Improvement of IP protection in Pakistan
06 March 2008
Now that many international franchises have entered the
Indian market, it is natural for them to look across the border to
Pakistan. There are opportunities for franchisors in Pakistan
subject to cultural adaptation and compliance with Islamic custom.
For example, alcohol cannot be served and only halal meet can be
used in cooking.
As is the case in most countries
of the Indian sub-continent, there are restrictions on obtaining
payments in foreign exchange.
All payments in foreign exchange
have to be made from an authorised bank and the consent of the
State Bank of Pakistan is required if the transaction exceeds:
- US $ 100,000 initial fee irrespective of the number of
outlets
- 5% royalty
- Initial term is more than five years
The Government of Pakistan is
also re-drafting the intellectual property legislation in respect
of trademarks, patents and copyright to combat widespread
infringement and piracy.
Given the many uncertainties in
this market, franchising is more attractive than direct investment
as the main risk is taken by the local franchisee.
For more information, please contact Mark
Abell, Babette Märzheuser-Wood or Lisa
Sen.