BIPA Annual Report 2019 – 2020
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ANNUAL REPORT
2019-2020
LINKING INDUSTRY TO INNOVATION
1 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 2
TABLE OF CONTENTS
Page
1. Acronyms and Abbreviations……………………………………………………...................................…................….. iii
2. 2019 at a glance – Key performance stats………………………........................................…………..........……… 1
3. About the Theme – Linking Industry to Innovation…….........................................……………..........………. 2
4. Foreword: Board Chairperson……………………………………………........................................………..........…….. 3
5. Review: CEO……………………………………........................................………………………………………..........….……. 5
6. About BIPA…………………………………………………………….......................................……………………...........……. 7
6.1. Purpose………………………………………………………................................................……………………...........…….. 8
6.2. Vision…………………………………………………………….................................................…………………..........…….. 9
6.3. Mission……………………………………………………………………................................................………….…..........… 9
6.4. Values……………………………………………………………………................................................…………….…............ 10
6.5. Organogram……………………………………………………….................................................…………….……..........… 11
6.6. Legislative and other mandates…………………………................................................…………..…..........……… 12
7. Corporate governance………………………………………........................................………………......….........……… 13
7.1. The Board of Directors……………………….................................................……………………………...........……… 14
7.2. Board governance structure………………....................................................……………………….….........……… 15
7.3. Powers……………………………………………………….................................................……………………...........……… 15
7.4. Roles and responsibilities…………………………….................................................…………………..........….……. 15
7.5. Board performance assessment………………….................................................………………………...........….. 16
7.6. Board training and development………………………….................................................……………..........….…. 16
7.7. Attendance………………………………………………………................................................…………………............….. 16
7.8. Board Committees……………………………………………....................................…………………............................ 16
7.8.1. Finance, Risk and Audit Committee (FRAC)……………………...........................................................…. 17
7.8.2. Human Resource and Remuneration Committee (HRRC)…............................................................ 17
7.8.3. Governance, Legal and Ethics Committee (GLEC)…………...........................................................….. 17
7.8.4. Strategic Plan and Projects Committee (SPPC)………….........................................…….................….. 17
8. Risk management………………………………………………………………….......................................………..........….. 18
8.1. Philosophy……………………………………………………………………...............................................………...........…. 19
8.2. Governance and Risk Management……………………………................................................………...........…… 19
8.3. Internal Audit Function……………….…………………………………................................................…...........…….. 19
8.4. Risk appetite……………………………………………………………….................................................………..........….. 19
8.5. Legal Advice and Company Secretarial Service…………….....................................................……...........… 20
9. Executive management…………………………………………………........................................………………............. 21
9.1. Executive management team……………………………..........................................………………….........….... 22
9.2. Office of the CEO……………………………………………..........................................……………………............…. 22
10. Divisional reports……………………………………………………….......................................……………………..........… 23
10.1. Business Registration Services………..............................................……………........……............… 24
10.1.1. Overview………………………………………………………………........................................…........…. 24
10.1.2. Goals and achievements…………………………………………................................................….. 24
10.1.3. Business registration…………………………………………..............................................…………. 25
10.1.4. Highlights……………………………………………………….....................................…........….………… 28
10.1.5. Challenges…………………………………………….............................................…….........…………. 29
10.1.6. Future endeavours…………………………………………....................................….........……..……. 29
10.2. Intellectual Property SERVICES………….……………............................................……….........………. 30
10.2.1. Overview……………………………………………………………….................................………........…… 30
10.2.2. Reflection on the Period under review………………..................................….…………........… 31
10.2.3. Achievement on the Strategic Plan……………………………………………………...................….…. 32
10.2.4. About Intellectual Property Rights in Namibia.….......................................….……........…. 32
10.2.5. Types of Intellectual Property Rights protected in Namibia........................….........…….. 32
10.2.6. Namibia’s Membership to Regional and International Bodies...................…….........……. 33
10.2.7. Applications and Registration/Grants.…………………………….............................................. 34
10.2.8. Key Challenges....................................…………………………….............................................. 34
10.2.9. Future endeavors................................…………………………….............................................. 34
3 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 i
10.3. Records and Archives Management…………………………………...................................................… 40
10.3.1. Overview……………………………………………………………......................................................... 40
10.3.2. Data assurance and integrity…………………………….....................................….........………... 40
10.3.3. Data assurance project.........…………………………….....................................….........………... 41
10.3.3.1 Project deliverables………………………………………….....................................……........………. 41
10.3.3.2 Project Challenges………………………………………….......................................……........………. 41
10.3.3.3 Project statistics and outcomes………………………….....................................….......………… 42
10.4. Information and Communication Technology………………..................................................……… 43
10.4.1. Overview………………………………………………………………....................................................... 43
10.4.2. Annual Departmental Plan……………………………………...................................................... 44
10.4.3. Achievements…………………………………………………………….................................................. 44
10.4.4. Challenges………………………………………………………………..................................................... 46
10.4.5. Future plans……………………………………………………………………….......................................... 46
10.5. Human Capital Management……………………………………………...............................................……. 47
10.5.1. Departmental overview…………………………………….................................………........……….. 47
10.5.2. Operational report………………………………………................................……………….........…….. 47
10.5.3. Workforce age distribution………………………………….................................…………........…… 48
10.5.4. Employment service tenure……………………………………….................................……........…. 49
10.5.5. Affirmative action………………………………………………………….................................…........… 50
10.5.6. Skill and development programmes…………………………..................................……........…. 51
10.5.7. Job evaluation and grading validation project…………..................................……........…… 51
10.5.8. Employee health and wellness activities…………………..................................…........……… 52
10.5.9. Industrial relations…………..................................………………………………………….......….…… 52
10.5.10. Employee relations……………………………….......................................………………........….….. 53
10.5.11. Organisational culture change…………………………….......................................….........……. 53
10.5.12. Strategic planning and review meeting………………...............................................….……. 53
10.5.13. Highlights……………………………………………………….......................................……..........……… 53
10.5.14. Challenges……………………………………………………………................................................…….. 53
10.5.15. Future endeavours…………………………………………………….......................................…......... 53
10.6. Finance and Administration……………………….......................................…………………………........... 54
10.6.1. Overview………………………………………………………………….........................................………… 54
10.6.2. Financial performance…………………………………………................................………….........…. 55
10.6.3. Internal controls……………………………………………………................................…………............ 56
11. Regulatory update………………………………….........................................………………………………………….......... 57
11.1. Development of the Copyright Bill………………………………………….................................... 58
11.2. New Copyright fees………………………………………………………………..................................… 58
11.3. National Intellectual Property Policy of Namibia…………………….................................... 58
11.4. Model IP Project……………………………………………………………………..................................… 58
11.5. Legislative review project……………………………………………............................……….......…. 59
12. Stakeholder engagement ………………………………………………...............................................…….…..........… 60
12.1. Open day at Swakopmund…………………………………………………….................................….. 61
12.2. Ongwediva Trade Fair…………………………………………………………...........................….......… 61
12.3. NTN information sharing session…………………………………………..........................….......… 61
12.4. NUST 25th Career Fair……………………………………………………..........................……….......… 61
12.5. Copyright Information Sharing Session (UNAM)………………….........................….......….. 61
12.6. NASCAM consultative meeting………………………………………………................................…. 62
12.7. Information sharing with Tenya Investment CC……………………….................................... 62
12.8. Regional outreach information sessions………………………………….................................… 62
12.9. WIPO participation………………………………………………………………..........................……....... 62
12.10. Consultations on development of Copyright Bill…………………....……..................……....... 63
13. Annual financial statements………………………………………………………….........……....................................... 64
ii BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 4
1. LIST OF ACRONYMS AND ABBREVIATIONS
AA Affirmative Action
ARIPO African Regional Intellectual Property Organisation
BIPA Business and Intellectual Property Authority
BRS Business Registration Services
CC Close Corporation
CEO Chief Executive Officer
ERP Enterprise Resource Planning
FRAC Finance, Risk and Audit Committee
FY Financial Year
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit
(German Society/Agency for International Cooperation)
GLEC Governance, Legal and Ethics Committee
HCM Human Capital Management
HRRC Human Resources and Remuneration Committee
ICSF Integrated Client Service Facility
ICRS Integrated Company Registration System
IP Intellectual Property
IPAS Industrial Property Administration System
IPR Intellectual Property Rights
ICAN Institute of Chartered Accountants of Namibia
ICT Information and Communication Technologies
IT Information Technology
MITSMED Ministry of Industrialisation, Trade and SME Development
NIPA Namibia Institute of Professional Accountants
N$ Namibia Dollar
PCT Patent Cooperation Treaty
ROI Return on Investment
SME Small and medium enterprise
SMME Small, medium, and micro enterprises
PEGA Public Enterprises Governance Act
SPPC Strategic Planning and Projects Committee
UNAM University of Namibia
WIPO World Intellectual Property Organisation
5 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 iii
2. 2019 at a glance
KEY PERFORMANCE STATISTICS FOR THE
2019/20 FINANCIAL YEAR
REVENUE OF SURPLUS OF
n$80 MILLION N$17 MILLION
INCREASE IN
NET ASSETS OF
N$25 MILLION
N$1.5 MILLION IN 13 736 NEW BUSINESSES
INTEREST RECEIVED FROM APPROVED (55% REGISTERED
INVESTMENTS WITHIN THREE DAYS)
1 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
3. about the theme:
“linking industry to
innovation”
T he theme for the 2019/20 Integrated Annual Report of
“Linking industry to innovation” focuses on the Business and
Intellectual Property Authority’s (BIPA) deliberate and strategic
move to enhance corporate performance by stimulating the links
between stakeholder engagement, innovation, and co-creation.
In this Financial Year (FY), BIPA’s policy approach to sustainable
development was broad and inclusive, encompassing research for
technological advances, developing value chains, and promoting
good business practices. Rather than simply placating stakeholders
and developing buffers to protect against the uncertainty of the
complex external environment, it was evident that engagement
promotes the development of collaboration and shared goals.
Pursuant to this, the 2019/20 financial year saw BIPA launch
the National Intellectual Property Policy and Strategy, engage
stakeholders on Intellectual Property and host country-wide Open
Days which provided avenues with which BIPA managed to leverage
stakeholder knowledge in the context of innovation. In the broader
view of this theme at national level, innovation is recognised as a
distributed and interactive process amongst a number of economic
actors rather than individual firms. In this regard, strategic efforts
of the BIPA management during the period under review seek to
empower industry leaders at the heart of national development and
to achieve collective sustainable growth.
The use of the octagon as a design element for this year’s theme
signifies the harmony and balance with which BIPA engaged its
various stakeholders, both internally and externally. The seamless
co-existence of business and innovation industry leaders required a
much needed boost to ensure long term sustainability of universal
coherence of this ecosystem.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 2
FOREWORED:
BOARD CHAIRPERSON
“Success
usually comes
to those who
are too busy
to be looking
for it.”
Riundja Ali Kaakunga (Othy)
Quisque vel
Chairperson placerat
of the Boardnisl.
Chairperson of the Board
3 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
4. foreword by the BOARD chairPERSON
T he BIPA Board of Directors remains firm in its
commitment to provide good governance and
financial oversight to ensure that the Authority
carries out its mandate effectively and efficiently.
This report for the period ending 31 March 2020,
improvement was Government’s readily availing
support.
Complementary to this, the Board embraced its
responsibility to steer the execution of the BIPA strategy
bears testimony to strong financial discipline, robust in a manner that is sustainable and responsible. In this
governance processes, innovation, processes and regard, we underpinned the strategic imperatives with
systems, and an empowered and dedicated workforce. a strong focus on resilience. This was achieved through
monitoring and reviewing the achievement of strategic
Indeed, this has been a challenging financial year. targets periodically; to ensure continuous improvement
However, the Board is satisfied with what the BIPA and the maintaining of high standards of excellence.
management has accomplished amidst the challenging By March 2020, the COVID-19 pandemic had just
and turbulent economic conditions. This report details seen its way into Namibia, with all indications
the third year in the implementation of the BIPA pointing to a bleak economic future of subdued and
Corporate Strategy (2017-2022) which benefitted depressed growth. The impact of this pandemic
from broader stakeholder input and was anchored cannot be understated as we have already seen how
in national development blueprints such as the Fifth it has impacted other economies in the globe over.
National Development Plan (NDP5) and the Harambee
Prosperity Plan (HPP). This gloomy picture points to a possible contraction
In essence, during the 2019/20 financial year, the of our economy in the coming financial year as we do
Authority strengthened its core business operations not know the impact that such a pandemic can have
guided by the legal framework underpinning all on Namibia’s people and businesses. The authority has
operations. As such, the Authority effectively complied therefore prepared itself to ensure that is operations
with the Public Procurement Act; implemented the can continue unabatedly.
BIPA Act; and enforced the Companies and Close What is more certain is that strong governance, driven
Corporation Acts to harness the triple benefits of by sound leadership and ethical principles, remain
increased revenue, transparency and effective cost crucial to the success of the BIPA. This, coupled with
management. full regulatory compliance, has laid the foundation on
During the period under review, the Board and which BIPA’s reputation and trust with our shareholder
Executive Management aspired to see BIPA achieve and stakeholders is built and maintained.
financial sustainability and remain a viable going In conclusion I want to thank BIPA’s line ministry,
concern entity. This was enforced by, among other the Ministry of Industrialisation and Trade, for the
things, improved internal controls and a robust risk support and guidance on policy matters. My sincere
management framework. appreciation also goes to my fellow Board Members for
The Board affirms that BIPA’s overall strategy remains their dedication and high standards of service. I would
growth oriented. We are pleased to report that the also not do justice if I do not also pay my gratitude
Authority continued to grow in revenue, notably so in to the Chief Executive Officer, Vivienne Katjiuongua;
its core income streams. To this end, the Authority is the Authority’s Executive team; and the staff for their
progressing towards a financial sustainable model of continued commitment to deliver on our mandate.
business operations, to a point where it will not require
further operational funding from its shareholders.
Hence, the only funding that may be required would I look forward to another year of enhancing business
be for the execution of capital projects now and in the and intellectual property registration in Namibia.
future.
During this financial year, the Board was privileged
to oversee the Authority scaling to greater heights ____________________________________________
and enhancing the scope for an improved rating for
Namibia on the World Economic Forum’s Global Ease Riundja Ali Kaakunga (Othy)
of Doing Business Index (EDBI). Contributing to this Chairperson of the Board
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 4
REVIEW:
CHIEF EXECUTIVE OFFICER
“Leadership is
the capacity to
translate vision
into reality”
Vivienne Katjiuongua
Quisque
Chief vel placerat
Executive Officernisl.
Chairperson of the Board
5 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
5. Chief Executive Officer’S OVERVIEW
F or the period under review, referring to the 2019/20
financial year, I am delighted to report that BIPA’s
leadership succeeded in striking a balance between
using its resources optimally while ensuring that
operational efficiencies are enhanced, thereby improving
a working document for the revision of the out-dated
Copyright and Neighbouring Rights Protection Act, 1994
(Act No. 6 of 1994). The working document incorporated
the contributions of various stakeholders and served as a
structure for the layman’s draft of the bill.
stakeholder confidence and operational excellence.
Pursuant of improved recording, archiving and
Financially, it has been another good year for BIPA despite automation; BIPA also implemented a Data Integrity
numerous challenges that the authority experienced. Project that aimed to improve BIPA’s electronic availability
We achieved a satisfactory set of financial results and of approximately 180 000 files.
recorded solid growth rates, reflecting strong execution
and effective delivery of our strategic objectives and In line with this report’s theme, “Linking industry to
initiatives. innovation,” the period under review was characterised
by several stakeholder engagements that formed a vital
part of fulfilling both BIPA’s mandate and the goals and
FINANCIAL PERFOMANCE objectives of the BIPA Corporate Strategy (2017-2022).
It is with immense pride that despite a recessionary
Going forward, BIPA will focus on building and maintaining
year, BIPA delivered a financial performance that can be
strong stakeholder relationships and pursuing smart
further strengthened in the next financial year. In this
partnerships that are aimed at unlocking opportunities
light, the Authority declared a surplus of N$17 million,
that will improve client service satisfaction for the
particularly doing well in its efforts to collect outstanding
authority’s customers.
annual duties. With the registration of Trademarks,
Copyrights and Patents, revenues were further boosted.
While business registration revenues recorded a modest LOOKING AHEAD
increase, the Authority’s investment initiatives received We are aware that challenges will remain, but it is my
N$1.5 million in interest. Despite recording a cost utmost belief that BIPA is on track to build on the positive
increase of 11%, BIPA also saw a growth in net assets and sustainable impact that we have made in the past
worth N$25 million, of which the highest growth was on financial year. Our prospects remain bright and we will
investments. Going forward, the authority will focus on endeavour to optimally use our resources to execute the
further strengthening its financial position, while prudent Corporate Strategy. We remain committed to creating
measures to contain costs and other expenditures. value for all our stakeholders, underpinned by the drive
to promote innovation in Namibia.
OPERATIONAL EFFECTIVENESS
Over the last 12 months, the Authority cumulatively
approved 13 736 new business entities. Of the new GRATITUDE
applications received, 55% were registered within three I wish to use this opportunity to express my sincere
days, compared to 52% in the 2018/19 financial year. This gratitude and appreciation to the Minister of MIT for
reflects a 3% improvement in turn-around-times for the the continued support and commitment to ensure BIPA
registration of businesses within the targeted three (3) delivers on its mandate. It goes without saying that the
days, attributable to the process reengineering. In further BIPA Board of Directors equally played an invaluable role
executing our core mandate, we received 2313 Trademark in the success of the entity and therefore I wish to thank
applications of which 981 applications were submitted them for their guidance and support throughout the year.
through the national filing route, whilst 240 applications Throughout the review period, BIPA also received excellent
were received through regional designations (ARIPO service and assistance from the Ministry of International
administered protocols). A further 1092 applications were Relations and Cooperation missions, especially in Harare,
received through international designations (agreements Zimbabwe and Geneva in facilitating our Regional and
administered by WIPO). International engagement. Lastly, I also want to take the
opportunity to appreciate BIPA’s executive leadership; as
To enhance our processes, the Authority also focused well as the management and staff for their continuous
on the development and finalisation of the Intellectual efforts and dedication to service delivery. It is hard to
Property Policy. The policy is the legal framework imagine a successful BIPA without you.
required to promote and stimulate creativity, innovation
and inventiveness in Namibia. To this end, BIPA, together
with the Ministry of Industrialisation and Trade, launched
the National Intellectual Property Policy and Strategy in ______________________________
October 2019. Furthermore, following the successful Vivienne Katjiuongua
series of copyright seminars, the authority developed Chief Executive Officer
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 6
ABOUT BIPA
ORGANISATIONAL OVERVIEW
An organization’s
ability to learn,
and translate that
learning into action
rapidly, is the
ultimate competitive
advantage.
Jack vel
Quisque Welch
placerat nisl.
Chairperson of the Board
7 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
6. about bipa (ORGANISATIONAL OVERVIEW)
6.1. PURPOSE
BIPA is mandated to regulate and administer the registration of business and industrial property in terms
of applicable legislation with the objective of facilitating economic growth and development, promoting
investment and creating employment through enhancing the efficient protection of business and intellectual
property in Namibia.
Simultaneously, BIPA is mandated to promote the conduct and use of business and intellectual property in
Namibia; facilitate, streamline, simplify and harmonise the business and industrial property procedures,
registrations, filings and searches to expedite economic growth and development; and to enhance the
efficient exchange and distribution of information. Protection of intellectual property rights encourages
innovative economies, enriches individuals and companies, preserves wealth and saves lives.
In addition to the registration of Private and Public Companies, BIPA is also tasked with the registration of
other forms of entities including Associations not for Gain registered under Section 21 of the Companies
Act, 2004 (Act No. 28 of 2004), close corporations registered in terms of the Close Corporations Act, 1988
(Act No. 26 of 1988) and defensive names. This function is not only a vital enabler of a stable and thriving
economy, but also contributes to government’s greater developmental goals of poverty eradication, the
alleviation of unemployment and bridging the inequality gap amongst Namibians.
Against this background, the objectives of BIPA as outlined in section 2 of the Act are:
• To foster economic growth and development, and promote investment and employment and the
efficient protection and administration of business and intellectual property in Namibia;
• To consolidate the various offices and officials involved in the registration and administration of
business and intellectual property;
• To facilitate and promote the efficient and effective registration of business and intellectual property
and to keep and administer the required registers;
• To promote the conduct and use of business and intellectual property in Namibia;
• To facilitate, streamline, simplify, harmonise and expedite business and intellectual property
procedures, registrations, filings and searches; and
• To enhance the efficient exchange and distribution of information.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 8
OUR VISION IS
“A TRANSFORMED BUSINESS
LANDSCAPE AND INSPIRED
INNOVATION”.
