INSTITUTE OF ACCOUNTANCY ARUSHA

ENTREPRENEURSHIP

TOPIC: LEGAL FORMS OF BUSINESS OWNERSHIP

Friday 23 May 2025 LEGAL FORMS OF BUSINESS OWNERSHIP BY AGNES MTUI 1

 Introduction to Legal Forms
 A major difficult for the unexperienced entrepreneur is the host of strange terms and
phrases which are scattered throughout most of legal documents.
 The reading of these documents is not only understanding what is contained but
also why such provision have been included.
 An entrepreneurs cannot hope to have the legal expertise or lawyer but they should
be sufficiently knowledgeable about certain legal concepts that have implications to
the business venture.
 An entrepreneur must find time or take interest to read and understand the major
contracts related to his business.
 An individual who wish to engaging in business operations needs to have
understanding of legal aspects that govern business.

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 Formal Organization
• An formal business organization refers to collection of interrelated group of
people acting towards common goal(s)
• Basic Characteristics of formal organization
Common goal
Have an organization structure
People involvement
Using resources
Number of process
Have a name
Commonly accepted behaviour

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 Factors influencing decision on legal structure for
business
• The following are factors to be considered while selecting legal structure for
business operation;
i. How many owners the business is going to have?
ii. What is the tax position of the business?
iii. Can the owner take the risk of unlimited ability?
iv. Does the owner want all the business profit?
v. Is there any complete privacy in the affairs of the business owner?
vi. In the case of owner illness or death what will happen to the
business?

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 Legal Form for doing business
• There are three major legal forms/structure of owning/doing business:
Sole Proprietorship
Partnership
Companies
Co-operatives
Franchising
However the commonly ones are Sole proprietorship, partnership,
corporations and franchising

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 Sole proprietorship/sole trader

Sole proprietorship refer to a legal form of business ownership

where an individual establish and manage a business venture.
A person who owns and operates their own business who may or may
not employ people
Sole proprietor is a relative small business with little capital available
for expansion and capital invested by the owner.
It is the most popular form of business operations.
Around 75% of business ownership falls under this category of
owners.

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 Sole proprietorship continue…
Advantages Disadvantages
1. Easy &inexpensive to form 1. Limited capital for expansion
2. Not govern under strict rules and 2. Unlimited liability to owner since not
regulations treated as separated legal entity
3. Limited skills and capabilities
3. Total autonomy over business
4. Cease the business when owner
4. Enjoy entire benefits experience incapability (illness)
5. Charge tax on business profit 5. Bear entire loss and liabilities
6. Privacy - no disclosure of 6. Lack of continuity- no guarantee for
business information to the public the business to carry out once the
at large owner decided to stop
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 Partnership
A partnership is an association of two or more persons or entities that carry on business as partners with the
common motive of earning profit.
A type of business where two or more people agree to invest capital and effort to own and run business
together.
A partnership can be form off verbally, impliedly or in writing and carry business in the provision made
in the partnership agreement.
The least popular form of ownership, partnerships are often used in accounting, legal, and architectural firms.
It is a contractual agreement under the Partnership Deed/agreement or Article of Co-partners
The decision on this form depend on
 How much control they want over the business
 Willingness to share the profit
 Ability to raise necessary capital to start the business
 Readiness to accept limited liability

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 Partnership
• Ordinary partnership; comprises of between minimum 2 and maximum 20
partners
• Note: some partnerships allowed more than 20 partners while Banks no more
than 10)
• Deed of partnership: a legal contract which sets out the follow;
Who are the partners?
Capital contribution to each partner
How profits should be shared
How many votes each partner has in any meeting
What will happen in-case of bankruptcy how the debts will be settled.
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 Partnership Deed/agreement
A partnership deed is the document that states in writing the terms
under which partners agree to operate the partnership and protects
each partner’s interest in the business.
A good partnership agreement will guide you through methods of
handling problems and serve as infrastructure for successful operations.
The popular forms of partnerships are found in accounting, legal, and
architectural firms.
It is a contractual agreement under the Partnership
Deed/agreement or Article of Co-partners

