Copyright as Collateral in Kenya; an Examination of the Current Laws, Regulations and Institutions.

Abstract

A majority of the population in Kenya consist of the informal sector including those who are self-employed or run small scale businesses. These people are characterized by businesses operated on a small scale, they rely on resources that can be acquired locally and cheaply and they create innovations from and suitable for their environment as opposed to importing technology which is usually very expensive.1 Majority of these Small Businesses have no tangible assets or a steady source of income making their innovations the only source of revenue and credit. To exploit these innovations they need capital. The most common way of acquiring capital in Kenya is to borrow from lenders. However lenders in Kenya will only advance money where one has a tangible asset that can be used as collateral or a steady source of income whereas capital ventures will demand a substantial portion of the returns or even partial ownership of the Intellectual Property if they are to invest in it. Thus there is need to consider other alternatives of finance for small companies with a portfolio of Intellectual Property. This research thesis will examine first how Intellectual Property can be utilized as a collateral, with specific focus on copyrights in the film industry, based on practices of copyright collateralization in developed countries, specifically America and secondly whether the current Kenyan laws and institutions are adequate to enable the adoption of these practices of copyright collateralization in Kenya.