SOUTH AFRICA
Since March 1999
Pillar Intellectual Property Rights (IPRs) |
Indicator Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty (PCT)
South Africa is a party to the Patent Cooperation Treaty (PCT). However, the country does not consider itself bound by Art. 59 related to disputes.
Coverage Horizontal
SOUTH AFRICA
Since June 1978
Pillar Intellectual Property Rights (IPRs) |
Indicator Copyright law with clear exceptions
Copyright Act of 1978
South Africa has a clear regime of copyright exceptions that follows the fair dealing model, which enables the lawful use of copyrighted work by others without obtaining permission. Section 12 of the Copyright Act lists the exceptions, which include private reproduction for personal purposes, reproduction and other utilisation for teaching and scientific non-commercial purposes, reproduction, broadcasting, and other communication to the public for informatory purposes, among others.
Coverage Horizontal
SOUTH AFRICA
Reported in 2021, last reported in 2023
Pillar Intellectual Property Rights (IPRs) |
Indicator Enforcement of copyright online
Lack of adequate enforcement of copyright online
Copyright is not adequately enforced online in South Africa. It has been reported that enforcing copyright online in the country is challenging, particularly in the music, film, and software industries. Online piracy and infringement of copyright laws are prevalent in the country, and many entities, locally and internationally, have expressed concerns about inadequate enforcement mechanisms and legal frameworks. In addition, it is reported that South Africa failed to reach the mandated levels of copyright protection under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), especially regarding the enforcement of online copyright and piracy. Moreover, industry associations such as the Southern African Music Rights Organization (SAMRO) and the Recording Industry of South Africa (RiSA) have also raised concerns about widespread piracy and infringement of copyright laws in the country.
Coverage Software, online media
SOUTH AFRICA
Since August 2006
Pillar Public procurement of ICT goods and online services |
Indicator Surrender of patents, source code or trade secrets to win public tenders/Restrictions on technology standards for public tenders
Policy on Free and Open Source Software (FOSS) Use for South African Government
Section 2 of the Policy on Free and Open Source Software (FOSS) Use for the South African Government, published by the Department of Public Service & Administration, mandates that the government prioritise FOSS over proprietary software unless the latter is demonstrably superior. When FOSS and proprietary software offer comparable benefits, FOSS must be chosen for new projects, and any decision to use proprietary software requires justification. Additionally, the policy requires the migration of existing proprietary software to FOSS, where equivalent alternatives exist. Furthermore, all new software developed for or by the government must adhere to open standards, follow FOSS principles, and be licensed under FOSS whenever feasible.
Coverage Software
SOUTH AFRICA
N/A
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Copyright Treaty
Lack of ratification of the WIPO Copyright Treaty
South Africa has signed the World Intellectual Property Organization (WIPO) Copyright Treaty in December 1997, but has not ratified it.
Coverage Horizontal
SOUTH AFRICA
Reported in 2003, last reported in 2023
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Local agent requirement for tenders
It is reported that foreign firms can only bid through a local agent.
Coverage Horizontal
SOUTH AFRICA
N/A
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Performances and Phonograms Treaty
Lack of ratification of the WIPO Performances and Phonogram Treaty
South Africa has signed the World Intellectual Property Organization (WIPO) Copyright Treaty in December 1997, but has not ratified it.
Coverage Horizontal
SOUTH AFRICA
Reported in 2013, last reported in 2023
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Local content requirement for tenders
The National Industrial Participation (NIP) programme, approved by Cabinet in September 1996, mandates that suppliers providing goods and services to the government with an import content of USD 10 million or more must engage in domestic economic activities. Specifically, the supplier is required to participate in activities amounting to at least 30% of the import content of the total goods or services purchased under the government contract. These activities should align with key objectives of the NIP, such as increasing production capacity, promoting exports, collaborating on research and development (R&D), and facilitating technology transfer and acquisition. While the NIP programme stems from a Cabinet decision, there is no formal legislation or act of parliament regulating it. Further details can be found in the NIP Revised Guidelines 2013.
Coverage Horizontal
SOUTH AFRICA
Since February 2000
Since January 2004
Since November 2022, entry into force in January 2023
Since January 2004
Since November 2022, entry into force in January 2023
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Preferential Procurement Policy Framework Act of 2000
Broad-Based Black Economic Empowerment (B-BBEE) Act of 2003
Preferential Procurement Regulations, 2022
Broad-Based Black Economic Empowerment (B-BBEE) Act of 2003
Preferential Procurement Regulations, 2022
Section 2 of the Preferential Procurement Policy Framework Act (PPPFA) of 2000 establishes a framework for implementing preferential procurement policies in South Africa. The PPPFA requires government entities to set criteria for evaluating tenders to protect and benefit "persons, or categories of persons, historically disadvantaged by unfair discrimination on the basis of race, gender, or disability".
In order to enforce the PPPFA, the Broad-Based Black Economic Empowerment (B-BBEE) Act was passed in 2003. Under Section 10 of the Act, a certain percentage of government contracts must be awarded to black-owned businesses. However, the exact percentage is not specified in the agreement because it is formula-based. The Act uses a scorecard system to measure the level of black economic empowerment (B-BBEE) of companies. It requires that government institutions give preference to companies with higher B-BBEE scores when awarding contracts.
