A South African High Court decision in 2004, Couve and another v Reddot International (Pty) Limited and others, introduced exchange control requirements for the assignment of IP rights to foreign entities.
A South African High Court decision in 2004, Couve and another v Reddot International (Pty) Limited and others, introduced exchange control requirements for the assignment of IP rights to foreign entities.
In the Reddot case, the court held that assignments of patent rights from South African exchange control residents to foreign entities are subject to Regulation 10(1)(c) of the Exchange Control Regulations, 1961. Hence, prior Treasury approval is required, failing which the assignments are null and void. It was interpreted widely to apply to all other forms of intellectual property.
Regulation 10(1)(c) provides that:
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exchange control, IP rights
