STRATEGY 2013 - 2018 - CIPC

STRATEGY 2013 - 2018

Table of Contents 

COMPANIES & INTELLECTUAL PROPERTY COMMISSION 

TABLE OF CONTENTS 

Acronyms ................................................................................................................................. 3 

FOREWORD BY THE EXECUTIVE AUTHORITY ............................................................................. 4 

1. INTRODUCTION ................................................................................................................. 6 

2. CIPC’S STRATEGIC INTENT .................................................................................................. 9 

2.1 Vision .................................................................................................................................................................................. 9 

2.2 Mission ............................................................................................................................................................................... 9 

2.3 Corporate Values ............................................................................................................................................................ 9 

3. Legislative and OTHER mandateS ..................................................................................... 10 

3.1 CIPC’S LEGISLATIVE Mandate ................................................................................................................................... 10 

3.2 The Policy context ....................................................................................................................................................... 12 

4. SITUATIONAL ANALYSIS ................................................................................................... 15 

4.1 performance environment ....................................................................................................................................... 16 

4.2 organisational environment ..................................................................................................................................... 23 

5. CUSTOMER NEEDS AND EXPECTATIONS ........................................................................... 26 

6. THE CUSTOMER VALUE PROPOSITION ............................................................................. 30 

7. cipc’s business model ...................................................................................................... 31 

8. strategic planning process ............................................................................................... 35 

9. STRATEGIC goals .............................................................................................................. 35 

10. STRATEGIC OBJECTIVES ................................................................................................ 36 

10.1 PROGRAMME 1: BUSINESS REGULATION AND REPUTATION ....................................................................... 36 

10.2 PROGRAMME 2: innovation and creativity promotion ................................................................................... 37 

10.3 PROGRAMME 3: service delivery and access ..................................................................................................... 37 

11. resource considerations ............................................................................................... 41 

11.1 ASSUMPTIONS .............................................................................................................................................................. 41 

11.2 Projected expenditure by programme ................................................................................................................. 44 

11.3 Projected revenue ....................................................................................................................................................... 45 

12. LINKS TO THE LONG-TERM INFRASTRUCTURE AND OTHER CAPITAL PLANS ................... 46 

CIPC STRATEGY 2013 – 2018 ‘COURSE CORRECTION AND OPTIMISATION!’ 2

ACRONYMS 


Abbreviation Description 

CC Close Corporation 

CIPC Companies and Intellectual Property Commission 

CIPRO Companies and Intellectual Property Registration Office 

CIT Corporate Identity Theft 

DAC Department of Arts and Culture 

DHET Department of Higher Education and Training 

DIRCO Department of International Relations and Cooperation 

DST Department of Science and Technology 

IK Indigenous Knowledge 

IP Intellectual Property 

IPAP Industrial Policy Action Plan 

MoU Memorandum of Understanding 

MTEF Medium Term Expenditure Framework 

MTSF Medium Term Strategic Framework 

NDP National Development Plan - 2030 

OCIPE Office of Companies and Intellectual Property Enforcement 

SARS South African Revenue Service 

the dti The Department of Trade and Industry 

WIPO World Intellectual Property Organisation 

WTO World Trade Organisation 

Note: Customer is spelled with a capital C throughout the document to highlight the new focus of CIPC on Customer 

Service and Excellence. 



FOREWORD BY THE EXECUTIVE AUTHORITY 

‘The National Development Plan is a plan for the country to eliminate poverty and reduce inequality by 

2030 through uniting South Africans, unleashing the energies of its citizens, growing an inclusive 

economy, building capabilities, enhancing the capability of the state and leaders working together to 

solve complex problems.’ 

National Planning Commission 

The South African economic environment has in recent years been severely impacted by the global 

economic downturn. This has lead to the loss of jobs on an unprecedented scale, many of these jobs in 

South Africa’s already fragile manufacturing sector. Through the New Growth Path and the National 

Development Plan, government will positively address many of the challenges and opportunities facing 

our country. 

The dti’s primary purpose in supporting government’s overall strategy is to ‘Create Decent Employment 

through Inclusive Economic Growth’. Through this we aim to contribute to the New Growth Path’s target 

of creating 5 million decent jobs by 2020, whilst simultaneously raising the growth rate and reducing 

inequality. 

All of this would be wishful thinking if we did not purposefully develop an efficient, enabling environment 

that balances good governance and effective regulation with the economic flexibility that allows business 

to flourish. The Companies Act, 2008 (Act 71 of 2008) establishes a modern enabling environment for 

companies. It creates a forward-looking regulatory framework that provides for simple, easy company 

registration, enhanced governance and clarity on disclosure standards for businesses. While the law 

creates the framework and the instruments, its implementation is largely in the hands of the institutions 

established by the Act, namely the Companies and Intellectual Property Commission, the Companies 

Tribunal, the Takeover Regulation Panel and the Financial Reporting Standards Council. In order to 

achieve the objectives of the Companies Act, 2008, it is imperative that the world-class legislation is 

matched by world-class implementation. 

The Companies and Intellectual Property Commission (CIPC) was established in May 2011. Although a 

new entity, CIPC incorporated the former Companies and Intellectual Property Registration Office (CIPRO) 

and a unit in the dti’s Corporate and Consumer Regulation (CCRD) division, namely the Office of 

Companies and Intellectual Property Enforcement (OCIPE). 

In today’s globalized, hypercompetitive economy, a nation’s wealth is significantly influenced by its 

business activity, the economic inclusion of its citizens as well as its’ level of innovation, as measured by 

the Intellectual Property that is developed and registered by its citizens. CIPC therefore has another 

important element to its mandate. It administers, regulates and protects South Africa’s Intellectual 

Property assets in accordance with the provisions of a range of legislation enacted over a number of 

decades. Creating an enabling environment for Intellectual Property has been the subject of much 

research and legislative reform and this process will continue to gain momentum in the next five years. 



Since its inception, CIPC has faced many challenges. These have included ICT systems unable to cope with 

organisational requirements, a large backlog of company registration applications and an organisational 

culture that has been insufficiently oriented towards service delivery. In its first year of operation the CIPC 

has focused on addressing these challenges and should be congratulated on the successes it has achieved. 

Company registration backlogs have been eradicated, business processes have been innovated, IT systems 

have been stabilized and enhanced and service standards were successfully implemented. These 

initiatives have all contributed to establishing a solid foundation for the world-class implementation of 

the Companies Act, 2008 as well as the other laws it administers. 

‘The National Development Plan aims to eliminate poverty and reduce inequality by 2030. South Africa can 

realize these goals by drawing on the energies of its people, growing an inclusive economy, building 

capabilities, enhancing the capacity of the state, and promoting leadership and partnerships throughout 

society.’ 

National Development Plan – 2030 

CIPC is committed to contributing to the achievement of these goals. It too is drawing on the energies of 

its people, building sustainable institutional capacity and promoting partnerships, inside and outside of 

the public sector. It has reviewed its corporate strategy, its operational model, culture, structure and 

strategic relationships. Initiatives are underway to further grow and develop the CIPC’s human capital. All 

of this will contribute significantly to the creation of an enabling environment to support the full 

implementation of all legislation that falls within the CIPC’s mandate. 

This Strategy sets out the journey that CIPC will embark upon over the period 2013 to 2018 to achieve 

world class implementation of the objectives set out in the Companies Act, 2008, and to provide an 

enabling and facilitative environment for entrepreneurship, investment and innovation in the broader 

South African society. It is in line with the dti’s objective of ‘Ensuring an economy that benefits all.’ I look 

forward to seeing the results of the implementation of this plan. 

__________________ 

Dr Rob Davies 

Minister of the dti 


PART A: STRATEGIC OVERVIEW 

1. INTRODUCTION 

“Enabling private sector growth – and ensuring that poor people can participate in its benefits – 

requires a regulatory environment where new entrants with drive and good ideas, regardless of their 

gender or ethnic origin can get started in business and where firms can invest and grow, generating 

more jobs.” 

(Janamitra Devan - World Bank-International Finance Corporation) 

CIPC is engaged in a process of rapid, fundamental transformation. It is imperative for it to respond to the 

needs of its globalised, fast changing environment in order to both deliver value to its stakeholders and 

remain relevant to South Africa’s developmental and economic needs. This transformation process has to 

happen at the same time that CIPC delivers on its immediate imperatives - to implement a balanced 

regulatory regime and to serve its Customers efficiently and effectively. 

In order to increase the scope of CIPC’s role in the economy (as envisaged in the Companies Act, 2008) 

and to play a meaningful role in the new legal dispensation impacting business entities and intellectual 

property in South Africa, CIPC identified, as one of its key priorities, the need to improve its credibility 

with Customers and other stakeholders. To give effect to this, four initiatives have been identified, 

namely: 

Improving the reliability and integrity of the information in CIPC’s registries; 

Improving the relevance and value of CIPC’s services to its Customers and stakeholders 

Improving compliance with the laws that CIPC administers. 

Demonstrate CIPC’s economic impact 

Despite the challenges experienced since it was first established in May 2011, much progress has been 

made in addressing registration backlogs, poor employee morale and inefficient business operations. A 

strong foundation has been laid for CIPC to move forward with both confidence and pride. Through the 

introduction of on line registration of companies, it has commenced the process of enabling electronic 

transacting that will in time greatly improve operational efficiency, accuracy and Customer 

responsiveness. IT systems have been stabilised with improved functionality, greater security and 

enhanced bandwidth. This remains a priority focus for the CIPC going forward. Improved oversights and 

controls have lead to a marked reduction in the number of company hijackings experienced, although the 

CIPC remains vigilant in this regard. 

Business Rescue has also been successfully introduced and a number of entities are currently undergoing 

the Business Rescue process. Internally the CIPC has grown in confidence and competence with a better 

alignment of business processes resulting in improved workflow and greater efficiency. The 

administration of filing processes has been developed into one seamless, integrated process that supports 

and best meets Customer’s requirements. This has contributed to an improvement in the overall image 

and reputation of the organisation.


In line with the New Growth Path and National Development Plan – 2030, CIPC has established a 

foundation of commitments, beliefs and aspirations that underpins its work. These include that: 

We are strongly committed to making a difference in South Africa’s economy. We believe that we 

can provide entrepreneurs and innovators with the efficient, world-class business entities and 

intellectual property vehicles they require to grow and leverage their assets and investments and to 

thereby contribute to sustained economic growth. 

We believe that, through our regulatory activity and our focus on financial disclosures, good 

governance and brand management, we will contribute to building the global reputation of South 

African businesses for integrity, credibility and reliability. This will increase South Africa’s global 

competitiveness and enhance South Africa’s reputation as an attractive destination for capital 

investments. 

We are committed to improving the governance environment by providing the investigations and 

enforcement action required to ensure compliance with the legislation that falls under our mandate. 

We are committed to improving the quality and integrity of our data to ensure that our information 

can reliably guide investment decisions. 

We will support our inventors, artists and indigenous communities through offering a basket of 

services. These will start with creating awareness around the opportunities that exist for protection of 

products that are the outcome of their innovation and creativity. 

We will give effect to the new legislation by recording the indigenous knowledge of various 

communities across the country. We will embark on educational campaigns to ensure that 

beneficiaries know how to work with CIPC to record, register, maintain and protect their knowledge, 

inventions and art forms. 

