Mazibuko Motors Innovation Success lies in Intellectual Property Management

Hawa Saidi (220082625)

Abstract

The goal of intellectual property (IP) is to encourage advancement and innovation. The most
frequent types of IPRs are patents, copyrights, geographical indications, trademarks,
industrial design, and trade secrets. Intellectual property rights (IPR) are legal protections
granted to innovations or mental works. Considering today's quick speed of technological
progress, intellectual property has become increasingly important. In several domains of
business, intellectual property rights (IPRs) are becoming increasingly important. Patents
serve as a source of legal (inventors, ownership, claims, reassignments, etc.) as well as
technologically rich previous art (background, specifications, etc). Patents incorporate full
literary depictions of the creations as well as drawings of electrical, mechanical, and synthetic
designs. A patent is conceded to a creation that meets the prerequisites of overall curiosity,
non-conspicuousness, and industrial applicability. IPR is expected for better innovation or
innovativeness identification, arranging, promoting, delivering, and in this way security.

Keywords: Intellectual property, innovations, patents, electrical vehicles, The Mazibuko

company

Introduction

Individual businesses benefit from innovation by contributing to capacity expansion and

creating more capital investments, productivity, technical advancement, employment, and
growth (Stam & van Stel 2011). It is inadequate for a company to imagine something new
and supportive. The company should likewise find true success in catching the worth of its
advancement (Teece, 2010). The demonstration of catching the worth of one's thoughts and
interests in creating and putting up them for sale to the public is alluded to as apportionment
in the writing on advancement. Competitors may duplicate a company's offerings without
making a major expenditure if it is unable to utilize or capture the value of its intellectual
property. This could reduce its competitive advantage, as well as the desire to continue
engaging in high-risk innovative initiatives (Teece, 2010).

Intellectual property is becoming a more asset in the commercial world. Intellectual property
includes copyrights, patents, and trademarks, among other things. Novel inventions, creative
works, literary works, and a company's distinguishing signs are all examples of intellectual
property (Eppinger, & Vladova, 2013). Intellectual property protection helps a company to
develop by sharing its discoveries while keeping its ownership rights. To properly secure the
company's assets, business owners must comprehend the value of intellectual property.
Intellectual property security is becoming increasingly widely recognized as a critical
component of a company's success and worth. Investing in intellectual property protection
will shield a company's most valuable assets from being exploited by competitors (Eppinger,
& Vladova, 2013).

Furthermore, the purpose of this paper is to review research on the Mazibuko company and
whether the company’s success lies in intellectual property. This paper begins by discussing
the theorical view of intellectual property. It will then go on to discuss the conceptual
framework of how the Mazibuko company can use the intellectual property such as patents,
trademarks, copyright etc., to protect their innovation, how can the Mazibuko company can
enforce intellectual property rights in a foreign country, the patent parts that need to be patent
and the advantages and the disadvantages that comes with enforcing intellectual property in
the business. Finally, the paper will discuss the findings found on intellectual property on
automotive businesses and some recommendations the Mazibuko company can take into
consideration with regards to intellectual property as an automotive company.

Background

As the demand for electric vehicles grows, more manufacturers are creating new electrical
vehicles models from scratch. These so-called "native" Vehicles allow for even more
customization of the vehicle's design (Schmitt et al., 2016). Likewise, Nhlanhla Mazibuko,
invented South Africa’s every own first electrical vehicle, which unveiled what would be
South Africa's first battery-electric pick-up bakkie (Smith, 2021). Mazibuko Motor Company,
which was established this year, has been developing this ingenious new car behind closed
doors since last year. The design is not unique in the world of electric pickups, but it is
nevertheless a pleasant route to go in. However, there is currently no timetable for when the
Mazibuko M1B will be manufactured. Currently, the business is seeking further investment
for the electric bakkie, some of which we anticipate will go toward the infrastructure needed
to maintain them on the road (Smith, 2021).

Thermal management technologies are now being developed and optimized for the South
African climate. Meanwhile, the company has partnered with the MIH Alliance, a Foxconn-
founded open-source platform (the company that manufactures Apple iPhones) (Thukwana,
2021). The company is expecting that its MIH EV platform, which other electric car
manufacturers can utilize to construct their own vehicles, would help re-energize the market
for electric vehicles. Other notable members of the partnership include Amazon and
Microsoft (Thukwana, 2021). Moreover, for the Mazibuko bakkie to be successful its success
lies in intellectual property.

Literature Review

Theoretical Framework

For firms to profit financially from investing in research and developing new innovations,
those inventions must be legally protected. Intellectual property rights refer to the legal
framework that governs research and development and innovation. The extent to which
intellectual property is protected and intellectual property legislation are enforced varies by
country. Property rights that are strong, enforceable, and consistent help to flatten the world.
However, the world will remain far from flat in terms of innovation if significant variations in
property rights exist around the world (The economic Times, 2015).

