwidth Barn and remotely in Cape Town. Applications close on 22 February and the selected candidates will be announced on 4 March.

The Innovator Trust programme aims to support the: increase annual turnover, equip businesses with the necessary accreditation to remove red tape, as well as increase profitability and number of employees. Get ready to move the dial on your business.

Celebrating its 20th year of supporting entrepreneurs, CiTi currently runs a number of incubation programmes from idea to growth stage. After a very successful first cohort of the programme, completed in 2018, CiTi confirmed a second collaboration with the Innovator Trust to support further Cape Town businesses over the next two years. Applicants need to be in “ICT”, but this has included a broad range of focusses in the past, from IT recruitment, network security to cabling service provider and software solutions.

Related: Watch List: 50 Top SA Black Entrepreneurs To Watch

The programme, designed by CiTi and Innovator Trust, is not to be taken lightly. Monthly training, mentorship sessions with industry experts, and a strong focus on technical improvements means a substantial time and focus commitment by the entrepreneur. But this intensive design enables significant business progression over the two years.

 “Once the entrepreneurs who take part in our Enterprise Development programmes become more established, they turn their focus to growth. This accelerator is especially for entrepreneurs who’ve created businesses with high-growth potential and provides them with the skills to scale at speed and responsibly,” says Tashline Jooste, CEO of the Innovator Trust.

Cape Town was recently confirmed as the Tech Hub of Africa, by an Endeavor Insight Report commissioned by CiTi and partners, presenting growing opportunities for those businesses serious about growth, and with the right support.

“I believe strongly that ICT entrepreneurs are going to be critical to South Africa’s economic growth, which is why we need to focus on equipping these businesses with the skills they need to grow, create jobs and stimulate our economy,” adds Jooste.

In order to be considered for the programme, prospective applicants must meet the following criteria:

  • A company defined in South Africa as an SMME, QSE or EME;
  • Must be operational and trading for two or more years;
  • The business should be at least 51% black-owned;
  • A minimum Level 1 – 4 BBBEE status according to the DTI or ICT Codes;
  • The business must be a registered company with key focus in ICT and be based in Cape Town and surrounding areas.

In addition, applicants will need to supply copies of their company registration, company profile, and annual financial statements along with their BEE certificate and IDs with their applications.

Related: Attention Black Entrepreneurs: Start-Up Funding From Government Grants & Funds

“We had a fantastic experience on the Innovator Trust programme, perhaps most beneficial was the advice and mentorship on our financial management, up-skilling of our team, and establishing a 3-year budget and growth plan for the business. Our advice to entrepreneurs considering the course is “JUST DO IT!!!” The skills and knowledge you gain are invaluable and put us on a serious growth trajectory.” states Jennifer Classen, Founder of Ngaphaya Y2K10, and Participant in the 2015 – 2018 Innovator Trust programme.

Ready to grow your business? Learn more about the programme and submit your application HERE.

Continue Reading
Advertisement

SPOTLIGHT

Advertisement

Recent Posts

Follow Us

Entrepreneur-Newsletters
*
We respect your privacy. 
* indicates required.
Advertisement

Trending