The current CIPC focus is around ‘optimisation and course correction’. Much has been done to ensure that 

CIPC has ‘caught up’ on the implementation of many of the core areas of focus within its mandate. In the 

coming strategic period CIPC will continue to invest in the development of its people and in providing the 

tools and the enabling environment required to deliver high performance. Today’s data intensive, round 

the clock, globalised business environment requires the appropriate technology investments that allow 

for intelligent work, informed decision making and seamless, engaging, satisfying and consistent 

Customer experiences. 

CIPC is carefully evaluating the investments that will be required, as well as the strategic partnerships that 

will assist it in delivering on its strategic objectives. CIPC recognizes that it will achieve its goal of 

organisational excellence over time and that the journey will be based on consistent and continuous 

improvement in its service delivery and product offering. 

In the next phase of its strategic journey, CIPC will focus on: 

Encouraging good governance and credible corporate citizenship through the continued issuing of 

compliance certificates to entities that meet the set criteria. The certificate could potentially be used 



as a single source for integrated financial statements, BBE status, tax and other forms of compliance 

evaluation and reporting. 

Significantly expanding its compliance monitoring functions. Education and awareness will be 

primarily focussed on creating a culture of compliance, greater transparency and higher standards of 

corporate conduct. 

Through focused strategies, education and partnership initiatives with other enforcement agencies, 

CIPC will focus on the protection of important assets such as intellectual property products and 

brands from being misappropriated. 

Improving its direct services to Customers through a number of channels – a Call Centre which has 

been reorientated to ensure timely call answer and high resolution rates, private and public sector 

partnerships and enhanced access to services through facsimile transmission and e-mailing facilities 

Implementing the CIPC organisational structure through matching of people with positions and the 

implementation of a Human Resource strategy and competency framework. 

Implementing a programme to develop teams and teamwork 

Expanding collaboration and co-operation with other regulators and government agencies such as 

SARS, NIPMO etc 

Developing a research capability to better understand the needs of companies and other entities and 

to identify the underlying reasons, challenges and opportunities presented by registration and deregistration 

This focused action agenda will build a strong foundation for the CIPC to contribute to the achievement of 

the National Development Plan’s Vision 2030 and to the overall transformation of the South African 

economy. 



2. CIPC’S STRATEGIC INTENT 

2.1 VISION 

The Vision of CIPC is to be the gateway to sustainable formal economic participation and investment for 

all in South Africa. 

2.2 MISSION 

The Mission of CIPC is to unlock value in businesses and intellectual property by: 

Providing easy, accessible and value-adding registration services for business entities, intellectual 

property rights holders and regulated practitioners; 

Maintaining and disclosing secure, accurate, credible and relevant information regarding business 

entities, business rescue practitioners, corporate conduct and reputation, intellectual property rights 

and indigenous cultural expression; 

Increasing awareness and knowledge of company and intellectual property laws, inclusive of the 

compliance obligations and opportunities for business entities and intellectual property rights holders 

to drive growth and sustainability, as well as the knowledge of the actual and potential impact of 

these laws in promoting the broader policy objectives of government; 

Taking the necessary steps to visibly, effectively and efficiently monitor and enforce compliance 

with the laws that CIPC administers. 

2.3 CORPORATE VALUES 

As an important cornerstone of desired culture, an agreed set of values was developed through 

consultation and engagement with all relevant organisational stakeholders. These values will inform the 

behaviour of CIPC’s employees going forward. The following core values will inform every aspect of CIPC’s 

work to ensure that it delivers a better service to entrepreneurs, innovators and creators:- 

Table 1: CIPC values 

Value What it means 

Passion for service We work as one to seamlessly serve our customers with passion, commitment 

and dedication. 

Integrity We live out fairness, impartiality and respect in all of our actions as individuals 

and as an organisation. 

Empowerment We recognize the value of our employees and partners and provide them with 

the discretion and tools to effectively deliver on their responsibilities. 

Accountability We hold one another accountable for our commitments. We are responsible 

and responsive in the execution of our duties. 

Collaboration We believe in the power of teams, teamwork and collaborative effort to deliver 

exceptional service and to execute our duties effectively. 



3. LEGISLATIVE AND OTHER MANDATES 

3.1 CIPC’S LEGISLATIVE MANDATE 

CIPC administers all or parts of fifteen (15) pieces of legislation relating to corporate and intellectual 

property regulation. Its mandate encompasses companies, close corporations, co-operatives, trade marks, 

patents, designs, aspects of copyright legislation and enforcement of rules and regulations in most of 

these areas of law. CIPC’s primary institutional mandate is derived from the Companies Act, 2008, which 

establishes CIPC as a juristic person. 

Table 2 summarises the legislative mandate of CIPC in terms of each law it administers. The table also 

indicates the sectoral application, if any, of the administered law. 

Table 2: Summary of the legislative mandate of CIPC 

Legislation Mandate Sector 

Companies Act, No 71 of 2008 Register companies, business rescue practitioners and 

corporate names, maintain data, regulate governance 

of and disclosure by companies, accredit dispute 

resolution agents; educate and inform about all laws, 

non-binding opinions and circulars, policy and 

legislative advice 

Close Corporations Act, No 69 

of 1984 

Co-operatives Act, No 14 of 

2005 

Share Block Control Act, No 59 

of 1980 

Consumer Protection Act, No 

68 of 2008 

Trade Marks Act, No 194 of 

1993 

Merchandise Marks Act, No 17 

of 1941 (Unauthorised Use of 

State Emblems Act, No 37 of 

1961) 

Maintain data, regulate governance of and disclosure 

by close corporations 

Register co-operatives, maintain data, regulate 

governance of and disclosure by co-operatives 

Regulate conduct and disclosure by share block 

schemes 

Economy-wide 

Economy-wide 

Economy-wide 

Economy-wide 

Register business names Economy-wide 

Register trade marks, maintain data, resolve disputes Economy-wide 

Prevent and enforce the unauthorised use of state 

emblems 

Patents Act, No 57 of 1978 Register patents, maintain data, publish patent 

journal, administer Court of Commissioner of Patents 

Economy-wide 

Economy-wide 

Designs Act, No 195 of 1993 Register designs, maintain data, resolve disputes Economy-wide 

Copyright Act, No 98 of 1978 Provide non-binding advice to the public Creative industries 



Legislation Mandate Sector 

Registration of 

Cinematography Films Act, No 

62 of 1977 

Performers Protection Act, No 

11 of 1967 

Intellectual Property Laws 

Amendment Bill of 2010 

Counterfeit Goods Act, No 37 

of 1997 

Register films, maintain data Film industry 

Accredit Collecting Societies; regulate their 

governance, conduct and disclosure 

Record and register IK, administer the National Trust 

and Council for IK, accredit dispute resolution agencies 

Conduct and co-ordinate search and seizure 

operations, oversee depots 

Music industry 

Creative industries 

Economy-wide 

South Africa is a member of a number of important Treaties and Agreements and ensuring compliance 

with South Africa’s obligations in terms of these Treaties or Agreements. CIPC administers these treaties 

on behalf of South Africa. These Treaties and Agreements include the: 

Paris Convention; 

Patent Co-operation Treaty; 

Berne Convention; 

Budapest Treaty; and the 

TRIPs Agreement. 

It is anticipated that South Africa will conclude accession to the Hague Agreement and the Madrid 

Protocol in the near future, which will require of CIPC to administer those Treaties as well. 

CIPC therefore has a substantial legislative compliance role in diverse areas of law. The mandate can be 

summarized as the registration of corporate entities, the protection of their identity and reputation and 

the regulation of their conduct and disclosure, as well as the registration and protection of intellectual 

property rights. 

While registration is at the heart of the mandate, it must serve a higher purpose and contribute to the 

broader policy context. This is the challenge that has confronted corporate and intellectual property 

registries around the world, as many have struggled to remain economically relevant. For that reason, 

CIPC has paid particular attention to its policy context in order to gain an understanding of its broader 

mandate. 


3.2 THE POLICY CONTEXT 


CIPC derives its policy mandate from the policies of its responsible department, the dti. The key policies 

and strategies of the dti relevant for CIPC are: - 

the dti Medium Term Strategic Plan 2011 - 2014; 

Industrial Policy Action Plan 2012 – 2014; 

Strategy on the Promotion of Entrepreneurship and Small Enterprise; 

Corporate Law Reform Policy; 

Policy on Indigenous Knowledge; 

Co-operatives Development Policy for South Africa; and 

Integrated Strategy for the Development and Promotion of Co-operatives. 

CIPC and its predecessors, CIPRO and OCIPE, are explicitly mentioned and considered in two of the dti 

policy documents, namely the Co-operative Development Policy of South Africa and the Corporate Law 

Reform Policy. As there are synergies between the legislative mandate of the CIPC and other policies and 

strategies of the dti, an opportunity presents itself for CIPC to define its role in enterprise development 

and industrial policy. CIPC identified key issues in the policies and strategies of the dti that are relevant to 

its mandate: 

The need for employment creation and economic growth in a manner that is sustainable and 

encourages broad-based economic participation; 

The emphasis on co-operatives as a vehicle for employment creation in marginalised areas and 

communities; 

The need for commercialising South African research and development, with a particular emphasis on 

certain sectors identified in the IPAP2; 

The importance of public and preferential procurement for enterprise and industry development; 

The need to develop SA’s competitiveness by improving the ease of doing business, stimulation of 

entrepreneurship, sustainable corporate entities, transparency, integrity and high standards of 

corporate governance; and 

The potential of indigenous knowledge and the need for its protection and commercialisation. 

CIPC further considered the broader policy environment created by the National Planning Commission 

and the Department of Economic Development as well as specific departments, whose work directly 

impacts on CIPC, namely the Department of Science and Technology (DST), the Department of Arts and 

Culture (DAC) and the Department of Agriculture (DoA). CIPC considered the following policies and 

strategies to inform its broader policy mandate: - 

The New Growth Path; 

The National Development Plan - 2030 

The Ten Year Plan on Innovation; 

Mzansi Golden Heritage: Contribution of the Arts, Culture and Heritage Sector to the New Growth 

Path; and 

The Government MTSF 2009 - 2014. 

These policies and strategies create a broader policy environment for CIPC. Key issues have been 

identified that impact on our work: 

The New Growth Path places emphasis on the ease of doing business, the sustainability of enterprises 



and the development of a knowledge economy. It envisages that employment growth will result from 

the development of labour intensive sectors. These points are all directly relevant for CIPC. 

The National Development Plan – 2030 promotes a plan of action across a broad front with three key 

priorities: 

o Raising employment through faster economic growth 

o Improving the quality of education, skills, development and innovation 

o Building the capability of the state to play a developmental, transformative role 

CIPC contributes to all three of these priority areas. By improving the ease of doing business in South 

Africa through fast, efficient, integrated registrations and other value-adding services, the CIPC can 

directly impact the speed of economic growth. Through promoting and protecting Intellectual 

Property, CIPC contributes to a culture of innovation. Through effective, well-balanced regulation and 

the promotion of good governance, CIPC contributes to strengthening the state’s transformative role 

in achieving an inclusive, equitable society 

The Ten Year Innovation Plan highlights the need for the development and exploitation of South 

African innovations - ‘converting ideas into economic growth’ – and the potential of certain sectors in 

promoting a knowledge economy, such as green technologies, agriculture, pharmaceuticals and 

business processing. The Plan further mentions the potential of indigenous knowledge and its 

exploitation as a way to benefit communities, especially in respect of medicines and indigenous 

cultural expressions. 

