Intellectual property protection and e-commerce platforms in Africa

Intellectual property protection and e-commerce platforms in Africa

In recent years, Africa has transformed in the area of commerce. An increase in internet access across the continent means Africa is expected to surpass half a billion e-commerce users by 2025. As African entrepreneurs and foreign investors seize their share at an early stage, it is crucial to recognise the pivotal role intellectual property (IP) plays in this dynamic landscape.

The rise of e-commerce in Africa

Africa’s e-commerce ecosystem is developing in parallel with the continent’s digital transformation, characterised by increased internet use, growing smartphone usage, available digital financial services and a burgeoning and connected middle class. Africa’s potential business-to-consumer market engagement is expected to reach up to 350 million people and is likely to increase over time.

Leading this transformation are homegrown platforms like Nigeria’s Jumia, followed by South Africa’s Takealot and Egypt’s Souq, according to various visitors. The global tech giants are also making efforts to secure their stakes in the African market, with Amazon, Alibaba and eBay forging partnerships and investments on the continent.

The IP Imperative

Amid this e-commerce boom, IP protection and enforcement is significant. IP due diligence is vital to protect a business’ innovations, brand identity and creative assets. According to a study on Misuse of e-commerce for trade in counterfeits conducted by the EUIPO (through the European Observatory on Infringements of Intellectual Property Rights) and the Organisation for Economic Co-operation and Development, ‘the Internet is a fertile ground for fraudsters who abuse the loopholes in e-commerce governance to profit from many sorts of illegal activities, including counterfeit’.

The increase in volume of small shipments, handled primarily through postal services, has become a growing trend for criminals running illicit trade networks as they lower the potential losses from seizures that are mitigated due to small parcel sizes.

Monitoring and Enforcement

While acquiring IP rights is essential, monitoring and enforcing them are equally as crucial. E-commerce platforms – namely those based in developing economies – can become fertile ground for IP infringement, from counterfeit goods to trade mark violations. Vigilant monitoring can help ensure that your IP rights are not compromised, as significant efforts from authorities across Africa are still needed to combat the proliferation of this crime.

Prompt action against infringement is key. If there are means to do so, reporting platform violations to administrators is an important first step. If necessary, pursuing legal action can protect your brand and assets.

Actions against online counterfeiting in Africa: the Kenyan initiative

In the face of widespread availability of counterfeit goods in the digital marketplace, governmental agencies need time to update their regulations and rules. Criminal networks are exploiting border control weaknesses and poor regulatory frameworks.

While several African countries have started focusing on this issue, the emerging economy of Kenya is taking stronger measures to counter the upward trend of online counterfeiting. The Kenyan Anti-Counterfeit Authority presented a plan to partner with Kenya’s digital markets, ensuring that e-commerce platforms evaluate their vendor base so that they meet certain requirements, effectively removing sellers who trade in counterfeits. This plan was revealed in August 2022 during a meeting with representatives from leading Kenyan digital markets, prompted by an increase in reported cases of online counterfeiting.

The meeting culminated in a call for establishing a collaboration framework for enforcement, public awareness and information sharing among the stakeholders present.

Conclusion

As e-commerce thrives in Africa, businesses should be aware of the importance of IP as a strategic asset and the risks of infringement on these platforms. Safeguarding IP assets ensures long-term growth, builds brand trust and strengthens your position in the competitive African market.

In the era of digital transformation, businesses leveraging and protecting their IP will thrive and contribute to the sustainable growth of Africa’s e-commerce landscape, creating a win-win situation for entrepreneurs and consumers alike. The potential for e-commerce in Africa is extensive and smart IP strategies are the key to unlocking its full potential.

Save the date: 27 November 2023 – [WEBINAR] Counterfeit goods and e-commerce sites in Nigeria and South Africa

Nigeria and South Africa have experienced a rapid increase in internet penetration and digitalisation. While this presents opportunities for growth, it also creates a conducive environment for online IP infringement. The Africa IP SME Helpdesk is organising a webinar that will address the issue of counterfeit goods and their proliferation on e-commerce platforms in two of Africa’s largest markets: Nigeria and South Africa.

IP experts will address the common issues in these two countries and highlight the key differences to advise companies on how to prevent and deal with similar situations. Real-world case studies will be presented so that participants can learn from past experiences and make informed decisions when investing in e-commerce in Nigeria or South Africa.