Intellectual Property Rights and how it affects the consumer

(First appeared in Consumer News Namibia Magazine April 2013)

In many areas of business today, the term Intellectual Property (IP) is being used to justify the higher price of a product or service – and the prevention of competing businesses being able to provide the same product or service. This means a competing business may not sell the product or service at all – even if it would mean a cheaper cost to the consumer. However, it is important that intellectual property rights protection be encouraged in society to ensure that better inventions, products or services are being created.

Wikipedia defines IP as:

Intellectual property (IP) rights are the legally recognized exclusive rights to creations of the mind. Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. Common types of intellectual property rights include copyright, trademarks, patents, industrial design rights, trade dress, and in some jurisdictions trade secrets.

As a consumer, we all want to be able to buy a product for a cheaper price, but we do not want to compromise on the quality of the product, or even worse use a cheaper product that might actual cause us physical harm. It is thus clear that there must be a point of equality where the IP holder gets a decent return for the investment of their idea or invention compared to the price the consumer has to pay for such a product or service.

To understand this concept better, let us examine each type of right that is referred to:

·         Copyright

Copyright gives the creator of an original work the chance to receive payment for their work and allow them to financially support themselves through this work. This is often granted to visual and audio works such as music, books, paintings, etc. Copyright is recognized without any formal registration in most countries – as long as the work is in a completed form.

·         Trademarks

A trademark is sign, design or expression that identifies products or services from a specific source. International examples include Coca Cola, Facebook and Toyota. In Namibia, an example is the trademark of MTC which is fully written out as Mobile Telecommunications Limited. Trademarks allow the consumer to be assured that a specific product or service does in fact originate from the company whose trademark is used.

·         Patents

A patent is a set of exclusive rights granted by a country to an inventor for a limited period of time in exchange for detailed public disclosure of an invention. The exclusive right granted to a patentee in most countries is the right to prevent others from making, using, selling, importing, or distributing a patented invention without permission.

·         Industrial Design

An industrial design right protects the visual design of objects that are not purely practical or functional. It can consist of the creation of a shape, configuration or composition of pattern or color, or combination of pattern and color in three-dimensional form containing artistic value. An industrial design can be a two- or three-dimensional pattern used to produce a product, industrial commodity or handicraft. In Namibia, local handicrafts can qualify for industrial design rights.

·         Trade Dress

This refers to characteristics of the visual appearance of a product or its packaging that signify the source of the product to consumers. Examples are the Team Namibia products that carry the Team Namibia logo.

In Namibia, the government, business community, civil society and the consumer needs to define how to ensure that intellectual property rights are protected (and encouraged) while not allowing exploitation of the consumer.



Milton Louw is a consumer activist and writer. He is presently the IT Project Coordinator at the Electoral Commission of Namibia. The opinions expressed in this article are purely his own.

Imagine life without debt!

(First appeared in Consumer News Namibia Magazine April 2013)

“Debt is like a disease that can enable us from living a happy and normal life by taking control over our lives. Most of us don't even know how we end up in the situation we are in. Buying everything we own with credit has become our culture. But don't let debt control your life any more. You can take over your life again. Imagine life without debt!”

Is it true? Can a person do things in life without using getting into a debt trap? YES. The problem is not about using debt or cash, but rather about financial management and making sure you keep yourself out of trouble and ensure you don’t worry too much about the level of credit you have or are using.

Remember the following are tips only – you must find the ones that work best for your and apply them to your life.

1. Don’t get into debt
Use cash wherever you can and do not take out any debt except for a motor vehicle or a house.
2. Spend less money than what you earn (obvious but needs to be said)
3. Write down all your liabilities so that you can see what is the amount of money you owe the world. This should be very motivational if you keep a record of this amount as you start paying it off.
4. Cut up your credit cards – all your clothing accounts, etc. should rather be on a cash buy basis
5. Avoid eating out – if possible cook at home and you will save a lot – you can splurge on a cookbook that can help make your meals a little more interesting too.
6. If you go out, visit friends and find things to do that is not expensive – going to the dam, or the park, visiting a museum, etc.
7. Plan for future expenses now.
8. Make a budget – and stick to it
9. Speak to your spouse or partner about both your spending habits – it takes both of you working together to reach your goals
10. Be realistic – the debt will not go away overnight. The same time it took to accumulate the debt is about the time you will need to pay it off
11. Eliminate some things – look hard at the things you spend your monthly budget on – and cut some of them out. This might be your MNET subscription or the gym membership that you never use?
12. STOP borrowing money – every cent borrowed during the month feels like twice the amount when you have to repay it. This is especially true if you are using a cash loan facility.
13. Turn off your television – this way the adverts will not tempt you.

