Wednesday, 3 December 2025

Afro Leo

When Logic Isn’t Logik: The SCA Puts Out the Fire (Again)

South Africa’s law of passing off has had a fiery year. Hot on the heels of the Phoenix decision comes another brand-identity flare up from the Eastern Cape, this time between Fire Logic and Fire Logik. The Supreme Court of Appeal has now weighed in, and its message is simple: if you adopt a near identical name in the same industry, ignore warnings, keep confusing online identifiers alive for years, and offer little more than a shrug in response, do not expect to escape an interdict.

 

For those following the earlier High Court decision, the SCA’s judgment confirms the outcome while adding clarifications about reputation, bare denial strategies, and the evidentiary role of digital identifiers.

 

A Quick Recap: The Fire That Wouldn’t Go Out

Fire Logic, established in 1994, is a long standing Eastern and Western Cape business providing fire protection and maintenance services. It put up credible evidence of turnover (around R30m per year), advertising spend, industry accreditation, and more than 27 years of trade.

 

Logik Group, incorporated in 2015, traded under Fire Logik. The names were phonetically identical, visually similar, and used in the same markets. Even after a name change in 2016, Logik Group retained the domain, email address, and trading style. Confusion followed in the form of misdirected purchase orders, enquiries, and correspondence acknowledging the risk of confusion.

 

The High Court interdicted Logik Group’s use of Fire Logik in the Eastern and Western Cape. Logik Group appealed.

 

The SCA: When Logic Goes Missing

The Supreme Court of Appeal dismissed the appeal with costs and reinforced principles worth noting.

 

1. Reputation Need Not Be Over Proven

The SCA adopted a practical view. Twenty seven years of trade, turnover, marketing spend, and industry accreditation were sufficient. Reputation may be inferred from sales and advertising. Logik Group’s approach of denying everything was treated as an impermissible bare denial.

 

2. Digital Footprints Count

Despite the name change, Logik Group retained info@firelogik.co.za and www.firelogik.co.za and continued using Fire Logik in its online presence and tender submissions. The court treated these digital identifiers as part of the actionable get up.

 

3. Misrepresentation Was Clear

Phonetic and visual similarity, overlapping territories, prior notice, actual confusion, and acknowledgement of likely confusion all supported the finding of misrepresentation.

 

4. Territorial Interdicts Follow Territorial Evidence

Reputation was proven in the Eastern and Western Cape. The interdict was limited accordingly. Territoriality still matters.

 

Practical Lessons

For brand owners

• Include domain and email checks in name clearance.

• Implement undertakings promptly.

• Preserve evidence of confusion.

• Remember that reputation accumulates.

 

For litigators

• Challenge bare denials.

• Use digital evidence.

• Build the territorial record if broader relief is needed.

 

For defendants

Claims of attempted rebranding without evidence are unlikely to succeed. Inexpensive digital changes undermine arguments based on delay or resource constraints.

 

A Final Thought: When Logic Meets Logik

Passing off remains contextual. Reputation need not be exceptional. Misrepresentation need not be intentional. Damage need not be quantified. The question is whether market reality creates confusion. Here, the public was left to decide whether fire logic was logic about fire or logik about fire. That burden, the SCA held, is not lawful.

 

The appeal was dismissed.

 

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Tuesday, 2 December 2025

Afro-Corne

When a Phoenix Rises… Twice: Passing Off in the Gauteng High Court

The South African logistics sector saw an unexpected mythological cameo last week when the High Court (Johannesburg) handed down judgment in Phoenix International Logistics (Pty) Ltd v Blaque Cherry Logistics (Pty) Ltd t/a Phoenix Logistics SA. In this case one logistics business accused another of rising a little too closely from its own brand ashes. (Case link to follow as soon as it is on Saflii).

 

What followed was a neat illustration of passing-off principles, a reminder that even everyday words can become distinctive in the right commercial nest, and a warning that a rebrand is not a resurrection unless your public-facing footprints are properly swept away.

 

The Background: When Two Phoenixes Occupy One Perch

 

Phoenix International Logistics has been trading under its name since 2005 which is a substantial uninterrupted nineteen-year run in a notoriously relationship-driven industry. The respondent, Blaque Cherry Logistics, later began trading as “Phoenix Logistics,” prompting the applicant’s November 2023 cease-and-desist. The respondent’s attorneys initially folded almost instantly, undertaking to “immediately refrain” from using the name.

