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SOUTH AFRICA

Since April 2006

Pillar Telecom infrastructure & competition  |  Indicator Licensing restrictions to operate in the telecom market
Electronic Communications Act No. 36 of 2005
Chapter 3 of the Electronic Communication Act provides a framework for licensing procedures for electronic service providers, including telecom operators. According to Section 9, holders of individual licenses must have a minimum of 30% of equity held by persons from historically disadvantaged groups.
Coverage Telecommunications sector

SOUTH AFRICA

Since December 1997

Pillar Telecom infrastructure & competition  |  Indicator Signature of the WTO Telecom Reference Paper
WTO Telecom Reference Paper
South Africa has appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.
Coverage Telecommunications sector

SOUTH AFRICA

Since March 2000

Pillar Telecom infrastructure & competition  |  Indicator Presence of an independent telecom authority
Independent Communications Authority of South Africa Act, Act No. 13 of 2000
According to the Independent Communications Authority of South Africa Act, the Independent Communications Authority of South Africa (ICASA), the executive authority for the supervision and administration of services in the telecommunications sector, is independent from the government in the decision-making process.
Coverage Telecommunications sector

SOUTH AFRICA

Since December 1998
Since February 2019

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Screening of investment and acquisitions
Competition Act No. 89 of 1998

Competition Amendment Act No. 18 of 2018
It is reported that merger and acquisition-related FDI is scrutinised closely for its impact on jobs and local industry. Sections 13-14 of the Competition Act of 1998 set out the approval mechanism for mergers. In addition, Section 14 of the Competition Amendment Act of 2018 amends Section 18A of the Competition Act, adding a screening in case the implementation of a merger involving a foreign acquiring firm may have an adverse effect on the national security interests of the Republic. National security interests are defined broadly, including "critical infrastructure" sectors.
Coverage Horizontal

SOUTH AFRICA

Since April 2009

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Commercial presence requirement for digital services providers
Companies Act No. 71 of 2008
According to Art. 23.1 of the Companies Act, any external company, defined in the law as an entity incorporated outside the country conducting business within South Africa, must register with the Commission within 20 business days after it begins to conduct business in the country. Additionally, according to Art. 23.3 of the law, each company must maintain at least one office in the Republic and register the address of its office or its principal office if it has more than one office. A company falls under the definition of "external company" when holding a meeting or meetings of the shareholders or board of the foreign company or otherwise conducting the internal affairs of the company; establishing or maintaining any bank or other financial accounts; establishing or maintaining offices or agencies for the transfer, exchange or registration of the foreign company’s securities; creating or acquiring any debts, mortgages or security interests in any property; securing or collecting any debt, or enforcing any mortgage or security interest; acquiring any interest in any property; and entering into contracts of employment.
Coverage Horizontal

SOUTH AFRICA

Reported in 2006, last reported in 2022

Pillar Intellectual Property Rights (IPRs)  |  Indicator Practical or legal restrictions related to the enforcement of patents
Complaints on enforcement of patents
Practical restrictions on patent enforcement have been recorded in the country, including a lack of transparency, lengthy proceedings, and non-deterrent sanctions. These include:
- Non-infringement opinions: The South African courts have emphasised the importance of obtaining a non-infringement opinion before pursuing patent litigation. Failure to obtain such an opinion may result in an award of costs against the patent owner.
- Limitations on the rights conferred by a patent: Under South African law, the rights conferred by a patent are limited by certain exceptions, such as fair dealing for research and private study. 
- Requirement for specificity: South African courts require patent owners to be specific about the alleged infringing activities, including identifying the infringing products or processes.
- Invalidity challenges: Patents may be challenged on the grounds of invalidity, such as lack of novelty or inventiveness. This may result in the revocation of the patent.
Coverage Horizontal

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

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

N/A

Pillar Intellectual Property Rights (IPRs)  |  Indicator Adoption of the WIPO Performances and Phonograms Treaty
Lack of ratification of the WIPO Performances and Phonograms 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

N/A

Pillar Intellectual Property Rights (IPRs)  |  Indicator Effective protection covering trade secrets
Comprehensive protection of trade secrets under common law
South Africa does not have specific legislation governing trade secrets or know-how, though they can be effectively protected under South African common law.
Coverage Horizontal

SOUTH AFRICA

N/A

Pillar Telecom infrastructure & competition  |  Indicator Passive infrastructure sharing obligation
Lack of obligation to share passive infrastructure
It is reported that there is no obligation for passive infrastructure sharing in South Africa to deliver telecom services to end users. However, it is practised in both the mobile and fixed sectors based on commercial agreements.
Coverage Telecommunications sector

SOUTH AFRICA

Since January 2008

Pillar Telecom infrastructure & competition  |  Indicator Maximum foreign equity share for investment in the telecommunication sector
Broadband Infraco Act No. 33 of 2007
The State of South Africa exclusively owns Broadband Infraco, a state-licensed telecommunications company. The State is the only shareholder and member of Infraco, as stipulated in Art. 3 of the Broadband Infraco Act No. 33 of 2007. As a result, the Minister has the power to act on behalf of the State and exercise all the rights and benefits associated with Infraco's ownership, including shareholder and membership rights, to the exclusion of other stakeholders.
Coverage Telecommunications sector

SOUTH AFRICA

N/A

Pillar Telecom infrastructure & competition  |  Indicator Presence of shares owned by the government in telecom companies
Presence of shares owned by the government in telecom companies
It is reported that Telkom, a major wireless telecommunications provider, is largely state-owned, with the South African government holding 40.5% of its shares and an additional 14.8% owned by the Public Investment Corporation (PIC), a state-owned entity closely linked to the government. Additionally, Broadband Infraco, founded in 2007, is fully state-owned and provides wholesale telecommunications infrastructure services to other providers in South Africa. This initiative was part of the government’s strategy to boost competition and broaden access to telecommunications services within South Africa.
Coverage Telecommunications sector

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