Showing posts with label constitution. Show all posts
Showing posts with label constitution. Show all posts

Sunday, 21 June 2020

Afro Leo

Copyright reforms likely unconstitutional says SA President in major decision

The President of South Africa has made a much-awaited announcement regarding the controversial Copyright Amendment Bill and Performer’s Protection Amendment Bill in South Africa. His decision to refer the Bills back to the National Assembly is because they “may not pass constitutional muster” and could be at risk of being set aside by the courts.
The reasons:
  • Incorrect tagging –the Bills were incorrectly tagged as section 75 Bills when they are section 76 Bills that affect cultural matters and trade.
  • That the Bills will enact law that may be retrospective and arbitrary deprivations of property. Copyright owners will be entitled to a “lesser share of the fruits of their property than was previously the case” and there is uncertainty as to how it would operate.
  • A failure to consent on the material amendments including the fair use provisions.
  • Impermissible delegation of legislative authority to the Minister regarding the deprivation of property i.e. copyright from those to whom it was assigned in the past.
  • Several new exceptions constitute:
    • arbitrary deprivation of property and violate the right to freedom of trade, occupation, and profession.
    • may conflict with international treaties signed by South Africa.
For these reasons the National Assembly is requested to consider “the Bills afresh so that their objectives can be realized speedily and without the risk of any constitutional challenge”.

Afro Leo spoke with Afro Chic who has been following the developments on CAB very closely: “I wonder what different outcome would have been achieved had a different process taken place? What is clear from this is that copyright is considered “property” for the purposes of Section 25 of the Constitution. This has potentially far reaching implications in the current context of national debate on appropriation of property without compensation in the land reformation process. One wonders what, potentially unintended, consequences may come from that.”
Stephen Hollis, Adams & Adams, who has been a crusader for a number of trade associations that do not support the Bills in their current form is delighted, citing this as “a huge win for the creative sectors” whilst at the same time commenting that “now the real work begins”. Stephen should also be delighted because much of reasoning in the President’s communication was extracted directly from submissions that were carefully prepared by him and others.
Blind SA, who had initiated legal proceedings to compel the President to comply with his duties and who advocated for many of the changes in the Bill, stated that they will “study the State Attorney’s letter [containing the President’s decision] and the options available to Blind SA”.

Denise Nicholson, librarian at Wits University and well known proponent for signature of the Bills, was obviously disappointed - "One has to question, if he views these issues as unconstitutional, why Ramaphosa only acted in terms of his constitutional obligations after blind people had to take him to the Constitutional Court and the USTR and EU stepped up their economic bullying.  Had he acted responsibly in terms of Section 79(1), maybe these issues could have been resolved by now for the benefit of all stakeholders. Many of the provisions in the Bill would have been extremely helpful for libraries, archives, teaching and learning, research and innovation, during the lockdown period. 


Perhaps the USTR, EU, and multibillionaire conglomerates that are the main beneficiaries of copyright from South Africa, especially from the educational and library sectors, perceive this as a 'win'.  Well, it is indeed a sad day for access to information for education, research, innovation, AI, people with disabilities, digitization programmes and preservation of our cultural heritage, authors and creators, libraries and archives, etc. They all need many of the provisions in the Bill to function in a digital world in the 21st century. 
Of course, everyone wants this matter resolved fairly and efficiently, and for the benefit of all South Africans. But, the President's failure to act decisively and within a reasonable period as required by our Constitution has prejudiced everyone. Access delayed is access denied for all!"
It will not be easy or quick for the National Assembly to deal with the constitutional aspects of the Bill. The processes for section 76 Bills are significantly different from those of section 75 but that may not be the biggest hurdle says Afro-Chic who considers that the National Assembly will likely need to refer the matter back to the Department of Trade and Industry. In snakes & ladders, that is like going from the final tier to the first, chimes in Afro Leo.
Public consultation needs to follow due process which will take time. On a positive note, the whole process has brought copyright onto the national agenda and there is at least agreement on the need for urgent reform. What happens next is likely to require strong leadership and collaboration to take the process forward. There will need to be ladders to make the game move faster.
For those new to action, please read the numerous posts on this blog tracking the progress of CAB and the divergent views on it. Here are some of them:
Image Credit: Jacqui Brown https://www.flickr.com/photos/120600995@N07/14125947172 
Edited on 22 June to include comments from Denise Nicholson
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Wednesday, 12 June 2013