The Mzansi Golden Heritage policy document by the Department of Arts and Culture (DAC) considers 

the contribution that the Arts, Culture and Heritage Sectors could make to the New Growth Path, in 

particular with respect to employment creation. IPAP3 explicitly refers to the employment potential 

of cultural industries connected with the tourism industry. This is reinforced in the National 

Development Plan which stresses that ‘South Africa can offer unique stories, voices and products to 

the world. In addition, artistic endeavour and expression can foster values, facilitate healing and 

restore national pride.’ 

The DAC policy document, read in conjunction with the NDP, sets out a vision for the creative sector, 

including the development of the music industry. Given its roles and responsibilities in promoting and 

protecting IP, CIPC could make a major contribution in this area. 

The Government Medium Term Strategic Framework, developed by the Minister in the Presidency 

responsible for Planning, emphasizes the need for Batho Pele and reliable, empathetic, respectful and 

efficient service delivery to the people of South Africa. Enhanced service delivery is particularly 

important to CIPC, given its legacy from CIPRO. 

The broader policy context implies that CIPC should have a more explicit enterprise development focus on 

the one hand, and an industry development focus on the other, with particular attention to sectors such 

as the creative industries, green industries, pharmaceuticals and indigenous knowledge. 

The NDP stresses that ‘South Africa needs to sharpen its innovative edge and continue contributing to 

global scientific and technological advancement. This requires greater investment in research and 

development, better use of existing resources and more nimble institutions that facilitate innovation and 

enhanced co-operation between public science and technology institutions and the private sector.’ The 

role of CIPC would be to encourage registration of intellectual property relating to innovation and 



creativity in South Africa from throughout Africa and from within SADC in particular. It would also be to 

facilitate the development and exploitation of those rights by making rights holders aware of the 

opportunities, and by establishing strategic partnerships with relevant institutions in the public and 

private sector. In this way, government’s investment in public sector research can be strengthened and 

safeguarded. 



4. SITUATIONAL ANALYSIS 

While the legislative and policy mandate of CIPC establishes the foundation for its strategy, other factors 

that impact on its environment also need to be considered. These include the impact of the economic 

environment on the demand and need for its services, customer needs and expectations, opportunities 

that exist, as well as local and international trends that influence the manner in which its mandate is 

executed. 

CIPC’s strategy and plans have to be understood within the broader global context impacting on investors 

and businesses. The strategic environment within which CIPC finds itself is defined by a number of issues, 

including: 

The deepening global financial crisis – our major trading partners’ economies are in recession, the 

future of the Eurozone remains uncertain, a climate of austerity is prevalent. This all has resulted in a 

slowdown in investment and trade. Scandals such as the fixing of the LIBOR rate have also resulted in 

an increased scrutiny of corporate governance practices; 

The economic slowdown in South Africa – this has increased the number of companies that have 

filed for bankruptcy and de-registration. The CIPC’s role in Business Rescue will need to continue to 

develop and the impact of the de-registration process on other government agencies such as SARS 

will need to be mitigated 

Importance of effective regulation reinforced – CIPC is both a service provider and a regulator. There 

is a need to strengthen CIPC’s regulatory role with the acquisition of the appropriate intelligence, risk 

analysis and mitigation and enforcement competencies. The CIPC has developed a culture of 

responsiveness to the needs of its Customers. This focus must not allow it to become subservient to 

the entities it regulates and must ensure that it avoids regulatory ‘capture’; 

Emergence of knowledge and innovation as key strategic assets / differentiators for private and 

public sector organizations. Recent global court cases between Apple and Samsung have stressed the 

importance of IP as a significant business asset and have highlighted the high stakes involved in IP 

protection; 

Intellectual property (IP) is viewed as key strategic asset at both business and national level. It is 

important to grow South Africa’s (SA) stock of IP and protect indigenous knowledge from 

exploitation. The CIPC works closely with WIPO to ensure that global IP standards are implemented 

in South Africa and that global best practice is reflected in the changing IP legislative and policy 

environment. An imperative for the CIPC is to attract the registration of IP from African countries, 

and in particular from countries within SADC; 

An increased focus on enabling Co-operatives as a result of 2102 being ‘The Year of the Cooperative’, 

globally and in South Africa will result in the CIPC deepening its capacity to support Cooperatives 

in their establishment and governance 

Ease of doing business is an important attractor for global capital – it is important for CIPC to 

envision ways of reducing regulatory burden and costs whilst increasing Customer value add. This has 



influenced the CIPC to explore alternative access channels and partners that should result in 

improved turn around times on registrations and a ‘one stop’ registration process across different 

government agencies; 

Rising Customer expectations, the power of technology and social media are all amplifying pace of 

change and presenting new challenges and opportunities. Customers are increasingly expecting 24/7 

real time access to their information and to transactions. This presents both challenges and 

opportunities for CIPC. The rapid adoption of smart phones has increased the viability of increasing 

access through the development of mobile applications. It has also enabled more effective 

communication to Customers of the progress of registration applications. Developing new access 

channels through smart phones and the utilisation of social media are immediate areas of focus for 

CIPC, 

Globalization requires that SA businesses be viewed as credible, well regulated entities with world 

class governance standards. The CIPC will continue to expand its governance capability and its 

regulatory functions in this regard; 

SA requires economic growth to deliver on its social obligations. Better understanding the needs and 

challenges of business, including the vital small business and Co-operatives sector will inform the 

future role of the CIPC in this regard. Initiatives are planned for the coming year to research 

underlying needs and best practice in this regard 

CIPC has been brought into being within the context of a world in economic recession. At a global level, 

governance and regulatory failures, fiscal crises, global imbalances and shifts in economic power have all 

created a challenging environment of uncertainty and high risk. At a national level, the challenges of 

creating decent jobs, maintaining economic growth and dealing effectively with crime and corruption 

have all contributed additional impetus to the accelerated development of CIPC. 

CIPC will continue its external focus on better understanding its role and in institutionalising its mandate. 

It will continue to do this mindful of its obligations as an important member of a community of 

government departments and agencies with which it shares a purpose to contribute to the economic and 

social well being of all South Africans. 

4.1 PERFORMANCE ENVIRONMENT 

4.1.1 The economic context 

The economic forecast has not changed since the drafting of the previous CIPC APP. If anything, the 

world has slipped into a deeper recession and the global outlook for economic recovery remains 

bleak. The global recession has led to an environment of heightened economic uncertainty, with 

projections for growth in world GDP for 2013 and 2014 being revised down significantly. Growth in 

world trade volumes has slowed sharply and the direct impact is starting to be felt in the South 

African economy, which traditionally lags such trends. African economic growth continues to 

outperform traditional economies and this remains a positive factor for the South African economy. 



Policies in regions and major economies have moved to stabilize financial and economic activity in 

some major economic regions and policies are expected to remain supportive of a global recovery. 

A stronger recovery in much of the world economy should be expected from 2014 as employment 

levels recover, productivity and household incomes rise, and debt levels of firms and households in 

key economies fall. 

It is expected that slow growth will continue in South Africa over the foreseeable future, as the 

world economy recovers. Historically, the growth in the number of applications for company and 

intellectual property registration has been closely linked to domestic and global growth. In the 

context of the current economic outlook, it is expected that growth in registration of companies 

and intellectual property will be limited and will closely track the changes in the local and global 

economy, unless there is a particular policy focus and concerted effort in particular areas to 

stimulate local demand for registration. This may be the case with Co-operatives, where there is a 

concerted government drive for new registrations. 

Whilst growth in registrations is desirable as a short-term indicator of increasing economic activity 

as well as an acknowledgement by the marketplace of the value of registrations, the sustainability 

of registrations is probably a more accurate reflection of success in the medium to long term. 

Registrations that lapse or are cancelled are an indication that organisations do not have the 

competitive or managerial capacity to survive or to fully benefit from the potential of registration. It 

may also be an indication of a premature shift from the informal to the formal economy and as 

such, registration may be of limited benefit to these organisations. 

Unsustainable registrations are also of limited benefit to CIPC. The high administrative burden of 

de-registration and lapsed registrations is not in CIPC’s interests. Ultimately it is important that 

those who register have their discretion well informed so that they can make the best possible 

decision at the time of registration. This should be based upon a sound understanding of both the 

advantages and potential disadvantages of registration. 

In the coming period, CIPC will conduct research into a better understanding of the potential 

benefits and challenges associated with formal registration. This research will be used to innovate 

CIPC’s products and services and will potentially serve as an input to a developing well informed 

Customers who are able to make better decisions regarding whether or not to register their entities 

and intellectual property . 

4.1.2 The small business landscape 

Most large and medium sized businesses, if not all, can be expected to have registered their 

corporate entities. Furthermore, large businesses can safely be assumed to have trade marked their 

brands. The small business sector therefore represents the largely “unserved” or “underserved” 

registration market for corporate registration and for intellectual property rights, where such 

registration is applicable and appropriate. 

According to a recent survey of Small Businesses in South Africa 1 (FinScope Small Business Survey 

2010), an estimated 5.9 million small businesses operated in South Africa in 2010, owned by roughly 

5.5 million small business owners. Small business owners were defined as being 16 years and older, 

1 Finmark Trust is embarking on a follow-up survey in 2013. 



perceiving themselves to be business owners or generating an income through small business 

activities and employing less than 200 employees. According to the survey, the biggest 

concentration of small business owners is in Gauteng (23%), Eastern Cape (15%), and KwaZulu-Natal 

(14%), followed by the North West (13%) and Limpopo (10%). 

The survey also measured levels of business registration. 17.3% of small business owners claimed 

that their businesses were registered, but only 8.3% claimed to be registered with CIPRO. 

Business owners who claimed to have registered their business did not appear to see much value in 

registering their businesses: 

54% claimed that registering their businesses meant “compliance with the law”; 

14% claimed that they registered their businesses to “avoid harassment from the authorities”; 

7% claimed that they registered their businesses to “avoid fines”; 

6.5% claimed that registration held “no benefits” for their businesses. 

The most frequently mentioned reasons for not registering businesses included: 

“the business is too small to register”(49% of owners of unregistered businesses); 

“don’t know how to register” (18% of unregistered businesses); 

“don’t have money to register” (18% of owners of unregistered businesses); 

“it is too complicated” to register the business (9% of owners of unregistered businesses). 

It is clear that rigorous, in depth and more regular research into understanding the challenges and 

opportunities facing small business is essential. The CIPC will continue to encourage and fund, 

where appropriate, such research. In particular, a better understanding of the interplay between 

registration and long-term business success needs to be developed. The CIPC will participate in one 

such research project in conjunction with the Monitor Group during the 2013 / 2014 year. 