Intellectual property (IP) is a legal term that encompasses copyrights, patents and trademarks,

all of which guarantee legal protection for ideas, their expression, and the inventors and
artists who produced them (McSherry, 2003). In the context of society, innovation refers to
new and widely accepted developments (Barnett, 1953, as cited in Ram,1987). Innovations
are important not only for technological and economic progress, but also for cultural
development. There are several types of innovations, including technological innovations,
service innovations, financial innovations, managerial innovations, and so on. The most
straightforward way for a firm to safeguard its intellectual property is to keep it hidden—to
create a trade secret (Barnett, 1953, as cited in Ram,1987). This is how companies like
Tesla safeguards its wildly popular cars. If the secret were discovered or exposed with evil
purpose, trade secret legislation would allow the culprit to be punished, which might include
criminal prosecution. Tesla on the other hand, would be unable to prohibit a competitor from
developing the identical motor cars on its own. As a result, businesses turn to other forms of
intellectual property protection, such as patents and copyrights (Millwood, 2018).

Patent

Patenting an industrial discovery or invention is the most conventional way to safeguard it. A
patent is a selective right granted for an innovation, which is an item or a cycle that gives
another specialized answer for an issue or a better approach for following through with
something. It gives the patent holder assurance for their advancement. The insurance is just
presented briefly, 20 years. Without the consent of the patent proprietor, the advancement
cannot be industrially made, used, dispersed, or sold (Savale, & Savale, 2016). During the
period in which the innovation is secured, the patent proprietor has the power to choose who
may - and who may not - utilize the licensed creation. Based on concurred together upon
conditions, the patent proprietor might give authorization to, or permit, outsiders to utilize the
development. The proprietor of the patent may offer the right to the development to another
person, who will then, at that point, be the new patent proprietor (Savale, & Savale, 2016). At
the point when a patent terminates, the security of the development closes, and the creation
enters the public space, and that implies that the proprietor no longer has selective privileges
to the innovation, and it is available to financial double-dealing by others (Savale, & Savale,
2016). 

Moreover, imitation is a typical type of corporate conduct that may be found in a range of
industries. Firms emulate one another when it comes to the introduction of new products and
processes, managerial approaches and organizational structures, market entry, and investment
timing. Imitation, despite its common occurrence, can have a wide range of causes and
consequences (Lieberman, & Asaba, 2006). Firms may mimic to avoid falling behind their
competitors, or because they believe that the behaviours of others communicate information.
Competition can be heightened by mirroring rivals' activities, or it can be harmed by
encouraging collaboration. Imitation can either encourage fruitful innovation or magnify the
mistakes of early adopters (Lieberman, & Asaba, 2006). As a result, imitation can have
significant beneficial or adverse consequences for individual businesses and society as a
whole. Due the fear of imitation, some companies such as Tesla the has acquired new patents.
Where Musk's cornerstone strategy has been the integration of vehicle software and
hardware. Tesla automobiles receive "over-the-air" updates on a regular basis. Even fully
autonomous driving can be made possible with a software upgrade.

Furthermore, with regards to above the computer-generated created renderings of the

Mazibuko bakkie do not seem to depend on proficient principles and the plan shows up the
same as that of the Rivian bakkie, which might present legitimate issues down the line
(Cars.co.za., 2021). This may therefore have significant impact on the continuation on the
production of the bakkie.
Inventors can use many forms of patent applications to protect several types of inventions.
Inventors who are well-versed in the many types of patent applications can obtain the rights
they require to protect their ideas (Barnett, 1953, as cited in Ram,1987). In the same way the
Mazibuko motor company may use the following four distinct types of patents:

Utility patents

The most common type of patent sought is a utility patent. This sort of patent includes novel
and valuable techniques, compositions of materials, machines, and manufactures. For novel
and beneficial improving existing processes, compositions of matter, machinery, and
manufactures, a utility patent can be obtained (FindLaw, 2016). Any act or way of doing
something is referred to as a process, which commonly involves industrial or technological
procedures. Chemical compositions, which can comprise a blend of materials or novel
chemical compounds, are what matter compositions are all about. Machines are defined as
items that are produced or made, while manufactures are defined as things that are commonly
described as a machine, such as a computer (FindLaw, 2016).

Design patents

A design is described as the "surface decoration" of an object, which can include the shape or
arrangement of an object, in terms of getting a design patent. The design must be inseparable
from the object to receive this form of patent protection. A design patent will only cover the
product's look, even if the object and its design are intertwined. A utility patent must be
applied for to protect an object's functional or structural features (FindLaw, 2016).