 

But instead of a clean break, the respondent rebranded to “Phoenix Group SA” which is a move that may have sounded different internally, but, as the Court later explained, looked very much like the same bird to the average consumer.

 

Then, in 2025, nearly two years after the undertaking, the applicant discovered:

 

• A SARS cargo carriers list still identifying the respondent as t/a Phoenix Logistics 

• A professional profile of the respondent’s sole director reflecting Phoenix Logistics 

• The respondent’s website trading as Phoenix Group SA

 

This sparked a supplementary affidavit, objections, counter‑objections, accusations of tactical manoeuvring, and a “complex factual substratum.”

 

Procedural Sparks: The Court Lets the Evidence In

 

The respondent attacked the applicant’s supplementary filing as a late-stage rescue attempt. It also cried non‑joinder, complained about a confirmatory affidavit dated before the founding affidavit, and challenged the authenticity of the SARS listing.

 

The Court allowed the supplementary evidence regardless, emphasising that it was recent, relevant to ongoing conduct, and caused no prejudice because the respondent had fully answered it.

 

The Legal Core: What Makes a Phoenix Your Phoenix?

 

South African passing‑off law requires:

 

1. A reputation at the time the respondent entered the market 

2. A misrepresentation likely to deceive 

3. A likelihood of harm 

 

The Court found all three comfortably established.

 

Reputation? Yes — 19 Years of It

 

The respondent never seriously disputed that the applicant had goodwill in “Phoenix International Logistics.” The judge noted that, while “Phoenix” is a common word, it served as the distinctive identifier in combination with “International Logistics.” The Court stressed that this did not create a monopoly over “Phoenix” in all trade, only within logistics.

 

Misrepresentation? The Dominant Element Carries the Day

 

The Court held that:

 

• “Phoenix” is the dominant, memorable element of both names 

• “Group SA” and “International Logistics” are generic descriptors 

• Both operate in the same field 

 

A consumer might assume affiliation, a division, or a rebrand, all classic passing‑off risks.

 

Residual Confusion: The SARS Listing Becomes the Smoking Feather

 

The SARS entry dated October 2025, showing t/a Phoenix Logistics, became decisive. It contradicted the respondent’s assertion that all confusion had been cured by January 2024. Combined with the director’s professional profile still referencing Phoenix Logistics, the Court found clear evidence of continuing misrepresentation.

 

Order: This Phoenix Must Find a New Nest

 

The Court granted a final interdict prohibiting the respondent from using:

 

• “Phoenix Logistics” 

• any name incorporating “Phoenix” that is confusingly similar in the logistics sector 

 

It also ordered the respondent to update SARS and all registries within 30 days and awarded costs including two counsel.

 

Critical Eye: What Does This Judgment Mean?

 

• The Court did not grant a word monopoly, only sector‑specific protection 

• The SARS and online evidence showed current, not historical, misrepresentation 

• The Court based its reasoning on likely confusion, not mere association 

• The initial undertaking supported the applicant’s reputation in context 

• Common-word arguments fail where long use creates distinctiveness in a field 

 

Afro‑IP Takeaways

 

1. A mythical bird can become a trade identifier. 

2. A rebrand must be thorough, not cosmetic. 

3. Courts favour updated evidence in ongoing passing‑off disputes. 

4. Sector context matters more than company register statistics. 

5. Perception rules: consumers rely on imperfect recollection; businesses must rely on perfect name hygiene.

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Monday, 3 November 2025

Darren Olivier

King V and the Future of Intellectual Property in an AI Driven Africa

When Governance Meets the Algorithm

King V has landed and this time, it doesn’t tiptoe around technology. I attended the Institute of Directors South Africa’s premiere launch on Friday and am pleased to report that the new corporate governance code from Africa puts AI and data at the centre of ethical leadership.


This is a signal that intellectual property and information governance now live under the same roof. In other words, how we create, protect and share ideas, from patents and trade secrets to training data and algorithms, is now a boardroom issue (as it should be), not just a legal one.


