Tips for entrepreneurs: What you need to know about intellectual property and market competition

Intellectual property (IP) refers to creations of the mind – inventions, designs, brand names, written material, software, or even distinctive product packaging. For small and medium enterprises (SMEs), IP is often their most valuable business asset, yet many entrepreneurs only realise its importance when a competitor copies their idea, or a dispute arises over ownership.

In today’s dynamic business environment, creativity alone is not enough. Lasting success lies in protecting those ideas, applying them responsibly, and competing ethically – ensuring that innovation remains a catalyst for driving inclusive and sustainable business growth.

Speaking at the 2025 Intellectual Property and Technology Commercialisation Colloquium, the Executive Manager at the Companies and Intellectual Property Commission (CIPC), Nomonde Maimela, noted that South Africa has undergone significant legislative reforms in recent years to align its IP regime with global standards and to foster innovation.

It remains up to entrepreneurs, however, to understand the value of IP and how through the appropriate legal protections, it can safeguard ideas, products, and competitive edge. Not all forms of IP are protected in the same way, so knowing which type of protection applies to one’s business helps prevent misunderstandings and infringement.

South Africa’s legal framework recognises several key categories:

Trademarks protect brand elements such as names, logos, and slogans. Registering a trademark with the CIPC ensures that no other business can legally trade using a confusingly similar brand.

1. Patents protect new inventions or processes that offer a novel solution to a problem. This form of protection can be complex and costly but is essential for businesses built on innovation or technology.
2. Designs protect the unique appearance of a product – such as its shape, pattern, or ornamentation – while copyright automatically protects original works of art, literature, music, and software once created.
3. Trade secrets cover confidential business information, such as recipes, algorithms, or client lists, which provide a competitive advantage. While these are not formally registered, they can be protected contractually through non-disclosure agreements (NDAs).

Register early, review regularly and respect others’ IP

In a competitive market, timing matters. Entrepreneurs should register trademarks, designs and patents as early as possible – ideally before products or services are launched publicly. Early registration grants exclusive rights within South Africa and serves as a powerful deterrent against imitation.

Once secured, IP protection should not be a one-time exercise. As a business evolves –expanding into new markets, launching new product lines or refining brand identity – one’s IP portfolio should evolve too. Conducting regular reviews ensures continued coverage and helps with proactive risk mitigation.

Protecting one’s own IP, however, is only one side of the coin. Respecting others’ rights is equally critical. Using another company’s registered name, replicating a product design or reusing creative work without permission can lead to costly disputes and reputational damage. Before naming a business or launching a new offering, it’s crucial to check the CIPC trademark database and conduct a thorough online search to ensure originality. When outsourcing design, content or software development, always clarify ownership in writing – otherwise, the creator may retain legal rights over the work.

Keep competition healthy and ethical

 Understanding IP goes hand in hand with understanding fair market competition. South Africa’s Competition Act prohibits anti-competitive conduct such as price fixing, collusion and the abuse of market dominance. While these issues are typically associated with large corporations, SMEs must also adhere to these principles to ensure fair play and to maintain consumer trust.

Navigating IP and competition law can be complex, so it is worth consulting professionals who specialise in this area. The CIPC website offers practical guides and tools to help entrepreneurs understand their rights and obligations.

Ultimately, protecting intellectual property and competing fairly gives entrepreneurs the foundation to grow sustainably, attract investment and build resilient businesses.

Jeremy Lang, Managing Director at Business Partners Limited

*** The views expressed here do not necessarily represent those of Independent Media or IOL.

BUSINESS REPORT