The formalisation of businesses does appear to have benefits to the fiscus and contributes to a 

more effective regulatory environment. From the data presented, there appears to be substantial 

opportunity for the registration and formalisation of small businesses. CIPC recognises that for 

many small businesses there may be limited incentives for formalisation, which must in turn 

outweigh the compliance obligations. The challenges and unintended consequences of deregistration 

also need to be better understood. 

A positive value proposition for small businesses to encourage their formalisation is required. 

Education and awareness in this segment is therefore a priority. There is clearly a need for 

information on how to register, as well as easy access to registration services. Most of the potential 

for formalisation would come from service providing businesses, especially where public 

procurement is involved. 

Targeted interventions will need to be pursued to develop a range of value-added services for small 

businesses. These services will need to enhance the registration process, provide additional benefits 

to mitigate some of the disadvantages of registration and contribute to the potential for long-term 

viability and sustainability. Such services may well include partnerships with large corporates who 

may in turn provide additional value-added services to small business. 

There is also a clear need to encourage the registration of Intellectual Property that has been 

developed as a result of public funding. Initiatives will be explored with the Technology Innovation 



Agency, NIPMO and other relevant stakeholders to ensure that there is a coherent, aligned 

response to this challenge. 

4.1.3 Regulatory trends 

4.1.3.1 Ease of doing business 

‘Enabling private sector growth – and ensuring that poor people can participate in its benefits – 

requires a regulatory environment where new entrants with drive and good ideas, regardless of their 

gender or ethnic origin, can get started in business and where firms can invest and grow, generating 

more jobs.’ 

Janamitra Devan 

The World Bank Group 

Internationally, the ease of doing business is an important differentiator of countries and attractor 

for global capital. 

The World Bank and the International Finance Corporation (IFC) conduct an annual survey, which 

ranks economies on their ease of doing business from 1 to 183. The ease of doing business index 

averages country’s percentile ranking across 10 topics, which are outlined below. 

South Africa was ranked 35 th of out 183 countries in the 2012 ‘Doing business in a more transparent 

world’ survey. South Africa compares favourably overall and in most categories when compared to 

economies of similar size and composition. Sub Saharan Africa has also progressed significantly. The 

report notes that ‘a record number of governments in Sub-Saharan Africa changed their economy’s 

regulatory environment to make it easier for domestic firms to start up and operate in a region 

where relatively little attention was paid to the regulatory environment only eight years ago.’ 

South Africa should aim to maintain and improve its ranking. CIPC is committed to increasing the 

ease of doing business in South Africa by reducing the compliance burden, in particular the burden 

of excessive administration, which has a significant impact on small business. 

CIPC has an impact on the ease of starting a business, the protection of investors and resolving 

insolvency (through business rescue). There is also potential to impact positively on the ranking of 

paying taxes through the strengthening of CIPC’s relationship with SARS. 

The CIPC is the lead organisation, with the dti, to host a regional ‘Ease of Doing Business’ 

conference in 2013 / 2014. This will contribute to a greater awareness of the challenge and to the 

generation of innovative ideas and solutions that may well be applicable to the workings of the 

CIPC. 

4.1.3.2 Corporate governance and disclosure regulation 

The global financial crisis and failures of large corporates, such as Enron and Arthur Andersen, has 

created a renewed focus on credible regulation and good governance. The LIBOR fixing scandal in 

the United Kingdom again emphasised the need for such a focus. The South African corporate 

regulatory environment needs to be respected as a credible, safe and secure environment that 

promotes good corporate governance and protects corporate and intellectual property rights. The 

CIPC, as custodian of the Companies Act and as an enforcer of Intellectual property rights has an 

important role to play in this regard. 



Financial reporting standards have received much attention internationally. South Africa has also 

revised its legislative regime in this regard and established a statutory scheme. The challenge, 

however, relates to its implementation and the pro-active compliance monitoring that it requires. 

Internationally, corporate regulators have adopted an XBRL system, which allows financial 

statements to be lodged in a particular format, thus making compliance monitoring simpler for the 

regulators and given the companies that have submitted credibility. XBRL is still in its infancy in 

South Africa, but in some other jurisdictions, is very well established. 

The new Companies Act, 2008 creates a regime that facilitates enhanced enforcement and 

compliance monitoring. The World Bank survey rated South Africa 10 out of 183 in respect of 

protecting investors. It is important that a culture of corporate compliance is fostered and that 

smaller businesses in particular are made aware of their compliance and governance obligations. In 

the coming year, CIPC will strengthen its capability to deliver an effective compliance monitoring 

function. This will commence with a focus on communication and education and then expand into 

visible monitoring and enforcement, in line with a comprehensive Risk Based Approach. This should 

over time translate into innovations in relevant policy, legislation and governance best practice. 

As the custodian of the Companies Act, the CIPC takes its role as a regulator equally serious and it 

developed an external governance framework which will ensure the establishment of a number of 

governance committees to act in an advisory capacity to the accounting authority, the 

Commissioner. 

4.1.3.3 Identity theft and fraud 

Identity theft is a well-known fraud that has received a lot of attention. Corporate identity theft is 

a less known variation of identity theft, practised in much the same way. According to Reuters, 

“corporate identity theft (CIT) is the fraudulent and deliberate misrepresentation of a company’s 

identity”. It occurs when a person or a group take on a company’s identity for the purposes of 

extracting money, data or any other kind of information from the organisation in order to profit 

through illegal means. The internet has made corporations, banks and regulators more 

susceptible to identity theft by making information more accessible. This includes statutory 

documents, patents, trademarks, web domains as well as information that the company 

volunteers about itself. 

Company logos and websites can be easily downloaded and replicated if steps are not taken to 

protect content. Another way in which corporate identity theft is perpetrated is by changing the 

names of directors or the registered business address of a company by submitting the required 

forms to regulators and it can be hard to detect and difficult to reverse once completed. Identity 

theft has been prevalent in South Africa for several years. It has affected individuals financially 

through illicit access to their bank accounts, credit obtained by someone else in their name and 

many other ways. 

Corporate identity theft is also on the increase and is manifesting in many different ways. Public 

registries are used to obtain and falsify information. In 2010, a number of instances were 

identified and publicised where directors had been illegally changed at CIPRO, first electronically 



and then with the assistance of internal staff. These acts have been motivated by both criminality 

and internal disputes within corporations. 

Often internal disputes amongst directors result in allegations of corporate identity fraud. This, 

together with the restoration of deregistered entities, often results in the public being misled 

about the credibility of an institution. In this regard, the CIPC has put in place mechanisms to 

discourage the reinstatement of deregistered entities. Only when creditors can demonstrate how 

they’ve been adversely affected by the deregistration of an entity will consideration be given to 

the reinstatement of such entities. 

Many instances of corporate identity theft were also criminally committed to redirect tax refunds 

from the South African Revenue Services (SARS). South Africa is not the only jurisdiction that has 

experienced corporate identity theft. The UK Companies House maintains on its website that 

between 50-100 cases of identity fraud occur every month. The institution encourages electronic 

filing to prevent corporate identity theft. The UK Companies House offers protected online filing, 

which enables companies to protect themselves from unauthorized changes to their company’s 

records, including documents for the appointment, termination, or change of particulars of 

company officers and the change of the registered office. 

The dangers of identity theft have a major impact on institutions such as corporate and 

intellectual property registries and it affects the manner in which identity is verified, information 

security is maintained, the security of the channels used to access the registries, the way in which 

information is disclosed by the registry and how paper-based documentation is disposed of. 

As the CIPC migrates to more electronic channels to register and change information, more direct 

safeguards can be built into the process including sms confirmations of access or changes to 

information. The CIPC will continue to be vigilant in this regard and strengthen all internal 

processes to reduce the potential for illegal acts. Besides the issue of protecting entities from 

being defrauded through potential corporate identity theft, the issue of protecting personal 

information from potential misuse is becoming more and more important. To this end, the CIPC is 

reviewing its data disclosure policies, particularly its’ methodology for disclosing information in 

cases where CIPC acts in partnership with external parties. This is becoming particularly important 

as the re-sale of raw data poses a significant potential risk to the organization. 

4.1.3.4 Redefining the role of intellectual property rights and regulation 

Intellectual Property is increasing recognised as a valuable strategic asset - at a national as well as 

at a corporate and individual level. As Bloomberg reports, ‘Suddenly companies are 

acknowledging that patents are a strategic asset worth billions.’ This acknowledges the reality 

that innovation is crucial to competitive advantage and that the ability to compete globally is 

essential to wealth, job creation and fiscal health. 

Investment in intangible assets today outstrips investment in tangible assets. The global trade in 

IP licenses alone is estimated at more than R7 trillion per annum. This equates to over 5% of 

world trade. The Hargreaves Report in the United Kingdom has highlighted the need for countries 

to modernise both their IP legislative frameworks and regulatory regimes. 

Globalisation, technological changes, as well as the emergence of low-cost manufacturers in 

developing countries such as China have fundamentally changed the Intellectual property 

landscape and are challenging the value of conventional IP rights protection and its enforcement. 



According to a 2005 report by PricewaterhouseCoopers, entitled Redefining Intellectual Property 

Value: The Case of China”, 

“Technological changes, such as digitization, have made IP more portable and are diminishing the 

effectiveness of current intellectual property enforcement mechanisms. As more countries are 

entering and profiting in international markets, the level of intellectual property rights 

infringement is rising and the distinction between innovation and copying is blurring. Emerging 

economies are unlikely to implement IP rights and protection practices as those established in 

North America and Western Europe.” (p.9) 

At the same time, however, the value of corporations has shifted more and more to intangible 

assets, namely their intellectual property. According to the PricewaterhouseCoopers study, in 

1998, 85% of the value of US corporations was in intangibles, up from 38% in 1982. The study 

argues that Multinational Companies must therefore find new ways in which to protect their 

intellectual property that is distinct from the conventional methods. These ways include 

acquisitions, having a presence in big emerging economies, such as China, with the potential for 

infringements. 

The implications for South Africa of these global changes is that there it is unlikely to see a 

substantial increase in the registration of intellectual property rights from international sources. 

Any more substantial growth in IP registration will come from local or from African sources. 

Therefore, while South Africa must continue to support the international Intellectual Property 

system, and in particular participate in WIPO, it is important that CIPC clearly establishes what role 

intellectual property rights and their protection can play in South Africa and how it should be 

better integrated economically. 

South Africa also has a clear role to play in the development of Intellectual property rights on the 

African continent and more particularly, in SADEC and SACU countries. Developing a coherent 

strategy in this regard is an imperative for CIPC in the coming year. The aim should be to 

encourage the lodging of African applications in South Africa. 

The substantive examination of patents remains central to the lodging of applications in South 

Africa and to the stimulation of local innovation and investment. Through continued engagement 

in stakeholder roundtables, CIPC will seek to make a contribution to develop an appropriate 

approach to this crucial matter. 

Given the large scale on which counterfeit goods are manufactured, it is important that South 

Africa prevents these goods from entering our local markets through pro-active enforcement at 

our national and regional bordersCollaboration with local law enforcers will also be required to 

minimize the local production of counterfeits, especially given its impact on our local creative 

industry. In order to improve the protection for local patents and designs, serious consideration 

would also have to be given to developing substantive examination capacity in CIPC. 