6.2. VISION
6.3. MISSION
TO GRANT, REGISTER, AND
PROTECT BUSINESS AND
INTELLECTUAL PROPERTY
RIGHTS.
9 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
6.4. VALUES
Values are important building blocks to create a high performance and
innovative culture for our people. This creates a common and shared purpose
and encourages the active participation of each staff member to live our
values through their behaviour and decision making.
WE ARE ANSWERABLE
1 FOR OUR DECISIONS
AND ACTIONS.
ACCOUNTABILITY
WE PROVIDE
CUSTOMER-CENTRIC,
SUPERIOR SERVICE
ALL THE TIME.
CUSTOMER
ORIENTATION WE SUPPORT EACH
OTHER TO ACHIEVE
3 OUR OBJECTIVES.
TEAMWORK
WE UPHOLD THE
HIGHEST STANDARDS
OF ETHICAL BEHAVIOUR.
INTEGRITY WE INNOVATE TO
PROVIDE A BETTER
5 SERVICE TO ALL.
INNOVATION
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 10
6.5. ORGANISATIONAL STRUCTURE
BOARD OF
DIRECTORS
CHIEF EXECUTIVE
OFFICER
STRATEGIC SUPPORT FUNCTIONS
CHIEF INTERNAL
MANAGER:
AUDITOR,
BUSINESS
RISK AND
STRATEGY
INVESTIGATIONS
STRATEGIC BUSINESS UNITS [AS PER MANDATE]
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
EXECUTIVE:
EXECUTIVE: EXECUTIVE: MARKETING, EXECUTIVE: EXECUTIVE:
EXECUTIVE: EXECUTIVE:
INFORMATION & LEGAL & COMPANY CORPORATE INTELLECTUAL BUSINESS
HUMAN CAPITAL FINANCE &
COMMUNICATION SECRETARY COMMUNICATION & PROPERTY REGISTRATIONS
MANAGEMENT ADMINISTRATION
TECHNOLOGY SERVICES CLIENT MANAGEMENT SERVICES SERVICES
SERVICES
6.6. Legislative and other mandates
It is BIPA’s purpose to administer legislation relating to business registration and intellectual property regulations.
Its mandate encompasses companies, close corporations, trademarks, patents, designs, aspects of copyright
legislation and enforcement of rules and regulations in the following areas of law:
Legislation Mandate
Business and Intellectual Property Facilitate and promote the efficient and effective registration of
Authority Act, 2016 (Act No. 8 of 2016) business and industrial property in Namibia.
Register companies, maintain data, regulate governance of and
Companies Act, 2004 disclosure by companies, resolve disputes, educate and inform
(Act No. 28 of 2004) about all laws, non-binding opinions and circulars, policy and
legislative advice.
Close Corporation Act, 1988 Register close corporations, maintain data, and regulate
(Act No. 26 of 1988) governance of and disclosure by close corporations.
Industrial Property Act, 2012 Register and protect trademarks, industrial marks, utility models,
(Act No. 1 of 2012) patents.
Copyright and Neighbouring Rights Register copyrights, maintain data, resolve disputes, and provide
Protection Act, 1994 (Act No. 6 of 1994) non-binding advice to the public.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 12
CORPORATE
GOVERNANCE
“Leadership is
the capacity to
translate vision
into reality”
Warren G. Bennis
Quisque vel placerat nisl.
Chairperson of the Board
13 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
7. CORPORATE GOVERNANCE
7.1. BOARD OF DIRECTORS
BIPA BOARD MEMBERS’ QUALIFICATIONS
Mr. Riundja Ali Kaakunga (Othy): Chairperson
Mr. Riundja Ali Kaakunga (Othy) is a holder of a LLM in International Economic Law
(I.E.L) from Warwick, United Kingdom with Distinction. He also obtained LLB (Hons).
Dr. Martha Uumati: Vice Chairperson Mr. Fritz C. Jacobs Ms. Lovisa Indongo-Namandje
Dr. Uumati holds a Doctor of Philosophy Mr. Jacobs holds a Master of Science in Ms. Indongo-Namandje is a holder of MSc
(PhD) and Master of Philosophy (MPhil). She Engineering, and a Bachelor of Science degree in from Cardiff University, United Kingdom. and
also obtained a Postgraduate Diploma and a Engineering. He is a FCIBM (CIBM) Chartered in LLB at the University of Namibia. She also
Bachelor of Science degree. Business Management and a Professional Engineer. obtained a B. Juris.
Ms. Chaze Nalisa Ms. Seno M. Namwandi Mr. Ignatius K. Thudinyane
Ms Chaze Nalisa is a holder of an Honours Degree Ms Seno M. Namwandi is a holder of a Masters Mr Ignatius K. Thudinyane holds a LLB, B.Com Hons.
in Industrial and Organisational Psychology; and in Intellectual Property Degree from the Africa (Economics), an Advanced Diploma in Finance in
Bachelor of Commerce from University of South University, Zimbabwe. She also obtained a Treasury (UNISA), a B.Com (Econ) degree, and a
Africa (UNISA). She also obtained the Bachelor of Bachelor of Science in Molecular Biology and Higher Education Diploma from the University of
Commerce (Business Management and Industrial Biotechnology from Stellenbosch University. the North – Turfloop. He also obtained a Diploma in
Psychology) from the University of Namibia (UNAM). Banking from the Institute of Bankers, South Africa.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 14
7.2. BOARD GOVERNANCE STRUCTURE
The BIPA’s governance structure is similar to that of other Public Enterprises in that the BIPA Board reports to a
Line Ministry, which is the Ministry of Industrialisation and Trade (MIT). The CEO of BIPA is a board member Ex-
officio and reports as part of senior management to the Board.
7.3. POWERS
The role, function and powers of the Board, its members and committees, and its relationship to other structures
of BIPA are determined by law, the Governance Framework, corporate governance best practices, the enabling
Act, and decisions and policies of the Board. The Board is responsible for the strategic direction and control of
BIPA and has the power to make any decision in respect of the institution, in as far as their powers and fiduciary
duties extend. The Board is responsible for collectively promoting and safeguarding the long-term success of BIPA.
It manages the affairs of BIPA:
• In the best interest of BIPA, with due regard to the interests of its stakeholders; and
• In compliance with Namibian legislation, principles of sound corporate governance and Board policies.
7.4. ROLES AND RESPONSIBILITIES
It is the responsibility of the Board to guide BIPA to achieve its purpose by the powers conferred on it by the enabling
Act, the Board Charter and other Board decisions and policies. The Board delegates day-to-day management and
administration of BIPA to the CEO, who is supported by executive management staff. The CEO is accountable to
the Board. The following powers are reserved for the Board:
• The power to appoint the CEO;
• Approving the annual budget, annual business plan and strategy;
• Approving the annual procurement plan;
• Establishing sub-committees of the Board;
The power to make rules relating to:
ü the convening of, and procedures at meetings of the Board or a committee of the Board;
ü the management of the affairs of BIPA and execution of its functions;
ü any matter which in terms of the BIPA Act is required or permitted to be prescribed by rules;
ü generally, any matter which the Board considers necessary to give effect to the objectives of BIPA;
Furthermore the Board has the responsibility of:
• Approving policies, including those relating to remuneration and investment;
• Remuneration of the CEO and Executive Management members;
• Approval of BIPA’s organisational structure, including creating new positions and their grading;
• Approval of Annual Reports including Annual Financial Statements.
The Board delegates various other matters to the Board Committees, as specified in the Terms of Reference of each
committee. The Board Chairperson is responsible for setting the ethical tone of the Board and the Authority, and
providing overall leadership, overseeing the development of the Board plan and presiding over Board meetings.
15 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
7.5. BOARD PERFORMANCE ASSESSMENT
The BIPA Board concluded a Governance Agreement and Performance Agreement with the Minister responsible
for the Registration of Business and Industrial Property, in terms of the Public Enterprises Governance Act,
2019 (Act No. 1 of 2019) and the Business and Intellectual Property Act, 2016 (Act No. 8 of 2016). The Board’s
performance is assessed against Key Performance Indicators (KPIs) identified by the Minister.
7.6. BOARD TRAINING AND DEVELOPMENT
The Board is committed to ensuring that it has the right balance of skills, experience and diversity. Therefore,
continuous training, education and development is made available to Board members. To ensure training is
relevant, a needs assessment and gap(s) identification survey is regularly undertaken. Board members attended
two training programmes during the year:
• A Strategic Planning Workshop on 24 May 2019
7.7. ATTENDANCE
Human Strategy,
Governance,
Board Finance, Risk and Resource and Projects and
Legal and Ethics
Board Member Meeting Audit Committee Remuneration Procurement
Committee
(5 Meetings) (4 Meetings) Committee Committee
(4 Meetings)
(4 Meetings) (4 Meetings)
Mr RA Kaakunga (Othy) 5/5 4/4 4/4 3/4
Dr M Uumati 4/5 2/4 1/4 2/4
Ms SM Namwandi 5/5 2/4 3/4 3/4
Mr IK Thudinyane 4/5 4/4 3/4 1/4
Mr FC Jacobs 1/5 1/4 1/4 1/4
Ms L Indongo-Namandje 4/5 2/4 2/4 3/4
Ms C Nalisa 2/5 1/4 4/4 1/4
Note: The financial year lapsed over into the other financial year due to lack of quorum experienced in the
2018/19 financial year. Thus, only two quarterly meetings were successfully held.
7.8. BOARD COMMITTEES
In terms of the governance framework, and in terms of delegated authority from the Board, the Board may
determine what matters are reserved for final decision-making by the Board or Board Committees as opposed
to those that require the Board’s or Board Committees’ consideration before a final decision is made. All other
matters, not specifically reserved by the Board and as stipulated in the delegation of authority, are delegated to
the Chief Executive Officer (CEO) subject to the obligation to report all material matters to the Board.
The sub-committees of the Board are:
• Finance, Risk and Audit Committee (FRAC);
• Human Resource and Remuneration Committee (HRRC);
• Governance, Legal and Ethics Committee (GLEC);
• Strategy, Projects and Procurement Committee (SPPC).
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 16
7.8.1. Finance, Risk and Audit Committee (FRAC)
The purpose of the Finance, Risk and Audit Committee (FRAC)
is to oversee responsibilities relating to financial planning, audit
processes, financial reporting, the system of corporate controls and
risk management, and to make recommendations to the Board for
approval when appropriate. In the process of overseeing BIPA’s audit
procedures, FRAC is given the necessary resources to carry out its
responsibilities, including the authorisation to engage independent
counsel and other advisors.
Chairperson of the FRAC:
Mr Ignatius Thudinyane
7.8.2. Human Resource and Remuneration Committee (HRRC)
This committee is responsible for developing formal and transparent
policies and procedures on BIPA remuneration, and for determining the
remuneration packages of BIPA Management. The Committee upholds
the principle that the financial reward offered should be market related
to attract highly qualified employees to enable the institution to fulfil
its mandate.
Chairperson of the HRRC:
Ms Chaze Nalisa
7.8.3. Governance, Legal and Ethics Committee (GLEC)
The Governance, Legal and Ethics Committee (GLEC) provides legal
support to the Board. The primary role of the GLEC is to deliberate,
consult, comment and assist the Board regarding existing and pending
legislation and other legal matters.
Chairperson of the GLEC :
Ms Lovisa Indongo-Namandje
7.8.4. Strategy, Projects and Procurement Committee (SPPC)
The Strategy, Projects and Procurement Committee (SPPC) discusses,
formulates, recommends and provides advice for strategic and
operational implementation of key objectives on all capital and
maintenance project related matters.
Chairperson of the SPPC:
Dr Martha Uumati
17 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
RISK
MANAGEMENT
“Effective
management
always means
asking the right
questions”
Robert Heller
Quisque vel placerat nisl.
Chairperson of the Board
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 18
8. RISK MANAGEMENT
8.1. PHILOSOPHY
BIPA’s risk management philosophy is underpinned by:
• The authority’s ability to identify risks which may hamper its performance;
• The authority’s ability to tolerate and accept a certain amount of risk in order to achieve its
strategic goals;
• The development of risk registers and the attachment of weightings and significance to the
identified risks;
• Constant evaluation and re-rating of identified risks, and
• Mitigation of identified risks.
8.2. GOVERNANCE AND RISK MANAGEMENT
Corporate governance embodies processes and systems by which public entities are directed, controlled and
held to account. In addition to legislative requirements based on a public entity’s enabling legislation and
the Companies Act, corporate governance for public entities is applied through the precepts of the Public
Enterprise Governance Act, 2019 (PEGA) as amended and runs in tandem with the principles contained in the
King’s Report and the Nam Code on Corporate Governance.
The Board through the Finance Risk and Audit Committee ensures an oversight role and the process by
which the Authority manages and mitigates business risks. The governance process within an Authority
includes elements such as definition and communication of corporate control, key policies, enterprise risk
management, regulatory and compliance management and oversight.
8.3. INTERNAL AUDIT FUNCTION
The primary function of Internal Audit is to provide assurance to the Finance, Risk and Audit Committee
that adequate management processes are in place to identify, manage and monitor risks. Internal Audit
independently audits and evaluates the effectiveness of the risk management, internal controls and governance
processes. In addition, Internal Audit provides consulting services to add value to the authority’s operations.
Internal Audit performed audits in the following areas during the year:
• Business registration application process follow-up;
• Records management business process;
• Physical security;
• On-going projects governance (New BRS system and revenue assurance);
• Four special investigation reports.
8.4. RISK APPETITE
The Board approved the risk appetite as part of the overall Risk Management and implementation will be
managed as part of the Enterprise Risk Management.
19 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
8.5. LEGAL ADVICE AND COMPANY SECRETARIAL SERVICE
The division performs two key responsibilities for the Board and Executive Management namely, legal advisory
services and secretarial and governance services. In rendering secretarial and governance services, the division
reports to the Board and the Board Committees, specifically the Governance, Ethics and Legal Committee and
the Human Resources and Remuneration Committee. The Division undertook the following governance-related
tasks during the period under review:
• Providing secretarial support to the Board and its committees;
• Developing Board charters and Board Committee Terms of References;
• Developing Board performance and governance agreements, and setting key performance
indicators to measure Board performance;
• Assessing Board training needs and facilitating training.
The Risk Management function is well established, and tasks related to compliance and risk management have
been planned for implementation during the next financial year. In executing the legal services responsibility,
the office performs the following functions:
• Reviewing legislation;
• Enabling the Authority to better regulate BIPA-related services in terms of the applicable legislation
administered by BIPA;
• Ensuring that BIPA defends or opposes litigious actions against it;
• Providing legal advice and support regarding the Authority’s operations;
• Providing advice to the Board, the office of the CEO and its business units/departments on all
laws applicable to the registration and administration of Intellectual Property and Businesses
administered by the BIPA, as well as on any other relevant laws.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 20
EXECUTIVE
MANAGEMENT
“Motivation is
the catalyzing
ingredient for
every successful
innovation.”
Clayton Christensen,
Quisque
Economist vel placerat
and Harvard nisl.
Professor
Chairperson of the Board
21 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Chief Executive Officer
9. EXECUTIVE MANAGEMENT
9.1. EXECUTIVE MANAGEMENT TEAM
The following members held executive positions during the financial year 2019/2020:
Vivienne Katjiuongua Immanuel Haihonya Jones Lubinda Veiko Muronga
Chief Executive Officer (CEO) Acting Executive: Acting Executive: Executive: Information and
Human Capital Management Finance and Administration Communication Technology
Ainna Kaundu Laura Tjombonde Vacant Vacant
Executive: Executive: Chief Legal and Company Secretary Executive: Marketing,
Intellectual Property Service Business Registration Services Corporate Communication and
Client Management Services
9.2. OFFICE OF THE CHIEF EXECUTIVE OFFICER
The CEO or the person acting in this position is responsible for executing the operations of BIPA. The CEO is
responsible for implementing the Strategy set by the Board and ensures that:
• Proper accounting and audited records are kept;
• Financial statements and a report on the activities of the organisation are submitted to the Minister of
Trade and Industrialisation and the Minister of Public Enterprises;
• Risks within the organisation are managed;
• Relevant legislation is complied with;
• Relevant technology and processes are in place;
• The employees are appropriately skilled;
• Stakeholder relationships are effectively managed;
• Relevant Board approved policies are in place, and
• Best practices in governance are in place.
The CEO also serves as the Registrar of Business and Industrial Property in terms the BIPA Act, 2016 (Act No.8 of
2016) and is entrusted with the day-to-day running of a sound entity that enhances the efficiency and effectiveness
of business and IPR protection through registration in Namibia. Together with the executive management team,
the CEO guides the implementation and successful execution of BIPA’s strategic vision, objectives and activities.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 22
OPERATIONAL
OVERVIEW
“Growth is
never by mere
chance; it is
the result of
forces working
together.”
James Cash Penney
Quisque vel placerat nisl.
Founder, JC Penney
Chairperson of the Board
23 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
10. OPERATIONAL OVERVIEW
10.1. BUSINESS REGISTRATION
10.1.1. Overview
One of the core functions of BIPA is to facilitate and promote the efficient and effective registration of businesses
and to keep and administer the relevant registers. BIPA is intentional in the delivery of efficient services to
clients and adopted a strategic objective themed: “Deliver Simple, Quality and Accessible Services”. Section
5(b) of the Business and Intellectual Property Authority Act (Act No. 8 of 2016) mandates BIPA to regulate and
administer the registration of businesses under the applicable legislation as follows:
DOMAIN NATIONAL LEGISLATION
Company Registrations Companies Act, 2004 (Act No. 28 Of 2004)
Provides for the establishment of the company registration office,
appointment of the Registrar and for the incorporation, management
and liquidation of companies and incidental matters.
Close Corporations Close Corporation Amendment Act, 1994 (Act No. 8 Of 1994)
Provides for the establishment of the Close Corporation registration
office, appointment of the Registrar and the formation, registration
incorporation, management, control and liquidation of close
corporations and for matters connected therewith.
Companies and Close Corporations The Financial Intelligence Act, 2012 (Act 13 of 2012).
In terms of Section 4, the Registrar of Companies and Close
Corporations annually collects and keeps accurate and up-to-date
prescribed information and report as required.
10.1.2. Goals and achievements
The departmental goals for the financial year and achievements were:
• To deliver effective and efficient customer services: To support this goal, BIPA implemented the
Customer Management Plan with the view to improve customer satisfaction levels and achieved 59%
satisfaction levels. There was great focus on improving the turn-around times for business registration
and 55% of businesses were registered within an average of three days. In partnership with the
Ministry of Industrialisation, Trade and SME Development, Phase 1 of the Decentralisation Plan was
implemented.
• To achieve mutually beneficial stakeholder management: The Stakeholder Management Plan was
implemented and 95% of the targeted stakeholders were engaged for the period under review.
• To ensure legislative alignment to national, regional and international obligations: The plan was to
amend the regulations of the Companies Act and the Close Corporations Act and such amendments
were gazetted giving effect to the revised business registration fees. Furthermore, the amendment to
modernise and harmonise the Companies and Close Corporations Acts commenced.
• To improve accuracy of business information on business registration system: The data cleaning
project was implemented aimed at improving the quality of data and ensuring data accuracy on the
database. 35% of data accuracy was achieved.
• To implement audit and risk items registers: During the period under review, 92.9% audit and risk
issues were resolved.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 24
10.1.3. Business Registration
For the period under review, BIPA registered a total of 909 companies, this figure represents a 69% decrease
from the 2018/19 financial year. However, the previous FY, the increased registrations can be attributed to the
requirement of only submitting registered companies during the fishing quota announcements. The registration
of Associations Not for Gain (Section 21) stood at 182 by the end of this review period. BIPA registers companies
(non-profit associations, limited, private and external companies) defensive names and close corporations.
During the lifespan of a registered entity, the business may lodge applications for amendments, conversions
from one type of entity to another, deregistration or restoration, as prescribed. For the financial year under
review, BIPA has recorded the below statistics compared to the previous period.
Foreign Companies
Fifteen (15) new foreign companies were registered in the 2019/20 financial year. This represents an increase of
20% from the previous year.