From Ownership to Stewardship


King V reframes the conversation. It treats “data, information and technology” as distinct but connected fields, and insists that boards take responsibility for all three. AI gets its own treatment: boards must establish accountability for the design, use and outcomes of AI systems, guided by values like fairness, transparency, privacy, explainability and human-centricity.


This is governance and IP language. If AI systems are built on data (and most are), then those data are intellectual assets. Their ownership, control and ethical use are as important as any patent or trade mark. Indeed, most exist as copyrights and know-how, creating an urgent need for registers to reflect this.


The shift from ownership to stewardship is subtle but seismic. Organisations are now judged not only by what IP they hold (which, from an African perspective, has always been neglected), but by how responsibly they manage and share it.


The New Currency: Intangible, Intelligent, Invisible


King V recognises what African innovators have known for years: the real wealth isn’t in the factory, it’s in the file.


Algorithms, data sets, local knowledge systems, creative works are now the levers of sustainable value creation.


Under King V, boards are told to link their strategies to the “vitality of socio-ecological systems.” In plainer terms: your business doesn’t exist outside the society and environment that sustain it. That means IP portfolios can’t be hoarded in isolation. They must contribute to broader resilience, climate, education, digital inclusion.


It’s a governance model that works like Ubuntu for IP: we create because we exist.


AI, IP and the Duty to Disclose


Another quiet revolution involves the concept of double materiality. Companies must now report both how sustainability and technology issues affect them and how their activities affect society. For IP teams, this invites new questions:


  • How do our licensing and enforcement policies impact access to innovation?
  • Are our data practices sufficiently fair and transparent?
  • Does our AI deployment erode or enhance public trust?

Expect this to spill into integrated reporting and assurance. Auditors will soon be asking not only how many patents you have, but what those patents do to people and the planet.


Boards, Committees and the IP Connection


King V also re-wires governance structures. Risk committees must include independent members and so must social and ethics committees. For IP intensive organisations, this can be quite something:


  • Risk committees should map and record IP exposure and ownership, from trade secret leaks to algorithmic bias.
  • Social and ethics committees should oversee how IP is used in society, whether your AI respects human rights, diversity and access.
  • Remuneration committees should rethink incentives by rewarding innovation that’s not only profitable but responsible.

It’s governance with conscience.


What This Means for African IP Practice


For Africa’s IP community, King V is both an opportunity and a challenge. It demands that lawyers, IP professionals and policymakers rethink IP as governance infrastructure. That’s a big shift from drafting agreements or filing applications. It’s about aligning IP strategy with ethics, AI governance, value and sustainability.


It also puts pressure on boards to include IP literate voices i.e. people who understand how data rights, algorithms and copyright intersect. If that doesn’t happen, companies’ risk being led by directors who can read a balance sheet but cannot read the value of intangibles. This is especially a challenge in South Africa, where internally generated IP does not even exist on the balance sheet and therefore long awaited.


So, What Now?


A few practical take outs for IP leaders:

  • Put AI and data IP on your board’s risk register.
  • Build IP ethics into your social and ethics committee mandate.
  • Train directors on AI-related IP risk authorship, bias, accountability.
  • Rethink disclosure: create IP asset registers - report how your IP both creates and impacts value.
  • And perhaps most importantly, design IP policies (including enforcement policies) that reflect Ubuntu, not just exclusivity.

Final Thought


King V is very much welcomed as it indirectly positions intellectual property at the forefront of governance in the AI age. This is something that accounting standards on value have failed to do. AI inputs and outputs are all about data which includes intellectual property rights. It is not just about recording these assets in registers, it is also about leading with ethics and transparency, not because regulators demand it, but because trust is now the most valuable form of intellectual property we own. This is very much an opportunity for all those that believe in the value of IP.

Darren Olivier

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Tuesday, 9 September 2025

Afro Leo

Spotlight: LES SA Annual Conference 2025 – Where Innovation, Licensing & Sustainability Meet!

The Licensing Executives Society (LES) South Africa is rolling out the blue carpet for its Annual Conference, set against the stunning backdrop of the Asara Boutique Hotel & Wine Estate in Stellenbosch from 9–11 November 2025.


Why Should You Be There?

  • Innovation, Sustainability & Licensing in a Changing World is the theme, and the line-up is nothing short of world-class. Expect to rub shoulders with global IP leaders, trailblazing entrepreneurs, and the sharpest legal minds in the business.
  • Network, learn, and shape the future of African and global IP. Whether you’re a seasoned practitioner, a startup founder, or a policy enthusiast, this is your chance to connect and collaborate.