Plant patents

To protect novel and unique plants, a plant patent can be obtained. The plant must not be a
tuber propagated plant (i.e., an Irish potato), it must not be found in an uncultivated state, and
it must be able to reproduce itself asexually to qualify for this sort of patent. Instead of being
replicated by seed, asexual reproduction refers to the process of grafting or cutting the plant.
Asexual reproduction is required for plant patents as confirmation that the patent applicant
can replicate the plant (FindLaw, 2016).

Unfortunately, the actual patentability test is a little more difficult than how it is just
suggested. An invention is only patentable in the United States if it fits the following four
requirements (BITLAW, 2022):
  The invention must be legal (subject matter eligible)
 It must be a novel (new) invention.
 It is necessary that the invention be beneficial.
 The invention must be non-obvious

Trademarks

A trademark is a distinctive imprint that recognizes specific labour and products as those
created or presented by a particular individual or business. It very well may be a solitary
word, letter, or number, or a blend of them. Drawings, images, three-layered signs like the
shape and bundling of products, discernible signs like music or vocal sounds, scents, or tones
used as separating components are examples (Savale, & Savale, 2016). It guarantees the
restrictive right to utilize the imprint to distinguish items or administrations, or the option to
approve one more to involve it in return for instalment, to the mark’s owner. It aids
consumers in identifying and purchasing a product or service because the nature and quality
of the product or service, as represented by the unique trademark, satisfies their requirements
(Savale, & Savale, 2016). A trademark registration is simple example proof of ownership,
providing the owner statutory rights. Trademark rights can be kept indefinitely. The original
term of registration is ten years, and it can be renewed at any time after that (Savale, &
Savale, 2016).

Copyrights

Copyright is a legal word that refers to the rights granted to authors and artists for their
literary and aesthetic works. Scholarly works, for example, books, plays, sonnets reference
works, newspapers, and software programs, films, melodic arrangements, and movement;
creative works, like drawings, compositions, photos, and architecture; design, commercials,
guides, and specialized drawings are instances of works safeguarded by copyright (Sharma,
2014). Since copyright is inherent in the creation of a work, registration is not required.
However, enrolling work in return for cash, makers much of the time offer the freedoms to
their works to people or companies the most appropriate to advance them. These instalments
are in many cases made dependent upon the work's real use and are known as royalties. These
business privileges have a period limit, which is for the creator's lifetime in addition to sixty
years after the maker's passing (Sharma, 2014).

Trade Secrets
A trade secret could be confidential commercial information that gives an organization a
competitive advantage. These are usually industrial or manufacturing secrets, as well as
commercial secrets. Sales techniques, distribution models, consumer profiles, advertising
strategies, supplier and customer lists, and manufacturing processes are among them (Savale,
& Savale, 2016). Trade secrets, unlike patents, are safeguarded without the need for
registration. A trade secret can be preserved for an indefinite amount of time, but there must
be a considerable element of secrecy so that obtaining the information is difficult unless using
unlawful means. Given the abundance of traditional knowledge in the country, protection
under this law will be critical in enjoying the benefits of such information. Geographical
markers are also tied to/associated with trade secrets and traditional knowledge (Savale, &
Savale, 2016).

Furthermore, employees may steal trade secrets learned on the job and depart for a
competitor company, which is one of the risks businesses face. Hence, one of the most
effective ways to avoid this is to use nondisclosure agreements (NDAs). An NDA is an
agreement in which the employee agrees to keep secret information provided during
employment or other forms of commercial dealings confidential (Twin, 2021). An employer
can ensure that its secrets stay secret by employing a nondisclosure agreement to give the
organization legal action against an employee who wrongfully exposes them. In almost every
business, non-disclosure agreements (NDAs) are employed. They are especially widespread
in the technological business, especially among Internet, automobile, and computer firms
(Twin, 2021).

Therefore, when disclosing secret material in a confined setting, such as a meeting with a
potential suitor of the company, NDAs can also be employed. The Mazibuko company may
require meeting attendees to sign a non-disclosure agreement (NDA) in connection with any
papers or data shared during the meeting so that can speak freely. If the company has an
NDA with someone who violates it by disclosing their secret without their permission, then
the business can ask the court to order the violation to stop. The business might also sue for
damages because of the incident (Twin, 2021).