Registration of Foreign Companies
2018/19 2019/20
Foreign Companies Registered
25 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Companies and Section 21
BIPA recorded a decrease in the number of companies, inclusive of Associations Not for Gain (Section 21) that
were registered during the past financial year. The total number of companies for the year were 909, a 69%
decrease from the previous reporting period. While section 21 entities registered recorded 182, a decrease of
3.7% from the previous year.
Registration of Companies
and Section 21 Entities
2018/19 2019/20
Company Section 21
Close Corporations
The registration of Close Corporation (CC) entities remains the most sought business type within Namibia. During
the year under review, BIPA registered a total of 8 904 new CC’s. Compared to the 2018/19FY, BIPA recorded a
decline in the registration of CC’s by 4.6%. This could be attributed to the lockdown period imposed during the
COVID-19 break out.
Registration of Close Corporations
2018/19 2019/20
Close Corporations Registered
Name Reservations and Defensive Names
In terms of the current business registration laws in Namibia and BIPA’s registration processes, an entity must
first reserve a name before moving on to the registration of a specified entity. In terms of section 19 (2) of the
Close Corporations Amendment Act, 1994 (Act No. 22 of 1994), it limits the reservations of names for a period
not exceeding 60 days pending the registration of such an entity. Therefore, the statistics provided for name
reservations as ordinarily higher compared to the number of entities actually registered. The number of names
reserved for this period is the highest recorded by BIPA in the last five years. A total of 32 098 names were
reserved for the period under review. This would represent an increase of 12.3% from the previous year.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 26
Registration of Defensive Names
and Reservation of Names
40000
30000
20000
10000
2018/19 2019/20
Name Reservations Defensive Name
In terms of defensive names, BIPA recorded 3 732 defensive name registrations during the period. This figure
also represented an increase of 13.6% from the previous year as can be observed in the graph above.
During the period under review, the Authority received and processed a total of 155,084 transactions compared
to business registration and related transactions compared to 205,402 in the 2018/19 financial year, a 24.5%
decline in total transactions.
Total Transactions per quarter
34,837 37,517 38,146 44,584
Q1 Q2 Q3 Q4
The Authority approved 13,736 new businesses during the 2019/2020 financial year. Of the new applications
received, 55% were registered within three days compared to 52% in 2018/19. There has been a 3% improvement
in registering of businesses within the targeted three (3) days, attributable to the process re-engineering.
10.1.4. Highlights
During the period under review, the department recorded key highlights that were as follows:
Decentralisation
The decentralisation of services was envisaged to:
• Spread the BIPA footprint;
• Take services to the people especially in a sparsely populated Namibia;
• Improve accessibility to service through multiple approaches (e.g. smart partnerships);
• Enhanced utilisation of the Ministry of Industrialisation, Trade and SME Development regional resources.
27 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
BIPA opened its office in Swakopmund in February 2018 as part of its decentralization agenda. In extending its
decentralization agenda, during the period under review, the focus was to enhance the utilization of Ministry
of Industrialisation, Trade and SME Development regional offices in all the regions to support the business
registration function by:
• Offering advisory services to BIPA customers;
• Assisting customers to complete the applications forms;
• Receiving applications and dispatching to the BIPA Head Office in Windhoek.
Online business registration platform
BIPA, in collaboration with the Ministry of Industrialisation, Trade and SME Development’s Namibia Investment
Centre commenced with the online business registration services on the Integrated Client Service Facility (ICSF)
platform. Name reservation, defensive name registration and close corporation registration began as a pilot
undertaking with selected agents. The pilot was used as large-scale testing to provide more detailed feedback
for the users in order to improve the system.
Stakeholder engagement
In fulfilling the strategic goal of enhancing stakeholder relations, BIPA frequently engaged business consultants
and other stakeholders. Meetings were conducted with NIPA, ICAN, FIC, business consultants and accounting
officers. These meetings focused on information sharing related to business registration services as well obtaining
feedback on service delivery standards.
Namibia’s Ease-of-Doing business ranking improved
BIPA plays an important role in developing and growing the Namibian economy and this significantly contributed
to Namibia’s position on the World Bank’s 2019 Ease-of-Doing business ranking.
108 110
106 107
104 104
98 100
78 80
2010 2012 2014 2016 2018 2020
SOURCE: TRADINGECONOMICS.COM WORLD BANK
Namibia is ranked 104 among 190 economies in the ease of doing business, according to the latest World Bank
annual ratings, the rank of Namibia improved to 104 in 2019 from 107 in 2018.
Namibia’s Ease of doing business ratings since 2010
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 28
10.1.5. Challenges
One of the strategic initiatives of the BIPA Corporate Strategy is to improve customer satisfaction through reducing
the turn-around times of new applications. Management is acutely aware that acceptable turn-around times
have not been achieved and has embarked on a re-engineering process to achieve this goal. Key impediments to
reducing turn-around times have been attributed to the out-dated IT system and paper-based operations.
10.1.6. Future endeavours
During the 2020/21 financial year, BIPA plans to:
• Continue with the implementation of the decentralisation plan to take its service to the people.
• Continue to re-engineer and automate the core business processes. The processes earmarked for
automation are company registrations, close corporation registrations, defensive name registrations,
name reservations and close corporation amendments.
• Ensure accuracy of business information on the Integrated Companies Registration System (ICRS).
• Review the Companies Act and Close Corporations Act with the view to improve the ease of doing
business.
29 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
10.2. INTELLECTUAL PROPERTY SERVICES
10.2.1. Overview
With respect to the Intellectual Property Services, BIPA’s functions are: develop an appropriate and conducive
IP policy and legislative framework, render efficient and effective protection of Intellectual Property Rights,
promote of the value of intellectual property, contribute to the development of the regional and international
IP legal frameworks and represent Namibia’s interest at bilateral, regional and international fora.
The focus of BIPA, through the Intellectual Property Services Department, is to create an effective and balanced
framework for the protection of Intellectual Property Rights, creation, commercialization and utilization of
intellectual assets; promote innovation and creativity; and build an IP-conscious society through various
targeted stakeholder engagements.
Within the ambits of its international relations policy and cooperation, Namibia is committed to regionalism
and multilateralism in intellectual property. Namibia is a member of the African Regional Intellectual Property
Organization and the World Intellectual Property Organization.
Therefore, intellectual property services related functions are administered in terms of national, regional and
international legal frameworks, listed hereunder:
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 30
IP Legal Framework in Namibia
DOMAIN NATIONAL REGIONAL INSTRUMENT INTERNATIONAL INSTRUMENT
LEGISLATION
Intellectual Business & Lusaka Agreement on the Convention Establishing the World
Property Rights Intellectual Creation of the African Intellectual Property Organization
Property Authority Regional Intellectual
Act, 2016 (Act 8 of Property Organization
2016) (ARIPO)
Industrial Property Industrial Property Banjul Protocol on Marks Paris Convention for the Protection of
Rights (Trade Act, 2012 (Act No 1 (ARIPO); Industrial Property (WIPO);
Marks, Industrial of 2012)
Designs, Patents & Trade Related Aspects of Intellectual Property
Rights (WTO);
Utility Models) Harare Protocol on Patents
and Industrial Designs Madrid Agreement Concerning the
(ARIPO) International Registration of Marks (WIPO);
Protocol Relating to the Madrid Agreement
Concerning the International Registration of
Marks (WIPO);
Hague Agreement (Geneva Act, 1999)
Concerning the International Registration of
Industrial Designs (WIPO);
Patent Cooperation Treaty (WIPO)
Copyright and Copyright and Swakopmund Protocol on Berne Convention (WIPO)
Related Rights Neighbouring the Protection of Traditional
Rights Protection Knowledge and Expressions Trade Related Aspects of Intellectual Property
Act, 1994 (Act No. of Folklore (ARIPO) Rights (WTO)
6 of 1994)
10.2.2. Reflection on the Period under review
During the period under review, BIPA’s priority remained the development of the appropriate and conducive
policy and legislative framework, rendering of efficient and effective protection of Intellectual Property Rights,
promotion of the value of intellectual property, and engagement.
To this end, BIPA facilitated the adoption of the First National Intellectual Property Policy and Strategy, launched
on 23 October 2019 by Hon. Lucia Ipumbu, Minister of Industrialization and Trade (then Deputy- Minister).
The IP Policy defines the national framework for the role of intellectual property in the national development
agenda.
With respect to the legal framework, BIPA made notable progress on the development of a new Copyright
legislation and held stakeholder consultations with the members of the National Assembly, the enforcement
agencies, academic institutions and libraries, broadcasters, creators, innovators, businesses, authors and
members of public. Out of the consultations, BIPA developed a Working Document for the new Copyright
legislation (a layman’s draft. The working document incorporates the contributions of various stakeholders and
serves as a structure for the layman’s draft.
Furthermore, BIPA made strides in the strengthening of enforcement of IP Rights through the designation of
Judges to serve as members of the Industrial Property Tribunal under the Industrial Property Act, 2012 (Act
No. 1 of 2012).
With respect to the registration and grants of Intellectual Property Rights during the period under review, BIPA
received a total of 3069 Intellectual Property Rights applications, of which 35% was received through national
filing route, and 65% through regional & international route.
31 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
BIPA granted protection a total of 2516 new IP Rights, made up of 68% trademarks, 21% Patents, and 11%
Industrial Designs.
As at reporting, BIPA’s Register has 74048 valid IP rights, of which 95% are trademarks, and 5% the other IP Rights.
10.2.3. Achievement on the Strategic Plan
The departmental goals for the financial year and achievements were:
• To deliver effective and efficient customer services: To support this goal, BIPA implemented the
Customer Management Plan with the view to improve customer satisfaction levels and achieved over
90% satisfaction levels on Intellectual Property Services customers.
• To achieve mutually beneficial stakeholder management: The Stakeholder Management Plan was
implemented and over 95% of the targeted stakeholders were engaged for the period under review.
• To ensure legislative alignment to national, regional and international obligations: The target was
the adoption of the National Intellectual Property Policy, revision of the copyright administrative
fees, development of a draft copyright Bill and constitute the Industrial Property Tribunal. Under the
reporting period, BIPA facilitated the adoption of the IP Policy and same was launched on 23 October
2019. The copyright administrative fees were promulgated and entered into force during the period
under review. on the development of the draft Copyright Bill, BIPA held stakeholders’ consultations
and developed a draft Working Document (layman’s draft). BIPA, further constituted the Industrial
Property Tribunal through the designation of Judges who serves as members of the Tribunal.
• To improve accuracy of data on intellectual property rights register: 91% of data accuracy was
achieved.
• To implement audit and risk items registers: During the period under review, 100% audit and risk
issues were resolved.
10.2.4. About Intellectual Property Rights in Namibia
Intellectual Property refers to creation of the intellect which has moral and/or commercial value. IP includes
inventions, literary and artistic works, and symbols, names and images used in trade.
IP rights are, therefore, enforceable rights over creations of the mind, which gives the creator exclusive rights to
exploit and benefit from their creation, and prevent others from making unauthorised use of their property for
a limited period, in exchange of the disclosure of the creative work.
10.2.5. Types of Intellectual Property Rights protected in Namibia
1. Trademarks
2. Patents
3. Utility Model
4. Industrial Designs
5. Copyright
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 32
10.2.6. Namibia’s Membership to Regional and International Bodies
Treaty Signature Instrument In Force
Regional Treaties (ARIPO)
Banjul Protocol Accession: 28 March 2003 1/14/2004
Harare Protocol Accession: 28 March 2003 04/23/2004
Lusaka Agreement 10/14/2003 10/14/2003
Swakopmund Protocol 8/9/2010 5/11/2015
International Treaties (WIPO)
Beijing Treaty on Audiovisual Performances 6/26/2012
Berne Convention Declaration of Continued 3/21/1990
Application: September 21, 1993
Hague Agreement Accession: March 31, 2004 6/30/2004
Madrid Agreement (Marks) Accession: March 31, 2004 6/30/2004
Madrid Protocol Accession: March 31, 2004 6/30/2004
Marrakesh VIP Treaty 8/12/2013
Paris Convention Accession: December 29, 2003 1/1/2004
Patent Cooperation Treaty Accession: October 1, 2003 1/1/2004
WIPO Convention Accession: September 23, 1991 12/23/1991
WIPO Copyright Treaty 12/20/1996
WIPO Performances and Phonograms Treaty 12/20/1996 2002-05-20
International Treaties (WTO)
Agreement on Trade-Related Aspects of 1995-01-01
Intellectual Property Rights Agreement 1995-01-01
Regional & International Unions
Union Body
Berne Union Assembly
Hague Union (Industrial Designs) Assembly
Madrid Union (Marks) Assembly
PCT Union (Patents) Assembly
Paris Union Assembly
WIPO Conference
WIPO General Assembly
ARIPO Council of Ministers
ARIPO Administrative Council
33 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
10.2.7. Applications and Registration/Grants
Trademarks
During the financial year of 2019/2020, the Trademarks received a total of 2232 applications compare to 4115
applications received in the last financial year. This represents a decrease of 45.7% in trademark filings.
Trademark filing 2018/19 & 2019/20
2018/19 2019/20
From the total applications receive, 900 were submitted through the national filing route, whilst 240 applications
were received through regional designations (ARIPO administered protocols). International designations
(agreements administered by WIPO) receive a total of 1092 applications.
Regional
National No. of International
Quarter Filing Total
Filing Classes Filing (WIPO)
(ARIPO)
Q1 207 71 251 529
Q2 279 61 178 518
Q3 206 61 341 608
Q4 208 47 322 577
900 240 1092 2232
Overall, international filings made up 49% of all applications, whilst national routes contributed 40% and regional
routes accounted for 11%.
Trademark per filing route 2019/20 FY
40% National Filing
49%
Regional Filing (ARIPO)
11% International Filing (WIPO)
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 34
Industrial Designs
Industrial Designs received a total of 168 applications and 159 in the previous report period. This gives 5.6% increase
in total Designs applications filed from 2018/19 to 2019/20 financial year.
Industrial filing 2018/19 & 2019/20
2018/19 2019/20
A total of 68 applications were submitted through the International filing route, whilst 61 were received through
the national route. Regional route (ARIPO administered protocol) received 39 application.
National Regional International
Quarter Total
Filing Filing (ARIPO) Filing (WIPO)
Q1 23 2 13 38
Q2 23 10 18 51
Q3 11 11 18 40
Q4 4 16 19 39
61 39 68 168
Industrial Design National filings made up 36% of filings, regional 23% and International routes, 41%.
Industrial Design per filing route 2019/20 FY
41% 36%
23%
National Filing Regional Filing (ARIPO) International Filing (WIPO)
35 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Copyright
BIPA received a total of 107 copyright applications in 2019/20 FY compare to 210 application that were received
in the previous reporting period. Copyright applications increase with 96% from 2018/19 FY to 2019/20 FY.
Copyright filing 2018/19 & 2019/20
%!"$
!"#$
2018/2019 2019/20
From the total 107 applications received, 103 were literary works, 2 were audio-visual and 2 was for a musical
work.
Total Number of Applications
Applications verified Applications accepted Applications Rejected
for Copyrighted Works
Q1 35 35 33 2
Q2 35 35 27 8
Q3 17 17 15 2
Q4 20 20 19 1
107 107 94 13
Patents
A total of 562 patent applications were recorded for 2019/2020 financial year compare to 448 applications
received in the previous financial year. The patent filing record an increase of 25 % from 2018/19 to 2019/20
financial year.
Patent filing 2018/19 & 2019/20
2018/19 2019/20
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 36
National Patent filing is receiving a total of 22 applications and regional route receives a total of 540 applications.
Quarter National Filing Regional Filing (ARIPO) Total
Q1 11 153 163
Q2 8 129 137
Q3 1 142 143
Q4 2 117 119
22 540 562
Patent filing applications is made up only of two filing routes National and Regional. National route recorded a total
22 applications which is (4%) of the total application received and 540 which is (96%) through Regional routes.
Patent per filing route
National Filing
4%
National Filing
Regional Filing (ARIPO)
Regional Filing
(ARIPO)
96%
Intellectual Property Rights registration 2019/20
IP rights 2018/19 2019/20
Trademark 2411 1719
Industrial design 151 161
Patent 440 542
Copyright 208 94
Total 3210 2516
BIPA register a total of 2516 Intellectual Property Right during 2019/20 financial year compare to 3210 registered
IPRs in 2018/19. A decrease of 21% was recorded in IPRs registration and this was as a result of low filing in the
financial year under review.
Intellectual Property Rights Renewal 2019/20
IP rights 2019/20
Trademark 1403
Industrial design 23
Patent 41
Copyright 0
Total 1467
37 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
IPRs registration 2019/20
4%
22%
6%
68%
Trademark Industrial design Patent Copyright
Trademark registration made up 68% of the total IPRs registration in 2019/20. This is followed by Patent registration
with 22%, Industrial Design 6% and Copyright 4%.
Legal Frameworks and Systems:
Development of Copyright Bill
BIPA held a consultative meeting with the Minister and obtained approval to commence with the review and
development of a new Copyright Bill. The Minister also approved the rationale document for the development of
the new Copyright Bill.
New Copyright Fees
During the reporting period, new copyright fees were published, introducing new fees structure for copyright
services. The revised fee’s structure was implemented on 1 January 2020.
National Intellectual Property Policy of Namibia
On 23 October 2019, BIPA facilitated the launch of the first National Policy on Intellectual Property during a high-
level breakfast engagement. The launch was officiated by the Deputy Minister of Industrialization, Trade and
SME Development; and was attended by over 100 stakeholders including Representatives of Ministries/Offices/
Agencies, Ambassadors, Heads of Academic and Research Institutions, Private Sector, Members of the Public and
the Media
Model IP Project
A WIPO mission was undertaken in November/December 2019 to migrate the IPAS system to the new server
environment and upgrade it to the latest production version (3.5.0b). It also introduced the online services for
back-office operations including the WIPO Publish and the ARIPO Member States Module. WIPO undertook the
second mission focusing on the WIPO file and capacity building with BIPA staff from 02 March to 13 March 2020.
10.2.8. Key Challenges
Business and Intellectual Property Authority (BIPA)
• Outdated Copyright Legislation
• Some data still manual
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 38
• Some processes still manual
• Limited awareness of IP in general
• Limited awareness of the value of intellectual property
• Lack of data on success IP stories
• Lack of data on the contribution of IP reliant industries/sectors to GDP
• Competencies in technical areas such as patent substantive examination
10.2.9. Future endeavors
During 2020/21 financial year, BIPA plans to
• Finalize and operationalise the online filing system for IP Rights applications (WIPO File)
• Finalize the Rules for the Industrial Property Tribunal
• Finalize the development of a new Copyright Legislation
• Commence with the Implementation of the National Intellectual Property Policy
• Ratify the WIPO copyright related treaties which Namibia has signed
39 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
10.3. RECORDS AND ARCHIVES MANAGEMENT
10.3.1 Overview
The Record and Archives department manages all documents and records relating to business and IP registrations.
Accurate and precise management of the records is vital to ensure regulatory compliance, managing risk and
business continuity. This will further enhance records preservation, disposition, archiving and knowledge-
sharing.
10.3.2. Data assurance and integrity
A key strategic initiative of the Company Strategy (2017-2022) required that the data assurance project be
undertaken. The significance of this project was such that it would assist BIPA to host more credible commercial
information, make evidence-based decisions, improve turnaround times, and improve revenue collection and
venture into diversified revenue streams such as data sales.
The project commenced in March 2018 and from 2019, the project was financed by GIZ. The data assurance
project under the GIZ funding is to conclude in the subsequent financial year.
The project was aimed at improving BIPA’s business registration information of approximately 180,000 entity
files with lodgements made between 2012 to 2018.
At the closure of the project, 43 229 (24.6%) files were updated on ICRS, 50 709 (28.9%) files were scanned,
while a resounding N$6,111,198.16 in outstanding annual duties was collected.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 40
10.3.3. Data assurance project
10.3.3.1. Project Deliverables
The primary deliverables of the project were:
• To consolidate loose business registration forms with their respective company files.
• To capture (updating and correcting) of approximately 175,000 business registration files on the ICRS
(Integrated Company Registration System).
• To scan all entities’ physical files on to the content management system called M-files.
• To update financial statements of registered entities onto BIPA’s financial system and collecting
outstanding annual duty fees.
10.3.3.2 Project Challenges
One of the major challenges were that unfortunately the full desired outcomes were not achieved for this
project, due to various factors such as:
• Project setup such as project site, recruitment and training took longer than planned due to delays in
site installation, non-acceptance of contracts and retention.