In 2017, the Minister of Finance introduced more detailed Preferential Procurement Regulations, which include pre-qualification criteria for preferential procurement and specific procurement policies for designated sectors and tenders. However, the Constitutional Court struck down some provisions of these regulations in February 2022. As a result, the government published a new draft of the Preferential Procurement Regulations in November 2022, which came into effect in January 2023. Under the 2022 regulations, preference points continue to be awarded based on the offered price (80 or 90 points out of 100), with additional preference points (20 or 10 points) granted based on the achievement of specific goals set in the tender invitation, rather than solely on the B-BBEE score. These goals include contracting with historically disadvantaged individuals and implementing the Reconstruction and Development Programme (RDP). Furthermore, the 2022 regulations eliminate the use of 'prequalification criteria' in tenders, providing more discretion for state organs in applying their procurement policies. These regulations are placeholders until a new public procurement bill is finalised.
In order to enforce the PPPFA, the Broad-Based Black Economic Empowerment (B-BBEE) Act was passed in 2003. Under Section 10 of the Act, a certain percentage of government contracts must be awarded to black-owned businesses. However, the exact percentage is not specified in the agreement because it is formula-based. The Act uses a scorecard system to measure the level of black economic empowerment (B-BBEE) of companies. It requires that government institutions give preference to companies with higher B-BBEE scores when awarding contracts.
In 2017, the Minister of Finance introduced more detailed Preferential Procurement Regulations, which include pre-qualification criteria for preferential procurement and specific procurement policies for designated sectors and tenders. However, the Constitutional Court struck down some provisions of these regulations in February 2022. As a result, the government published a new draft of the Preferential Procurement Regulations in November 2022, which came into effect in January 2023. Under the 2022 regulations, preference points continue to be awarded based on the offered price (80 or 90 points out of 100), with additional preference points (20 or 10 points) granted based on the achievement of specific goals set in the tender invitation, rather than solely on the B-BBEE score. These goals include contracting with historically disadvantaged individuals and implementing the Reconstruction and Development Programme (RDP). Furthermore, the 2022 regulations eliminate the use of 'prequalification criteria' in tenders, providing more discretion for state organs in applying their procurement policies. These regulations are placeholders until a new public procurement bill is finalised.
Coverage Horizontal
Sources
- https://web.archive.org/web/20240220034819/https://www.gov.za/documents/acts/preferential-procurement-policy-framework-act-5-2000-03-feb-2000
- https://web.archive.org/web/20240311131910/https://www.gov.za/sites/default/files/gcis_document/201409/a53-030.pdf
- https://www.gov.za/sites/default/files/gcis_document/202211/47452gon2721.pdf
- https://www.webberwentzel.com/News/Pages/new-preferential-procurement-regulations-a-placeholder.aspx
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SOUTH AFRICA
Since March 2020
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Practice Note on Local Content for Electronic and Information Technology Goods
Annex A of the Practice Note on Local Content for Electronic and Information Technology Goods published by the Department of Trade and Industry defines guidelines on local content for electronic and information technology goods in public tenders. The note requires a certain percentage of the value of ICT products to be of local origin. The local content requirement varies depending on the product and can range from 30% to 100%.
Coverage Electronic and information technology goods
SOUTH AFRICA
Reported in 2023
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Lack of transparency in tenders
It is reported that the Preferential Procurement Regulations have created uncertainty regarding the criteria for identifying "specific previously disadvantaged groups" eligible for preference margins in procurement processes. Although the regulations do not mandate the use of the Broad-Based Black Economic Empowerment Act of 2013, state entities may still consider it alongside other objectives, such as employment equity, green procurement, and local content. While these regulations offer more flexibility, there are ongoing concerns that the allocation of preference points may not be fair, equitable, or transparent.
Coverage Horizontal
SOUTH AFRICA
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
1.58%
Coverage rate of zero-tariffs on ICT goods (%)
74.97%
Coverage: ICT goods
Sources
- http://wits.worldbank.org/WITS/
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
SOUTH AFRICA
N/A
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Lack of participation in the Information Technology Agreement (ITA) and in ITA Expansion Agreement (ITA II)
South Africa is not a signatory of the 1996 World Trade Organization (WTO) Information Technology Agreement (ITA) nor the 2015 expansion (ITA II).
Coverage ICT goods
Sources
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
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SINGAPORE
Reported in 2021, last reported in 2023
Pillar Online sales and transactions |
Indicator Threshold for ‘De Minimis’ rule
De minimis threshold
It is reported that the de minimis threshold, that is the minimum value of goods below which customs do not charge duties, is USD 290, above the 200 USD threshold recommended by the International Chamber of Commerce (ICC).
Coverage Horizontal
Sources
- https://web.archive.org/web/20231220024306/https://global-express.org/index.php?id=271&act=101&profile_id=-1&countries%5B%5D=-2&search_terms=&question-filter=&qid_34=1&qid_34_optid=1&qid_35=1&qid_36=1...
- https://web.archive.org/web/20230227012953/https://global-express.org/assets/files/GEA%20De%20Minimis%20Country%20information_4%20November%202021.pdf