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Partnership Deed/agreement continue…
The standard partnership agreement will likely to include the following;
i. Name of partnership
ii. Purpose of the business
iii. Domicile of the business
iv. Duration of the partnership
v. Name of the partners and their legal addresses
vi. Contribution of each partner
vii. Agreement on how the profits or losses will be distributed

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Partnership Deed/agreement continue…
viii. Procedures for expansion through the addition of new partners
ix. Agreement on distribution of assets if the partners voluntarily dissolve the
partnership
x. Dissolution of partnership
xi. Salaries, draws, and expenses account for the partners. This shows how
much will each partner draw from the business and how often
xii. Alternations or modification of the partnership agreement

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 Partnership continue…
Advantages Disadvantages

1. Easy to set up: few procedure for sets up a) Partnerships suffer from unlimited liability
2. Profits motive; Profits are shared (except for the limited partners). If the
3. Privacy; the profits earned are known to tax business fails, the partners are liable for its
authorities losses to the full extent of their private
4. Easy to raise capital than in sole estates.
proprietorship b) Joint involvements: Contracts entered
5. Enjoy Synergies; different expertise from into by one partner are binding on all.
partners (Combination of skills and c) Since the consent of all partners is
capabilities) required for admission of a new partner,
6. Rules and regulation: little governmental the rejection of a partner could very well
regulation / not much involvement hinder the development and expansion of
the business firm.
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 Partnership continue…

Disadvantages Disadvantages
d) Uncertainty in continuity since f) Decision making may take long
the partnership may come to an end time due to consultations or
by the resignation of a partner, discussions among partners, this
bankruptcy, insanity of a partner or may cause the partnership to lose
death of a partner. some opportunities.
e) There is possibility of conflicts g) Less independence than
among the partners since each proprietorships.
partner may have different interest, h) Profits are shared: It reduces the
altitudes and needs. amount received by each partner.
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 Corporation/company
A company is a widely available business entity which treated as an independent legal
entity.
A legal entity is treated as a separate unit/person (legal) from the people who
own, control and manage
Generally, the shareholders ordinary) are the owner of the a company (public) whom
receive dividends as their compensation.
A corporation can borrow money, enter into contracts, own property, sue, and be
sued.
Registration involve complex procedures than sole trader and partnership.
Its owners are the people who buy its stock/shares.
The corporation is the most preferred form of ownership for large businesses
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 Companies
• Definition;
A company is a voluntary association of persons binded together for some
particular object/objective usually to carry on a business with a view of
making a profit.
A company is legally treated as an artificial person, distinct from the
individuals who own it (i.e. a company is an artificial being, invisible,
intangible, and existing only in contemplation of the law).
• A company can sue and be sued, it can hold property, and incur debt.

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 Characteristics of companies
(i) Legal personality A company is .

Transferability of shares: shares may

an artificial person created by law
easily be purchased or sold in the stock
separate from shareholders, it can exchange market e.g. Tanzania, we
sue and be sued in a court of law. have Dar es Salaam Stock Exchange
(ii) Long life (Going concern / market (DSE).
perpetual succession): A
company enjoys continued
(iv) Number of members: In public
company; minimum number of members
existence, the death or retirement is 7 and there is no restriction for the
of any member cannot affect the maximum number of members and
running life of the company. private company, minimum 2 and
maximum 50 members
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Characteristics of companies continue…
(v) Limited liability: only on (viii) Members cannot bind a company
investment in the company. by their acts: Members of a company
are not entitled to bind it by their acts.
(vi) Purpose and objective; often Third parties are expected to know the
profit-making, but some may have powers granted to each shareholder..
social, environmental or charitable
goals (eg non-profit organizations) ix) Capital formation: The capital of
a company is obtained by selling
vii) Governance: managed by a shares and each share is transferable.
board of directors or executives
x) Common seal; as a separate entity
responsible for operations and making it will be necessary for it to sign
strategic decisions. papers and documents.
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 Types of companies
1. Chartered Company.
2. Registered Company.
i) Unlimited Company.
ii) Company Limited by Shares.
a) Public Limited Company.
b) Private Limited Company
iii) Company Limited by Guarantee.
3. Statutory Company
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 Types of companies…
1. Company by Charter
The company which is incorporated by the Royal order is called “Chartered
Company” and its power, rights and functions are governed by the charter
issued at the time of formation.
2. Statutory (Legislation) Company
This type of company is formed by the order of the president, prime minister or
by the special act of parliament. The word “limited” may not be used after the
name of such company. These companies are better known as “parastatal
organizations”, e.g. TRA, TCRA etc.