What’s On the Agenda?

Registration & Details

  • Fees: R2,500 (members) | R5,000 (non-members)
  • Register now: https://forms.gle/75hbSUvP4rHy49wb9
  • Full programme: https://licensing.co.za/annual-conference-2/
  • Conference hotel: Asara Boutique Hotel (special rates with code LES091125). Alternative accommodation options available.
  • Sponsorships: Platinum, Gold, Silver, and Bronze packages: show your support for African IP excellence!
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Thursday, 4 September 2025

Afro Leo

SOUTH AFRICA: Detaining counterfeit goods: Finding time to do the job

The decision in LA Group v United States Polo Association (USPA) Gauteng High Court, Pretoria, dated 25 August 2025, is, in the words of the court "complex".  For one, one party employed two senior counsel.  Also, procedurally, the matter involved a decision by a single judge, an appeal to a full bench, and yet a further appeal to a full bench, not the Supreme Court of Appeal.  The dispute originated with the detention of allegedly counterfeit hand bags and luggage of USPA.  The latter applied successfully to a single judge court (the court a quo) for an order releasing the consignment concerned.

 

LA Group applied for leave to appeal.  In response, USPA applied to the court a quo in terms of section 18 of the Superior Courts Act for leave to execute the court a quo's decision.  Section 18(1) of said Act provides that an appeal will suspend a decision - but the court may order otherwise.  LA Group's application for leave to appeal was refused, and USPA's application for leave to execute the court a quo's decision was granted.  In these circumstances, section 18(4)(ii) of said Act creates an automatic right of (expedited) appeal to the next highest court.  On appeal to it, a full bench (the first full bench - FFB) set aside the decision granting leave to execute the court a quo's decision.

 

That left unresolved the merits of the court a quo's decision, hence necessitating a second full bench (SFB) appeal, being the case under discussion here.  The latter court indicated that at the heart of the appeal was the legal question whether it was competent for the court a quo to order the release of the imported goods in circumstances where the goods had been detained under the Customs and Excise Act.  The same question that confronted the FFB.

 

The Customs and Excise Act authorises the police to detain goods for the purpose of establishing whether the goods are liable to forfeiture thereunder.  LA Group argued that the application in the court a quo was premature because a party is only entitled to demand the release of goods which have been seized.  The distinction between goods that have been detained and those that have been seized was said to determine the scope and nature of the relief that may be claimed by a person seeking their return.   USPA on the other hand submitted that the police inspected the container carrying the imported goods and that, consequently, at the time that the application was brought the official had finished her investigation.  With the conclusion of the investigation, the continued detention was no longer justified and the imported goods had to be released.  USPA also referred to the decision in Commissioner for the South African Revenue Service v Trend Finance (Pty) Ltd, which stated that in terms of detention, a limitation must be read in that the right to detain goods only endures for a reasonable period of time.  The SFB however held (paragraph 25) that USPA did not establish that a reasonable period of time had passed.

 

The SFB further stated that there was nothing on the papers to indicate that when the application was launched that the police had completed an investigation into whether there were reasonable grounds to suspect that an offence in terms of the Counterfeit Goods Act was committed.

 

The SFB then had regard to the following passage (paragraph 30) of the ruling of the FFB:

 

"A distinction (which was overlooked by the court a quo) must therefore be drawn between the 'detention' and the 'seizure' of goods.  Goods may only be 'seized' after the inspector has investigated the matter and has exercised a discretion that she reasonably suspects that the detained goods  may be counterfeit and only after she has applied for a warrant in order to 'seize' the goods in terms of the Counterfeit Goods Act.”

 

The SFB thus held that the application was prematurely launched and that the court a quo usurped the discretion of the officials in terms of the Customs and Excise Act.  It was accordingly not competent for the court a quo to have ordered the release of the imported goods.

 

The case establishes that a party is only entitled to demand the release of goods that have been "seized".  It also indicates that the courts will provide the relevant officials with sufficient time to determine the status of possible counterfeit goods.  However, the time period must be reasonable.

 

Prof Wim Alberts (University of Johannesburg)


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