Unlike patents, trade secrets can be kept indefinitely if the confidential and proprietary
information is kept hidden and the owner takes reasonable precautions to keep it that way.
Trade secret protection, while enticing, has its own set of potential downsides. For one thing,
trade secrets can only be enforced if they are protected and not misappropriated (Schwartz,
2013). Furthermore, trade secrets cannot be enforced against anyone who reverse-engineered
the technology or independently invented an identical idea. A trade secret is also lost when it
is accidentally revealed. Companies in the automotive industry may have difficulty
preserving secrecy and proving misappropriation. The extent of sensitive information held by
a typical car company, the mobility of its personnel, and the collaborative nature of
corporations with potential competitors or joint venture partners all contribute to these
challenges (Schwartz, 2013). Companies must first comprehend the entire breadth of what
defines a trade secret in order to appropriately protect their trade secrets in automotive
industries and digital technologies. Manufacturing techniques, algorithms, and any other
economically useful sensitive and proprietary information could be included in this scope. If
a corporation fails to recognize the scope of what a trade secret can protect, it may not be able
to secure the entire trade secret (Schwartz, 2013).

Most trade secret theft occurs when a company's employees or business partners leave to
work for a competitor or start their own organization, which is unsurprising. Tesla, for
example, filed an application for a temporary restraining order as well as a lawsuit for trade
secret misappropriation and other claims against a software automation engineer who had just
been with the firm for three days in January 2021 (Monaco, Specht, & Judson, 2022). Tesla
claimed in Tesla vs Khatilov, filed in the Northern District of California, that a newly hired
software engineer took thousands of documents of code and began copying sensitive
information from the company's networks onto personal devices via Dropbox. The download
was identified by Tesla's information security team using monitoring tools, and the company
has a nondisclosure agreement in place banning the use or disclosure of private material,
including technical data (Monaco, Specht, & Judson, 2022). The Tesla case emphasizes the
necessity of safeguarding trade secrets by taking reasonable steps to ensure the confidentiality
of a company's valuable information. Therefore, the Mazibuko company may take a variety
of steps to protect trade secrets, such as restricting access to trade secrets to just those
employees who need to know them and ensuring that only a small number of people are
aware of the full breadth of the trade secret.

Industrial Design

In legitimate terms, an industrial design is the enlivening or stylish part of an item. Three-
layered highlights, like the state of an article, or two-layered perspectives, like examples,
lines, or variety, can make up an industrial design (Sharma, 2014). When such demonstrations
are directed for business goals, the proprietor of an enrolled industrial plan or a plan patent
has the option to confine outsiders from making, promoting, or bringing in things bearing or
consolidating a plan that is a duplicate, or significantly a duplicate, of the safeguarded plan
(Sharma, 2014). Industrial designs are utilized on many modern and hand tailored items,
including all that from bundles and holders to furniture and family products, lighting gear to
gems, and electronic devices to materials. Realistic images, graphical user interfaces (GUI),
and logos can all profit from industrial designs (Sharma, 2014).

Geographic Indication (GI)

Geographic indication are labels that are placed on products that have a specific geographical
origin and that have attributes or a reputation that are unique to that location. Agricultural
products often have traits that are impacted by unique geographical conditions, such as
climate and soil, and are derived from their site of production (Savale, & Savale, 2016). They
may also draw attention to certain aspects of a product that are related to human elements
prevalent in the product's area of origin, such as manufacturing skills and traditions. A
geographical indication recognizes a particular area or district of creation that impacts the
unmistakable qualities of the item delivered there. It is important that the item's
characteristics and notoriety are gotten from that area (Savale, & Savale, 2016). A village or
town, a district, or a nation could be the spot of beginning. It is a selective right conceded to a
specific local area, and the advantages of its enrolment are delighted in by all local area
individuals. Geographic indications for products such as Tesla and Toyota, have been
registered. Given the wide range of traditional items available across the country, registration
under the GI will be critical to the future growth of the nations, communities, and skilled
laborers involved in making these products (Savale, & Savale, 2016. Thus, South Africa and
the Vaal may benefit economically from the development of the Muzibuko M1B due its
geographic indication.

Conceptual Framework

Taking a product to showcase is ordinarily a difficult task for designers, businesspeople, and
organizations, thus the idea of the "valley of death" in development, which happens between
the period a creation is prototyped and the presentation of another product available to
market. Most ideas fail during this time owing of a lack of external backing or because they
are not financially viable (Mathur, 2012). Intellectual Property, particularly patents, play a
critical function at this point in facilitating access to early-stage financing, which may
provide a lifeline to help an idea reach the market. When looking for investment partners,
having intellectual property increases the business negotiation position and makes the
company more appealing to potential investors (Mathur, 2012). For example, Tesla, since it
has been protected, by intellectual property is has gained funds from multiple sources, for
instance the cofounder of PayPal, Elon Musk, contributed more than $30 million to the
electrical car back in 2004. This leading the innovation to be lead in the market back in 2008
(Schreiber, & Gregersen, 2021).