Number thirteen was thrown in to make you laugh – but the advice of not letting temptation ruin your budget is true. Don’t take those pamphlets that the jewelry or clothing store gives out. Don’t open the catalogues they send in the mail – all of it is aimed at making you spend more.

Fuel Card debate

(First appeared in Consumer News Namibia Magazine April 2013)

On 12 April 2010, the Bank of Namibia announced that “..As part the Namibian payment system reform initiative of which the implementation of the local card switch, NAMSWITCH, has been one of the milestones, the Namibian banking industry resolved to discontinue petrol cards in Namibia in the near future. The public will instead be allowed to purchase fuel with internationally accepted debit and credit cards. The Payment Association of Namibia (PAN) wishes to inform the public that they can use their debit and credit cards to purchase fuel at Filling Stations.

These developments are good steps in the right direction for consumers, for fuel retailers, and for the country as a whole. The use of broader range of payment instruments at Fuel Stations provide consumers with choices of which payment instrument to use and as such eliminate cash based transactions in favour of a more convenient, secure and cost-effective method of payment. “

At the time the announcement was made, it was understood by consumer groups to be a good thing as it would widen the choices of payment methods by consumers. For once it seemed that the banking industry was thinking of the consumer first.

Two years down the line and the Bank of Namibia informed the public that “..that fuel cards (Garage and Petro) will no longer be accepted  as a legal tender after 28 February 2014.  After this date clients will be able to purchase fuel with cash, debit or credit cards. Clients should note that fuel stations are not obliged to accept debit or credit cards for purchases.”  

It was that last sentence that had some of the consumer groups contact the Association of Service Station Owners (ASSO). After all, why would a fuel station refuse to get paid for fuel?

The ASSO then pointed out that when using a debit or a credit card, one and a half percent goes to the bank, which it takes from the 77 cents profit. Further, service stations may not charge a client any surcharge fee for a point-of-sale transaction for fuel with a credit or debit card. In fact, banks have asked its clients to contact them should a service station charge an additional fee for the transaction.

Since the 28^th of February 2014, many fuel stations are turning away all customers that want to use cards to purchase fuel. This has led to many consumer now having to carry the cash around in their pockets for this vital product needed in our daily lives.

So what must be done? The Bank of Namibia and the Payments Association of Namibia (PAN) assured the public in April 2010 that “…these developments are good steps in the right direction for consumers, for fuel retailers, and for the country as a whole.”

This is not the case! Consumers and fuel retailers are being inconvenienced, and these measures also increase the profits of the bankers. They – the bankers - have changed the terms and conditions of how we pay and increased their profit margin while pretending that this is to our benefit.

It is clear that the Namibia Competition Commission (NCC) must become involved in this debate. Consumer groups welcome the fact that the NCC is “highly concerned” that the decision has indeed led to constraining consumers in their method of choice to settle an applicable transaction.

Consumer groups mobilise to demand phone rights for 7 billion users

(First appeared in Consumer News Namibia Magazine April 2013)

Consumers International (CI), the global federation of 250 consumer groups, published its Consumer Agenda for Fair Mobile Services ahead of World Consumer Rights Day (WCRD) on Saturday 15 March 2014.

In the run up to 15 March, consumer groups from around the world made a call on mobile phone service providers to demand better services for the 7 billion mobile users across the globe. Mobile rip offs are commonplace – from holidaymakers being stung by four figure roaming bills abroad, to customers tricked into paying to receive text messages.