• The file request process during December and January was very slow due to the shortage of staff at
the Document Warehouse.
• COVID-19 Lockdown periods between March and April 2020 caused a slowdown in progress.
• Mandatory social distancing, as a result of Stage II COVID-19 regulations caused the project team to
work in shifts, consequently reducing working hours and productivity.
Filing Capturing Scanning
12257
7706 7945 8196 7985
5945 4197 6073
3563 5398 5103
5953 4312 4398 2927 3605
4963 3099 3400 3356 3144
4000 4412
2221 2987 2998
1230 1552
0 0
P-19
9 9 DE JA 0
-2 01 AY 20 20 0
-2
OC NO C- N- 3/ -2 N- L-
-S E T- 1 V- 1 19 20 FE B /0 0 JU JU AU
G
20 M
AP R 20
Due to the significance of this project, there is a need to re-plan the project so that it can be more effective in
order for BIPA to host credible commercial information, make evidence-based decisions, improve turnaround
times, and improve revenue collection and venture into diversified revenue streams such as data sales.
41 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
10.3.3.3. Project statistics and outcomes
Data capturing project status
Completeness Status: 26.7%
SCOPE: To capture all business registration activities (e.g. registration and amendments) that took place between
2012 and 2018.
SCHEDULE: The project was planned to run for 6 months (October 2019 to March 2020) and was estimated to
be at 50% (87,553 files) captured by the end of December 2019. The project closed off behind schedule with
26.7% (46 834) out of a total of 175 106 files captured to date. The project was delayed due to the following
reasons:
• Project setup such as project site, recruitment and training took longer than planned due to delays in
site installation, non-acceptance of contracts and retraining.
• The file request process during December and January was very slow due to the shortage of staff at
the Document Warehouse.
• COVID-19 Lockdown period between March and April 2020 and subsequently, the reduction of hours
of work for the employees due to Stage 2 COVID-19 regulations.
Scanning project status
Completeness Status: 31.4%
SCOPE: To scan all the company registration files. The scope remained fixed.
SCHEDULE: The project was planned to run for 6 months (October 2019 to March 2020) and was forecasted
to be at 50% (87,553 files) by end of December 2019. Due to Covid-19, the project was extended until end of
August 2020.
The project closed off behind schedule with 31,4% (55 121) of the total active 175 106 files scanned to date. The
project was delayed due to the following reasons:
• Setup took longer than planned because delivery of systems (computers and scanners) was delayed.
• The current content system is hosted off-site and therefore accessing of the system is very slow which
also contributes to the delays on the project.
Annual Duty collection project status
Completeness Status: 40.2%
SCOPE: To assess and collect all outstanding annual duty payments.
SCHEDULE: The whole project was planned to end in October 2020. The target collected revenue by end of
March 2020 was N$4,000,000.00.
At the end of August 2020, the performance of the project stood at N$ N$6,111,198.16 of the targeted revenue
since project inception. A total of 35 495 (20.2%) files have been completed against the initial 175 106.
COST: The project cost was fixed and kept within budget.
QUALITY: Quality management is in place to assure that correct statements are produced.
BENEFITS: The primary benefit of this project is the return on investment (ROI). The ROI is currently at 39% of
the total cost incurred.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 42
10.4. INFORMATION AND COMMUNICATION TECHNOLOGY
10.4.1. Overview
The ICT department designs, acquire, implement, and maintain the ICT infrastructure and the applications
required to provide operations and business support which benefits both the employees and clients of BIPA.
The department consists of the following divisions:
• The Information Systems Division is responsible for business analysis (manage business requirements,
manage solutions identifications, business process management and business intelligence
management); software engineering (design, develop, configure, test and maintenance of business
processes, applications, information, data and the corporate website) and helpdesk management
(service request management, incident management and problem management). The helpdesk is
the initial contact point for all data network users within the organization.
• The Enterprise Project Management Office (E-PMO) division is responsible for managing programmes
and projects. The division manages all programmes and projects from the investment portfolio in
alignment with the enterprise strategy and in a co-ordinated way. It also Initiates, plan, control, and
execute programmes and projects and close with a post-implementation review.
• The Networks, Infrastructure and Security division is responsible for network administration
(installing, maintaining and upgrading the corporate computer network, including the wide area
network and internet); systems administration (managing the reliable operation [availability and
capacity] of computer hardware, software, servers and computers); and security administration
(administering and managing the security of all data systems including systems and networks).
• The Records Management and Archiving division is responsible for managing the storing, retrieving,
disposing and scanning of all intellectual property and business registration files.
43 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
10.4.2. Annual departmental plan
The departmental goals for the year under review were to setup an on-premises records management warehouse. The
project was aimed at implementing an on-premises records management warehouse at BIPA in order to reduce the
rental cost of storing files at a third-party warehouse. The project had the following deliverables:
• Fumigation and pest control of the warehouse.
• Racking and shelving of the warehouse.
• Installing a fire detection and prevention system.
• Installing an on-premises records management system.
• Installing an on-premises content management system.
• Migrating approx. 1800 boxes from the 3rd party warehouse to the BIPA warehouse.
• Implement on-premises data network firewall systems. The project was aimed at improving BIPA’s data network
border defence by implementing firewalls at both the production and the disaster recovery sites.
• Implement the data integrity project. The project is aimed at improving the quality of the business registration
information stored on the BIPA registration system, content management system and the financial management
system. The number of entities to be processed (captured, scanned and issue financial statements) by the
project are approx. 175,000.
• Procure an ERP (Enterprise Resource Management) system. The project is aimed at implementing an ERP
system which provides financial, human capital and performance management functionalities and integrates
key internal systems such as business registration, intellectual property administration and records management
systems.
• Implement a virtual server environment. The project was aimed at implementing a virtual server environment
to host different applications servers such as Domain Controller (Active Directory Domain Services), File server,
O’Neill (Records Management System), M-files (Content Management System) and Pastel. Other systems that
were implemented as part of the project were Storage Area Network (SAN) and media library.
• Implement the Model IP Office system. The project was aimed at modernizing the IPAS (Intellectual Property
Administration system) to include online application processing with modules such as WIPO File (for online
application), WIPO publish (for online searching) and an e-registry which hosts Global IP Systems information
(PCT, Madrid and Hague) and a Global database of standards and classifications.
• Implement the ICSF (Integrated Client Service Facility) interim solution. The ICSF interim was aimed at
implementing a database system which will store online applications from the ICSF.
• Implement a Helpdesk management system. The helpdesk management system project was aimed at
implementing an ITIL compliant system which can automate service desk processes such as service request,
incident management, problem management, change management and release management.
10.4.3. Achievements
Despite the resource challenges, we met the following objectives:
10.4.3.1. The records management warehouse
The records management warehouse project was initiated, and the following project products were delivered:
• Fumigation and pest control of the warehouse.
• Racking and shelving of the warehouse.
• Implementation of a records management system.
The following products could not be delivered in-time and were deferred to the next financial year:
• Implementation of a fire detection and prevention system.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 44
• Implementation of a content management system.
• Relocation of 1,500 boxes from the Document Warehouse.
10.4.3.2. Network firewalls
The data network firewalls were successfully implemented during the year and all security policies were implemented.
To increase internal firewall (security) administration capacity, one staff member from the ICT department was trained
as a Security Network Expert.
10.4.3.3. Implement the Data Integrity Project
The data Integrity project was implemented at the beginning of the financial year with thirty-one temporary staff
members to carry out the following tasks on the project:
• 10 staff members – Data capturing.
• 10 staff members – Document scanning.
• 11 staff members – Revenue collection.
The velocity of the project was very slow due to the small number of personnel assigned to it. BIPA therefore requested
for funding from GIZ to increase the number of personnel to the project. GIZ made a significant sponsorship to the
project to fund the following items as of October 2019:
• 40 additional staff members – Data capturing.
• 20 additional staff members – Document scanning.
• Rental of 20 scanners.
• Rental of a project building.
• Implementation of a data network.
The project was planned for completion by the end of December 2020. More than 30,000 company files have been
captured, scanned, and financially assessed to date.
10.4.3.4. Procure an ERP (Enterprise Resource Planning) system
The ERP system procurement process was successfully finalised and the supply contract was awarded to the successful
bidder on the 27th of February 2020. The project is currently at contract signing stage and implementation of a Sage
X3 ERP system will follow. The project is envisaged to end by December 2020.
10.4.3.5. Implement a virtual server environment
The project was implemented as planned with all work packages delivered. All project work packages were accepted
by the 28th of October 2019.
10.4.3.6. Implement a Model IP (Intellectual Property) system
The project was implemented as planned with all work packages delivered. All project work packages were accepted
by the 6th of December 2019.
10.4.3.7. Implement the ICSF (Integrated Client Service Facility) interim
The project was implemented as planned with all work packages delivered. Three work packages namely name
reservations, defensive names and closed corporation were accepted on the 26th of November 2019. The company
work package was accepted on the 16th of April 2020.
45 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
10.4.3.8. Implement a helpdesk management system
The project was implemented as planned with all work packages delivered. All project work packages were accepted
by the 4th of July 2020.
10.4.4. Challenges
10.4.5.1. Low staff complement
BIPA services depend highly on the IT infrastructure and systems. BIPA has an IT staffing ratio of 1:28 if the whole
IT department is considered but if only the technical staff is considered, the ratio is about 1:56. This is the biggest
challenge for the IT department because the data network has too many components managed by few people.
10.4.5.2. Lack of training
The IT staff is constantly improving the company’s technology footprint (operating systems, databases, applications,
security, and networks) but the employees who are responsible for the upkeep of these technologies haven’t received
training on the technologies. This is making it difficult for the IT staff to manage all the technologies in the company.
10.4.5. Future Plans
In the 2020/21 financial year, BIPA would like to implement the following projects:
• Network and data centres infrastructure monitoring. The system will be used to monitor network
devices such as routers, switches, firewalls, servers, virtual machines, printers and storage devices in
real-time.
• Enterprise resource planning. The system will be used to automate and integrate processes such as
financial management, payroll, performance management, asset and inventory management and
procurement management.
• Business registration system – phase 2. The phase will introduce modules such as amendments of
business entity data, data entry, reports and data migration.
• Security network upgrades. These upgrades are aimed at improving the security networks maturity by
implementing audit log settings, 2-factor authentication, trusted hosts, more policies and addressing
any client vulnerabilities.
• Queue management system
• Data centres upgrades. The data centres upgrades are aimed at implementing backup power, structured
cabling, raised floor, labelling and KVM (Keyboard, Video and Mouse) switches for ease of operations.
• Clients Notifications Systems (SMS and WhatsApp). The notifications systems are aimed at notifying
clients on the status of applications lodged at BIPA.
• Information Systems Integrations. The aim of these integrations is to automate the processes between
systems and departments. This will improve the turn-around times of BIPA services.
• Online exchange mail. This is aimed at implementing a cloud-based mail server with functionalities
such as out of office setup, mailbox space monitoring, up to 50GB storage space, up to 50MB message
size. Users have the option of accessing mail via desktop email client or via outlook on the web with a
global address list of name, department and phone information for all staff.
• Board pack management. A system for board members to share and collaborate information for Board
meetings.
• IT policies development. Now that BIPA has the IT infrastructure in place, it is time to develop and
enforce all relevant policies such as acceptable policies, security awareness, information security
and the disaster recovery/business continuity plan). Other relevant policies enforceable are change
management, incident response, remote access, BYOD (Bring your own device), vendor access, media
destruction, retention and backups.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 46
10.5. HUMAN CAPITAL MANAGEMENT (HCM)
10.5.1. Departmental overview
The success of BIPA’s operations is dependent on the skills and commitment of its human resources. It is our philosophy
that we will have the right people in the right roles doing the right value-adding work at the right time, with clear
deliverables that increase capability and effectiveness. Through the activities of the Department for Human Capital
Management, the institution aims to fulfil the strategic objective of Human Capital Development as identified in the
Corporate Strategy 2017-2022. This will be achieved through developing collective skills, knowledge and intangible
assets of individuals to enhance the creation of economic value for the institution.
10.5.2. Operational report
During the reporting period, BIPA employed a total number of 189 employees in its workforce, of which 95 were
employed on a permanent basis, 38 employed temporary employees under BIPA Budget and 56 employed under Data
Integrity Project sponsored by GIZ.
47 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
BIPA recorded the following separations.
Positions Reasons Department Last Date
1 Executive: Human Capital Resignation Human Capital Management Apr 2019
Management
2 Personal Assistant: Executive Resignation Intellectual Property Services Nov 2019
Intellectual Property Services
3 HCP: Employee Relations, Resignation Human Capital Management Nov 2019
Wellness and OHS
4 End User Support Coordinator Resignation ICT Dec 2019
5 Executive: Finance and Resignation Finance and Administration Dec 2019
Administration
6 HCP: Recruitment and Resignation Human Capital Management Feb 2020
Remuneration
Total staff movements for the period are outlined below:
Permanent Employees
Temporary Employees
Student Interns
Employees Left BIPA
-15 -10 -5 0 5 10 15 20 25
Employees Left BIPA Student Interns Temporary Employees Permanent Employees
10.5.3. Workforce age distribution
We are committed to creating an inclusive and diverse workforce. The ages of our workers range from 20 to 60 years
with an average age of 33 years. An aging workforce is not a threat at this time as only a few have attained the statutory
early retirement age of 55 years.
The age distribution profile is as follows:
AGE CATEGORY NUMBER OF EMPLOYEES
Below 30 years 78
30 – 35 years 45
36 – 40 years 30
41 – 45 years 13
46 – 50 years 10
51 – 55 years 6
56 – 60 years 7
TOTAL 189
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 48
The data shows that 81% of the BIPA workforce falls into the generational category of millennials (employees who
are below 40 years old). This requires responsible and visionary leadership to support their needs to ensure their
retention. They will be accordingly empowered to make meaningful contributions to our strategic success.
BIPA workforce age distribution profile
Below 30 30-35 36-40 41-45 46-50 51-55 56-60
10.5.4. Employment service tenure
The Authority’s workforce tenure ranges from 1 (one) month to 6 (six) years. Employees in BIPA’s establishment at
6 (six) years represent 8% of total workforce while 13% of the workforce has an average service period of 4-5 years.
Employees with less than 3 years of service make up 78% of personnel. This ensures a beneficial mix of staff with a
balance of institutional memory and novel insight. We are well positioned to provide fertile ground for organisational
renewal and innovation.
Employment Service tenure # of Employees
>6 years 16
4 - 5 years 25
2 - 3 years 43
1 years 18
< 1 years 87
TOTAL 189
The majority of BIPA employees have accumulated enough work experience to form a valuable knowledge base. To
further build on this, we will create platforms for experienced employees to transfer their knowledge to others.
BIPA Workforce Service Tenure
1 25
0 20 40 60 80 100 120 140 160 180 200
Total Employees 6 years 4-5 years 2-3 years 1 year Less than a year
49 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
10.5.5. Affirmative Action
BIPA remains committed to the Employment Equity Code of Good Practice and continues to comply with Namibia’s
Employment Equity and Affirmative Action Act. The CEO accordingly appointed AA Committee members to facilitate the
Employment Equity requirements. The Committee met twice and drafted an annual AA plan for the years 2019/2020
to 2020/2021.
At the end of the reporting period, BIPA had 188 (99%) employees from previously designation groups. Racially
disadvantaged employees total 186 (98%) while 2% are individuals from previously advantaged groups.
The employment equity profile as at 31 March 2020 for workforce distribution is as follows:
Racially Racially Persons with Non-Namibian(s)
Total
disadvantaged advantaged disabilities
Job Category Men Women Men Women Men Women Men Women Men Women
Executive Directors - 1 - - - - - - - 1
(F- Band)
Senior Management 1 2 - - - - - - 1 2
(E – Band)
Middle Management 9 7 - 1 - - 1 - 10 8
(D- Band)
Specialized/skilled/ 1 1 - - - - - - 1 1
Senior Supervisory
(C4 – C5)
Skilled (C1 – C3) 10 27 - - 0 - - - 10 27
Semi-Skilled (B- Band) 6 21 - - 1.00 - - - 7 21
3 3 - - - - - - 3 3
Unskilled (A- Band)
Total permanent 30 62 - 1 1 - 1 - 32 63
Casual 36 58 - - - - - - 36 58
Total 66 120 - 1 1 - 1 - 68 121
We currently employ one disabled person and it is our goal to increase this number. Female representation at
management level (Paterson Grades D1 to F) accounts for 6% of the total BIPA workforce.
3.60%
Executive Level
1.80%
7.20%
Management Level
8.10%
54.10%
Non-Management Level
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%
Female Male
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 50
10.5.6. Skills development programs
Two BIPA staff members attended the World Intellectual Property Organisation (WIPO) summer school held from the
25th of November 2019 to the 6th of December 2019 in Bloemfontein, South Africa. The WIPO summer school is a
specialized course on intellectual property and technology transfer focused on raising and reinforcing awareness on
future complex issues related to IP management. WIPO sponsored this course in support for African nations to benefits
from the 4th Industrial Revolution.
The Finance and Administration Department conducted the ‘Policies Awareness Sessions’ with all BIPA employees with
the aim to highlight the importance of various Departmental policies. These awareness sessions were held from the 7th
of October 2019 to the 21st of November 2019 mainly to educate all BIPA employees on the Finance and Administration
policies that were approved.
Nature of Training Course(s) Course Date # of participants Cost Venue
1. World Intellectual Property 25 Nov. 2019 to 06 2 N$73,252.00 Bloemfontein, Republic
Organisation (WIPO) Dec. 2019 of South Africa
summer school
2. Finance policies awareness 07 Oct. 2019 to 21 all BIPA employees No costs In-house training
sessions Nov. 2019
Employee engagement initiatives
A general staff meeting for Windhoek-based employees was organised on the 12th of November 2019 which coincided
with the Board Chairperson introducing the substantive Chief Executive Officer (CEO) for BIPA. Employees were urged to
support the CEO in implementing the Authority’s mandate. The platform was necessary to build an engaged workforce
and instil a purpose-led culture.
The Authority organised the year-end function on the 13th of December 2019 hosted at Roof of Africa Hotel and
Conference in Windhoek. The event was meant for the CEO, on behalf of the Board of Directors and Management to
highlight successes and challenges experienced throughout the calendar year while appreciate employee effort made
towards the overall performance and achievements of the Authority.
Management of employees’ performance
A new Performance Management Moderation Committee was appointed by the CEO to validate the performance
appraisals scores. The primary role of the Committee was to evaluate all performance agreements in terms of
consistency and degree of alignment in order to verify that there is a common understanding of the standards used at
each level while ensuring that the integrity of the performance management system is protected. Overall, the Authority
performed at 3.50, while the average for all employees was 3.61. A comparative analysis of organisational performance
is as follows:
Organisational Performance 2017/18 FY 2018/19 FY 2019/20 FY
Corporate Scorecard (Rated score) 3.8 3.40 3.50
Departmental (Average score) 3.73 3.66 3.61
All Employees (Average score) 3.72 3.70
10.5.7. Job evaluation and grading validation project
A total of thirty-four (34) positions including nineteen (19) that are among the existing and filled positions, and nine
(9) new priority positions were evaluated and the initial outcome report was submitted to BIPA on the 24th of July 2019
by Vision Consulting cc, an external consultant. Thereafter, the CEO appointed an ‘Internal JEG Validation Committee’
comprising of five (5) members in September 2019 to validate the grading (JEG) outcome and report back.
51 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
10.5.8. Employee health & wellness activities
Management organized a mountain excursion for all employees on Friday, 01 November 2019 as part of the wellness
program activities. The excursion helped to promote employee mental, physical and emotional fitness. The event was
used to encourage the employees to work together and consider each other’s social needs.
10.5.9. Industrial relations
The Authority received the Namibia Public Workers’ Union (NAPWU) proposal agenda items for the 2019/20 annual
union-management negotiation meetings. Thereafter, the CEO appointed the Internal Negotiation Committee to
prepare for the annual negotiation.
Among the proposed agenda items for the 2019/20 annual negotiation was:
• Subsidized medical aid (100%);
• Enter into agreements with financial institutions (loan facility);
• Provide employees with training opportunities;
• Move from total cost to basic plus (Pay structure model);
• Annual salary increases (10%)
• Provide a 13th cheque.