Many innovative ideas never make it to market, however those that are safeguarded by IP
have a superior opportunity. Intellectual property proprietorship fundamentally affects
outside accomplices' choices to selling or authorizing the patent or framing key business
associations and alliances (Mathur, 2012). Companies with minimal monetary assets however
critical IP resources will find it easier to form joint endeavours that give admittance to
research and development, dispersion channels, and deals organizations. An organization
with a licensed product or huge proprietary innovations might find shaping a joint endeavour
with an organization with a solid brand name to be decisively profitable (Mathur, 2012).
Similarly, as mentioned above, the Mazibuko company is at an advantage where they have
formed a partnership with MIH Alliance, Amazon, and Microsoft (Thukwana, 2021).

Physical assets and intangible assets are the two types of assets that often exist in a business.
The more traditional element of assets, such as the business's machinery, buildings and
financial assets, is referred to as physical assets. Intangible assets are more difficult to
quantify because they include anything from human capital to brands and ideas (Brynjolfsson,
Hitt, & Yang, 2002). Intangible assets are anything that contributes to a company's ability to
be creative and inventive. Intellectual property is a significant part of the company's
intangible assets, and it is frequently the most valuable asset it owns (Eppinger, & Vladova,
2013). As a result, the Mazibuko company can look for ways to maximize their intangible
assets. The company can significantly improve their financial status by acquiring intellectual
property, and they can determine the company's value based on its assets, existing business
activities, and expected future profits.

The acquisition of major Industrial Designs may have a significant impact on future earnings
expectations. Innovative ideas and brand distinctiveness are becoming a major source of
revenue for businesses as the information technology and service economy grow. Intellectual
property allows businesses to gain a competitive advantage over their competitors.
Understanding the various methods of intellectual property protection allows a business to
make the best use of its resources (Savale, & Savale, 2016). Companies have exclusive
ownership of their creative creations thanks to patents and copyrights. The patent or
copyright holder has complete control over how and to whom their work is distributed.
Customers will remember a company's trademark, potentially increasing its customer base. In
the company, making the right investment selections is critical. If a business does not spend
in legally safeguarding its intellectual property, its most valuable assets may be vulnerable to
infringement by competitors. The company's assets are available to the public without legal
protection, and they can be freely and legally exploited to make money (Savale, & Savale,
2016).

Parts that need to be patent

Patent, trademark, and copyright laws safeguard car designs on a national level, while
different conventions protect them globally. Design protection is only given to parts of
automobiles that are visible during normal use. Design protection is not available for
automotive parts situated "under the hood." As a result, a carmaker can only protect the
outside or aspects of a design, not its interior components like the engine or transmission
(Schmitt et al., 2016). Patent, trademark, and copyright laws safeguard car designs on a
national level, while different conventions protect them globally. Design protection is only
given to parts of automobiles that are visible during normal use. Design protection is not
available for parts "under the hood" of automobiles. As a result, a carmaker can only protect
the outside or aspects of a design, not its interior components like the engine or transmission
(Schmitt et al., 2016).

Many firms, from personal care goods to medical gadgets to vehicles and inkjet printers, rely
on replacement components as a major source of ongoing revenue. While most companies
utilize utility patents to protect the function or method of manufacturing their replacement
parts, design patents are frequently used to protect the appearance of such parts (Ferrill, &
Green, 2020). The Mazibuko company can use a design patent to prevent others from
creating, selling, or offering for sale a product with a design that is substantially like the
patented design. When replacement parts are (1) broken or damaged (e.g., automobile
bumpers), (2) unclean (e.g., medical equipment with direct patient touch), or (3) consumed,
design patent protection is suitable (e.g., ink cartridges, razor blades, empty insulin pen
injectors) (Ferrill, & Green, 2020). A cathode composition, an electrode architecture, a
battery housing, or management software are all examples of new and beneficial
characteristics covered by battery patents. Patented technology is rarely visible on a battery or
a device that a consumer might purchase (Ostomel, & Auvil, 2021).

Since patents provide the strongest level of intellectual property protection, the Mazibuko
company should seek to patent law to safeguard their designs. Patents in the United States,
for example, are valid for twenty years and allow the holder to prohibit anyone from
"producing, using, offering for sale, or selling..., or importing the invention" throughout the
country (Pruetz, 2002). While patents offer more protection than copyright or trademark laws,
they are also more difficult for automobile designers to get since both European and US
patent laws have stringent standards that the Mazibuko company may find difficult to
comply. Even though both U.S. and European patents are difficult to get, an automobile
designer may choose to file in Europe for a variety of reasons. For starters, a European patent
covers a larger geographical area than a US patent (Pruetz, 2002). Second, European patent
applications are less costly than those filed in the United States. Third, patents in the United
States take longer to process, and many applications are turned down. Furthermore, because
they are too close to existing designs, U.S. courts frequently invalidate U.S. Design Patents
(Pruetz, 2002). Applying for a patent in Europe, on the other hand, is faster and easier thanks
to the European Patent Convention (EPC) and the Patent Law Treaty, which result in faster
application processes (Pruetz, 2002). As a result, the Mazibuko company seeks patent
protection they should seriously consider pursuing design protection in Europe, the United
Kingdom, and the United States.

