Assignment of Intellectual Property from South Africa to an off-shore Entity


It has now, once again, become necessary for foreign exchange approval to be obtained when intellectual property (including trade marks, patents, designs and copyright) is sold to an off-shore entity.

Regulation 10 of the Exchange Control Regulations has been amended to provide that “capital” (referred to in Regulation 10(1)(c)) includes an intellectual property right (whether registered or not) and “exported from the Republic” includes the transfer of an intellectual property right to a person who is not resident in the Republic of South Africa.

Therefore, despite the decision of Supreme Court of Appeal in Oilwell (Pty) Limited v Protec International Limited (to the effect that a trade mark does not constitute “capital” as envisaged in Regulation 10(1)(c)), as a result of the amendment to Regulation 10, foreign exchange approval will now be required in order for a South African resident to transfer an intellectual property right to a person who is not a resident of the Republic of South Africa.

For further information please contact:
Hugh Melamdowitz or Dina Biagio
Spoor & Fisher
  • Africa Map
  • Corporate Video
  • Corporate Profile
  • FAQs
  • Mailing List

LATEST NEWS      RSS feed  Facebook  Twitter  linkedin  email  Spoor & Fisher App

Spoor & Fisher receives top tier rating in Chambers

Spoor & Fisher - 2014-03-24

Spoor & Fisher's IP app: now available in various flavours

Spoor & Fisher - 2014-03-11

The South African draft IP Policy: Patents and Health in South Africa

David Cochrane - 2014-03-10

MIP places Spoor & Fisher in top tier for 2014

Spoor & Fisher - 2014-03-04

Spoor & Fisher counted among the preferred dealmakers in Africa

Spoor & Fisher - 2014-01-24