The Committee undertook a benchmark visit in December 2019 to the Communication Regulatory Authority of Namibia
(CRAN) and brainstormed best practices with their counterparts. The first round of the negotiations was scheduled to
take place during the 4th quarter after the Committee finalised internal preparation.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 52
10.5.10. Employee relations
The Department handled the following employee disciplinary matters:
No. Nature of Offence Initiation (mm/yy) Department Status of Hearing /Sanction
1 Coming late to work October 2019 Intellectual Property Written warning (22 November
and leaving early 2019 – 21 February 2020)
2. Misappropriation of November 2019 Finance and - Dismissed
State funds Administration Appeal in process, scheduled
for 03 February 2020
10.5.11. Organisational culture change
During reporting period, two meetings were held on the 10th and 24th of October 2019 with a proposed action plan to
address the implementation of ICSF and office relocation. Some of the activities that were addressed were to educate
staff about ICSF internally and proposal of innovative names for the projects.
10.5.12. Strategic planning and review meeting
A strategic workshop was organised on 24 May 2019 at Safari Court Hotel in Windhoek for the BIPA Board of Directors
to acquaint themselves with the content of the Revised Strategic Plan (2019/20 – 2021/22) and share their views.
The workshop re-aligned key strategic objectives, targets and initiatives to the institution’s available financial and
human resources for the remaining three financial years (2019/20 to 2021/22). The Board has since approved the
Revised Strategic Plan. In the same vein, the Department assisted with the development of the draft Business and
Financial Plan for the 2019/2020 financial year, which was approved by the Minister. Management further organised
a strategy review and budget meeting held from the 06th to the 09th of December 2019 at Daan Viljoen on the outskirt
of Windhoek to plan for 2020/21 financial year.
10.5.13. Highlights
It is BIPA’s goal to build and sustain an engaged workforce which is focused on a common strategy and the following
interventions were implemented:
An annual increment of 3.5% was applied. In addition, a performance bonus was paid to qualifying employees.
10.5.14. Challenges
The sluggish economic climate resulted in diminished financial resources which was a challenge for BIPA. Few permanent
employees were recruited even though an attrition rate of 8% prevailed. Whilst we acknowledge the importance of
up skilling and training our employees, we were unable to provide any training and development interventions. This
resulted in low morale in the organisation and management consequently implemented an internal climate survey.
10.5.15. Future Endeavours
BIPA recognises that employees’ health and well-being include physical, social, cultural and psychological aspects,
and will continue striving to create an improved working environment for employees. Customised Human Capital
Management solutions are being developed and implemented to ensure an engaged and motivated workforce.
53 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
10.6. FINANCE AND ADMINISTRATION
10.6.1. Overview
The financial year ended 31 March 2020 marked a quantum leap in core revenue generated as well as surplus. Further,
cost management initiatives ensured the Authority declared a surplus of N$17 million. Annual duties revenue remains
BIPA’s main revenue stream and continues to grow. In this same year, registration of Trademarks, Copyrights and
Patents revenues improved while Business Registration revenues had a modest increase.
The Authority recorded an 11% cost increase from the previous year reaching N$71.07 million. Despite costs increase,
BIPA had positive cash flows eliminating need for short term borrowing. Excess cash was invested, and the Authority’s
investment initiatives paid N$1.5 million in interest received.
The Authority complied with all provisions of the Public Procurement Act, 2015 as amended throughout the year as
well as ensured compliance to all relevant financial standards. The application of these Acts saw increase in revenue,
transparency in procurement and well managed costs.
The procurement plan for the year was implemented to the value of N$22 million which is 65% the total procurement
budget. Partially the plan got affected by the onset of COVID-19 during the last quarter of the financial year. During
the financial year, BIPA saw an increase in net assets of N$25 million, of which the highest growth is on investments.
The Authority’s operational needs increased during the year under review. This is because of the need for extra office
space for the GIZ project and the need for annual duty revenue collection staff. Provisions of logistics were availed to
the satisfaction of all departments and customers.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 54
Both Management and the Board aspire to see BIPA achieve financial sustainability and remain a viable
going concern entity. This can be made possible by amongst other things, increased internal controls and risk
management.
10.6.2. Financial Performance
BIPA’s overall strategy is growth oriented. The Authority continues to grow in revenue especially core incomes.
The Authority is also heading towards own income break-even point. This is the point where BIPA will not need
operational funding from key stakeholders. The only funding required would be for capitalisation (Capital projects
funding). BIPA expects to hit self-operational funding in the ensuing financial year.
See Revenue Growth table below.
Revenue Growth
100,000,000
90,000,000 88,090,241
80,000,000 66,642,843 63,674,550 66,590,241
70,000,000
60,000,000
50,000,000 33,642,843 55,674,550
40,000,000 33,000,000
30,000,000 21,500,000
20,000,000 8,000,000
10,000,000
-
2018 2019 2020
Core Income Grants Total
The table below shows how the Authority has performed. BIPA managed reach a surplus of N$17 million. This
is a well-deserved performance especially during recession time. Table below shows the surplus curve for past
three years.
Annual Operational Expenditure
20000000 17,015,434
15000000
10000000
5000000 2,297,815 61,936
2018 2019 2020
-
Year Surplus Deficit
55 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Expenditure
Operational expenditure increased by N$7 million from the previous year. Despite the increase, cost control
remained a management’s focus area.
Annual Operational Expenditure
70,562,222
63,612,614
64,345,028
0 10000000 20000000 30000000 40000000 50000000 60000000 70000000 80000000
Annual Operational Expenditure Year
10.6.3. Internal Controls
Any system of internal control is designed to manage risk to a tolerable level rather than to eliminate it.
The system can therefore only provide reasonable and not absolute assurance that assets are safeguarded,
transactions authorised and properly recorded, and that material errors or irregularities are either prevented
or detected in a timely way.
In addressing the internal controls, the Authority plans for its annual expenditures through a budget approved
by the Board. It monitors the expenditure through monthly management accounts including variance analysis.
Procurement is done in line with the Public Procurement Act and BIPA policies. In addition, the Internal Audit
department performs audit reviews which test internal controls if effective, and when not, recommendations
are immediately implemented.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 56
REGULATORY
UPDATE
“Good
regulation should
be conducive to
business and
to customer
protection” Quisque vel placerat nisl.
Chairperson of the Board
Jamie Dimon
57 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
11. REGULATORY UPDATE
11.1. DEVELOPMENT OF THE COPYRIGHT BILL
During the second quarter of the period under review, management held a consultative meeting with the
Minister and obtained approval to commence with the review and development of a new Copyright Bill. The
Minister also approved the rationale document for the development of the new Copyright Bill.
Management also held a series of copyright seminars and a public lecture under the theme: ‘building a balanced
copyright system in Namibia’ facilitated by Prof William Fischer, a consultant from Harvard University. The
seminars were attended by over 100 stakeholders, parliamentarians, copyright owners, publishers, users and
license holders, enforcement agencies, academic institutions and the public.
Following a successful series of copyright seminars, the BIPA Management has developed a working document for
development of the copyright bill. The working document incorporates the contributions of various stakeholders
and serves as a structure for the layman’s draft.
11.2. NEW COPYRIGHT FEES
In the third quarter, the new copyright fees were published, introducing a new fees structure for copyright
services. The revised fees structure was implemented on 1 January 2020.
11.3. NATIONAL INTELLECTUAL PROPERTY POLICY OF NAMIBIA
On 23 October 2019, BIPA facilitated the launch of the first national policy on Intellectual Property during a high-
level breakfast engagement. The launch was officiated by the Deputy Minister of Industrialisation, Trade and
SME Development and was attended by over 100 stakeholders including representatives of ministries/offices/
agencies, ambassadors, heads of academic and research institutions, private sector, members of the public and
the media.
11.4. MODEL IP PROJECT
A WIPO mission was undertaken in November/December 2019 to migrate the IPAS system to the new server
environment and upgrade it to the latest production version. It also introduced online services for back office
operations. WIPO undertook a second mission focusing on the WIPO file and capacity building with BIPA staff
from 02 to 13 March 2020.
The objective of this mission was to deploy the WIPO file system on a test environment and to undertake training
for BIPA systems support staff, back-end users, and selected IP agents.
This deployment has facilitated the refinement of needs and user requirements and planning for production use
of the system. IP Agents and BIPA users had an opportunity to interact with the system to refine requirements,
appreciate and plan resource requirements to sustain and support the system, interact with IP Agents on
anticipated changes with online filing and determine the way forward for production deployment. The mission
also configured Patents and Trademark workflow into the system. Trademark process (templates) such as
registration certificates, renewals, filing notices and notice of acceptance were also customised as per the new
Industrial Property Act.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 58
11.5. Legislative Review Project
The objectives of Legislative Review Project are to review, simplify and modernize the Close Corporations Act
1988 (Act 26 of 1988) and Companies Act, 2004 (Act No.28 of 2004).
With generous financial support from GIZ, BIPA appointed a consultant and commenced internal consultations.
The project will continue into the succeeding financial year and the deliverables of the consultancy are that:
a) All the relevant legislations be identified and reviewed.
b) Comparative research is conducted and reported.
c) All shortcomings in the Companies Act and Close Corporations Act be addressed to modernize the
legal framework for business entities.
d) Guiding principles and recommendations be formulated.
e) A legislative Review Report be drafted.
f) Simplified and modernized Proposed Bill(s) be drafted and approved.
g) Stakeholder consultations be held in line with the prescribed, ‘how to make a law process.’
h) Regulations be drafted and approved by the relevant authorities.
i) All deliverables are done in compliance with the prescribed law-making process.
59 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
STAKEHOLDER
ENGAGEMENTS
“A healthy
corporation
acts on the
interests of its
stakeholders and
customers”
Ari Melber
Quisque vel placerat nisl.
Chairperson of the Board
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 60
12. STAKEHOLDER ENGAGEMENTS
D uring the period under review, the Authority
undertook a series of stakeholder engagements
that were in line with improving stakeholder relations
BIPA participated at the Ongwediva Trade Fair, which
is the largest regional trade fair and most prominent
platform in the north. BIPA also held an Open Day at
as well increasing the potential for innovation Ongwediva on 28 August 2019 which provided for
by tapping into the wider resource of our broad further engagement with stakeholders and training
stakeholders. Below were the engagements that took for entrepreneurs.
place in this reporting period ending 31 March 2020:
12.3. NTN information sharing session
12.1. Open Day at Swakopmund
An information sharing session was held in coordination
with the National Theatre of Namibia (NTN) staff and
invited participants from the creative industry on
March 12 2020. The theme of this engagement was
“The benefits of copyright registration”. The event
was attended by scriptwriters, photographers, film
directors, actors, graphic designers, journalists and
event organisers. The objective of the session was to
empower participants with knowledge on copyright
protection and enable creators to effectively engage,
participate and contribute to the development of the
copyright system in Namibia’ know their rights and
understand how the copyright system encourages
creativity.
An Open Day was held at Swakopmund on 25 July 12.4. NUST 25th Career Fair
2019. The event did not only target a general audience
of the media, business owners, consultants and The Namibian University of Science & Technology
stakeholders but also provided training to the local (NUST) held its 25th career fair from 11-12 March
entrepreneurs on how to register a business, and how 2020 under the theme: “Innovation for Economic
to protect business concepts and ideas. Approximately Revitalisation”. The fair’s objective was to link
70 entrepreneurs attended the session. academia and prospective employers in the different
local economic sectors. The fair aided the recruitment
and networking processes as it afforded students and
12.2. Ongwediva Trade Fair learners an opportunity to explore various courses.
BIPA had an exhibition stand at the career fair which
was used to create awareness of its objectives, services
and to educate Namibians on the IP rights subject. The
stand was further used to highlight the processes of
applications and requirements of BIPA products.
12.5. Copyright Information Sharing (UNAM)
BIPA conducted an information sharing session in
conjunction with the school of computer studies of
the University of Namibia (UNAM) on 06 March 2020.
The session was held under the theme, “Copyright
and Software Development.” The objective of the
61 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
session was to improve knowledge of the students
on copyright, encourage them to develop their own
work and to gain an understanding of the benefits of
registering for copyright protection at BIPA.
12.6. NASCAM consultative meeting
On 11 February 2020, BIPA held a consultative
meeting with the Namibian Society of Composers and
Authors of Music (NASCAM) at the NASCAM premises
in Windhoek and deliberated on the way forward with
regards to the Copyright Act review, the cooperation
between BIPA and NASCAM and on the protection of
administrative activities of the whole creative industry
of Namibia.
for the trademark division to disseminate information
on registration, applicable registration fees,
12.7. Information sharing with Tenya Investment maintenance after registration, benefit of registration,
On the 19th of February 2020, BIPA undertook an and exploitation of IP rights (specifically trademarks),
turnaround time and general understanding of
trademarks as a component of intellectual property.
12.9. WIPO Participation
BIPA participated at the 59th series of meetings of
the Assemblies of the Member States of the World
Intellectual Property Organization (WIPO) held in
Geneva, from September 30 to October 9 2019.
information sharing visit with Tenya Investment
CC at the Art Gallery at the Warehouse Theatre in
Windhoek. Tenya Investment is a registered SME that
creates and sells craft works and a variety of painted
work. The copyright team introduced and explained
the mandate of BIPA pertaining to rights of work
creation and importance of protection of work.
12.8. Regional outreach information sessions Namibia’s Position:
The IP department participated in various missions The Assemblies elected members to the various WIPO
in the 14 regions where BIPA undertook a public Governing Bodies, considered the work of various
information dissemination drive on business WIPO Committees, amongst others, the Program and
registration and IP services, annual returns, annual Budget Committee, the Standing Committee on the Law
duties, penalties, grace periods, payment procedures, of Trademarks, Industrial Designs and Geographical
ICSF information and training to the Ministry of Trade Indications (SCT), Standing Committee on Copyright
and Industrialisation regional offices. The target and Related Rights (SCCR) and the Intergovernmental
audience was the business community and the general Committee on Intellectual Property and Genetic
public. The outreach programs were an opportunity Resources, Traditional Knowledge and Folklore (IGC).
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 62
Namibia’s election to WIPO Governing Bodies: • National IP policy launch
During the Assemblies, Namibia was elected to serve • IP and education
on three WIPO Governing Bodies namely: WIPO
Coordination Committee, WIPO Conference and the • IP value promotion
Berne Union Executive Committee.
Assemblies Decisions:
Vivienne Katjiuongua was elected as the Chairperson
• The Assemblies elected members to the various
of the WIPO Conference whilst Ainna Vilengi Kaundu
WIPO Governing Bodies;
was elected as the Chairperson of the Berne Union
Executive Committee and Member of the Coordination • Approved the budget for 2020/21 biennia;
Committee.
• Extended the mandate of the SCT to continue
negotiations on the proposed Design Law Treaty,
Namibia-WIPO bilateral engagements and
Namibia, on the side-lines of the Assemblies held • Extended the mandate of the IGC on the
bilateral meetings with various WIPO divisions to negotiations on the TK, TCEs and GR legal
consider the progress of the implementation of instruments;
cooperation between Namibia and WIPO and discuss
activities for 2020/21 FY under the cooperation. • Namibia elected to committee for the selection
and appointment of the new Director General
During these meetings, the parties undertook to (DG) for WIPO and ARIPO, of which the process
cooperate by implementing the following initiatives started in February 2020.
during the 2020/21 FY:
• Administration of Intellectual Property Rights 13. ANNUAL FINANCIAL
12.10. Consultations on development of
• Capacity building
Copyright Bill
• Advocacy and information kit
BIPA held a series of copyright seminars and a public
• Implementation of the IP Tribunal lecture, under the theme: ‘building a balanced copyright
system in Namibia’, facilitated by Prof William Fischer,
• Model IP Office Project (Office Modernization) the Consultant from Harvard University.
• Review and drafting of the Copyright Bill The seminars were attended by over 100 stakeholders,
Parliamentarians, Copyright Owners, Publishers, Users
• Implementation of Technology and Innovation & License Holders, Enforcement Agencies, Academic
Support Centres project Institutions and the Public.
• Launch of the IP and Tourism Report and IP
curriculum
63 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL
FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
Quisque vel placerat nisl.
Chairperson of the Board
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 64
65 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
Annual Financial Statements
for the year ended 31 March 2020
General Information
Country of Incorporation The Republic of Namibia.
Nature of business and principal activities To run a legal system for business and intellectual property
registration, protection and promotion thereof.
Directorate Riundja Ali Kaakunga (Chairperson)
Dr. Martha Uumati (Deputy Chairperson)
Fritz Charles Jacobs
Lovisa Indongo-Namandje
Ignatius Kelokilwe Thudinyane
Chaze Nalisa
Seno Namwandi
Registered Office 3 Ruhr Street Northern Industrial Area
Windhoek
Namibia
Postal Address P.O Box 185
Windhoek
Namibia
Bankers Bank Windhoek Limited
First National Bank Namibia
Nedbank Namibia Limited
Auditors PricewaterhouseCoopers
Registered Accountants and Auditors
Chartered Accountants (Namibia)
Secretary Vacant
Line Ministry Ministry of Industrialization and Trade (“MIT”)
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 66
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Index
Page
Directors Responsibilities and Approval………….......................................................................................... 68
Independent Auditors Report……..........................................................................................................…… 69- 70
Directors Report.......................................................................................................................................... 71 - 72
Statement of Financial Position................................................................................................................. 73
Statement of Surplus or Deficit and Other Comprehensive Income......................................................... 74
Statement of Changes in Equity................................................................................................................. 75
Statement of Cash Flows............................................................................................................................ 76
Notes to the Annual Financial Statements................................................................................................ 77 - 102
The following supplementary information does not form part of the
annual financial statements and is unaudited:
Detailed Statement of Surplus or Deficit and Other Comprehensive Income.........................................103 - 106
67 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Director’s Responsibilities and Approval
T he Directors are required by the BIPA Act,
2016, (Act No.8 of 2016), to maintain adequate
accounting records and are responsible for the content
to maintain the highest ethical standards in ensuring
the company’s business is conducted in a manner that,
in all reasonable circumstances is above reproach. The
and integrity of the annual financial statements and focus of risk management in the Authority is based on
related financial information included in this report. identifying, assessing, managing and monitoring all
It is their responsibility to ensure that the annual known forms of risk. While operating risk cannot be
financial statements fairly present the state of affairs fully eliminated, the Authority endeavours to minimise it
of the company as at the end of the financial year by ensuring that appropriate infrastructure, controls,
and the results of its operations and cash flows for the systems and ethical behaviour are applied and
period then ended, in conformity with the International managed within predetermined procedures and
Financial Reporting Standards (“IFRS”). The external constraints.
auditors are engaged to express an independent
opinion on the annual financial statements. The Directors are of the opinion, based on the
information and explanations given by management,
The annual financial statements are prepared in that the system of internal control provides reasonable
accordance with the International Financial Reporting assurance that the financial records may be relied on
Standards (“IFRS”) and are based upon appropriate for the preparation of the annual financial statements.
accounting policies consistently applied and supported However, any system of internal financial control can
by reasonable and prudent judgements and estimates. provide only reasonable, and not absolute, assurance
against material misstatement or loss.
The Directors acknowledge that they are ultimately
responsible for the system of internal financial controls The directors have reviewed the Authority’s cash flow
established by the Authority and place considerable forecast for the year to 31 March 2021 and, in light of
importance on maintaining a strong control this review and the current financial position, they
environment. To enable the Directors to meet these are satisfied that the Authority has or had access to
responsibilities, the Board of Directors sets standards for adequate access to adequate resources to continue in
internal control aimed at reducing the risk of error or loss operational existence for the foreseeable future.
in a cost effective manner. The standards include the
proper delegation of responsibilities within a clearly The external Auditors are responsible for independently
defined framework, effective accounting procedures auditing and reporting on the Authority’s annual financial
and adequate segregation of duties to ensure an statements. The annual financial statements have been
acceptable level of risk. These controls are monitored examined by the Authority’s external Auditors and their
throughout the company and all employees are required report is presented on page 69 to 70.
The annual financial statements set out on pages 71 to 102, which have been prepared on the going concern
basis, were approved by the Board of Directors and were signed on its behalf by:
Riundja Ali Kaakunga (Board Chairperson) Ignatius Kelokilwe Thudinyane (Chairperson: Finance, Risk
and Audit Committee)
Windhoek
Date: Date:
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 68
Independent auditor’s report
To the Members of Business and Intellectual Property Authority
Our qualified opinion
In our opinion, except for the possible effect of the matters described in the basis for qualified opinion section of the
report, the financial statements present fairly, in all material respects, the financial position of Business and Intellectual
Property Authority (the Authority) as at 31 March 2020, and its financial performance and cash flows for the year then
ended in accordance with International Financial Reporting Standards and the requirements of the BIPA Act, 2016, (Act
No. 8 of 2016).