How can the Mazibuko company enforce Intellectual Property Rights in a Foreign
Country?

IP registered in South Africa only confers enforceable rights in South Africa, requiring the
owner to register the IP in other countries to ensure security there. Therefore, the Mazibuko
company needs an intellectual property registration in the US as well for the bakkie to be
protected from intellectual theft (Walker, 2013). Once the Mazibuko company established
that they have intellectual property rights (IPR) in a foreign country (US), the company must
use the legal, administrative, and criminal compliance procedures provided in that country to
enforce their rights. Because IPR are private rights, the company must safeguard them in line
with the country's IPR laws. But since intellectual property rules are complicated, the
company should get legal advice from a local attorney to investigate their options (Walker,
2013).

South Africa's Companies and Intellectual Property Commission (CIPC) can help the
company in fostering an authorization methodology. CIPC, Business' nation specialists, and
other South African Government IPR specialists, stand prepared to collaborate with South
African firms to assist them with safeguarding their protected innovation abroad (Walker,
2013). In many cases, CIPC can provide the company with data to support exploring an
unfamiliar government's general set of laws, including arrangements of nearby insightful
firms and lawyers, and offer encounters and skill in that country. Nonetheless, the South
African government cannot provide South African companies with legitimate exhortation or
backer for an organization's benefit when a matter is under the steady gaze of a court or
regulatory organization (Walker, 2013). If the company has attempted to enforce their IPR
through the legal system of a foreign government and the foreign government has failed to
provide an adequate remedy, CIPC, in collaboration with its interagency colleagues, may be
able to raise concerns with foreign government officials about the effective administration of
legal remedies available to IPR holders. CIPC intellectual property rights assistance activities
are focused at reaching a fair and prompt settlement in accordance with international
agreements and foreign laws, as well as advancing proper legal and judicial protection for all
parties (Walker, 2013).

Combing trade secrets and patens

While much of the research regards patenting and secrecy as replacements or even mutually
exclusive protection measures, they can also be complementary (Hall et al., 2014). According
to Graham (2004), companies can keep the codified component of an invention private while
still having the possibility to patent it later. Hegde, Mowery, and Graham (2009) emphasize
the importance of continuations in patenting because they allow claims to be changed, hence
extending the confidentiality of certain claims. Graham and Hegde (2014) discovered that a
tiny percentage of US patent applications (7.5 percent) use a provision to keep their
discoveries confidential before a patent is awarded in their empirical investigation. For their
most essential ideas, small inventors are more likely to prefer exposure through the patent
document over secrecy (Crass et al.,2019).

Belleflamme and Bloch (2014) used a theoretical model to examine the circumstances under
which innovators can opt to combine patenting and secrecy as a protection strategy in the
event of complex innovations with a risk of imitation. If the imitator is required to learn about
a considerable percentage of the innovation to utilize it effectively, a situation like this will
arise. Otherwise, the innovator will have to choose between patenting the entire invention or
keeping it a complete secret (Crass et al.,2019). Ottoz and Cugno (2008) and Ottoz and
Cugno (2011) investigated combining patents with trade secrets in 2006. They show that in a
case where a single innovation can be protected by both patents and trade secrets, broadening
patent protection may lead to less patenting since innovators will rely on secrecy. When a
portion of the technology kept secret is critical to an innovation's economic performance and
the costs of copying the innovation are high enough, protection through a strong trade secret
is desirable, as it avoids duplication costs (Crass et al.,2019). Furthermore, due to the lack of
an independent innovation defence in patent law, secrecy outperforms patents. Since the
Mazibuko company does not have enough funds to start-up the company as well funds to
enough finds to complete the development of bakkie (Thukwana, 2021), therefore the
company should combine patenting and secrecy to save up cost.