Accession to the Madrid Protocol remains a strategic opportunity for South Africa, which could 

contribute to economic growth and investment. Such opportunitities entail foreign investors being 

able to file through internationally their applications for the protection of intellectual property 

rights. Similarly, local rights holders would be in a position to file internationally easier through a 

more cost effective process. Should the decision be taken by dti and Cabinet to accede to this 

Protocol, CIPC will be prepared to support its implementation. CIPC will be well prepared to do so as 

it has made input into the proposed legislative changes, internal systems will have bee offices 



internationally whn enhanced and practices and procedures will have been updated. Regular 

interaction with WIPO in this regard will continue 

The Copyright Review Commission concluded its work in 2011 and has made recommendations 

regarding the changes it believes are necessary. These recommendations are likely to influence the 

IP policy review and to make a positive contribution to the overall IP industry in South Africa. 

Similarly the adoption of the Beijing Treaty on Audiovisual Performance is an important milestone 

in protecting the rights of performers. Preparatory work is being done by CIPC to ensure that South 

Africa is able to implement rapidly and effectively should a decision to adopt the treaty be taken by 

government. CIPC will continue to work collaboratively with the DOC, dti, DoC and other key 

stakeholders in this regard 

Preparations for the implementation of the IP Amendment Bill are underway, most notably the 

aspects relating to the protection of indigenous knowledge and specifically preparations for the 

recordal of indigenous cultural expressions. 

4.1.3.5. Business Rescue 

The introduction of Business Rescue in 2011 was met with a great deal of scepticism and 

resistance. It appears that these early fears were not justified and confidence in the process 

continues to grow with a number of well known companies applying to participate. CIPC 

continues to support Business Rescue with programmes of education and awareness and through 

round table meetings and engagement with industry stakeholders. As the process starts to 

mature, the CIPC will derive implementation lessons and will seek to inform improvements to the 

overall policy and legislative environment. It will also seek to take a more active role in the 

regulation of Business Rescue Practitioners. Support to Business Rescue is an important area of 

focus for CIPC in 2013 / 2014. 

4.2 ORGANISATIONAL ENVIRONMENT 

CIPC is starting to emerge and develop as an institution. It has been established in May 2011 

through the amalgamation of the former CIPRO and OCIPE, In addition to the challenge of executing 

its functions as envisaged by the Companies Act, it also has had to meet the challenges of the 

amalgamation of two organisations, strategically, structurally and culturally. In so doing, it also has 

to deal with a legacy that has contributed to organisational stagnation, low employee morale and 

poor service delivery. 

CIPC is ‘making a fresh start’ in building a capable organisation that has a Customer-centric culture 

and a workforce that is energised, proud, committed and competent. In its first phase of institution 

building, CIPC ‘Prepared for Take-off’. It has had to go back to basics in understanding who its 

Customers are, what they value, require and expect and in crafting a strategy that is understood 

and supported by its people. This has been advanced through the design of effective and efficient 

business processes, the definition of a customer segmentation model, a strategically-aligned 

structure, IT enabled systems, appropriate facilities and a ‘fit for purpose’ common organisational 

culture. 

CIPC is now in its second phase of institution building - ‘In flight Adjustment’. Learning has been 

distilled from the first year of operation and adjustments have been made to some of the 



underlying strategic assumptions and approaches. Much success has been achieved in 

strengthening service levels and responsiveness to Customers, backlogs have been eradicated and 

the competence and commitment of its people continues to grow. The immediate challenges are to 

‘match and place’ people into the new organisational structure, to deepen core employee 

competencies (in particular in the regulatory aspects of CIPC’s work) and to innovate a number of 

important aspects of CIPC’s business model. 

Much attention is also being paid to embracing technology to enable quicker, easier, secure access 

to CIPC and to delivering new and unique value through partnerships with channel partners in 

financial services. These new and unique service offerings focused around a single point of 

registration should contribute greatly to the reputation and credibility of CIPC in years to come. In 

the coming year, attention will be paid to developing an effective Reputation Model so that 

stakeholder perceptions of CIPC may be more accurately captured and benchmarks for 

improvements established. 

In essence, the strategic challenge facing CIPC has two components: 

a transactional challenge to deliver faster, more accurately, reliably and in a more secure manner 

on the registration of companies and intellectual property rights, to safeguard the integrity of 

data and to enable responsive access to requests for information. This will require the reengineering 

and integration of business processes, the IT enablement of workflows and 

information management, the training and development of competent people and the 

development of Customer-centric access, communication and service delivery channels 

a transformational challenge – to add greater value to entrepreneurs through enhanced products 

and services, a range of easily accessible channels as well as ongoing communication and 

engagement with segmented Customer communities. To positively impact good governance in 

South Africa, create a culture of voluntary compliance with legislation and to build the required 

capabilities to be able to deliver on the ‘new’ components of CIPC mandate. 

This includes delivering on CIPC’s innovated regulatory functions, the need to promote voluntary 

compliance, initiate and investigate contraventions of the Act, monitor compliance with financial 

reporting standards and promote the reliability of financial standards. 

This transformational process to build the required internal capabilities (knowledge, expertise, 

systems, culture / mind-set) to deliver on these aspirations will require a strategically focused 

transformation journey that will last for many years to come. 

The current CIPC focus is around accelerating the pace of change. This encompasses innovating the 

way CIPC works in order to be able to deliver core registration and maintenance services timeously 

and in accordance with both acceptable standards of quality and the needs of CIPC’s Customers. At 

the same time it is focused on establishing the foundation of competent people and systems 

required to implement new services. . In a sense this challenge to both ‘catch up’ and ‘get ahead’ at 

the same time is analogous to ‘changing the engines on an aeroplane in mid flight!’ 

In the coming strategic period CIPC will continue to invest in the development of its people and in 

providing the tools and the enabling environment required to deliver high performance. Today’s 

data intensive, round the clock, globalised business environment also requires the appropriate 

technology investments that allow for intelligent work, informed decision making and seamless, 



engaging, satisfying and consistent Customer experiences. Renewed emphasis will be placed on 

issues of data integrity, alternative access points and channels will be explored and adopted and 

innovative ways to provide value-added services will be developed to ensure the organisation’s 

continued relevance. 

CIPC is carefully evaluating the investments that will be required, as well as the strategic 

partnerships that will assist it in delivering on its strategic objectives. CIPC recognizes that it will 

achieve its goal of organisational excellence over time and that the journey will be based on 

consistent and continuous improvement in its service delivery and product offering. 



5. CUSTOMER NEEDS AND EXPECTATIONS 

In understanding CIPC’s dominant value proposition, it is important to confirm that that CIPC has two 

important core functions. It has to deliver services to its Customers in a responsive, efficient and 

Customer-centric manner. This has to be done in such a way that ensures that the integrity of Customer 

information is not compromised in the interests or expediency of service. It is also an important regulator 

of market conduct. As such, ensuring compliance to legislation is an essential core component of its 

regulatory function. 

This dual role has the potential for tensions and conflict. CIPC provides a revenue-generating service to its 

Customers. It also supervises and enforces its Customers compliance to the legislation entrusted to CIPC 

by its mandate. By so doing, it runs the potential risk of regulatory capture by being dependent upon 

those it regulates as the source of its revenue. 

Regulatory capture occurs when a state regulatory agency, created to act in the public interest, instead 

acts in favour of the commercial or special interests that dominate the industry or sector that it is charged 

with regulating. The potential for regulatory capture presents a number of specific regulatory dilemmas or 

tensions that need to be managed on an on-going basis. The first tension is between having a Customercentric 

orientation and retaining the independence, impartiality and the confidence to enforce where 

required. 

The second key tension is between Customer satisfaction and Customer respect. Through the supervisory 

and enforcement activity CIPC exercises, it may well take action that does not directly generate Customer 

satisfaction as it may have an adverse affect on the interests of Customers. It should nevertheless 

engender a feeling of respect in that its actions are seen to be impartial and fair. 

All of CIPC’s Customers ascribe significant value to the reliability and integrity of CIPC and the data that it 

gathers and maintains. They also require acceptable turnaround times for the registration of companies 

and intellectual property and prompt, secure access to relevant information held by CIPC. This needs to 

be done in such a way as to ensure that data integrity and privacy of individuals are not compromised. To 

deliver on operational excellence, CIPC should understand its Customers and adapt its structure, systems 

and processes to deliver on their legitimate needs and expectations. Not all customers have the same 

needs and expectations, so it is important to adopt a business model with a model of Customer 

segmentation that informs the way in which organisational structures, systems and processes are best 

structured to enable effective service delivery and to deliver on CIPC’s promise. 

CIPC’s Customers may (at a very high level) be segmented as follows: - 

1) Customers with registration needs (both company and intellectual property); 

2) Customers with information and data needs; 

3) Customers with compliance needs; and 

4) Customers with redress needs. 

Different Customer groupings may also have different needs around access to CIPC. For example, 

Customers in rural areas do not have the same level of direct access to CIPC’s offices or the same levels of 

business sophistication. They may therefore require innovated communication and/or access channels to 



ensure that they receive the appropriate service from CIPC. The following table details the perceived 

needs and expectations of these Customer segments: 



Table 6: Summary of customer needs based on customer segmentation 

Needs Based 

Segmentation 

Customers with 

registration 

needs 


information and 

data needs 


compliance 

needs 


redress needs 

Types of Customers Product and Service Needs 

Customers who access our 

services directly 

Customers who access us 

indirectly through 

intermediaries or through 

their company secretaries 

Includes actual and potential 

customers 

Government agencies, 

institutions, banks, 

international business 

entities, international bodies 

(WIPO), other regulators and 

the general public 

Registered entities or holders 

of renewable IP rights 

Individual or corporate 

investors, directors, IP rights 

holders, acting alone or 

through intermediaries 

Efficient, predictable and reliable registration and 

amendment of registrations of entities and 

intellectual property rights 

Accuracy, security and protection of registry 

information 

Choice, efficiency and cost-effectiveness of 

access channels 

Information about the benefits and obligations of 

registration and other rights, responsibilities and 

recourse 

Information about opportunities for growth 

More personalized, decentralized service, advice 

and support – face to face, agency or contact 

centre 

Greater ease of doing business, e.g. integrated 

registration for tax, workman’s compensation, 

bank account, etc. 

Access to accurate, reliable information and data 

– either through face-to-face contact or direct 

access to CIPC systems and/or database, usually 

for verification and fraud prevention purposes, 

could also be for search purposes (e.g. IP or name 

reservations) and for legal clarity; 

Access to policy information about business 

activity, conduct and impact of regulation on 

enterprise formation and sustainability, 

innovation and creativity in specific sectors 

Easily accessible information about the 

compliance obligations and requirements 

Advice on complicated matters 

Easy lodgment of compliance obligations, 

inclusive of ease of payment and feedback on 

levels of compliance 

Minimal interaction with CIPC 

Timeous investigation of complaints, empathy; 

Professional investigation, remedial action and 

report back by trained, knowledgeable 

professionals 

Credible, reliable findings 

Reversal of illegal actions and possible damages 



In terms of its Vision, CIPC aspires to be ‘the gateway to sustainable formal economic participation and 

investment for all in South Africa’. This implies that individuals and corporate entities should enjoy many 

of the benefits of the formal economy once intellectual property or business entities are registered. 

