In February, in an article on the
2017 South African budget review, we wrote that the government
had proposed that companies and individuals no longer required
approval from the South African Reserve Bank
("SARB") for "standard intellectual
property transactions" and that the "loop structure
restriction for all intellectual property transactions" be
lifted, provided that such transactions are arm's length and at
a fair market price.
The SARB has now issued two circulars relating to IP and
exchange control.
The first circular relates to IP and amends section B.2(A)(iii)
of the Currency and Exchanges Manual for Authorised Dealers as
follows:
"Authorised Dealers may, however, approve the outright
sale, transfer and assignment of intellectual property by South
African residents, excluding mandated state owned companies as
defined in Schedule 2 of the Public Finance Management Act, 1999
(Act No. 1 of 1999), to unrelated non-resident parties at arm's
length and a