Darren Olivier

Deprivation of Trade Marks through State Interference - plain packaging in South Africa


We are very grateful to publish a guest post from Adv Mabel Jansen (Senior Counsel) on the inaugural lecture of Dr Dean in his capacity as the Anton Mostert Chair of Intellectual Property. 

Dean tackles a controversial and topical issue  around plain packaging for tobacco products making a case that any related legislation affecting trade marks in South Africa could be unconstitutional. The lecture is neatly summarised by Mabel below:

Dean
"With effect from 2011, Dr Owen Dean, author of the well known textbook Handbook of South African Copyright Law, was appointed as a professor at the Faculty of Law at Stellenbosch University, where he is the incumbent of the Anton Mostert Chair of Intellectual Property.  Dr Dean delivered his inaugural lecture as Chair on 21 May 2013 in the Conservatory at Stellenbosch. (Afro Leo says check here for background.)

The topic of his lecture was “Deprivation of Trade Marks through State Interference”. The focus of his lecture was the global war being waged against the use of tobacco products. The formal declaration of this war was issued by the World Health Organisation (WHO) in the WHO Framework Convention on Tobacco Control which was signed by 169 countries.

He pointed out that the objective of the Convention is far removed from trade marks.  It provides in article 11 for member countries to adopt effective measures to ensure that tobacco packaging and labelling do not promote a tobacco product by any means that are false, misleading, deceptive or likely to create an erroneous impression about its characteristics, health effects, hazards, or emissions. Furthermore, any outside packaging should carry health warnings that should carry health warnings that should cover 50% or more of the principal display area.  The Convention further makes provisions for Guidelines to be issued in terms of which:

“Parties should consider adopting measures to restrict or prohibit the use of logos, colours, brand images or promotional information on packaging other than brand names and product names displayed in the standard colour and font style (plain packaging).”

The motivation for these Guidelines is that plain packaging may increase the noticeability and effectiveness of health warnings and messages.

Dr Dean emphasized that this stipulation is not peremptory and that it is open to member countries not to implement it.  Furthermore, he contended that the Guidelines have given rise to a faulty premise that legislation should be adopted allowing only brand names or product names, depicted in a plain manner, to be displayed on the packaging of tobacco products. Australia has followed this route and has adopted the Tobacco Plain Packaging Act 2011 (the TPP Act).  Dr Dean pointed out that other countries are following suit and that Namibia and New Zealand, for example, are working on legislation to restrict the use of trade marks on the packaging of tobacco products.

Dr Dean discussed the 2011 Australian case JT International SA and British American Tobacco Australasia Services Limited and others (WHO http://www.who.int) where it was held that the TPP Act was not unconstitutional because although the plaintiff had been deprived of its property, namely its trade marks and the get-up of its tobacco products, no acquisition of property by the state had taken place as envisage by the Australian Constitution.

Dr Dean pointed out that in the South African context; Health Minister Aaron Motsoaledi has expressed his enthusiasm to adopt plain packaging legislation in South Africa.  Fortunately the South African Constitution in section 25 enshrines the right not to be deprived of property and includes, in section 25(1) thereof, an internal limitation to the effect that “... no law may permit arbitrary deprivation of property”. Section 25(2) somewhat complicates the issue in providing that property may be expropriated in terms of law of general application for a public purpose or in the public interest.

