Key Legal Steps to Monetizing your IP in Kenya

Say you are one of those creative types with grand, unique, unprecedented inventions or designs zipping through your mind, a mile a minute. Perhaps you have composed the next chart-topping hit, drawn or painted the next great masterpiece, written an amazing self-help book, biography or novel or taken a breathtaking photograph with award winning potential. Do you know the legal steps you need to take to protect and monetize that intellectual property in Kenya?

Here are a few steps to consider.

Identify the type of intellectual property you have created

The first step is to correctly identify the type of intellectual property you have created. There are several types of intellectual property rights recognized in Kenya, namely, copyright, patent, trademark, industrial design and utility model, just to name a few. Each of these protect a different set of works and give the holder of that protection, the exclusive right to financially exploit that work for gain.

One thing that does, however, need to be emphasized for all intellectual property creators is the distinction between an idea and the expression of that idea. With most of these intellectual property rights, you cannot protect the idea of something, you can only protect the manner in which you have brought that idea to life. The idea remains free for others to express in their own unique ways as well.

Obtain legal protection for the work

Once you have identified the type of intellectual property you have, the next step is to seek legal recognition and protection for it. This is generally done through registration with the particular authority tasked with the registration of that work such as the Kenya Copyright Board or the Kenya Industrial Property Institute.

However, it is important to note that while patents, utility models, trademarks and industrial designs derive their protection from the act of registration, copyright protection differs in the sense that it is vested in the work as soon as you create it. As soon as you compose those lyrics and infuse them with a melody, as soon as you write that book, as soon as you take that photograph or as soon as you create that work of art, it becomes protectable. You do not need to register it in order to get protection for it. However, registration is still advisable for evidentiary purposes.

A second way of protecting your intellectual property, especially where you need to disclose it to others for exploitation, is to require the signing of non-disclosure agreements with those parties, before you disclose your work or idea to them. A well drafted non-disclosure agreement will prevent the parties you are talking to from using and exploiting your work in the manner in which you have expressed or disclosed it, without your permission or involvement. But all contracts are as strong as their enforcement. You must be ready to enforce your rights under that contract in the event of breach or violation. The written word of the contract is not always sufficient as a deterrent.

Understand what you are entitled to under the legal protection you have obtained

Our assumption is that you have sought legal advice and assistance from a duly qualified advocate right from step one. The advocate should be able to explain to or outline for you what rights you are entitled to under the legal protection you have obtained, what others are prevented from doing as regards your work and how long that legal protection lasts.

Ascertain the best way to exploit the work

Now that you have identified the type of intellectual property you have and legally registered it in your name, the next step is to identify how best to make money from the work. This is where the rubber meets the road as you can have a slew of intellectual property works that are not financially profitable if you do not identify the right strategy to exploit them.

As with any other product, intellectual property works also require a ‘go-to-market’ strategy. It is important to think about what you are trying to achieve with the work and how best to get there. Undertake proper market research. Look at what your competition is doing. Identify those who have succeeded in terms of the goals you have and those who have not, and pin point what they did right and what they did wrong.

Be careful who you give rights or access to your work. Ensure that the persons you are partnering with actually have the capacity to deliver the goals you are seeking to achieve. Thoroughly interrogate all the contracts you are signing with respect to the work; do not just sign on the dotted line because the money is right. Above all else, do not give or share your work for exploitation without a written contract! Sign the right contracts every time.

And the right contract is the one that limits the rights you are giving to just the very specific ones that you need to give under the particular circumstances, to a person well equipped and capable of exploiting that right, for a mutually beneficial financial gain and for a duration that is not much longer than is necessary for the particular arrangement.

Be ready to enforce your rights in the event of violation

All the steps we have listed above may not be fully beneficial to you if you are not ready to enforce your right in the event of breach or violation. Often, this requires active policing and monitoring as well as being ready to take legal action where prior amicable interventions have failed. As indicated previously, the written word of the contract or the law is not always sufficient to deter those whose value system is not oriented towards doing the right thing because it is the right thing to do.

Picking the right partners whose value system and track record is known to you is critical to the financial success of your work. Similarly, being aggressive in protecting your work whenever it is violated, helps to assure a positive return on your work, or at the very least, to deter future violations.

So, for legal assistance, in any of these areas, please do not hesitate to reach out to us.

Data Protection Obligations under Kenyan Law

The Data Protection Act (Cap 411C formerly Number 24 of 2019) is the law that deals with processing of personal data in Kenya. The law defines personal data as “any information relating to an identified or identifiable natural person”.