CIPC realises that for a number of individuals and single owner businesses, registration may not deliver 

any real benefits and may simply add unnecessary costs and create an unnecessary bureaucratic burden. 

For CIPC, registration without any real benefits accruing to the Customer, may simply lead to future deregistration 

and unnecessary administration. 

It is important therefore that CIPC develops a value proposition around registration that delivers real, 

perceived value to Customers. It is also important that CIPC informs the discretion of individuals and 

corporate entities regarding the potential benefits of registration whilst ensuring that particularly small 

businesses derive real benefits from registration. In this regard, the organisation needs to be at a certain 

level of maturity to partner with particularly large corporates that can ‘handhold’ small businesses to 

reach a point of sustainability. The sustainability of registrations is very important to CIPC in its future 

planning. To enable good quality registrations, CIPC will need to increase awareness of the potential 

benefits of registration in its ‘un-served’ market. The ‘un-served market’ may best be defined as ‘those 

individuals or corporate / collective entities that do not currently enjoy formal registration with CIPC and 

are unaware of the potential benefits of registration.’ This increased awareness should be realistic and 

balanced providing a sound basis for Customer decision-making. 

CIPC’s proposition is that economic growth coupled with a growth in creativity and innovation will create 

a natural ‘pull through’ need for registrations. CIPC’s role should therefore be to ensure that all who may 

potentially benefit from registration are aware of the potential benefits of registration and are able to 

access registration quickly, easily and at a cost that does not discourage registration. Some of the 

potential criteria that could indicate that a need for registration exists include: - 

Where a single owner business has an aspiration for services provided by others within the formal 

economy, such as financial services and credit, and where registration is the pre-requisite for the 

supply of such services; 

Where a single owner business has an aspiration for growth and requires formal registration to 

access capital (either through the registration of the business itself or through the registration of 

intellectual property that has an assumed value and against which finance may be raised); 

Where the owner of a business may wish to avoid actual or potential personal liability through the 

transfer of such liability into a limited liability legal entity’ 

Where the owner of a business may want to bring in equity partners or may want to sell a business 

and its assets; 

Where the owner/s of intellectual property may wish to protect its trade marks, copyrights, patents 

or designs from infringement, theft or abuse by others. 



6. THE CUSTOMER VALUE PROPOSITION 

CIPC Customer Value Proposition is aspirational as it includes both benefits that Customers currently 

enjoy as well as future Customer benefits that will be developed and delivered by CIPC, in association with 

its channel and strategic partners, over time. 

It must be emphasised that living up to these aspirations will require that CIPC build the required 

capabilities over time and in collaboration with its strategic partners. The achievement of these 

aspirations is therefore partly within its scope of control and partly under the control of CIPC’s strategic 

partners. 

The value proposition of CIPC is that ‘dealing with CIPC means that you have access to opportunities for 

growth; are compliant with good corporate governance principles; have security of lodged information; 

and ease of registration.’ 

1. Access to opportunities for growth 

‘As a registered entity, you are more likely to be able to attract investment in your businesses, through 

credit or equity. In the same way, registered intellectual property rights can be safely commercialised or 

licensed to third parties, whether through franchising or other distribution or manufacturing 

arrangements. CIPC will provide information to you about the possibilities to grow your business or your 

investment in intellectual property rights.’ 

2. Good governance and credibility of information and conduct 

‘Registering with CIPC means that investors can rely on the credibility of your corporate entity’s 

information and conduct. You will be receiving a ‘Certificate of Compliance’ from CIPC which means that 

you will be perceived as a credible corporate citizen who has paid their taxes, complied with good 

governance and statutory requirements and that the information you provide, such as your financial 

statements and BEE status, will be respected in accordance with global standards. 

As a Customer, you can rely on the integrity and professionalism of registered business rescue 

practitioners, collecting societies and alternative dispute resolution practitioners in times of crisis.’ 

3. Security of lodged information 

‘Being registered with CIPC means important assets such as intellectual property, shares/equity, products, 

brands and identity are protected from being stolen or misappropriated. As a Customer, you can rely on 

CIPC to act against counterfeiters and other people who do not respect your trade mark rights.’ 

4. Ease of registration (reduced bureaucracy) 

‘As a Customer, you can register your business and intellectual property directly through our ‘one stop 

shop’ on-line portal and comply with all other statutory registrations at the same time such as Income 

Tax, Value Added Tax (VAT), Unemployment Insurance Fund (UIF) registrations, etc. You can register your 

business at the same time as you open your business bank account. You can register through our other 

channel partners and receive sound business advice at the same time. You can receive your registration 

number and certificate on the same day you register, dependant on whether CIPC can verify your details’. 

You can call our Contact Centre or relevant Issue Champion to query any aspect of your registration or 

receive any information you may require. You can renew all of your registrations easily, on line or 

through banks, ATMs or other Self Help Terminals as well as through our other channel partners.’ 



7. CIPC’S BUSINESS MODEL 

A business model describes ‘the rationale of how an organisation creates, delivers and captures value.’ 

(Osterwalder) 

Whilst CIPC spent time defining its business model in 2011, enhancements to it became necessary in the 

2012 year due to the organisation gaining a better understanding of its Customers, their needs, the 

challenges facing the organisation and the internal as well as external environment. 

Its evolving business model is based on the priorities that it identified for the organisation, namely: 

Improving the reliability and integrity of the information in CIPC’s registries; 

Improving the relevance and value of CIPC’s services to its Customers and stakeholders 

Improving compliance with the laws that CIPC administers. 

Demonstrate CIPC’s economic impact 

Partnerships with the right stakeholders are key in meeting these priorities and therefore a considerable 

amount of time is spent exploring, developing and enhancing such collaboration efforts with both private 

and public partnerships. 

The organisation, through its innovation efforts, continues to seek opportunities to be innovative and to 

offer value added services whether through its products and services - registration and regulatory 

services or its access channels. 

Of great importance is the issue of compliance with legislation and the business model takes into account 

the attempts to be made to ensure greater compliance. Its education and awareness function therefore 

has a great role to play in this respect. 

All the efforts of the organisation will be in vain if no real economic impact can be seen over time. The 

business model therefore makes provision for working towards demonstrable change in the economic 

environment. 

In addition to the strategic issues related to the business model, CIPC remains a public sector regulatory 

agency rather than a business, and therefore its goal is not to be profitable but is rather focussed on a 

self-sustaining funding model that delivers sufficient revenue to cover the capital and operating costs of 

the services it delivers. 

The CIPC business model is equally on the quality of the services it provides, the acceptable speed with 

which it delivers them and the value that its products, services and solutions generate for customers. 

CIPC’s business model focuses on the manner in which it will deliver services, the quality of those services, 

the fees it will charge to be sustainable and the potential for value addition. 

In order to deliver on its strategic mandate, CIPC has identified three key resources that it will need to 

build, develop and / or acquire: 

An informed, competent and engaged workforce; 

Intelligent Information Technology systems and infrastructure; 

Strategic partners that assist CIPC to deliver on its broader mandate in a mutually beneficial manner. 



An estimated 80% of CIPC’s services are currently delivered through intermediaries- intellectual property 

legal practitioners, company secretarial services, provincial small business development partners and 

other associated intermediaries. Customers choose to deal through intermediaries for the sake of 

convenience, but also because CIPC is difficult to access and navigate. 

CIPC is exploring and piloting a new business model which is based on a direct channel and partnership 

approach which is aimed at meeting customer needs through: 

Telephone services – where greater emphasis will be placed on answering calls and resolving customer 

queries (which might require a call-back service). 

Customer faxing documentation 

Customers e-mailing documentation 

CIPC will be establishing a framework for registering intermediaries that charge customers for their 

services. Whilst much of the fraudulent activity experienced by CIPC has come through intermediaries, we 

recognise that many intermediaries are professionals that adhere to professional standards. This will be 

taken into consideration when developing the registration and regulatory criteria. CIPC will monitor the 

services provided through such intermediaries and take the necessary action against intermediaries who 

engage in fraudulent or unethical activities. 

CIPC will increase access to its products, services and solutions through the development of indirect 

channels. These channels will be managed in collaboration with identified service delivery partners. 

CIPC will continue to participate in a project to simplify and co-ordinate the requirements to start a 

business. In particular, it will work closely with the South African Revenue Services (SARS), (the 

Department of Labour?) and Statistics South Africa to create a seamless, single registration process for 

government related compliance obligations. The possibility of adding private sector partners, such as 

banks, to such an engagement will also be explored. 

In order to deliver the enhanced services required by its Customers and stakeholders, CIPC will require 

competent, engaged employees who will deliver high quality work at an acceptable speed of delivery. 

Operational efficiencies will be enhanced by intelligent, high performance Information Technology 

systems, which will serve CIPC employees, CIPC customers and their partners and registered 

intermediaries. CIPC envisages that expenditure on its IT systems will be a consistent feature in its budget 

over the period of the strategic plan and into the future. Often, expenditure on IT systems is 

accompanied by a reduction in expenditure on human resources. CIPC does not anticipate that this will be 

the case over the next five years and expects that its expenditure on human resources will need to 

increase in order to improve service delivery. 

Efforts will be made to achieve cost-savings in non-core areas to enhance the efficiency of the 

organisation. Efficiency will however, need to be balanced with effectiveness. 

CIPC will prioritise improvements in service delivery as it recognises that the cost of non-delivery to the 

economy overall is very high. The implication of this is that CIPC’s overall income will need to increase in 

the short to medium term to fund the improvement in services, the development of new, enhanced value 



to customers and the growth in its regulatory mandate. To meet these needs, a new revenue model will 

be developed, based on both a simplification and rationalisation of CIPC’s fee structure. 

Given the importance and sensitivity of the information held by CIPC and the impact of service delivery on 

the business sector, CIPC will prioritise information integrity and security, disaster recovery and change 

management in all its efforts. It will place significant emphasis on pro-actively managing the strategic risks 

that have been identified, while providing innovative and value-adding services. 

The business model and strategic mandate of CIPC requires an enhanced set of key capabilities, which 

will need to be developed. These include capacity for: 

Programme and project management. There is a need in the organisation to enhance project 

management skills to ensure the enhanced implementation of projects that will yield tangible results. 

The shortcoming currently is the inability to problem solve challenges that threat the delivery of 

projects. 

A Quality Management ethos with supporting quality control processes and competencies. There is a 

need to develop a set of quality indicators at a granular level to ensure minimum rework and 

increased Customer satisfaction. 

Policy, research and Advocacy. CIPC will need to develop the capacity and ability to provide input into 

policy and legislative changes to the dti and other government institutions such as DST, DHET, DAC, 

based on its implementation experience, its institutional wisdom as well as learning derived from 

international trends and developments. In addition, CIPC will need to support the efforts of the DIRCO 

to put forward policy positions and to advocate for international change in international fora, such as 

the World Intellectual Property Organisation (WIPO) and the World Trade Organisation (WTO). 