With smartphones set to function as a remote control for more and more aspects of our lives, consumer groups believe now is the time to ensure big mobile companies are held to account for unfair, substandard services.

In consultation with consumer groups around the world, CI drew up a Consumer Agenda for Fair Mobile Services, which outlines what the consumer rights movement wants to see changed. This includes demands that telecom companies:

• provide consumers with access to an affordable, reliable service

• provide consumers with fair contracts explained in clear, complete and accessible language

• provide consumers with fair and transparent billing

• provide consumers with security and power over their own information, and

• listen and respond to consumer complaints.

CI is planning to deliver this message to the International Telecommunications Union (ITU) - the UN body responsible for setting standards in the industry - ahead of the ITU World Telecommunications Development Conference in early April.

Amanda Long, Consumers International Director General says:

“Mobile phones are an everyday part of the lives of billions of people. From social interaction, and digital identity; to banking and e-commerce: they have become essential to the way we live, spend, connect and express ourselves.

“But consumers the world over complain about the service they receive from telecom providers. From West Africa, to Asia Pacific; Europe, to South America - our member groups are telling us that connection reliability, unfair contracts, unclear billing, poor customer services and concerns over data privacy are regular issues for consumers. It’s time the international telecom providers answer the call for action.”

Namibia is no exception. The telecommunications industry does not have a service of culture and now that it all telephonic services fall under one company (Namibia Post and Telecom Holdings), competitiveness is not a driving force for change.

The Communications Regulatory Authority of Namibia (CRAN) is responsible for regulating the telecommunication services and networks, broadcasting services, postal services and the use and allocation of radio spectrum. Consumer Protection and Advocacy forms an integral part of CRAN's mandate. CRAN is supposed to ensure that consumers receive the full benefits of competitive electronic communication services and are protected from any exploitation or abuse. A streamlined complaints handling system in accordance with the Act has been put in place, but no consumer group has yet evaluated the process or had access to reports on the internal handling of the complaints received by the authority.

Note: Leo was purchased by Telecom and is now renamed TN Mobile. Telecom and the Post Office are 100% owned by Namibia Post and Telecom Holdings (NPTH). MTC is 66% owned by NPTH.

My Do and Get Book

(First appeared in Consumer News Namibia Magazine March 2013)

The Bank Windhoek group of companies has been supporting entrepreneurial development among children of school going age through the Bank Windhoek BizzKids competition. Last year, the winners were Keanu da Silva (13) and Keyat da Silva (11) trading as “Team D” from Eldorado Secondary School and M H Greeff Primary School. The business product they created was the “My Do and Get Book”. In basic terms, the two brothers sold work plans for children to do household chores to teach them to be responsible and at the same time earn pocket money for household chores done.

Wikipedia explains “pocket money” as follows: An allowance is an amount of money given or allotted usually at regular intervals for a specific purpose. In the context of children, parents may provide an allowance (British English: pocket money) to their child for their miscellaneous personal spending.

The person providing the allowance is usually trying to control how or when money is spent by the recipient so that it meets the aims of the person providing the money. For example an allowance by a parent might be motivated to teach the child money management and may be unconditional or be tied to completion of chores or achievement of specific grades

As a consumer activist the business idea of the brothers really caught my attention. First, it explains the importance of children being given the responsibility of doing things around the house as part of their contribution. Secondly, it adds the element of understanding the value of these chores in terms of earnings. These earnings (points based system) are converted into an agreed amount in Namibian dollars that the child can receive at the end of every month as their allowance. Thirdly, it leaves a long lasting experience for the child to prepare them for the “real” world where nothing in life is free.

The book is a daily reminder (when used correctly) about what is responsibility while reminding the child of the rewards due for the work done. This moral lesson is reinforced by the weekly checking of both chores and points awarded. At the end of the book, it also allows for a balancing to be done of both parties contribution to the work programme outlined in advance.

The business idea has now been formalized and the duo, together with their parents is shopping around to find a corporate sponsor. I hope that corporate sponsors are open to this idea, and link it to other products to also include saving and banking of these allowances.

Milton Louw is a Namibian consumer activist and is not affiliated to the business “My Do and Get Book” in any way or form.