Under the Act, processing of personal data is any operation performed on personal data including:

  • collection, recording, organisation or structuring of personal data;
  • storage, adaptation or alteration;
  • retrieval, consultation or use;
  • disclosure by transmission, dissemination, or otherwise making available; or
  • alignment or combination, restriction, erasure or destruction.

Anyone who performs any of the above operations is known as a data processor while anyone who determines the purpose and means of processing personal data is known as a data controller. A data controller and a data processor may be the same person or different persons depending on the circumstances.

Before a data controller or a data processor can collect personal data from a data subject, they must inform them of their rights under the Act. These rights are, the right:

  • to be informed of the use to which their personal data is to be put;
  • to access their personal data in the custody of the data controller or data processor;
  • to object to the processing of all or part of their personal data;
  • to correction of false or misleading data; and
  • to deletion of false or misleading data about them.

The data controller or data processor must also inform the data subject of:

  • the fact that personal data is being collected;
  • the purpose for which the personal data is being collected;
  • the third parties to whom personal data has been or will be transferred to, including details of safeguards adopted;
  • the contacts of the data controller or data processor and on whether any other entity may receive the collected personal data;
  • a description of the technical and organizational security measures taken to ensure the integrity and confidentiality of the data;
  • the data being collected pursuant to any law and whether such collection is voluntary or mandatory; and
  • the consequences if any, where the data subject fails to provide all or any part of the requested data.

A data controller or data processor must not process personal data unless and until they have received the consent of the data subject to the processing, for one or more specified purposes. The data subject may withdraw their consent at any time. However, withdrawal of that consent does not affect the lawfulness of any processing done prior to the withdrawal.

A data controller or data processor is required to keep personal data only as long as may be reasonably necessary to satisfy the purpose for which it is being processed, unless the law requires a longer period of retention or unless the data subject has authorized or consented to a longer retention period.

Is your organization compliant with the law?

You can reach out to us for assistance in complying with all the requirements of the law in all areas where you may be collecting or processing personal data.

Electronic Signatures in the Kenyan Legal Context

As the world becomes a little oyster with global interconnectivity between persons, and with transactions being carried out across borders and countries through digital platforms all the time, this question inevitably arises, “Can we also enter into binding contracts online where everything including signing of the document is done electronically?”

The general answer to this question is yes. The Kenya Information and Communications Act is quite instructive in addressing this issue. It provides that, in the context of contract formation, an offer and acceptance of an offer may be expressed by means of electronic messages. The Act further provides that any matter that is required to be “in writing” is also satisfied if the matter is made available in an electronic form and remains accessible so as to be usable for a subsequent reference.

Notably, such a document must remain retrievable or accessible for future reference. Various legislations provide for different durations for retention of documents. For instance, Kenyan tax laws provide for a general record retention period of 5 – 7 years while the Companies Act and other Acts provide for a general record retention period of 7 – 10 years.

The Act further provides that for electronic documents to satisfy the requirement for valid retention of documents, the record must be retained in the format in which it was originally generated, sent or received and it must contain details which will facilitate identification of the original destination, date and time of dispatch or receipt of such an electronic record.

Accordingly, it is important to ensure the integrity of the system that you are using for electronic contracting. Similarly, the program must have time-stamping abilities to record things such as the time of generation of the document, time of delivery to the recipient, time when the signature was affixed in addition to the format and content of the document signed.

As regards signing, the law states that where a signature of a person is required, that requirement is met in relation to an electronic message if an advanced electronic signature is used. This is where it gets complicated though, as an advanced electronic signature has a very specific definition.

The Act defines an advanced electronic signature as a signature which:

  • is uniquely linked to the signatory;
  • is capable of identifying the signatory;
  • is created using means that the signatory can maintain under his sole control; and
  • is linked to the data to which it relates in such a manner that any subsequent change to the data is detectable.

So, it is not as simple as affixing your scanned physical signature on a document.

The law further provides that such a signature will be deemed reliable if, among other things:

  • it is generated through a signature-creation device;
  • any alteration to the electronic signature made after the time of signing is detectable; and
  • where the purpose of the legal requirement for a signature is to provide assurance as to the integrity of the information to which it relates, any alteration made to that information after the time of signing, is detectable.

Please feel free to reach out to us should you need legal advice or guidance in this area of electronic contracts.