Part 1: Subscriber Question on Counterfeit Goods

Q: What happens when, as an Entrepreneur, you have all your Intellectual Property (IP) protection mechanisms in place but a person or company floods the market with counterfeit goods?

A: Approach your IP Attorney who would use the Counterfeit Goods Act to approach the courts and the police/customs to affect the confiscation of the fake goods.

Piracy and counterfeit goods are not treated the same; Counterfeit goods are governed by the Counterfeit Goods Act while piracy is governed by the Copyright Act.

Part 2: Franchising, Unlawful Competition and Goodwill

As an Entrepreneur you can either franchise your business in order to scale (You are McDonalds) or you can buy into an existing franchise (You buy a McDonalds fast-food outlet). Franchising is in essence a licensing agreement between the Franchisor and the Franchisee.

In order to franchise your business you need your IP “ducks” in a row. This is because you have to be able to prove your rights before you can licence them to someone else.

Even if you don’t have vested rights such as a registered Trademark or Patent etc., you still have common law rights. We discuss the mechanism for protecting your common law rights called Unlawful Competition. Competition is unlawful if the competition infringes on your right to Goodwill where our courts have relied on the concept of fairness and honesty.

Goodwill can be defined as the established reputation of a business regarded as a quantifiable asset and calculated as part of its value when it is sold.

If you have any questions or require some assistance in protecting your Intellectual Property, feel free to get in touch with us at: [email protected]


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