Product and Channel Development and innovation. CIPC will need to develop a specialised capacity 

to continuously monitor the value it delivers to existing and underserved markets to identify new 

opportunities for value addition, improvements and solutions creation. This will require an 

organisational culture and an operating model that encourages and rewards innovation at all levels in 

the organisation. It will also require a focused approach to the development of new, innovative 

Customer channels that provide for more efficient and effective Customer engagement and 

information processing 

Market surveillance and enforcement. In order to become a credible regulator CIPC will need to 

enhance its capacity for monitoring compliance, its ability to proactively enforce compliance with 

legislation as well as to encourage and promote voluntary compliance. 

Good governance and risk management. As the custodian of corporate governance and conduct, 

CIPC will need to aspire to the highest standards of corporate governance itself. The effective 

management of risk to ensure that any potentially negative impacts on customers and/ or 

stakeholders are minimised will also need to become an integral feature in all its operations. Good 

governance and effective risk management and mitigation are specific competencies that will need to 

be entrenched in the culture, processes and governance arrangements of CIPC. 

Stakeholder and reputation management. In order to be a credible, well-respected and effective 

regulator, CIPC will need to proactively manage its public image and intentionally shape the 



perceptions and the behaviour of those it regulates. CIPC will need to establish a reputation for 

integrity, for reliable service delivery, a value-enhancing partner and credible, impartial regulator. 

This will require that all people within CIPC be clearly aligned with its strategy. It will also require a 

capacity for channel management, strategic communication and stakeholder management, as well as 

personalised relationship management with intermediaries and partners. 

Standard setting, monitoring and evaluation. CIPC will need to be able to set standards for security 

and service delivery for itself, its strategic partners and the capacity and skills to monitor, evaluate 

and enforce adherence to these standards. 



8. STRATEGIC PLANNING PROCESS 

CIPC engaged in an extensive strategic review for the 2012 planning period, which entailed understanding 

who its customers are and what their views of CIPC are, the expectations and requirements of key 

stakeholders in the public sector, as well as the inputs of internal stakeholders, including the senior 

management and organised labour. During the 2013 planning period, the strategy and annual 

performance plans were reviewed and updated in accordance with the progress made in strategy 

implementation as well as the changes experienced and foreseen in the internal and external 

environment. 

9. STRATEGIC GOALS 

CIPC has identified three outcome oriented strategic goals that aim to give effect and substance to its 

strategy. These are: - 

1) To improve the competitiveness of the South African economy by enhancing the reputation of South 

African businesses and the South African business environment; 

2) To contribute to a knowledge-based economy and competitive local industries by promoting 

innovation, creativity and indigenous cultural expression and knowledge; 

3) To promote broader formal economic participation by enhancing service delivery and extending the 

reach of CIPC. 

Strategic Outcome Oriented Goal 1 Improve the competitiveness of the South African 

business environment 

Goal Statement To improve the competitiveness of the South African 

economy by enhancing the reputation of South African 

businesses and the South African business environment 

Strategic Outcome Oriented Goal 2 To promote innovation, creativity and indigenous 

cultural expression 

Goal Statement To contribute to a knowledge-based economy and 

competitive local industries by promoting innovation, 

creativity and indigenous cultural expression and 

knowledge 

Strategic Outcome Oriented Goal 3 To promote broader formal economic participation 

Goal Statement To promote broader formal economic participation by 

enhancing service delivery and extending the reach of 

CIPC 



PA R T B : S T R AT E G I C O B J E C T I V E S 

10. STRATEGIC OBJECTIVES 

10.1 PROGRAMME 1: BUSINESS REGULATION AND REPUTATION 

Goal 1: To improve the competitiveness of the South African economy by enhancing the reputation of 

South African businesses and the South African business environment 

The purpose of the programme is to enhance the reputation of South African businesses and the South 

African business environment by ensuring that the registers of corporate entities, their managers and 

their identity have integrity and that a culture of corporate compliance and high standards of governance, 

disclosure and corporate reputation is established. The programme is also responsible to provide policy 

and legal insight and advice on the co-ordination, implementation and impact of the respective laws. 

The strategic objectives of this programme are to: 

1. To encourage the formalisation of South African businesses and their identity 

Strategic Objective 1.1 To encourage the formalisation of South African businesses and their 

identity 

Objective Statement To increase the formalisation of small businesses and the registration 

of local trade marks by South African corporate entities 

Baseline 95% of companies registered manually within the published service standard 

95% of companies registered manually within the published service standard 

23% of co-operatives registered within the published service standard 

90% of trade marks applications processed within the published service 

standard 

KPIs % of companies registered manually within the published service standard 

% of companies registered manually within the published service standard 

% of co-operatives registered within the published service standard 

% of trade marks applications processed within the published service standard 

Strategic Objective 1.2 Encourage the maintenance of high standards of corporate 

governance, transparency and brand protection 

Objective Statement To improve the levels of compliance with corporate regulation and 

improve brand protection through the consistent application of 

corporate identity across trade marks, corporate and business names. 

Baseline 70% compliance with annual returns 

33% of investigations completed within the published service standard 

KPI % compliance with annual returns 

% of investigations completed within the published service standard 



10.2 PROGRAMME 2: INNOVATION AND CREATIVITY PROMOTION 

Goal 2: To contribute to a knowledge-based economy and competitive local industry by promoting 

innovation, creativity and indigenous cultural expression and knowledge. 

The purpose of the programme is to support the international IP system and to promote local innovation 

and creativity by maintaining accurate and secure registries of patents, designs, film productions and 

recordals of indigenous cultural expressions and creative works, as well as by supervising and regulating 

the distribution of benefits of copyright and IK rights and protecting existing rights. The programme is also 

responsible to provide policy and legal insight and advice on the co-ordination, implementation and 

impact of the respective laws. 


1. To promote the protection and commercial exploitation of innovations in key sectors; 

2. To protect our cultural heritage and support a strong competitive South African creative industry 

that provides benefit to local artists. 

Strategic Objective 2.1 To promote the protection and commercial exploitation of 

innovations in key sectors 

Objective Statement To increase the proportion of local filings of patents and designs and 

patents with recorded licence agreements 

Baseline 87% of patent applications processed within the published service 

standard 

98% of design applications processed within the published service 

standard 

KPI % of patent applications processed within the published service 

standard 

% of design applications processed within the published service 

standard 

Strategic Objective 2.2 To protect our cultural heritage and support a strong competitive 

South African creative industry that provides benefit to local artists 

Objective Statement To increase the number of local filings of cinematography and to 

increase number of performing artists with agreements in place 

Baseline 64% of copyright in film applications processed within 2 working 

days 

KPI % of copyright in film applications processed within the published 

service standard 

10.3 PROGRAMME 3: SERVICE DELIVERY AND ACCESS 

The purpose of the programme is to promote better access to and service delivery by CIPC by ensuring 

that our access channels are secure and easily accessible to all, that the institution has sufficient and 

appropriate organisational resources to deliver the best possible service and that operational excellence 

is established in all areas of the organisation. 



Goal 3: To promote broader formal economic participation by enhancing service delivery and extending 

the reach of the CIPC 


1. Provide easy access to credible, reliable and relevant information and advice and secure, valueadded 

services; 

2. Build an enabling and intelligent work environment anchored in a governed and sustainable 

organisation; 

3. Improve the reputation and organisational performance of CIPC. 

Strategic Objective 3.1 To provide easy access to credible, reliable and relevant information 

and advice and secure, value-added services 

Objective Statement To implement 100% ICT stabilisation programme by 2018. 

To implement 100% of the Swedish model as a new telephone 

service approach by 2018 

Baseline IT website availability not accurately measured in 2012 

28% call answer rate 

KPI % website availability for on-line filings 24/7 

% Call answer rate 

Strategic Objective 3.2 Build an enabling and intelligent work environment anchored in a 

governed and sustainable organisation 

Objective Statement To improve the organisational capacity of CIPC by ensuring that: 

95% of vacancies are filled by 2018, 

CIPC can support itself 100% through its operating revenue 

Baseline 124% of expenditure covered by operating revenue and reserves 

KPI % of total expenses covered by operating revenue 

Strategic Objective 3.3 To improve the reputation and organisational performance of CIPC 

Objective Statement To position CIPC as an effective regulator and a reliable service 

provider and to improve operational performance 

90% neutral media coverage 

Baseline 90% neutral media coverage 

KPI % neutral media coverage in mainstream and social media 


10.4 Risk Management 


Risk Name Risk Description Controls and Mitigating Action 

Accuracy, integrity 

and reliability of 

registry 

information 

ICT systems and 

governance 

Change 

management 

Lack of accuracy and completeness 

of data resulting in limited reliability 

of data for internal and external 

purposes 

Inadequate quality controls 

Lack of adequate verification of 

information submitted 

Lack of integrity in the corporate 

names register due to criteria 

adopted for approval 

Lack of integrity in patent and design 

registers as filings are not examined 

substantively 

Lack of alignment between IT strategy 

and business needs 

Slow legacy ICT systems with limited 

ability to change and to meet the 

needs of the business unit 

Inadequate user access control 

Excessive reliance on ICT service 

providers 

Lack of proper change management 

and control over ICT environment 

Lack of implementation of business 

continuity and disaster recovery 

plans 

Lack of internal management of the 

implementation of changes to 

processes, systems and ways of 

working 

Implementation of better quality control 

measures to ensure accuracy, linked to 

performance measurement and reward 

Introduction of electronic filing and 

electronic workflows 

Cleansing of historical data records 

Procedure for effecting data changes and 

corrections 

Improved upfront identity verification 

Consistent approach and guidelines on the 

evaluation of business names, corporate 

names and trade marks 

Cost benefit analysis of introduction of 

substantive examination of patents and 

designs 

Stabilise legacy systems 

Upgrade and replace current applications 

Introduce an adequate testing environment 

Build and retain internal ICT capacity with 

product knowledge 

ICT governance framework developed and 

implemented 

Implementation of Change Control Board 

BCM Policy, plans and procedures in place 

Recovery strategy plan in place 

Training to recovery teams 

Incident site team trained 

Backup process, procedures and tapes. 

Tapes stored externally 

Digitization of records, especially historical 

records 

Internal training programmes and seminars; 

Coaching capacity; 

Change management initiatives 




Theft, fraud and 

corruption 

Organizational 

capacity and 

management 

Reputation and 

Stakeholder 

Management 

Lack of documented controls 

Lack of accountability for 

implementation of controls 

Unauthorized access to, use and 

manipulation of information with 

the intent to commit fraud. 

Organisational transition 

Lack of sufficiently skilled human 

resources, equipment and 

consumables. 