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Types of companies…
3. Registered Company
It is incorporated under the Company Act prevailing in a country that operates
as separate legal entity apart from its members. It is divided into three
categories as follows;
a. Unlimited Company
b. Company Limited by Guarantee
c. Company Limited by Shares

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 Types of companies…
a) Unlimited Company
• The shareholders of an unlimited company • Such a company is not formed to earn profit but to
are liable to pay the debts and other promote social, cultural and scientific activities
obligations of the business as in an ordinary such as sports clubs, chamber of commerce,
partnership. welfare, professional and educational
associations.
• Such companies are very rare in East Africa
as the public does not like to form this type of
company. c) Company Limited by Shares
These are the most common type of companies
b) Company Limited by Guarantee these days in which liability of each shareholder is
• This is a company in which each member restricted to the value of the shares held by him.
guarantee (i.e. promises) to contribute a fixed These companies can either be:
sum of money towards the liabilities of the i. Private Limited Company or
company as long as he remains a member. ii. Public Limited Company
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 Types of companies…

(i) Private Limited Company (ii) Public Limited Company

• A public company is one whose membership is not
• This may consist of a minimum of 2 less than seven and there are no restrictions for:
members but the maximum may not a) For maximum number of members
exceed 50. b) Transferring of shares.
• A private company is not allowed to c) Expansion through the sale of shares to
the public.
call upon public for funds in the form • The owners or members of the company are
of shares or debentures and any people who hold its shares. Such people are
transfer of shares is restricted. called shareholders.
• The day to day affairs of the company are
• It must be approved by the Board of managed by people called “Directors” who are
Directors. elected by shareholders from among themselves.

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 Formation of companies
Formation; two documents are needed for registration
1. Article of association; provides rules on how the companies will operates by
giving details on voting rights of shareholders, profit distribution and
decision making procedures.
2. Memorandum of association; It tells people what the business does and
where it operates from; it provides details such as names of the companies
and address
Legal compliance; limited companies must send audited accounts and other documents
to the registrar for public consumption

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 Public and Private companies
• Differences PLC and LTD;
1. Sales of shares; PLC shares must be tradable on stock exchange
2. Share capital; PLC share capita limits is considered by law before startup.
3. Size and number of shareholders; the number is greater in PLC than in
LTD
4. Control; LTD controlled by shareholders theory
5. In meeting shareholders interest are represented by directors appointed
to run the business as managers and directors are different form of
shareholders while in LTD no representation because the companies are
small.

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 Companies continue…
Advantages Disadvantages

1. Capital formation; unlimited capital can be 1. No privacy; general public has the access on
raised from interested shareholders companies information
2. Limited liability; shareholders are liable for 2. High cost of administration; giving information is
debts of the company only on the value of their costly especially on administration and
shareholding. Corporation is responsible for its compliance with government regulations e.g.
own liabilities hence owners enjoy limited Prepare and distributes audited reports.
liability 3. Business formation : associated with higher start­
up costs and more regulations.
3. Continuity: still continue despite of retirement
4. Double taxation: the corporation pays taxes on its
and death (un-ending succession) profits, and stockholders pay taxes on their
4. Growth and performance: managed by dividends.
professionals 5. Lack of confidentiality; it accompanied with
5. Recognition /reputation; well recognized disclosure of business information to the public.
6. Operational complexities
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 Companies continue…
• Main types of businesses in private sector differ in terms of ;
1. Ownership
2. Control ways finance is raised
3. Distribution of profits

Legal requirements on formation

• Trading license for certain goods
• VAT registration over a certain amount

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 Co-operative enterprises
• It is a form/type of business organization, wherein persons, voluntarily
associate together as human beings, on basis of equity, for the
promotion of the economic interests of its members.
• It can also be defined as an association of persons who join together
to attain a common goal which they cannot manage to do successfully
as individuals.

