Page 24 - Nexia SAB&T Business in South Africa Guide 2024

INTELLECTUAL PROPERTY: DESIGNS

Definition
A registered design is generally used to protect the physical appearance of an
article. The design may be aesthetic or functional.
Registration
Registered with the South African Registrar of Patents.
Length of Protection
Registered aesthetic designs are protected for fifteen years. Registered functional
designs are protected for ten years. Registered designs must be renewed annually
before the expiration of the third year, as from the date of lodgement. To maintain
a design in force a payment of an annual renewal fee is due starting from the
expiring of the third year from the date of filing until the design expires.
Rights of Holder
Registration of a design grants to the right holder the right to exclude other people
from making, importing, using or disposing of any article included in the class
in which the design is registered, so that the right holder enjoys all the benefits
relating to the design.
Enforcement and Remedies
Designs Act, 195 of 1993
Remedies include: interdict, delivery up of the infringing product, damages, a
reasonable royalty.
Tax Implications of Intellectual Property Ownership
Should income be generated or derived from patents and similar property, the
owner may, over a period, deduct from taxable income, expenditure on:
■ Devising and developing an invention.
■ Generating or making a design, trademark, copyright or similar asset.
■ Registering or obtaining a patent, design registration or trademark, and
■ Acquiring a copyright, design, patent, trademark or similar property.
Since South African tax law is based on the residence principle, income in a
South African resident’s hands, from foreign sources is taxable.
22