Loss of skilled staff 

Lack of appropriate skills and 

knowledge amongst staff 

Ineffective management of human 

resources 

Lack of employee commitment and 

strategic alignment 

Resistance to change 

Potential for labour unrest 

The risk that changes in relationship 

with intermediaries and other 

stakeholders or changes in CIPC 

processes results in negative media 

coverage 

Inadequate management of public 

expectations regarding service 

delivery 

Documented delegations and 

responsibilities 

Documented procedures 

Segregation of duties 

Inclusion in performance management 

system 

Enhanced controls and audit trails related to 

user access 

Enhanced systems security 

Revised procedures for accessing 

information 

Conduct information security audits 

Approved and implemented organisational 

structure 

Clear job descriptions and norms and 

standards 

Sufficient positions in the organisational 

structure 

Staff training interventions 

Internal administrative capacity 

Succession planning and staff retention 

policies 

Staff training exchanges with international 

offices and other regulators 

Management and team management 

training 

Appropriate remuneration framework 

Organisational culture engagements 

Involvement of Organised Labour 

Good relationship with organised labour 

Stakeholder management strategy 

Pro-active communication about changes 

and new developments 

Brand building initiatives 

Pro-active media strategy 




Financial 

sustainability 

Lack of debtors management 

Outdated fee structure 

Ineffective billing system 

11. RESOURCE CONSIDERATIONS 

11.1 ASSUMPTIONS 

The following assumptions inform the financial projections: 

Develop and implement debtors 

management system 

Implement financial viability framework. 

Review annual returns revenue model. 

Review fee structure 

1) CIPC has developed a new structure, which will ensure that adequate resources are employed in 

order for the institution to deliver on its mandate and improve its service delivery. The staff 

complement over the next five years will increase from 500 posts in year 1 to 630 posts over a period 

of five years. 

Table 5: Projected staff numbers from 2013 - 2018 

Projected no of employees 

2013/14 2014/15 2015/16 2016/17 2017/18 

Number 

employees 

of permanent 500 620 630 630 630 

Number of interns 56 70 70 70 70 

Total staff complement 556 690 700 700 700 

In order to improve service delivery, CIPC envisages that it will need to make a substantial 

investment into the capacity of its staff over the next five years to ensure better service delivery and 

to build capacity for new functions in the institution. The organisation is in the process of reviewing 

its current remuneration framework and performance management and reward system. The overall 

salary structures will remain aligned with the public service, but more flexibility will be introduced 

into the pay scales. Provision has been made for annual performance bonuses. In combination with 

increased staff numbers, the result will be increases in the overall salary budget of CIPC over the next 

five years. The increased expenditure will be funded from reserves that the organisation has, but a 

revision of the fee structures, especially for intellectual property transactions, will be necessary to 

ensure that sustainability is retained after year five (5). 

2) CIPC has experienced major space constraints and is unable to add all the required staff due to the 

limitations. Attempts to procure a new building for CIPC were not successful in 2012; options will be 

further explored going forward. An estimated amount of R41m has been provided for the lease of the 

premises, escalating by 10% per annum. The current space requirements have been plannee 

maximum no of staff as per the proposed structure and National Treasury’s recommendations. 



3) Another major expenditure area for CIPC over the strategic period will be its investment in 

information technology and in the assets required to ensure that filings are not only electronic, but 

that the institution also has electronic workflows. CIPC expects to move to a majority of electronic 

filing over the next three years particularly in relation to IP filings and also to digitize its existing 

historical records over the same period. The investment will include installing dual screens for all staff 

involved in registration and investigations, increases in network infrastructure and the necessary 

applications to support the electronic filing process. 

Table 6: Projected annual growth in electronic filings 

Nature of Filing 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 

Co-operative registration 20,000 31,500 40,950 49,140 54,054 59,459 

% electronic filings - -- 30% 50% 60% 70% 

No of electronic filings 12,285 24,70 32,432 41,621 

Company registration 200,000 207,000 214,245 221,744 229,505 236,390 

% electronic filings 66% 70% 90% 90% 90% 

No of electronic filings 132,000 144,900 192,821 199,569 206,554 

Trademark registration 33,452 37,536 42,412 48,236 55,198 62,373 

% electronic filings -- 30% 50% 70% 90% 

No of electronic filings 0 11,261 38,171 43,412 49,678 

Patent filings (excl. provisional 7,000 7102 7,191 7,289 7,389 

applications) 

% electronic filings - 30% 50% 70% 90% 

No of electronic filings 0 2131 3596 5102 6650 

Design registration 2000 2,005 2,119 2,243 2,379 2,528 


No of electronic filings 0 601 1059 1570 2,142 

Film registration 59 61 63 66 69 71 


No of electronic filings 35 18 32 46 62 

4) Other areas of programme expenditure for CIPC will include commissioning of research and 

analysis, possible litigation and specialised investigations, as well as education and awareness 

campaigns and publications. These are key areas of strategic focus for the institution, as it 

establishes its new mandate and presence. 

5) The Commission will reduce its reliance on consulting services over the strategic period, as it is 

able to appoint more staff and conduct the work itself. It is expected that there will still be a high 

dependence on consulting services in the 2012/13, especially in the area if ICT. This reliance will, 

however, be significantly reduced over the following years. In addition, certain services will also 

be outsourced, such as printing services. These outsourced services will be provided for under the 

goods and services budget. 



6) Revenue projections will largely be based on the baseline number of registered entities, as well as 

the estimated annual increases in new registrations. The revenue model will be revised to focus 

on renewals, rather than on the initial registration. In addition, a revision of the fee structure is 

anticipated. 

Table 7 below outlines the projected corporate and intellectual property registrations over the next 

five years. It is expected that co-operative registration will increase at a declining rate over the fiveyear 

period, beginning with a projected 50% increase in the first year, which declines to a 10% 

increase by year 5. In company registration, it is expected that the level of registration in 2013/14 will 

continue to reflect the registration trajectory established in 2011/12 and will increase at a steady rate 

of 3.5% per annum thereafter. The trend in intellectual property filings over the past 10 years has 

been an annual growth of between 1% and 2%. This trend is expected to continue for international 

filings (estimated at 1% for all intellectual property filings), while specific efforts will be made to 

increase the number of local filings. 

For this reason, the overall number of intellectual property filings will increase more substantially per 

annum, with the exception of patents, where the projection is that local filings will increase at a rate 

of 2% per annum. Provision has been made for an increase in local filings for designs and film 

productions of 10% per annum and in trade marks for 20%. 

Table 7: Projected registration of corporate entities and intellectual property rights 

Type of registration 

2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 

Co-operative registration 22,500 31,500 40,950 49,140 54,054 59,459 

Company registration 200,000 207,000 214,245 221,744 229,505 236,390 

Total Trademark registration 33,452 37,536 42,412 48,236 55,198 62,373 

Estimated local filings 19,737 23,684 28,421 34,105 40,926 47,883 

Estimated international filings 13,715 13,852 13,991 14,131 14,272 14,414 

Total Patent registration (excl. 

provisional applications) 

7,000 7102 7,191 7,289 7,389 7,462 

Estimated local filings 650 663 776 792 808 824 

Estimated international filings 6350 6439 6415 6497 6581 7,239 

Total Design registration 2000 2,005 2,119 2,243 2,379 2,528 

Estimated local filings 950 1,045 1,150 1,264 1,391 1,530 

Estimated international filings 1050 960 969 979 989 998 

Total Film registration 59 61 63 66 69 71 

Estimated local filings 17 19 21 23 25 27 

Estimated international filings 42 42 43 43 44 44 

Total registrations 264,911 285,197 306,980 328,718 348,594 347,932 



11.2 PROJECTED EXPENDITURE BY PROGRAMME 

The projected expenditure is based on the expenditure related to the increase in staff costs. Expenditure 

on compensation of employees is expected to grow from R214.6 million in 2013/14 to R325.2 million in 

2017/18, at an average annual rate of 9 per cent, due to the implementation of CIPC’s new structure and 

functions, as a result of its legislative mandate. 

All other operating expenditure has been reviewed and reprioritised based on the strategic objectives 

over the MTEF period. Total expenditure is expected to increase from R435.9 million in 2013/14 to R569.0 

million in 2017/18, at an average annual rate of 6.4 per cent due to increase in employee costs as well as 

the implementation of special projects aimed at stabilisation of ICT systems and improvement of service 

delivery. Expenditure on goods and services is expected to decrease from R241.2 million in 2012/13 to 

R214.9 million in 2015/16, at an average annual rate of 4.5 per cent. The reduction of capital costs 

relating to the special initiatives incurred in 2013/14 to 2015/16 also contribute to the decreased 

spending over the medium term due to reprioritisation. CIPC has adopted a phased approach for 

implementation of special projects due to the limited capacity to implement major projects. An amount of 

R 150 million has been allocated for special initiatives over a period of five years, which will be funded 

through the approved retained earnings. 

Programme 2013/14 2014/15 

Business Regulation and Reputation 

Innovation and Creativity Promotion 

Service Delivery and Access 

Total operational expenditure 

Special initiatives* 

Total Expenditure 

2015/16 2016/17 2017/18 

Rm Rm Rm Rm Rm 

178.3 188.8 200.0 213.0 226.9 

78.2 82.9 87.8 93.5 99.6 

149.4 196.9 188.2 202.4 212.6 

405.9 468.6 476.0 508.9 539.0 

30.0 30.0 30.0 30.0 30.0 

435.9 498.6 506.0 538.9 569.0 

*Special initiatives: 

Special initiatives relate to stabilisation of ICT systems and service delivery improvement programmes as 

identified in the strategy. 


11.3 PROJECTED REVENUE 


The Commission generates revenue from registration fees and annual returns. Revenue projections are 

based on the expected business activities and are expected to increase from R336.9 million in 2012/2013 

to R371.2 m in 2017/18 at an annual average rate of 2 per cent. However, there will be a shortfall in 

revenue for the medium term. This shortfall will be funded through the total approved remaining retained 

earnings of R1.1 billion. In order to ensure financial viability a review of the fee structure will be initiated 

during the 2013/2014 financial year in order to develop a fee structure that will be aligned to the cost of 

rendering CIPC services. 

Revenue Stream 2013/14 2014/15 

Companies 

Cooperatives 

Intellectual Property 

Corporate Information 

Annual Returns 

Interest on investment 

Total 

Retained surplus* 

Increase revenue - revised fee 

Total funds available 

2015/16 

2016/17 

2017/18 

61.4 67.5 73.8 77.5 81.4 

1.6 1.6 1.7 1.8 1.9 

45.0 49.5 50.0 52.5 55.1 

18.8 19.7 20.7 20.9 21.1 

197.4 197.9 198.0 202.0 206.0 

15.0 10.0 5.0 5.3 5.7 

339.2 346.2 349.2 359.9 371.2 

96.7 152.4 156.8 169.0 157.8 

10.0 40.0 

435.9 498.6 506.0 538.9 569.0 

*Retained surplus 

Retained surplus approved by National Treasury for funding of special initiatives and improvement of 

service delivery. 



PA R T C : L I N K S TO O T H E R P L A N S 

12. LINKS TO THE LONG-TERM INFRASTRUCTURE AND OTHER 

CAPITAL PLANS 

Asset Plan 

Description 2013/2014 2014/2015 2015/2016 

Rm Rm Rm 

Furniture 10,000 6,000 6,500 

Servers - ICT 4,000 2,000 2,000 

Server room equipment 23,000 6,000 3,000 

Shelving for new building 1,000 1,000 1,000 

Desktop PC’s 2,000 2,000 2,000 

Printers 6,000 3,000 3,000 

Laptops 2,000 1,000 1,000 

Scanners 4,000 2,000 2,000 

Security Equipment 3,000 1,000 1,000 

Office equipment 5,000 1,000 1,000 

ICT software / programs 20,000 15,000 17,500

STRATEGY 2013 - 2018 - CIPC

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