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 Co-operative enterprises continue…
• It is set up not for earning profit as its main motive but with the
basic objective of rendering services to its members. The main
rule of co-operative society is “each for all and all for each”.
The distribution of benefits is influenced much more by work
done rather than capital contributed.

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 Features of co-operative societies
• Open membership: Membership in • Democratic control: The cooperative
a cooperative society is voluntary societies are managed in a democratic
and it doesn’t have any artificial manner and the power to take decisions
lies in the hands of an elected managing
restriction, it is open to all without committee. Every member has a right to
any social, political, racial and take part in the management of the
religious discrimination. Those who society. However, the society elects a
wish to join a co-operative must be managing committee for its effective
adults (18 years of age and above in management. The members of the
Tanzania). A person is free to join managing committee are elected on the
and can also leave anytime as per basis of one-man one-vote irrespective of
the number of shares held by any
his desire. member
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 Features of co-operative societies continue..
• Distribution of Surplus: In a co- • One man one vote: In a co-
operative society, profit made by the operative society, a member has one
society during the financial year is shared vote despite the value/number of
by the members in the form of dividends shares held by him/her. The principle
or repayments. The dividend is payable
to members on the basis of individual’s of one man one vote makes the co-
participation in a particular year. No operative society a truly
member should gain at the expense of democratic organization.
others. For example, for agricultural co-
operatives the dividend may be paid
according to the quantities of produce
sold to the society by each member.

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Features of co-operative societies continue..
• Legal status: Registration of a • Unlimited number of members:
cooperative society is compulsory. It Normally there is no limit as to the
is registered under the co-operative maximum number of members in co-
societies Act. This (the registration) operative society. But the minimum
accords a separate identity to the number of members in Tanzania is
society which is distinct from its 10 and those who wish to join a co-
members. The society can enter into operative must be adults (18 years
contracts and hold property in its of age and above).
name, sue and be sued by others.

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 Features of co-operative societies continue..
• Equality: All members in a co- • Service motive: A co-operative
operative society are equal society is primarily set up for
regardless of their religion, race, rendering maximum service to its
political affiliation, tribe, height, members in a particular field. It is not
weight, gender, age, financial status, aimed at generating profit by
marital status, etc. anyhow. Due to this, through its
purpose, it lays emphasis on the
values of mutual help and welfare.

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 Types of cooperative societies
• Savings and Credit Co-operative • Farmer’s cooperative societies: These
Societies (SACCOS): These are societies are established to protect the
co-operative societies formed by interests of farmers by providing better
people having common bond who inputs at a reasonable cost. The
members comprise farmers who wish to
have agreed voluntarily to save their
jointly take up farming activities. The aim
money together and lend that money is to gain the benefits of large scale
to one another at reasonable rates farming and increase the productivity.
of interest for provident and Such societies provide better quality
productive purposes. SACCOS are seeds, fertilizers, machinery and other
purely financial institutions aimed at modern techniques for use in the
encouraging members to save. cultivation of crops.
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 Types of cooperative societies continue..
• Marketing Cooperative Societies: To • Housing Cooperative Societies:
solve the problem of marketing the Housing cooperative societies are
products, small producers and established to help people with limited
manufacturers join hand to form income to construct houses at reasonable
marketing cooperative societies. The costs. The members of these societies
members consist of producers who wish consist of people who are desirous of
to obtain reasonable prices for their procuring residential accommodation at
output. Marketing co-operative societies lower costs. Most of the time this kind of
can be formed in two organizational co-operative consist of low and middle
arrangements depending on the local income groups. The aim is to solve the
condition of the country. They may be housing problems of the members by
single or multipurpose co-operative constructing houses and giving the option
societies. of paying in instalments.
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 Types of cooperative societies continue..
• Industrial Co-operatives: These • Producer’s Cooperative Societies:
Cooperatives are owned and controlled by These societies are formed to protect
individuals who may be workers or the interest of small producers and
craftsmen who merge their resources to artisans by making available items of
undertake collective production, their need for production. The
processing and marketing of goods
members comprise of producers
manufactured by members and provide
them with necessary services and desirous of procuring inputs for
assistance. Industrial co-operatives are of production of goods to meet the
various kinds including industrial demands of consumers. The society
production, industrial service, common aims to fight against the big capitalists
facility workshop and workers’ co- and enhance the bargaining power of
operative societies the small producers.
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Types of cooperative societies continue..
• Consumer’s cooperative societies: The consumer cooperative societies are
formed to protect the interests of consumers. The members comprise of
consumers desirous of obtaining good quality products at reasonable prices.
The society aims at eliminating middlemen to achieve economy in operations.
It purchases goods in bulk directly from the wholesalers and sells goods to the
members, thereby eliminating the middlemen. Profits, if any, are distributed on
the basis of either their capital contributions to the society or purchases made
by individual members