The advantages and disadvantage of the Mazibuko company implementing Intellectual

property

Advantages

1. Protecting the company's intellectual property offers the business a unique property

right that can help the firm succeed better than it would otherwise, or it can help the
business establish a new one (Intellectual Property Office of Ireland, n.d.).
2. The development of successful IP protection measures will be dependent on the
nature of the organization. A well-thought-out plan may include a variety of IP
protection methods. For instance, the company may apply for a patent for the bakkie,
register its design, and create a branding plan based on a registered trademark
(Intellectual Property Office of Ireland, n.d.).
3. IP protection can help the company transform their concept or knowledge into a real
asset that can be assigned, transferred, and licensed (Intellectual Property Office of
Ireland, n.d.).
4. The company's protected intellectual property can be utilized to attract investors or as
collateral for securing financing (Intellectual Property Office of Ireland, n.d.).
 5. By discouraging competitors from using their protected IP, the businesses can lessen
the risks involved with commercialization (Intellectual Property Office of Ireland,
n.d.).

By the Mazibuko company protecting their intellectual property (IP) can help the company
earn money and get a return on their research and development investment. Licensing can
help the company earn royalties by protecting their intellectual property. A trademark/brand
can be used to promote their product as a "badge of origin," offering customers/potential
customers with assurances of source and quality (Intellectual Property Office of Ireland, n.d.).

Disadvantages

While intellectual property has various advantages, it also has certain drawbacks, including
the following:

1. Additional costs
2. Pirating
3. Quality deterioration

Safeguarding the company's licensed innovation can be costly, particularly On the off chance
that the organization has a muddled item with numerous plans, techniques, and methodology.
Thus, the business might have to record many patent applications to cover a solitary item
(Upcounsel, 2022). Moreover, if the company utilizes a legal counsellor to assist the
organization with the application, the business ought to hope to pay heavy load of cash in
legitimate charges. Documenting charges and different consumptions connected with the
patent application method should likewise be paid. With regards to profoundly sought-after
protected innovation, holding customers back from taking it is troublesome. Likewise, any
endeavour to safeguard licensed innovation privileges might bring about a decrease in a
company's customer base (Upcounsel, 2022). The quality of the product developed will suffer
when intellectual property rights are weakened. That is because there is less inspiration to
endeavour the work and set aside the time and money, especially accepting the business
realizes that its safeguarded development honours are not by and large (Upcounsel, 2022).

Findings and Discussion

The most successful players in the automotive industry will be those who not only create, but
also protect - and eventually commercialize - their innovations and developments. IP rights
that underpin automotive innovation are intangible assets that may be purchased, sold,
licensed, and mortgaged, with their core value being the protection and strengthening of
market position - just like tangible property. These assets, like any other property, will only
keep worth if they are in good repair (Schmitt et al., 2016).

Electric vehicles (EVs) envelop a vast range of innovations, including vehicle engineering,
new parts (like electric engines and batteries), and new framework (such as charging
stations). Those working in fast increasing, active technological domains like electric vehicle
technologies must make judgments early in the product development process, taking into
consideration the activities of global competitors. They must also determine whether ideas
are early on, with a high degree of certainty, to avoid funding ventures with no future
(Schmitt et al., 2016).

Patenting is an important part of any industrial player's innovation strategy since it provides
an effective way of safeguarding inventions by granting a 20-year right to prevent anyone
from implementing the protected invention without permission (Teece, 2010). The inventions
are made open to the general population as a stabilizer as distributed applications that unveil
the innovation, its epitomes, and the extent of the guaranteed security. A starter search of
patent information bases can find comparative work and assist organizations with trying not
to copy work that has recently been finished. Analysing global patenting activity can help
inventors identify growth regions and niches, as well as highlight competitors' R&D activities
(Teece, 2010).

Furthermore, the rise in IP rights for autonomous electric vehicle technology, as the data
imply, is raising the stakes even higher. As per a 2017 investigation by the exploration firm
Methodology Examination, independent driving innovation would make a $7 trillion
"passenger economy" by 2050 (Raposo,2022). Another scene of attendant and ride-hailing
administrations, as well as pilot-less vehicle decisions for organizations in fields like long
stretch transportation and bundle conveyance, will arise considering the new passenger
economy (refer to appendix).

According to research, Seneal and Leach (2019) stated, "Electric car innovation has picked
up some speed, but not as much as many would have hoped." "There is still a lot of research
to be done in order to make buying an electric automobile a simple decision for every buyer."
For many individuals, prices are still too expensive, and this must change by 2030 .
Manufacturers are vying to produce an electric car that costs less than £10,000 (Seneal, &
Leach (2019). That will necessitate a significant amount of research and development. With
the end of new fossil fuel cars in several big nations now less than a decade away, some may
be shocked to learn that patents for gasoline and diesel vehicles have just recently begun to
plummet more severely. The automobile business has a long product development cycle, and
it will take some time for a few carmakers to truly pivot to electric vehicles (Schmitt et al.,
2016).