Dr Dean referred to the Constitutional case of First National Bank of SA Limitedt/a Wesbank v Commissioner for the South African Revenue Service; FirstNational Bank of SA Limited t/a Wesbank v Minister of Finance 2002 (4) SA768 (CC) which held that deprivation of property is a genus of which expropriation is a species, and that deprivation of property is arbitrary when there is insufficient reason for such deprivation or in circumstances where it is procedurally unfair.

Dr Dean stated that it was unnecessary to rely on the further general limitation on deprivation of property contained in section 36 of the Constitution, namely the proportionality test, for the simple reason that a deprivation of property, if arbitrary, by necessity is also unjustifiable and irrational – an opinion also held by the authors De Waal, Currie and Erasmus in The Bill of Rights Handbook 3rd edition (2011) note 2 at 20.

Dr Dean espoused the doctrine of “constructive expropriation” which holds that one should not have regard to whether legislation is meant to expropriate property, but rather whether it factually results in expropriation. He concluded that any plain packaging legislation along the lines of the TPP Act will amount to an infringement of sections 25(1) and 25(2) of the Constitution.

Dr Dean analysed the essential nature and character of trade marks, which is to denote source and stated that, in addition to a legal dimension, a trade mark also enjoys a commercial dimension which is termed “brand equity”, and which refers both to the trade mark and its commercial impact.  He emphasised how valuable trade marks are and referred, by way of example, to the trade mark GOOGLE which represents 27% of the company’s overall value.

Given the fact that the aim of plain packaging legislation is to discourage the use of tobacco products , Dr Dean stated that it defies comprehension how destroying an item of property, namely a trade mark, could be brought into relation with the discouraging of smoking. A trade mark is an instrument for creating clarity in regulating the consumer’s ability to choose between competing products. He stated that it is a non sequitur to suggest that if the ability of the consumer to distinguish between producer A and producer B is diminished or taken away, it will have the effect of discouraging or inhibiting smoking.  Hence Dr Dean opined that plain packaging legislation will infringe section 25(1) of the Constitution. If such legislation were to be held to be in the public interest, in terms of section 25(2) of the Constitution, appropriate compensation would be payable – which could amount to a substantial sum of money.

Dr Dean, during the course of his lecture, also analysed concepts such as whether trade marks are “property” for purposes of section 25 of the Constitution, the meaning of the phrase “law of general application” as set out in section 25(1), the effect of non-use of trade marks, different types of trade marks  and the value of trade marks.

His lecture was well received by an enthusiastic audience which consisted of members of law faculties, legal practitioners and corporate and other bodies interested in plain packaging legislation for tobacco products. It was followed by a well organized and well attended cocktail function. We were all ad idem that we had gained valuable insight into the imminent plain packaging legislation and it’s potentially far reaching ramifications."

Mabel is a busy and respected senior practitioner in South  Africa and this contribution is appreciated.

Look out for a post on the Virtues of a Trade Mark which will be published soon.
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Wednesday, 30 June 2010

Jeremy

Kenya's proposed constitution gives IP a mention

"Proposed new Constitution to recognize IP rights", an article written for International Law Office by David Kimani (Njoroge Regeru & Company), explains that, this May, Kenya's Attorney General published the country's proposed Constitution which, if passed in a forthcoming referendum on 4 August 2010, will by Article 11.2c oblige the state to "promote the intellectual property rights of the people of Kenya". This provision is said to require the state to promote all forms of national and cultural expression, such as the arts, as well as ensuring that communities receive compensation or royalties for the use of their culture and cultural heritage.

The current Constitution protects persons against unlawful deprivation of property of any description, but Article 40.5 of the proposed Constitution goes further, by specifically providing that "the state shall support, promote and protect the intellectual property rights of the people of Kenya".

Afro Leo wonders what checks and balances, if any, may be lurking elsewhere in the proposed Constitution, to protect the interests of users, consumers and competitors of those who own and seek to exploit their intellectual property for gain. Can any readers advise him?
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