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Advantages of Co-operative Enterprises
a) They provide opportunities for earning f) Equality in voting status
higher incomes through economies of
scale. g) Stable existence
b) They provide useful channels for h) State patronage: Government
propagating ideas for improvement of provides special assistance to the
methods of conducting business. societies to enable them to achieve
c) They serve as useful means of extending their objectives successfully.
credit and technology (know-how) to their
members.
d) They provide an important link between
the supplier and the consumer.
e) Limited liability
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Disadvantages of Co-operative Enterprises
• Limited resources: Cooperative • Lack of secrecy: The cooperative
society’s financial strength depends society does not maintain any
on the capital contributed by its secrecy in business because the
members and loan from banks or affairs of the society are openly
other financial institutions. discussed in the meetings.
• Inefficiency in management:
Cooperative societies are unable to • The decision making process is
attract and employ expert managers very slow and difficult: Internal
because of their inability to pay them quarrels arising as a result of contrary
high salaries. viewpoints may lead to difficulties in
decision making.
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Disadvantages of Co-operative Enterprises
continue…
• Disputes and differences: The • Lack of recognition of the role of
management of the society share capital contributed, which
constitutes the various types of may become a disincentive to invest.
personnel from different social,
economic and academic
background. Many times they may • Local political interference in
strongly differ from each other on some instances.
many important issues.

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 Franchising
Franchise refer to the right given by one business to another to produce
or distributes /sell goods and services using its brand name.
A franchise is a form of business established by one person who buys
copyrights of another firm and allowed to produce and or distributes
that product.
The person who own the copyright is franchisor and the one who buy the
copyright is franchisee.

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 Benefits offered by franchisor to franchisee
Provide training to start the business
Provides equipment, shop fittings, machinery (Mack mood's)
Provides materials used for production (Coca-Cola, Pepsi etc)
Provide financial assistance or backup e.g. a loan, advice and expertise
Perform marketing activities; finding customers, through advertising
Provide ownership to the brand name e.g. Coca-Cola
An exclusive area in which the to sell the products and goods or services to
sell

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 The cost to franchisee
Pay fixed sum at the start up to cover the cost of starting up new branch
Pay a fee or percentage of the sales that the business has made

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 Advantages of franchising
 To franchisee
6-7% of franchise businesses fail
Enjoyed on going support and assistance
The amount paid is fixed and enough to establish and manage the business
The start up capital is known by franchisor
To franchisor
High rate of growth and expansion
Trust and motivation to franchisee full commitment to the business because of the
money invested

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 Disadvantages
No freedom: the franchisee has to stick to the franchise agreement
Franchisee can no sell the business: without permission from franchisor
The breach of contract: franchisor can breach the agreement without
explanation or compensation

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 Does franchise work?
Answer: Yes
It depends on the existence of good business plan
High quality products and or services
Good management and commitment to the business

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 Public sector
• What is it?