What we have audited
Business and Intellectual Property Authority’s financial statements set out on pages 7 t0 34 comprise:
• the directors’ report for the year ended 31 March 2020;
• the statement of financial position as at 31 March 2020;
• the statement of surplus or deficit and other comprehensive income for the year then ended;
• the statement of changes in equity for the year then ended;
• the statement of cash flows for the year then ended; and
• the notes to the financial statements, which include a summary of significant accounting policies.
Basis for qualified opinion
In our audit report, dated 20 March 2020, on the Business and Intellectual Property Authority’s financial statements as
at 31 March 2019, and for the year then ended, we expressed a qualified opinion due to the following reasons:
• The Authority’s accounting records do not provide sufficient evidence supporting the completeness of revenue
from annual duties and registration revenue for the period ended 31 March 2019 due to the fact that the
Authority is still busy compiling its registry and hence no controls over the completeness of annual duties and
registration revenue except for cash collection made during the year. As a result, we were unable to determine
whether any adjustments would be required in respect of unrecorded revenue and the related elements making
up the statement of surplus or deficit and other comprehensive income, changes in equity and cash flows.
Our opinion on the financial statements as at 31 March 2020, and for the year then ended, is modified because of the
possible effects of the matters referred to the bullet above on the comparability of the current period’s figures and the
corresponding figures as presented in the statement of financial position.
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those
standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Authority in accordance with the International Ethics Standards Board for Accountants
International Code of Ethics for Professional Accountants (including International Independence Standard) (Code of
Conduct) and other independence requirements applicable to performing audits of financial statements in Namibia.
We have fulfilled our other ethical responsibilities in accordance with the Code of Conduct and in accordance with other
ethical requirements applicable to performing audits in Namibia.
Other information
The directors are responsible for the other information. The other information comprises the information included in
the document titled “Business and Intellectual Property Authority Annual Financial Statements for the year ended 31
March 2020”. The other information does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express an audit opinion
or any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified
above and, in doing so, consider whether the other information is materially inconsistent with the financial statements
or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
69 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial statements
The directors are responsible for the preparation and fair presentation of the financial statements in accordance with
International Financial Reporting Standards and the requirements of the BIPA Act, 2016, (Act No. 8 of 2016) and for such
internal control as the directors determine is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Authority’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the Authority or to cease operations, or have no realistic alternative but to
do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Authority’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Authority’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Authority to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
PricewaterhouseCoopers
Registered Accountants and Auditors
Chartered Accountants (Namibia)
Per: Samuel N Ndahangwapo
Partner
Windhoek
Date: 17 February 2021
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 70
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Director’s Report
The directors have pleasure in submitting their report on the annual financial statements of Business and Intellectual
Property Authority for the year ended 31 March 2020.
1. NATURE OF BUSINESS
Business and Intellectual Property Authority was incorporated in Namibia with interests in running the legal
system for business and intellectual property registration, protection and promotion thereof. The Authority operates
in Namibia.
2. REVIEW OF FINANCIAL RESULTS AND ACTIVITIES
The annual financial statements have been prepared in accordance with the International Financial Reporting
Standards (“IFRS”) and the requirements of the BIPA Act, 2016 (Act No.8 of 2016). The accounting policies have been
applied consistently compared to the prior year.
Full details of the financial position, results of operations and cash flows of the company are set out in these annual
financial statements.
3. DIRECTORATE
The directors in office at the date of this report are as follows:
Directors Nationality Status
Riundja Ali Kaakunga Namibian Term Extended
Dr. Martha Uumati Namibian Term Extended
Fritz Charles Jacobs Namibian Term Extended
Lovisa Indongo-Namandje Namibian Term Extended
Ignatius Kelokilwe Thudinyane Namibian Term Extended
Chaze Nalisa Namibian Term Extended
Seno Namwandi Namibian Term Extended
The Board of Directors’ term of office came to an end on the 1st of March 2020, but the Line Minister extended their
term for a period until the new Board of BIPA is appointed to allow for due process to follow.
4. BOARD AND SUB-COMMITTEE MEETINGS
Board of Directors Board and Finance, Human Resources Governance, Strategy,
Special Board Risk and and Remuneration Legal and Ethics Projects &
Meeting Audit Committee (HRRC) Committee Procurement
Committee (GLEC) Committee
(FRAC) (SPPC)
Riundja Ali Kaakunga 4 3 3 3
Dr. Martha Uumati 3 1 1 1 1
Fritz Charles Jacobs 1 1 1 1
Lovisa Indongo-Namandje 3 1 2 2
Ignatius Kelokilwe 4 3 2 1
Thudinyane
Chaze Nalisa 1 1 3 1
Seno Namwandi 4 2 2 2
71 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Director’s Report (Continued)
5. EVENTS AFTER THE REPORTING PERIOD
The directors are aware of material events which occurred after the reporting date and up to the date of this report
as follows:
5.1. COVID-19 Pandemic
The COVID-19 pandemic has developed rapidly in 2020 worldwide, with a significant number of cases. In Namibia,
cases have risen into thousands in the first six month of 2020. Measures taken by various governments including
Namibian government to contain the virus have affected economic activity and the Authority in various material
ways:
• COVID – 19 emergency budget of N$ 4,000,000 was included in the revised budget to cover for all procurements
related to the risk of the virus.
• Lockdown measures taken by the government and the Authority to contain the virus spread, where employees
work from home has resulted in a significant reduction in revenue collection in the specific month. Revenue
collected during April 2020 was N$ 2,033,546 while in the same month in 2019 was N$ 3,430,867 and
2018 was N$ 2,055,298. It represents a 41% reduction in revenue from the previous year.
• The Authority’s core revenue for the first four months of the financial year (FY20/21) is N$ 16,243,117
while for FY19/20 was N$ 16,147,431. The Authority is likely to perform as of the previous year.
6. GOING CONCERN
Management has considered the consequences of COVID-19 and other events and conditions, and it has
determined that they do not create a material uncertainty that casts significant doubt upon the entity’s
ability to continue as a going concern. The impact of COVID-19 on future performance and therefore
on the measurement of some assets and liabilities or on liquidity might be significant and might therefore
require disclosure in the financial statements, but management has determined that they do not create
a material uncertainty that casts significant doubt upon the entity’s ability to continue as a going concern.
7. AUDITORS
PriceWaterHouseCoopers have been retained as auditors of the Authority for the year ended 31 March 2020 in
accordance with the BIPA Act, 2016 (Act No.8 of 2016)
8. SECRETARY
The Secretary of the Authority is the Chief Legal and Secretarial Services. For the period ending 31 March 2020, the
position of Chief Legal and Secretarial Services became vacant on 16 October 2019.
Business address 3 Ruhr Street Northern Industrial Area
Windhoek
Namibia
9. DIRECTORS’ INTEREST AND CONTRACTS
During the financial year, no contracts were entered into with the directors or officers of the Authority, the
directors or officers do not hold any interest in the Authority.
10. KATUTURA OFFICE BUILDING
Katutura Office Building situated on Erf 2780, Shire Street Wanaheda has not been included in the financial
statements. The matter is with the line Ministry’s lawyers seeking to recover the funds of N$18,000,000 for the
purchase of this Office Building, whereas the BIPA board is seeking to recover the N$2,160,000 paid for transfer duties.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 72
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Statement of Financial Position
Note(s) 2020 2019
N$ N$
ASSETS
Non-current assets
Property, plant and equipment 5 22,570,525 20,611,599
Right-of-use assets 21 3,640,379 -
Intangible assets 6 4,132,804 -
Total non-current assets 30,343,708 20,611,599
Current assets
Trade and other receivables 7 7,075,735 4,891,005
Other financial assets 8 26,917,589 15,273,714
Cash and cash equivalents 9 4,558,548 3,183,992
Total current assets 38,551,872 23,348,711
Total assets 68,895,580 43,960,310
EQUITY AND LIABILITIES
Equity 49,771,767 32,756,333
Contribution 11 34,491,766 34,491,766
Accumulated Fund 15,280,001 (1,735,433)
Non- Current liabilities 4,867,916 3,478,970
Deferred income 12 3,247,039 3,478,970
Lease liabilities 21 1,620,877 -
Current liabilities 14,255,897 7,725,007
Trade and other payables 10 11,885,116 7,725,007
Lease liabilities 21 2,370,781 -
Total Liabilities 19,123,813 11,203,977
Total equity and liabilities 68,895,580 43,960,310
73 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Statement of Surplus or Deficit and Other Comprehensive
Note(s) 2020 2019
N$ N$
Revenue from contracts with customers 13 56,276,056 47,530,437
Other income 14 30,304,535 15,785,214
Operating expenses (70,562,222) 63,612,614
Operating surplus / (Deficit) 15 16,018,369 (296,963)
Finance income 18 1,509,650 358,899
Finance costs 18 (512,585) -
Surplus for the year 17,015,434 61,936
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 74
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Statement of Changes in Equity
Contribution Accumulated Total equity
Fund
N$ N$
N$
Balance at 01 April 2018 34,491,766 (1,457,976) 33,033,790
Correction of error - (339,393) (339,393)
Balance after adjustment 31 March 2018 34,491,766 (1,797,369) 32,694,397
Total comprehensive surplus for the year - 61,936 61,936
Balance at 31 March 2019 34,491,766 (1,735,433) 32,756,333
Total comprehensive surplus for the year - 17,015,434 17,015,434
Balance at 31 March 2020 34,491,766 15,280,001 49,771,767
75 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Statement of Cash Flows
Note(s) 2020 2019
N$ N$
Cash flows from operating activities
Cash used in operations 20 21,661,263 4,915,724
Finance income 18 1,509,650 358,899
Net cash from operating activities 23,170,913 5,274,622
Cash flows from investing activities
Purchase of property, plant and equipment 5 (3,437,365) (717,455)
Purchase of intangible assets 6 (4,418,614) -
Purchase of other financial assets 8 (20,300,000) (15,273,714)
Withdrawals from other financial assets 8 10,000,000 -
(18,155,979) (15,991,169)
Cash flows from financing activities
Principal elements of lease payments 21 (3,640,379) -
(3,640,379) -
Net increase/(decrease) in cash and cash equivalents 1,374,555 (10,716,547)
Cash and cash equivalents at the beginning of the year 3,183,993 13,900,539
Cash and cash equivalents at end of year 9 4,558,548 3,183,993
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 76
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements
1. SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these financial statements are set out below:
1.1 Presentation of Annual Financial Statements
The annual financial statements have been prepared in accordance with the International Financial Reporting
Standards (“IFRS”) and the International Financial Reporting Interpretation Committee (“IFRIC”) Interpretations
issued and effective at the time of preparing these financial statement and the BIPA Act, 2016 (Act No.8 of 2016).
These annual financial statements have been prepared on the historical cost basis, and incorporate the principal
accounting policies set out below, and are presented in Namibia Dollars.
1.2. Significant judgements and sources of estimation uncertainty
The preparation of financial statements in conformity with IFRS requires management, from time to time to make
judgements, estimates and assumption that affect the application of policies and reported amounts of assets,
liabilities, income and expenses. These estimates and associated assumptions are based on experience and various
other factors that are believed to be reasonable and under circumstances. Actual results may differ from these
estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future periods affected.
1.2.1. Critical judgements in applying accounting policies
Management did make critical judgements in the application of accounting policies, apart from those involving
estimation, which would significantly affect the financial statements and are outlined as follows:
1.2.1.1. Revenue
Revenue from annual duties, penaties and fines are non-exchange transactions and accounted for using the policy
developed by the Authority as per note 2. All non-exchange transactions are recognised in surplus or deficit to the
extent they are assets and it is probable that the future economic benefits or service potential associated with the
asset will flow to the entity, and the fair value of the asset can be measured reliably.
1.2.2. Key sources of estimation uncertainty
Trade receivables
The Authority assesses its trade receivables for impairment at the end of each reporting period. In determining
whether an impairment loss should be recorded in the surplus or deficit, the Authority makes judgement as to
whether there is observable data indicating a measurable decrease in the estimated future cash flows from the
financial asset.
The impairment (or loss allowance) for trade receivables is calculated on a portfolio basis, except for individually
significant trade receivables, which are assessed separately. The impairment test on the portfolio is based on
historical loss ratios, adjusted for national and industry-specific economic conditions and other indicators present
at the reporting period that correlate with defaults on the portfolio. These annual loss ratios are applied to loan
balances in the portfolio and scaled to the estimated loss emergence period.
77 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
1.2. Significant judgements and sources of estimation uncertainty (continued)
1.2.3. Impairment of non-financial assets
The Authority reviews and tests the carrying value of assets when events or changes in circumstances suggests
that the carrying amount may not be recoverable. When such indicators exists, management determine the
recoverable amount by performing value in use and fair value calculations. These calculations require the use of
estimates and assumptions. When it is not possible to determine the recoverable amount for an individual
asset, management assesses the recoverable amount for the cash generating unit to which the asset belongs.
1.2.4 Residual values and useful lives of property, plant and equipment
The residual value, useful life and depreciation method of each asset is reviewed and adjusted if appropriate at
the end of each reporting period. If the expectations differ from previous estimates, the change is accounted as a
change in accounting estimate.
1.2.5. Leases
The Authority exercises judgement in classifying leases in line with IFRS 16 as set out in the note for changes in accounting
policies.
1.3. Property, plant and equipment
Property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.
Cost include costs incurred initially to acquire or construct an item of property, plant and equipment and costs
incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying
amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.
Depreciation is provided using the straight-line method to write down the cost, less estimated residual value over
the useful life of the property, plant and equipment as follows:
Item Depreciation Method Average useful life
Land Not depreciated Not depreciated
Buildings Straight-line basis 50 years
Furniture and fixtures Straight-line basis 5-10 years
Motor Vehicles Straight-line basis 2-5 years
Office equipment Straight-line basis 3 years
IT equipment Straight-line basis 3 years
Leasehold improvements Straight-line basis 8-10 years
Other Fixed Assets Straight-line basis 2-10 years
Server Straight-line basis 15 years
Right-of-use assets Straight-line basis 3 years
If the major components of an item of property, plant and equipment have significantly different patterns of consumption
of economic benefits, the cost of the asset is allocated to its major components and each such component is depreciated
separately over its useful life.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 78
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
1.3. Property, plant and equipment (Continued)
Land is not depreciated.
The residual value, depreciation method and useful life of each asset are reviewed only where there is an indication
that there has been a significant change from the previous estimate.
The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount of
another asset.
The gain or loss arising from the derecognition of an item of property, plant and equipment is included in profit or
loss when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and
equipment is determined as the difference between the net disposal proceeds, if any and the carrying amount of the
item.
1.4. Intangible assets
An intangible asset is recognised when:
• it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity; and
• the cost of the asset can be measured reliably
Intangible assets are initially recognised at cost.
Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.
An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseeable
limit to the period over which the asset is expected to generate net cash inflows. Amortisation is not provided for the
intangible assets, but they are tested for impairment annually, and whenever there is an indication that the asset
may be impaired. For all other intangible assets, amortisation is provided on a straight-line basis over their useful life.
The amortisation period and the amortisation method for intangible assets are reviewed every period-end.
Reassessing the useful life of an intangible asset with finite useful life after it was classified as indefinite is an indicator
that the asset may be impaired. As a result the asset may be tested for impairment and the remaining carrying amount is
amortised over its useful life.
Amortisation is provided to write down the intangible assets, on a straight-line basis, to their residual value as follows:
Item Amortisation Method Useful life
Computer software Straight-line 5 Years
1.5. Financial Instruments - In Terms Of Ifrs 9
A financial instrument is any contract that gives rise to both a financial asset of one entity and a financial liability
or equity instrument of another entity.
1.5.1. Classification as cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities in the balance sheet.
79 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
1.5. Financial Instruments - In Terms Of Ifrs 9 (Continued)
1.5.2. Classification as trade and other receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of
business. They are generally due for settlement within 30 days and therefore are all classified as current. Trade
receivables are recognised initially at the amount of consideration that is unconditional unless they contain
significant financing components, when they are recognised at fair value. The group holds the trade receivables with
the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost
using the effective interest method.
1.5.3. Initial Recognition and Measurement
Financial instruments are initially measured at fair value, with changes in fair value recognised in profit or loss,
as they arise, unless restrictive criteria are met for classifying and measuring the asset at either amortised cost
or fair value through other comprehensive income, plus or minus transaction costs, that are directly attributable
to the acquisition or issue of the financial asset or a financial liability.
When the Authority initially recognises a financial asset - Cash and deposits, they are valued at amortised cost.
1.5.4. Financial assets: Subsequent measurement
The classification of a financial asset is determined at initial recognition, however, if certain conditions are met,
an asset may subsequently need to be reclassified.
Subsequent to initial recognition, all assets within the scope are measured at:
• Amortised cost;
• Fair value through Other Comprehensive Income (FVTOCI); or
• Fair value through profit or loss (FVTPL)
1.5.5. Impairment of financial assets
At each reporting date, the Authority assesses all financial assets, other than those at fair value through profit or
loss, to determine whether there is an objective evidence that a financial asset or group of financial assets has been
impaired.
1.5.6. Financial liabilities: Subsequent measurement
Financial liabilities at amortised cost are subsequently measured at amortised cost, using the effective interest
method.
1.6. Leases - IAS 17
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease
is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.
1.6.1 Operating Leases - lessee
Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference
between the amounts recognised as an expense and the contractual payments are recognised as an operating
lease asset or liability. The liability is not discounted.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 80
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements
1.7. Leases - IFRS 16
Leases are recognized, measured and presented in line with IFRS 16 ‘Leases’.
The Authority recognises a right-of-use asset and lease liability at the commencement of the contract for all leases
conveying the right to control the use of an identified assets for a period in time. The commencement date
is the date on which the lessor makes an underlying asset available for use by a leasee.
The right-of-use assets are initially measured at cost, which comprise:
• the amount of the initial measurement of the lease liability
• any lease payments made at or before commencement date, less any lease incentives
• any initial direct costs incurred by the leasee
• an estimate of costs to be incurred by the leasee in dismantling and removing the underlying assets or
restoring the site on which the assets are located.
After the commencement date the right-of-use assets are measured at cost less any accumulated
depreciation and any impairment losses and adjusted for re-measurement of the lease liability.
If the lease transfers ownership of the underlying asset to the Authority by the end of the lease term or if the cost
of the right-of-use asset reflects that the Authority will exercise a purchase option, the Authority depreciates the
right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise,
the Authority depreciates the right-of-use asset from the commencement date to the earlier of the end of the
useful life of the right-of-use asset or the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid at that date.
These include:
• fixed payments, less any lease incentives receivable;
• variable lease payments that depend on an index or rate, initially measured using the index or rate as
at the commencement date;
• amounts expected to be payable by the leasee under residual value guarantees;
• the exercise price of a purchase option if the leasee is reasonably certain to exercise that option; and
• payments of penalties for terminating the lease, if the lease term reflects the leasee exercising an option
to terminate the lease term.
The lease payments exclude variable elements which are dependent on external factors. Variable lease payments
not included in the initial measurement of the lease liability are recognised directly in surplus or deficit.
The lease payments are discounted using the Authority’s incremental borrowing rate or the implicit rate in the lease
contract.
The lease term determined by the Authority comprises:
• non-cancellable period of lease contracts;
• periods covered by an option to extend the lease, if the leasee is reasonably certain to exercise that option;
• periods covered by an option to terminate the lease, if the leasee is reasonably certain to exercise that
option.
81 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
1.7. Leases - IFRS 16 (Continued)
After the commencement the Authority measures the lease liability:
• increasing the carrying amount to reflect the interest on the lease liability
• reducing the carrying amount to reflect lease payments made, and
• remeasuring the carrying amount to reflect any reassessment or lease modifications.
1.8. Taxation
The Authority is not liable for Income Tax and is not registered for Value Added Tax.
1.9. Impairment of assets
The Authority assesses at each end of reporting period whether there is any indication that an asset may be impaired.
If any such indication exist, the Authority estimates the recoverable amount of the asset.
Irrespective of whether there is any indication of impairment, the Authority also:
comparing its carrying amount with its recoverable amount. This impairment test is performed during the annual period
and the same time every period.
If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced
to its recoverable amount. The reduction is an impairment loss.
An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised immediately
in surplus or deficit. Any impairment loss of a revalued asset is treated as a revaluation decrease.
