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Intellectual Property, Land In S.A. Concern U.S. Investors

Intellectual Property, Land In S.A. Concern U.S. Investors

The American Chamber Of Commerce said South Africa needs to safeguard the values U.S. investors bring to the country, with intellectual property and foreign land ownership rights remaining two of the biggest concerns, EyewitnessNews reports.

The chamber is in favor of a market-based economy and of respecting the sanctity of land ownership, said chamber executive director Carol O’Brien.

“We believe a lot of the values that American business brings to South Africa in terms of intellectual property policies are very important.”

President Jacob Zuma has announced a new land holdings bill restricting foreign ownership of land.

If passed in its current form, it would classify foreign nationals as non-citizens and unable to own land in South Africa, EyewitnessNews reports.

In the days following Zuma’s proposal, members of his cabinet said the ban is aimed at agricultural lands and that they haven’t decided whether it will apply to all categories of land, according to GlobalPolicyWatch,

Under the proposed bill, “foreign nationals (or people whose) dominant shareholder or controller is a foreign controlled enterprise, entity or interest” will be banned from owning land and instead only be eligible to lease land for 30 to 50 years.

The bill also sets a ceiling of land ownership at 12,000 hectares (29,650 acres), limiting the amount of land anyone — regardless of nationality — can own. Should an individual own more than that, the government will buy and redistribute the land, according to PolicyWatch.

The impact that the proposed law will have on foreigners who currently own land in South Africa is especially unclear. President Zuma said the law cannot apply retrospectively.

Regarding intellectual property, South Africa awaits new IP reforms, especially in the pharmaceutical sector, according to a report in IPWatch.

The goal is to set up a patent examination system with examiners prioritizing pharmaceutical and mining patents.

The Department of Trade and Industry said in October the final IP policy would go to cabinet for approval by the end of 2014. That deadline and others have been missed since then.

Still, South Africa is moving in the right direction with IP policy reform, according to Julia Hill, an access advocacy officer with Doctors Without Borders.

The fight for cheaper medicines in South Africa centers on patent reforms that include closer examination of patent applications. Stricter selection criteria will determine whether a patent will help reduce a practice called evergreening, where companies can maintain monopolies and charge high prices for longer, according to IPWatch.