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 Public sector continue..
• Public sector are businesses run and owned by state
• There are two most important parts of the state
1. Central government
2. Local government
• Public sector;
• Provider
• Producer and
• Buyer

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 Public sector
Provider: provide range of services e.g education, health, police
Producer: produces some of goods and provides some services e.g.
defence, education and health care
Buyer; buys rest of what it provides from private sector businesses e.g. new
roads, machines, homes

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 Other public sector enterprises are;
1. Local leisure centres
2. Cemeteries
3. Airports
4. Market halls
5. Trust hospitals

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 Legal Aspect of Establishing a New Venture

• The major legal concepts that can affect entrepreneurial

ventures can be grouped into three categories including;
A. Related to Inception of Entrepreneurial Venture
Laws governing intellectual property; patents,
copyright, trademarks.
Forms of business organization
Tax consideration
Capital formation
Liability questions

LEGAL FORMS OF BUSINESS OWNERSHIP BY

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AGNES MTUI
 Legal Aspect of Establishing a New
Venture
B. Related to Ongoing Venture
• Business development and transactions including;
Personal law; hiring/firing policies, collective bargaining,
equal employment opportunity commission
Contract law; legal contracts, sales contracts and
leases

LEGAL FORMS OF BUSINESS OWNERSHIP BY

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AGNES MTUI
 Legal Aspect of Establishing a New
Venture
C. Growth and Continuity of a Successful Entrepreneurial
Venture
Tax considerations, government regulations and
continuity of ownership rights;-property law and
ownership, wills, trusts, estates and bankruptcy.
 However, our concentration will be on the legal concepts
related to the Intellectual Property Right (IP)

LEGAL FORMS OF BUSINESS OWNERSHIP BY

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AGNES MTUI
 Intellectual Property
Intellectual Property (IP) is the creation of the human intellectual process
(the product of the human intellect or mind or is a property that arises from
human intellect.)
It is an intangible form of property.
It is a personal property.
IP includes patents, trademarks and copyrights represents important assets
to entrepreneur.

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 Intellectual Property
 Intellectual property comprises of two distinct forms namely
1. literary and Artistic works
2. Industrial property.

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 Literary & Artistic Works
These are books, paintings, musical compositions, plays, radio/TV programs,
performance, and other artistic works.
How they are protected?
• These are protected by “COPYRIGHT”

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 Industrial Property
Industrial property describes physical matters that is the product of an idea or concept for
commercial purposes.
How are they protected?
Patented objects
Trademarks
Industrial designs
Trade secrets
Layout design
Geographical indications

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 Why Protect Intellectual Property

 There are various reasons why we protect IP but they group into two;
 Because we want to protect individual investment in time, money or
other resources used to create new contribution to technology,
commerce and entertainment.
 To promote economic development; Governments encourage
creators to disclose their creations to the public in order to promote
the progress of science and useful arts which are the engines of
development- investors demand this guarantee

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 Major Categories of IP
1. Patents: Functional and technical inventions
2. Copyright: Purely Artistic works:
3. Trademark: A symbol, logo, word, sound, color, design

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 Meaning & Purpose

• Patent commonly means an official instrument given in writing by

a statutory authority to an inventor, granting him the exclusive
right to manufacture, use, sell or license his invention for a
certain number of years and thereby prevent others from
copying it.
• A monopoly is granted as a consideration for disclosure by the
patentee of his technical information in the specification and
other documents attached to his application and materials
referred to therein.

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 Patents continue….

• There are number of items that can qualify for patent

protection, these are; processes, machines, products, plants,
composition of elements (chemical compound) and
improvement of already items.

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 Types of Patent
• There are three types of patents
A. Utility Patents
 These are granted for new products, processes, machines,
methods of manufacturing and composition of matter.
 It grants the owner protection from anyone else making using and selling
the identified invention and generally reflects protection of new, useful,
and unobvious process such as film developing, machines such as
photocopier, composition of matter such as chemical compound or
mixture of ingredients and articles of manufacture such as toothpaste
pump

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 Types of Patents continue….
B. Design Patents
 Granted for new or original ornamental design for an article
of manufacture.
 A design patent protects the appearance of the article not
article itself/ a design patent reflects the appearance of an
object.
 An inventor could easily register both a utility patent and
design patent.
 But the design patent has a limited life where it can only
last for 14 years while others last for 20 years.

