US reviews SA’s preferential access

At least R12bn of SA’s exports are at stake as US organisation objects to the threat the new copyright bill poses to intellectual property rights

The US has taken a decision to review SA’s preferential access to its markets over concerns that the Copyright Amendment Bill will threaten intellectual property rights should it be passed into law.

The US has taken a decision to review SA’s preferential access to its markets over concerns that the Copyright Amendment Bill will threaten intellectual property rights should it be passed into law in its current form.

Should the Donald Trump administration suspend SA from the trade preference programme, conservative estimates suggest that at least R12bn of the country’s exports could lose access to key US markets.

Parliament has approved the bill, which is now waiting for President Cyril Ramaphosa’s signature before becoming law.

The bill proposes changing the country’s copyright regime, which includes the introduction of the “fair use” principle, which, in effect, allows for the free use of copyrighted content.

The “fair use” framework included in the rules, which gives individuals and companies numerous avenues to circumvent copyright protections and republish content, follows the example set by the US.

But unlike SA’s courts, those in the US can award hefty statutory punitive damages in copyright-infringement cases, opponents of the bill say.

In SA, an offender would simply have to stop reusing the content and would only have to pay standard royalties.

Technology companies, including Facebook and Google, have backed similar laws in other jurisdictions, arguing that protecting copyright on artistic, news and academic work will limit online innovation and freedoms

The International Intellectual Property Association (IIPA), which represents US firm that produce copyright-protected material, including computer software, films, television programmes, music, books and journals (electronic and print media), is objecting to the bill because of the risk it poses to US intellectual property rights. As a retaliatory measure, the association has been lobbying the US government to withdraw SA’s preferential trade status.

“The IIPA hereby submits its request that the US government review the eligibility of SA as a GSP [generalised system of preferences] beneficiary developing country,” the association stated in a recent letter to Erland Herfindahl, the deputy assistant US trade representative.

Last week, the office of the US trade representative announced that Trump is opening new GSP eligibility reviews for two countries: SA, based on intellectual property protection and enforcement concerns, and Azerbaijan, based on worker rights concerns.

The office “is accepting a petition from the IIPA based on concerns with SA’s compliance with the GSP [intellectual property] criterion, in the area of copyright protection and enforcement,” it said in a statement.

The office “will announce dates for a public hearing and comment period for the new and existing GSP country eligibility reviews in an upcoming federal register notice”.

The Coalition for Effective Copyright in SA, which has been calling on Ramaphosa to reject the bill, said the decision by the US did not come as a surprise.

“We warned them about this,” said Collen Dlamini, who speaks on behalf of the coalition.

“We told [the department of trade and industry] that intellectual property is a global phenomenon and the government has to pay attention the role of intellectual property with regard to economic growth … it’s a big issue for us.

“Many artists are panicking,” said Dlamini.

He said it is embarrassing for SA to be “asking for money from international companies when we have a copyright bill that threatens investment”.

UNLIKE SA’S COURTS, THOSE IN THE US CAN AWARD HEFTY STATUTORY PUNITIVE DAMAGES IN CASES OF COPYRIGHT INFRINGEMENT

WE WARNED THEM ABOUT THIS … THE GOVERNMENT HAS TO PAY ATTENTION TO THE ROLE OF INTELLECTUAL PROPERTY