Last year, according to Mathys & Squire, companies (e.g., Tesla) in the United States were
the most prolific filers of global patents pertaining to electric vehicles. According to WIPO
data, the United States registered 49 percent of all global EV patents (6,827 patents in
2020/21) (Rimmer, 2014). Chinese filers are the second most prolific, filing 28 percent of all
global electric vehicle patents in 2020/21, according to these same metrics (3,901 patents).
The United States has long been a centre of electric vehicle research, with Tesla and its
supply chain companies playing a crucial role in bringing completely electric vehicles to
market (Rimmer, 2014).

Recommendations

Some organizations might conclude patent security is not beneficial and that keeping up with
mystery and utilizing secrecy arrangements will give sufficient time in which to foster
memorability and reliability or foster new products and services (Wang, & Peng, 2020).
Alternatively, the business could concentrate solely on a trademark to establish their market
position because once the bakkie is in the marketplace, the organization cannot keep others
from replicating it. Utilizing a scope of defensive measures might give the business layers of
security and reinforces their situation in the marketplace.

Being open and aware of what intellectual property their clients, competitors, and others may
have to offer. One of the most significant shifts in intellectual property is the rapid expansion
of opportunities for the Mazibuko company to establish their company by using other
people's intellectual property. The most common method is to license it directly. There are,
however, The patent open source is another way to deal with safeguarding licensed
innovation. In contrast with conventional patent security strategies, for example, patent pools,
patent open source modifies the rationale of protected innovation insurance by putting a more
noteworthy accentuation on innovation sharing, eliminating the tedious course of patent
exchange and permitting, and significantly improving on the use of licensed advances (Wang,
& Peng, 2020). Furthermore, from the standpoint of the market game, patent open source can
draw in enormous scope members and encourage other competitors to select it, promoting the
industry's healthy development. Following Tesla's lead, Toyota is issuing fuel cell car patents
in an attempt to mimic Tesla's strategy and take the next high ground in new energy vehicles
(Wang, & Peng, 2020). Other options. The most promising strategy comes from the open
innovation field.

The significance of patent open source is often overlooked since open-sourced patents do not
provide direct benefits to businesses through patent licensing or transferring. Patent open
source, then again, can be a significant piece of an organization's business methodology and
have a positive effect (Wang, & Peng, 2020). The primary contributions of open-source
patents, as demonstrated in the case of Tesla, are to promote goodwill, unify technological
standards, and assist enterprises in attracting new high-quality technology patents for the
"shared technology platform" and "Tesla's ecosystem." As a result, the expansion of patent
open source to other high-tech industries frequently needs to be debated alongside actual
business strategy for the value of patent open source to be appreciated (Wang, & Peng, 2020).
Therefore, if the Mazibuko company uses Tesla technology while simultaneously enjoying
Tesla technology and services they can benefit from the company's growing market.
Simultaneously, the company will open-source the relevant proprietary technology, thereby
contributing bricks to the Tesla technological platform and achieving the win-win partnership
that Tesla designed (Wang, & Peng, 2020).

Conclusion

A portfolio of intellectual property can serve as both a shield and a sword. A strong IP
portfolio aids in the protection of a company's ideas, resulting in increased long-term revenue
and market position. Intellectual property protection is vital for every business and should not
be disregarded. Protected innovation helps with the turn of events and upkeep of an
organization's drawn-out income streams, as well as the improvement of investor esteem. IP
also aids businesses in securing technological innovations and gaining a competitive
advantage. Moreover, failure to appropriately safeguard the company's proprietary rights
could result in their competitors offering identical products, reducing their revenue and
affecting their business, prospects, financial condition, and operating results. The Mazibuko’s
company’s capacity to preserve fundamental technology and intellectual property, at least in
part, is critical to their success. To lay out and protect their proprietary rights in innovation,
they might utilize a mix of licenses, patent applications, proprietary advantages, including
skill, representative third-party nondisclosure arrangements, intellectual property regulations,
brand names, protected innovation licenses, and other legally binding privileges.

Since innovations are critical for a company's long-term financial performance and make it
more competitive than its competitors. The Mazibuko company must recognize the value of
intellectual property and how to effectively use it to develop effective business strategies and
achieve long-term market success. Building a robust portfolio aids businesses in marketing
products and services to clients and cultivating customer loyalty. The Mazibuko company
must continue to improve their product portfolio and maintain constant product and service
quality to stay ahead of the competition. As a result, managing knowledge assets for company
requires a strong IP system. Any firm or industry can take advantage of the goodwill in the
marketplace if they use intellectual property effectively. Therefore, if such ideas are not
protected, the Mazibuko company will be unable to profit from their creations and will be
less focused.

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Appendix
US patent applications in Autonomous companies