An entity assesses at each reporting date whether there is any indication that an impairment loss recognised in prior
periods for assets other than goodwill may no longer exist or may have decreased. If any such indication exists, the
recoverable amounts of those assets are estimated.
The increased carrying amount of an asset other than goodwill to a reversal of an impairment loss does not exceed the
carrying amount that would have been determined had no impairment loss been recognised for the asset in prior periods.
A reversal of an impairment loss of assets carried at cost less accumulated depreciation or amortisation other than
goodwill is recognised immediately in surplus or deficit. Any reversal of an impairment loss of a revalued asset is treated
as a revaluation
1.10. Employee benefits
1.10.1. Short-term employee benefits
The cost of short-term employee benefits (those payable within 12 months after the service is rendered, such as leave
pay and sick leave, bonuses and non-monetary benefits such as medical care), are recognised in the period in which the
service is rendered and are not discounted.
The expected cost of compensated absences is recognised as an expense as the employees render services that
increase their entitlement or, in the case of non-accumulating absences, when the absence occurs.
The expected cost of bonus payments is recognised as an expense when there is a legal or constructive obligation to
make such payments as a result of past performance.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 82
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
1.11. Provisions and contingencies
Provisions are recognised when:
• The Authority has a present obligation as a result of a past event
• It is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation; and
• A reliable estimate can be made of the obligation
The amount of a provision is the present value of the expenditure expected to be required to settle the obligation.
1.12. Government grants
Grants from the government are recognised at fair value where there is a reasonable assurance that the grant will be
received and the Authority will comply with all attached conditions.
1.12.1. Deferral and presentation of government grants
Government grants relating to costs are deferred and recognised in surplus or deficit over the period necessary to match
them with the costs that they are intended to compensate.
Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities
as deferred income and they are credited to surplus or deficit on a straight-line basis over the expected lives of the
related assets.
1.13. Revenue
Revenue is recognised to the extent that the Authority has rendered services provided the amount of revenue
can be measured reliably and it is probable that economic benefits associated with the transaction will flow to the
Authority. Revenue is measured at fair value of the consideration received or receivable, excluding trade discounts
and rebates.
1.13.1. Revenue from contracts with customers
Revenue from registrations and applications
Revenue from registrations and applications comprise of business and intellectual property registration fees charged
upon registration. The business and intellectual property fees are charged as per the Regulation published in the
Government Gazette, and the fees are recognized at the point when the Authority has a present right to receive
payment of fees for the registration and application of businesses and intellectual property. Transfer of services is
performed at a point in time.
1.13.2. Revenue from non-exchange transactions
Revenue from Annual Duties / and or returns
Revenue transactions comprise of annual duties and are charged as per the Regulation published in the Government
Gazette, and are recognized over time when the registered entity file an annual return with the Registrar of
Companies and Close Corporations. All registered entities are required by law to pay an annual duty and file an
annual return at the end of the entities financial year. These annual duties are raised in terms of the Regulations of
the Companies and Close Corporation Act.
Fines arising as a result of late remittance and submissions are charged as per the Regulation published in the Government
Gazette, and are recognized when the registered entity file an annual return with the Registrar of Companies
and Close Corporations. Penalties on late payment of fees are charged as per the Regulation published in the
Government Gazette, and are recognized when the application is filed with the Registrar of Companies and Close Corporations.
83 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
1.13. Revenue (Continued)
1.13.3. Investment income
Investment income comprise of interest income received.
Interest income is accrued with reference to the principal amount outstanding, using the effective interest method.
1.14. Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are
capitalised as part of the cost of that asset until such time as the asset is ready for its intended use. The amount of
borrowing costs eligible for capitalisation is determined as follows:
• Actual borrowing costs on funds specifically borrowed for the purpose of obtaining a qualifying asset less
any temporary investment of those borrowings.
• Weighted average of the borrowing costs applicable to the entity on funds generally borrowed for the purpose
of obtaining a qualifying asset. The borrowing costs capitalised do not exceed the total borrowing costs incurred.
The capitalisation of borrowing costs commences when:
• Expenditures for the asset have occurred;
• Borrowing costs have been incurred, and
• Activities that are necessary to prepare the asset for its intended use or sale are in progress.
Capitalisation is suspended during extended periods in which active development is interrupted.
Capitalisation ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use
or sale are complete.
All other borrowing costs are recognised as an expense in the period in which they are incurred.
1.15. Foreign Currency Translation
Foreign currency transactions are translated into functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the
translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates, are generally
recognised in surplus or deficit. They are deferred in equity if they relate to qualifying cash flow hedges and qualifying
net investment hedges or are attributable to part of the net investment in a foreign operation.
Foreign exchange gains and losses that relate to borrowings are presented in the statement of surplus or deficit, within
finance costs. All other foreign exchange gains and losses are presented in the statement of surplus or deficit on a net basis
within other within other gains/(losses).
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date
when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part
of the fair value gain or loss. For example, tralation differences on non-monetary assets and liabilities such as equities held
at fair value through surplus or deficit are recognised in surplus or deficit as part of the fair value gain or loss, and translation
differences on non monetary assets sucg as equities classified as at fair value through other comprehensive income are
recognised in other comprehensive income.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 84
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements
2. CHANGES IN SIGNIFICANT ACCOUNTING POLICIES
The Authority is applying International Accounting Standard 8 (IAS 8)- Accounting Policies, Changes in Accounting
Estimates and Errors, using a prospective application of a change in accounting policy and of recognising the effect of
a change in an accounting estimate, respectively, through:
•applying the new accounting policy to transactions, other events and conditions occurring after the date as at
which the policy is changed; and
• recognising the effect of the change in the accounting estimate in the current and future periods affected by the
change.
In the absence of an International Financial Reporting Standard (IFRS) that specifically applies to a transaction,
other event or condition, the Authority has used its judgement in developing and applying an accounting policy that
results in information that is:
(i) relevant to the economic decision-making needs of users; and
(ii) reliable, in that the financial statements:
• represent faithfully the financial position, financial performance, and cash flows of the entity.
• reflect the economic substance of transactions, other events and conditions, and not merely the legal form.
• are neutral, i.e. free from bias.
• are prudent; and
• are complete in all material respects.
The annual financial statements have been prepared in accordance with International Financial Reporting Standards
on a basis consistent with prior year, except for the adoption of the following new IFRS standards;
• IFRS 16 Leases
• Revenue policy developed by the Authority in line with IAS 8
2.1. IFRS 16 Leases
The Authority initially adopted IFRS 16 Leases from 1 April 2019. Other standards adopted from 1 April 2019 include
new revenue policy developed by the Authority in line with IAS 8, and have a material effect on the financial
statements of the Authority. The Authority applied IFRS 16 using the modified retrospective approach, under
which the cumulative effect of initial application is recognised in retained earnings at 1 April 2019. Accordingly, the
comparative information presented for 2019 is not restated – i.e. it is presented, as previously reported, under IAS 17
and related interpretations. The details of the changes in accounting policies are disclosed below. Additionally, the
disclosure requirements in IFRS 16 have not generally been applied to comparative information.
Definition of a lease
Before, the authority determined at contract inception whether an arrangement was a finance or operating lease.
Now the Authority assess whether a contract is or contains a right-of-use property or operating lease. Therefore, the
definition of lease is ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for
a period of time in exchange for consideration’. As for operating lease, they retain the same definition as per IAS 17.
As a lessee
operating, or finance leases based on its assessment of whether the lease transferred significantly all of the
risks and rewards incidental to ownership of the underlying asset to the Authority. Under IFRS 16, the Authority
recognises right-of-use assets and lease liabilities – i.e. these leases are on-balance sheet.
85 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
2. CHANGES IN SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Leases classified as operating leases under IAS 17
On transition, lease liabilities were measured at the balance value of the remaining lease payments. Both the assets and
liabilities started with the same balance as at 1 April 2019. Right-of-use assets are measured at either:
• an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments: the
Authority applied this approach to all other leases.
The Authority has tested its right-of-use assets for impairment on the date of transition and has
concluded that there is no indication that the right-of-use assets are impaired.
The Authority used a number of practical expedients when applying IFRS 16 to leases previously classified as operating
leases under IAS 17. In particular, the Authority:
• did not recognise right-of-use assets and liabilities for leases for which the lease term ends within 12
months of the date of initial application.
• did not recognise right-of-use assets and liabilities for leases of low value assets (e.g. IT equipment).
• used hindsight when determining the lease term.
Impact on financial statements
On transition to IFRS 16, the Authority recognised additional property as right-of-use asset and additional lease
liabilities, recognising the difference in retained earnings. The impact on transition is summarised below.
Right-of-use Property – PNZ Building
Description Amount (N$)
01.Apr.19
Right-of-use asset 5,939,565
Liabilities 5,939,565
When measuring lease liabilities for leases that were classified as operating leases, the Authority discounted lease
payments using its incremental borrowing rate at 1 April 2019. The rate applied is 10.50%, being the borrowing rate
obtained from the financial
Operating Leases
The following leases were classified as operating leases/remained as operating leases and had no effect on the
financial statements, due to the nature of the lease i.e. short-term lease and low value leases.
Description Amount (N$)
Kamenco Building 1,453,837
Back Office - PZN 69,000
Canon Printers - Konica 521,393
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 86
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
2. CHANGES IN SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.1. IFRS 15
The Authority adopted IFRS 15 – Revenue from contracts with customers, in financial year ended 31 March
2019. IFRS 15 has five key areas which are:
• Identify the contract with a customer
• Identify all the individual performance obligations within the contract.
• Determine the transaction price.
• Allocate the price to the performance obligations.
• Recognize revenue as the performance obligations are fulfilled.
The Authority tested all revenue streams to satisfy itself for all those transactions which meet the require-
ments of IFRS 15. The following were classified to meet the requirements for IFRS 15:
1) Business and intellectual property registration fees
2) Search fees
3) Copies fees, and
4) Amendment fees
Deviation from IFRS 15
Revenue from annual duties, fines and penalties do not meet the requirements of IFRS 15. These revenue streams
fail the test especially section 9 (e ) under IFRS 15, “it is probable that the entity will collect the consideration to
which it will be entitled in exchange for the goods or services that will be transferred to the customer”. Until the
annual return is submitted by the customer, there is no service provided, also fines are determined by the courts of
law and difficult to measure if that has not yet happened. The revenue streams fail to meet exchange transactions
test.
The enforceability of collecting annual d uties is very remote to none. Companies Act 2004 section 184 “Enforce-
ment of duty of company to make returns to Registrar” has the end result in the magistrate’s decision where a
customer has an equal chance of judgement for payment or not. This gives the Authority difficult in measuring and
accounting for annual duties, fines and penalties.
Definition of Exchange transactions are transactions in which one entity receives assets or services, or has liabilities
extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of
assets) to another entity in exchange (IPSAS 23 paragraph 7). The Authority accounts for these transactions under
IFRS 15.
Definition of Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange
transaction, an entity either receives value from another entity without directly giving approximately equal value
in exchange or gives value to another entity without directly receiving approximately equal value in exchange (IPSAS
23 paragraph 7). Annual duties are a form of taxes and to be paid annually by customers. The Authority accounts for
these under IPSAS 23.
87 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
2. CHANGES IN SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The Authority deviates from IFRS 15 to IPSAS 23 on annual duties, fines and penalties transactions in order to provide
a better understanding in the financial information to stakeholders. These transactions are non-exchange transaction
as defined above. The Authority will receive resources and provide no or nominal consideration directly in return, not
commensurate to the service provided.
Recognition of Revenue from Non-Exchange Transactions
An inflow of resources from a non-exchange transaction recognized as an asset shall be recognized as revenue, except to
the extent that a liability is also recognized in respect of the same inflow. The degree of probability attached to the
inflow of resources is determined on the basis of evidence available at the time of initial recognition, which includes,
but is not limited to, submission of the annual return event by the entity.
The Authority will recognize an asset arising from a non-exchange transaction when it gains control of resources that
meet the definition of an asset and satisfy the recognition criteria. The following criteria of recognition is used:
• It is probable that the future economic benefits or service potential associated with the asset will flow to the entity;
and
• The fair value of the asset can be measured reliably
In line with the above, the Authority will account for inflow of resources if it is “probable” that the inflow is more likely
than not to occur. As such, annual duties, penalties and fines not paid during the year, will not be accounted for as
assets and revenues.
Measurement
An asset acquired through a non-exchange transaction shall initially be measured at its fair value as at the date of
acquisition. Revenue from non-exchange transactions shall be measured at the amount of the increase in net assets
recognized by the entity.
Impact of IPSAS on Financial Statements
The impact of this is the Authority will continue reporting without showing amounts on the face of financial statements
or disclosing annual duties, penalties and fines not paid and those that have not submitted annual returns to BIPA.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 88
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
3. NEW STANDARDS AND INTERPRETATIONS
Changes in accounting policies
The annual financial statements have been prepared in accordance with International Financial Reporting Standards on a
basis consistent with the prior year except for the adoption of the following new or revised Standards;
3.1. Application of IFRS 16 Leases
In the current year, the Authority has applied IFRS 16 Leases, which had an effective date of 1 January 2019 as per the
IFRS guidelines. The Authority did not adopt IFRS 16 on the effective date, retrospectively, therefore, the annual financial
statements for the year ended 31 March 2019 were not restated. Details of these new requirements as well as their impact on
the Authority’s financial statements are described below.
The Authority has applied IFRS 16 in accordance with the transition provisions set out un IFRS 16, a modified approach is used.
On adoption of IFRS 16, the Authority recognised lease liabilities and right-of-use assets in relation to leases which had
previously been classified as ‘operating leases’ under the principles of IAS 17 Leases. These liabilities and assets were
measured at the balance of lease as at 1 April 2019 and thereafter, discounted at the rate of 10.50%. Asset value depreciated
up to the end of lease period.
3.2. Practical expedients applied
In applying IFRS 16 for the first time, the Authority has used the following practical expedients permitted by the standard:
• applying a single discount rate to a portfolio of leases with reasonably similar characteristics
• relying on previous assessments on whether leases are onerous as an alternative to performing an impairment review
– there were no onerous contracts as at 1 January 2019.
• accounting for operating leases with a remaining lease term of less than 12 months as at 1 January 2019 as short-term
leases.
• excluding initial direct costs for the measurement of the right-of-use asset at the date of initial application, and
• using hindsight in determining the lease term where the contract contains options to extend or terminate the lease.
3.3. Measurement of lease liabilities
01.Apr.19 01.Apr.18
Operating lease commitments disclosed as at 31 March 2019 6,737,938 -
Discounted using the leasee’s incremental borrowing rate of 10.50% 5,939,565 -
at the date of initial application
Lease liability recognised as at 1 April 2019 5,939,565 -
01.Apr.19 01.Apr.18
Of which are:
Current lease liabilities 4,171,335 -
Non-current liabilities 1,768,230 -
5,939,565 -
89 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
3. NEW STANDARDS AND INTERPRETATIONS (CONTINUED)
3.4. Measurement of right-of-use assets
The associated right-of-use assets for property leases were measured at the lease liability balance on 1 April 2019. Other right-of
use assets were measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease
payments relating to that lease recognised in the balance sheet as at 31 December 2018.
3.5. Standards and interpretations effective and adopted in the current year
The annual financial statements were based on the following standards and interpretations and are effective for the current
year and relevant to the Authority’s operations:
Standard / Interpretations Effective date: Expected Impact
years beginning
on or after
IFRS 16: Leases 01.Jan.19 The impact of the standard is material, as
total assets increased as a result of right-of-
use asset as well as liabilities.
3.6. Standards and interpretations not yet effective
The Authority has chosen not to early adopt the following standards and interpretations, which have been published and
are mandatory for the Authority’s accounting periods beginning on or after 01 April 2019 or later periods.
Standard / Interpretations Effective date: Expected Impact
years beginning
on or after
IFRS 1: First-time Adoption of International Financial 01.Jan.22 Not likely that there will be a material impact
Reporting Standards - Annual Improvements to
IFRS Standards 2018 - 2020
IFRS 7 Financial Instruments Disclosures: 01.Jan.20 Not likely that there will be a material impact
Interest Rate Benchmark Reform
IAS 1 Presentation of Financial Statements: 01.Jan.20 Not likely that there will be a material impact
Definition of Material - The amendments clarify
and align the definition of ‘material’
IAS 1 Presentation of Financial Statements: 01.Jan.22 Not likely that there will be a material impact
Classification of Liabilities as Current or
Non-Current
IAS 8 Accounting Policies, Changes in 01.Jan.20 Not likely that there will be a material impact
Accounting Estimates and Errors
- Definition of Material
IAS 16 Property, Plant and Equipment: Proceeds 01.Jan.22 Not likely that there will be a material impact
before Intended Use
IAS 23 Borrowing Costs: Annual Improvements 01.Jan.19 Not likely that there will be a material impact
2015 - 2017 Cycle
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 90
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
4. RISK MANAGEMENT
4.1. Capital risk management
Capital risk is the potential of loss of part or all of an investment. The Authority’s objectives when managing capital
are to safeguard its ability to continue as a going concern in order to provide financial stability and benefits for other
stakeholders.
4.2. Financial risk management
The Authority manages its financial risk in order to achieve economic value. Liabilities are managed at reasonable
amounts to avoid operational default, legal and reputational risks. Trade receivables, cash and short-term deposits
are managed to avoid default. Liabilities and assets are managed to achieve balanced liquidity for going concern.
4.2.1. Liquidity risk
The Authority’s risk to liquidity is as a result of the funds available to cover future commitments. The Authority
manages the liquidity risks through an ongoing review of future commitments in the form of funding cashflow forecasts
which are prepared and adequate funding facilities are monitored.
The table below summarises the maturity profile of the entity’s financial liabilities at 31 March 2019 based on
contractual undiscounted payments:
At 31 March 2020 Less than 1 Year More than 1 Year
Trade and other payables 11,885,116 -
At 31 March 2019 Less than 1 Year More than 1 Year
Trade and other payables 7,725,007 -
4.2.2. Interest rate risk
The Authority have short-term investments that are managed using agreed interest rate. Any change that might impact
interest rates to negative rates are monitored. The Authority is flexible in terms of withdrawal of funds.
The Authority manages interest rate risk on short-term investments through investment guidelines for all investments
and the Authority invests with major banking institutions with high quality credit standing. The interest received
on cash and cash equivalents at financial institutions are minimal and therefore interest rate risk is identified as
insignificant. Any interest rate achieved by the Authority is highly favored, than keeping the funds idle.
4.2.3. Credit risk
Credit risk is the risk of financial loss to the Authority if a customer or counter-party to a financial instrument fails to meet
contractual obligation and arises from cash deposits and trade receivables. Financial assets exposed to credit risk at
year end were as follows:
At 31 March 2019 2020 2019
Trade and other receivables (excluding deposits) 6,679,024 4,895,843
Less: Loss allowance (6,811) (4,838)
Net trade and other receivables 6,672,213 4,891,005
Cash and cash equivalents 4,558,548 3,183,992
The Authority limits its exposure to credit risk from receivables with ARIPO and WIPO by frequently calling for funds to
Namibia. The Authority monitors its rental deposits with landlords and requests refunds upon termination.
91 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
4. RISK MANAGEMENT (CONTINUED)
4.2.4. Foreign exchange risk
The Authority is exposed to foreign exchange risk, as the entity has financial assets denominated in foreign
currency. These foreign transactions include accrued income from the international listing on trademarks, patents,
industrial designs, utilities and copyrights. Exchange risks are managed through preserving of foreign currency earned
on said country and only bring them when exchange rates are favourable. Financial assets exposed to foreign exchange
risk at year end were as follows:
At 31 March 2020
Financial Instrument Foreign Amount in Amount in Local
Currency Foreign Currency Currency (N$)
Trade and other receivables:
• Accrued income - African Regional Intellectual US Dollar 151,993 2,721,448
Property Organisation (ARIPO)
• Accrued income - World Intellectual Property Swiss Franc 206,163 3,656,271
Organisation (WIPO)
At 31 March 2019
Financial Instrument Foreign Amount in Amount in Local
Currency Foreign Currency Currency (N$)
Trade and other receivables:
• Accrued income - African Regional Intellectual US Dollar 97,475 1,410,257
Property Organisation (ARIPO)
• Accrued income - World Intellectual Property Swiss Franc 203,058 2,998,633
Organisation (WIPO)
4.2.5. Going concern risk
The Authority has assessed the going concern risk. Based on cash flow projections for the year 2020/2021, the
Authority will continue without facing going concern risk.