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 Types of Patents continue….
C. Plant Patents
 It is granted in botanical terms.
 These are issued under the same provisions as
utility patents and are for new varieties of plants.
 These patents represent a limit area of interest, and
thus very few of these types of patents are issued.
 Any new variety of plant that has been asexually
reproduced can be granted a plant patent.
 Therefore new plants, mutants, hybrids and
seedlings may be patented.
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Provisional Applications and Duration
A. Utility 20 years Term (from filling)
B. Design14 years Term (from filling)
C. Plant 20 years Term (from filling)
• Priority dates – first to file. The date of patent is the date of filling the
application for patent
• The term of the patent is counted from this date.

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 Copyright

 Copyright-a property right which subsists in certain types of

works, e.g. literary, dramatic, musical, artistic, etc.
 A monopoly of a certain limited duration created and entirely
regulated by the law
 The aim was to award those who spent efforts in creating some
works and recognize their roles within their respective societies
 At the same time to prevent plagiarists from ripping the sweat of
others

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 Copyrights continue…

• A copyright provides exclusive right to creative

individuals for the protection of their literary or artistic
productions.
• It is not possible to copyright an idea, but the particular
mode for expression of that idea often can be
copyrighted.
• The expression can take many forms like books,
periodicals, dramatic or musical compositions, art,
motion pictures, lectures, sound recordings and
computer programs.
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 Copyrights Continue….

• Any works created after 1978 and receive copyright are

protected for life of the author plus 50 years.
• The owner of copyright offer the following;
i. Reproduce the work
ii. Prepare derivative works based on it
iii. Distributes copies of the work by sale or otherwise
iv. Perform the work publicly
v. Display the work publicly or portion of it may be
transferred

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 Copyrights Continue….

• In TZ, the law governing © protection is the CANRA, Cap 218 R.E
2002
• The preamble to it provides that the objectives of the legislation are:
To protect and promote literary and artistic works
To safeguard the expression of traditional culture
To further interests of producers of phonograms and
performing artists

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 Trade Mark
• A trademark may be a word, symbol, design, or some combination of
such, or it could be a slogan or even a particular sound that identifies
the source or sponsorship or certain goods or services.
• A trade mark is a distinctive name, mark, symbol or motto identified
with a company’s products and registered at patent and trademark
office.
• Specific legal terms differentiate the exact types of marks.
• Usually, personal names or words that are considered generic or
descriptive are not trademarked.
• TM is given an initially 20 year registration with 20 years un-renewable
terms
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 Trademarks
• Different Symbols used are:
TM intent to use application filed for product
SM intent to use application filled for services
® registered trademark

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 Functions of TMs
• Barge of origin-shows the source of goods/services
• Heart of TM law is function of TM – indication of origin
• Distinguishing goods or services
• Function is to guarantee origin by enabling to distinguish goods
or services
• Guarantees that originated under control of single
undertaking
• Guarantees quality of goods or services

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 Functions of TMs Continue…

• Ensures fair competition

• “The object of trade mark law…is to prevent commercial
‘speech’ that is misleading.
• Trade mark use that is not misleading… is protected, not only
constitutionally but in terms of ordinary trade mark principles.
• Enhances consumer protection
• Protection against counterfeit goods/services
• Guarantees choice

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 Types of TMs

• Registered marks ®
Registered under Cap 326
Get protection by virtue of their registration
No monopoly unless used in relation to goods or services in
course of business
• Unregistered marks
In principle no protection
But can be protected through common law actions of
unlawful competition and passing-off

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 Types of TMs Continue…..
Well-known marks
• Unregistered in local jurisdiction
• Well-known worldwide & within local jurisdiction
• In TZ-not specifically stated but see s 19(d) of Cap 326
Collective marks
o Protects names of associations-association marks
Certification marks like TBS, ISO.
o Marks certified by the proprietor guaranteeing the origin, mode of manufacture
and quality of goods they relate in the course of trade
o They protect certified standards

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 The End

Thanks

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