4.2.6. Market risk
The Authority has been established as a public enterprise under the BIPA Act, 2016 (Act No.8 of 2016), mandated to
administer the registration of businesses, collect annual duties and protection of intellectual property thereof. The
Authority is therefore the only entity mandated to so, thus does not give exposure to market risk. However, the
COVID-19 pandemic is likely to impact the Authority’s business, as most businesses are likely to default on payments
of annual duty.
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 92
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
4. RISK MANAGEMENT (CONTINUED)
4.2.6.1. Fair value hierarchy
Recurring fair value measure- Level 1 Level 2 Level 3 Total
ments as
at 31 March 2020
Financial assets
Financial assets at fair value
through profit or loss:
• Trade and other receivables - - 6,672,213 6,672,213
(excluding deposits)
• Other financial assets - - 26,917,589 26,917,589
• Cash and cash equivalents - - - -
Total financial assets - - 33,589,802 33,589,802
Financial liabilities
• Trade and other payables - - 11,885,116 11,885,116
Total financial liabilities - - 11,885,116 11,885,116
93 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
2020 2019
N$ N$
5. PROPERTY, PLANT AND EQUIPMENT
2020 2019
Cost / Accumulated Carrying Cost / Accumulated Carrying
Revaluation Depreciation value Revaluation Depreciation value
Furniture and fixtures 2,519,523 (763,119) 1,756,404 2,205,863 (536,485) 1,669,378
Motor vehicles 1,765,926 (1,279,442) 486,484 1,765,926 (1,034,088) 731,838
Office equipment 698,680 (201,537) 497,143 170,789 (94,750) 76,039
IT equipment 2,956,819 (1,956,100) 1,000,719 2,076,265 (1,428,621) 647,644
Other Fixed Assets 6,542,951 (555,705) 5,987,246 4,827,691 (183,519) 4,644,172
Capital work in progress 12,842,529 - 12,842,529 12,842,529 - 12,842,529
27,326,428 (4,755,903) 22,570,525 23,889,063 (3,277,463) 20,611,600
Reconciliation of property,
plant and equipment - 2020
Opening Other
balance adjustments Additions Disposals Depreciation Total
Furniture and fixtures 1,669,378 - 313,660 - (226,634) 1,756,404
Motor vehicles 731,836 2 - - (245,354) 486,484
Office equipment 76,038 1 527,891 - (106,787) 497,143
IT equipment 647,645 (1) 880,554 - (527,479) 1,000,719
Other Fixed Assets 4,644,171 1 1,715,260 - (372,186) 5,987,246
Capital work in progress 12,842,529 - - - - 12,842,529
20,611,597 3 3,437,365 - (1,478,440) 22,570,525
Reconciliation of property,
plant and equipment - 2019
Opening
balance Additions Disposals Depreciation Total
Furniture and fixtures 2,240,160 74,933 (425,129) (220,586) 1,669,378
Motor vehicles 782,257 297,615 - (348,036) 731,836
Office equipment 89,824 29,520 - (43,306) 76,038
IT equipment 884,747 308,469 - (545,571) 647,645
Other Fixed Assets 1,227,416 3,514,759 - (98,004) 4,644,171
Capital work in progress 12,842,529 - - - 12,842,529
18,066,933 4,225,296 (425,129) (1,255,503) 20,611,599
6. INTANGIBLE ASSETS
2020 2019
Cost Accumulated Carrying Cost Accumulated Carrying
amortisation value amortisation value
Computer Software 4,418,614 (285,810) 4,132,804 - - -
4,418,614 (285,810) 4,132,804 - - -
Reconciliation of intangible
assets - 2020
Opening
balance Additions Disposals Amortisation Total
Computer Software - 4,418,614 - (285,810) 4,132,804
- 4,418,614 - (285,810) 4,132,804
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 94
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
2020 2019
N$ N$
7. TRADE AND OTHER RECEIVABLES
Current assets
Deposits 403,522 423,145
Staff Advances 293,440 63,808
Accrued income - African Regional Intellectual Property Organisation 2,721,448 1,410,257
Accrued income - World Intellectual Property Organisation 3,656,271 2,998,633
Other receivables - Ministry of Industrialization and Trade 7,865 -
Less: Loss allowance (see note 7.(iii)) (6,811) (4,838)
7,075,735 4,891,005
(i) CLASSIFICATION OF TRADE RECEIVABLES
Trade receivables are amounts due from customers for services performed during the course of the business. They
are generally due within 30 days and therefore are all classified as current. Trade receivables are recognised initially at
the amount of consideration that is unconditional unless they contain significant financing conditions, when they are
recognised at fair value. The Authority holds trade receivables with the objective to collect the contractual cash flows and
therefore measures them subsequently at amortised cost using the effective interest method. Details about the Authority’s
impairment policies and the calculation of the loss allowance are provided in note 1.5.5.
(ii) FAIR VALUE OF TRADE RECEIVABLES
Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair
value.
(iii) IMPAIRMENT AND RISK EXPOSURE
Information about impairment of trade receivables and the Authority’s exposure to credit risk, foreign currency risk
and interest rate risk can found in note 1.10, 4.2.2, 4.2.3, 4.2.4.
Exposure to credit risk
Trade receivables inherently expose the Authority to credit risk, being the risk that the Authority will incur financial loss
if customers fail to make payments as they fall due.
The Authority’s historical credit loss experience does not show significantly different loss patterns for different
customer segments. The provision for credit losses is therefore based on past due status without disaggregating into
further risk profiles. The loss allowance provision is determined as follows:
2020 2020 2019 2019
Estimated gross Loss allowance Estimated gross Loss allowance
carrying amount at (Lifetime expected carrying amount (Lifetime expected
default credit loss) at default credit loss)
Not past due: 0.1% (2019: 0.1%) 6,781,241 6,781 4,832,034 4,832
Less than 30 days past due: 0.01%
(2019:0.01%) 301,305 30 63,808 6
31 - 60 days past due: 1% (2019:1%) - - - -
61 - 90 days past due: 1% (2019:1%) - - - -
91 - 120 days past due: 1%
(2019:1%) - - - -
7,082,546 6,811 4,895,842 4,838
95 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
2020 2019
N$ N$
8. OTHER FINANCIAL ASSET
Fair value through profit or loss (FVTPL)
Unit trusts
• Opening balance as at 1 April 2019 15,273,714 634,122
Movements for the year
• Money invested 20,300,000 22,350,363
• Money withdrawn (10,000,000) (8,000,000)
• Dividend received and reinvested 1,343,875 289,229
Total movement 11,643,875 14,639,592
Carrying value 26,917,589 15,273,714
Fair value 26,917,589 15,273,714
(i) CREDIT QUALITY OF OTHER FINANCIAL ASSETS
The credit quality of cash at bank and short-term deposits excluding cash on hand that are neither
past due nor impaired can be assessed by reference to external credit ratings (if available) or historical
information about counterparty default rates:
CREDIT RATING:
Capricorn Asset Management (Pty) Limited (A1+ Moody’s credit rating) 26,917,589 15,273,714
9. CASH AND CASH EQUIVALENTS
Current assets
Cash in hand 1,703 -
Cash at bank (1,009,342) 43,916
Deposits at call 5,566,186 3,140,076
4,558,548 3,183,992
(i) RECONCILIATION TO CASH FLOW STATEMENT
The above figures reconcile to the amount of cash shown in the statement of cash flows at the end of the
financial year as follows:
Balances as above 4,558,548 3,183,992
Balances statement of cash flows 4,558,548 3,183,992
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 96
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
9. CASH AND CASH EQUIVALENTS (CONTINUED)
(ii) CREDIT QUALITY OF CASH AT BANK AND SHORT-TERM DEPOSITS EXCLUDING CASH IN HAND
The credit quality of cash at bank and short-term deposits excluding cash on hand that are neither past due
nor impaired can be assessed by reference to external credit ratings (if available) or historical information about
counterparty default rates:
2020 2019
N$ N$
CREDIT RATING:
Bank Windhoek Limited (A1+ Moody’s credit rating) (11,421) 3,181,176
CREDIT RATING:
First National Bank Namibia (A1+ Moody’s credit rating) 4,084,341 -
CREDIT RATING:
Nedbank Namibia (A1+ Moody’s credit rating) 483,925 -
10. TRADE AND OTHER PAYABLES
Trade creditors 2,212,660 579,747
Other Payables - Namibia Training Authority 181,874 181,874
Sundry creditors 1,565,130 -
Provision for salary bonus 3,939,000 3,900,000
Provision for leave pay 3,986,452 3,063,386
11,885,116 7,725,007
Due to the short nature of trade and other payables the fair value approximate the carrying amount.
11. CONTRIBUTION 34,491,766 34,491,766
The BIPA established under the BIPA Act, 2016 (Act No. 8 of 2016) took over all the assets and liabilities of the BIPA
established under section 21 of the Companies Act.
RECONCILIATION
Opening balance 34,491,766 34,491,766
Contributions during the year - -
Balance as at year end 34,491,766 34,491,766
12. DEFERRED INCOME
Donation received - Deutsche Gesellschaft fur Internationale Zusammenarbeit 3,247,039 3,478,970
3,247,039 3,478,970
97 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
13. REVENUE FROM CONTRACTS WITH CUSTOMERS
13.1 Disaggregation of revenue from contract with customers
Timing of Timing of revenue Revenue Revenue from
revenue recognition from external external
recognition - At point in time customers customers
- Over time - 2020 - 2019
Income from Registrations of
Companies, Close Corporation
and Defensive names - 4,839,232 4,839,232 4,423,714
Income from Amendments of
Companies and Close - 840,476 840,476 345,212
Corporation
Registration of Trademarks,
Patents and Copyrights - 4,370,079 4,370,079 1,992,518
Other income - file request and
copies - 73,429 73,429 228,483
Total - 10,123,216 10,123,216 6,989,927
13.2. Disaggregation of revenue from non-exchange transactions
Timing of Timing of revenue Revenue Revenue from
revenue recognition from external external
recognition - At point in time customers customers
- Over time - 2020 - 2019
Income from Annual Duties and 46,152,840 40,540,510
Returns
Total 46,152,840 40,540,510
2020 2019
N$ N$
14. OTHER INCOME
2,766,991 3,377,402
Share of fees - African Regional Intellectual Property Organisation (ARIPO)
Sundry Income 13,100 96,441
Share of fees - World Intellectual Property Organisation (WIPO) 3,092,114 3,283,096
Government Grants - Ministry of Industrialization and Trade (“MIT”) 21,500,000 8,000,000
Profit on sale of property, plant and equipment - 4,515
Grant received (Cash) - Deutsche Gesellschaft fur Internationale 1,282,584 -
Zusammenarbeit
Donation received (Deferred income) - Deutsche Gesellschaft fur
Internationale
Zusammenarbeit 231,931 -
Exchange (gain)/loss 1,417,815 1,023,760
30,304,535 15,785,214
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 98
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
2020 2019
N$ N$
15. OPERATING SURPLUS / (DEFICIT)
Operating Surplus / (Deficit) for the year is stated after accounting
for the following:
Operating lease charges
Premises
• Contractual amounts - Head office (Short-term lease) 1,522,837 2,887,094
• Contractual amounts - BRB Building - 907,209
Equipment
• Contractual amounts (Low value lease) 521,393 282,292
Depreciation on property, plant and equipment (note 5,6 & 21) 4,063,436 1,393,925
Employee costs 48,178,151 44,017,003
16. EMPLOYEE COSTS
Basic Salaries 34,593,780 31,151,736
Pay As You Earn (PAYE) 7,256,554 6,889,450
Medical Aid 1,352,335 1,264,857
Nedloans Contributions 72,738 -
Namibia Public Workers Union (NAPWU) 120,546 -
Defined Pension Fund 4,510,359 4,517,958
Social Security Contribution 271,839 193,002
48,178,151 44,017,003
17. TAXATION
The Authority is exempt from income tax in terms of section 16(1) of the Income Tax Act of Namibia, as amended.
18. FINANCE INCOME AND COSTS
Finance income
Bank 165,775 69,670
Interest on short term Investments 1,343,875 289,229
1,509,650 358,899
Finance costs
Finance charges paid/payable for lease liabilities (512,585) -
Net finance income 997,065 358,899
99 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
2020 2019
N$ N$
19. AUDITOR’S REMUNERATION
Auditor’s fees 148,586 303,474
148,586 303,474
20. CASH USED IN OPERATIONS
Surplus for the year 17,015,434 61,936
Adjustments for:
Depreciation and amortisation 4,063,436 1,393,925
(Gain) loss on foreign exchange (1,417,815) (1,023,760)
Finance income - net - (358,899)
Non-cash investing and financing activities
• Balancing figure 24,829 -
Changes in working capital:
Decrease / (Increase) in trade and other receivables (2,184,730) 7,594,781
(Decrease) / Increase in trade and other payables 4,160,109 (2,752,259)
21,661,263 4,915,724
21. LEASES
21.1. Amounts recognised in the statement of financial position
The statement of financial position shows the followings relating to leases:
Right-of-use assets
Opening balance 5,939,565 -
Depreciation (2,299,186) -
3,640,379 -
There were no additions to the right-of-use assets during the year.
Lease liabilities
Current 2,370,781 -
Non-Current 1,620,877 -
3,991,658 -
21.2. Amounts recognised in the statement of surplus or deficit
The statement of comprehensive income shows the following
amounts relating to leases:
Depreciation charge-of-right of use
Buildings 2,299,186 -
2,299,186 -
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 100
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
2020 2019
N$ N$
21. LEASES (CONTINUED)
21.3. Operating lease - as leasee (expense)
Interest expense (included in finance costs) 512,585 -
Expense relating to short-term leases (included in cost of goods sold and
administrative expenses) 1,522,837 -
Expense relating to variable lease payments not included in lease liabilities
(included in administrative expenses) 521,393 -
The Authority leases various equipment and office building. All have a fixed term lease periods of three years.
The lease terms are negotiated differently and have different terms of conditions. Extensions and termination are
explicitly included.
Right-of-use leases asset are depreciated at the shorter of asset’s useful life and the lease term on a straight line.
22. RELATED PARTIES
22.1. RELATIONSHIP
Related party relationship exists between the Authority and:
Entity / Organisation Relationship
Key Management
Ministry of Public Enterprises State Enterprise Governance / Government
Ministry of Industrialization and Trade (“MIT”) Line Ministry / Government
Ministry of Finance Treasury / Government
African Regional Intellectual Property Organisation (ARIPO) Member State
World Intellectual Property Organisation (WIPO) Member State
Corporate Registers Forum (CRF) Member State
22.2. TRANSACTIONS
Related party transactions:
22.2.1. Key Management
• Chief Executive Officer and Executives 2,970,646 4,457,188
Key management comprises of the Chief Executive Officer, three (3) Executives and two (2) Acting Executives.
22.2.2. Other Income
• Share of fees - African Regional Intellectual Property Organisation (ARIPO) 2,766,991 3,377,402
• Share of fees - World Intellectual Property Organisation (WIPO) 3,092,114 3,283,096
22.2.3. Government Grants
• Ministry of Industrialization and Trade (“MIT”) 21,500,000 8,000,000
101 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Notes to the Annual Financial Statements (Continued)
2020 2019
N$ N$
22. RELATED PARTIES (CONTINUED)
22.2.4. Operating expenses
• ARIPO Specific Membership Contribution 461,913 -
• WIPO Membership Contribution 41,216 -
• CRF Membership Contribution 6,028 -
• State-Owned Enterprise CEO Forum Membership Contribution 20,000 -
529,157 -
22.3. BALANCES
Related party balances:
22.3.1 Trade and other receivables
• African Regional Intellectual Property Organisation (ARIPO) 2,721,448 1,410,257
• World Intellectual Property Organisation (WIPO) 3,656,271 2,998,633
• Ministry of Industrialization and Trade (“MIT”) 7,865 -
23. BOARD MEMBERS EMOLUMENTS
Non-Executive Directors emoluments consists of:
• Sitting and retainer allowances 229,178 365,204
• Travelling expenses (Daily Subsistence & Travel Allowance) 178,420 146,921
407,598 512,125
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 102
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Detailed Statement of Surplus or Deficit and Other Comprehensive Income
2020 2019
N$ N$
Revenue
Income from Registrations of Companies, Close Corporation and Defensive 4,839,232 4,423,714
names
Income from Amendments of Companies and Close Corporation 840,476 345,212
Income from Annual Duties and Returns 46,152,840 40,540,510
Registration of Trademarks, Patents and Copyrights 4,370,079 1,992,518
Other income - file request and copies 73,429 228,483
56,276,056 47,530,437
Other income
Share of fees - Africa Regional Intellectual Property Organisation (ARIPO) 2,766,991 3,377,402
Sundry income 13,100 96,441
Share of fees - World Intellectual Property Organisation (WIPO) 3,092,114 3,283,096
Government Grants - Ministry of Industrialization and Trade (“MIT”) 21,500,000 8,000,000
Grant received (Cash) - Deutsche Gesellschaft fur Internationale Zusam- 1,282,584 -
menarbeit (GIZ)
Interest received 1,509,650 358,899
Profit on sale of property, plant and equipment - 4,515
Donation received (Deferred income) - Deutsche Gesellschaft
fur Internationale Zusammenarbeit (GIZ)
231,931 -
Exchange (gain)/loss 1,417,815 1,023,760
31,814,185 16,144,113
Expenses (Refer to page 100 & 101) (71,074,807) (63,612,614)
Surplus for the year 17,015,434 61,936
The supplementary information presented does not form part of the annual financial statements and is unaudited
103 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Detailed Statement of Surplus or Deficit and Other Comprehensive Income (Continued)
Note(s) 2020 2019
N$ N$
Operating expenses
ARIPO Specific contribution 461,913 559,610
Advertising 343,949 106,677
Auditors remuneration 19 148,586 303,474
Bank charges 245,546 235,595
Bar-coding retrieval file 1,365,779 960,804
Books, Journals and Manuals 20,904 69,268
Cleaning 99,687 71,879
Computers expenses 853,800 383,141
Consulting fees 2,457,887 520,723
Consumables - 67,697
Courier & Postage 472,814 562,420
Covid - 19 expenses 300,643 -
Depreciation and amortisation 5,6 &21 4,063,436 1,393,925
Directors fees 229,178 365,204
Electricity & Water 557,934 1,191,360
Employee costs 16 48,178,151 44,017,003
Endowment fee - 156,555
Finance costs 512,585 -
Flowers & Gifts - 10,465
Loose tools and equipment 16,560 4,349
Loss allowance 6,811 4,838
Insurance 123,013 132,413
Lease of machinery 521,393 282,292
Legal expenses - 818,713
Loss on exchange difference - -
Motor vehicle expenses 173,403 108,818
Membership fees 54,205 79,164
NTA - VET Levy 505,782 621,176
Parking fees and fines 1,000 -
Printing & Stationery 947,486 1,007,034
Printing of registration documents - 62,258
Promotions 23,696 37,107
Rent Paid 1,522,837 3,862,718
Recruitment expenses 43,706 56,765
Refreshments 69,881 96,933
The supplementary information presented does not form part of the annual financial statements and is unaudited
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 104
Business and Intellectual Property Authority
Public Enterprise established under the BIPA Act, 2016 (Act No. 8 of 2016)
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2020
Detailed Statement of Surplus or Deficit and Other Comprehensive Income (Continued)
Note(s) 2020 2019
N$ N$
Relocation Expenses - 2,990
Repair & Maintenance 684,997 521,451
Retreats, Conferences and Team Building 98,889 44,042
Security 864,264 713,115
Silnam Support Services 1,932,000 2,549,609
Telephone & fax 1,265,067 1,013,327
Training/Capacity Building 360,283 9,100
Travelling costs 1,459,116 441,896
WIPO Contribution 41,216 41,700
WIPO Day 24,848 116,330
Wellness event 21,562 8,676
71,074,807 63,612,614
The supplementary information presented does not form part of the annual financial statements and is unaudited
105 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020
BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020 106
HEAD OFFICE
PZN Building, 3 Ruhr Street
Northern Industrial Area
Windhoek, Namibia
P O Box 185, Windhoek
Tel: 061 299 4400
KATUTURA OFFICE
Erf No: 2780 Shire street
Wanaheda
Extension 2
Tel: 061 299 4452
REGIONAL OFFICE: ERONGO
Sam Nujoma Avenue, No 3147
Walvis Bay, Erongo Region
Tel: +264 64 464 178
Email: region@bipa.na
107 BUSINESS AND INTELLECTUAL PROPERTY AUTHORITY ANNUAL REPORT 2019 - 2020