the State did not direct the
View Parallel Citation
making of the insert because it did not initiate its making and it did not prescribe the manner and means to be
employed therein. The provision is consequently inapplicable. That leaves the question of "control". In this
regard Biotech relied heavily on a number of decisions that deal with the meaning of the word in other
statutory contexts, especially those that held that the power to control an activity may include the power to
restrain and even veto it;14 consequently, since the MCC had the power to approve or disapprove the insert,
it was made under its control.
[20] Apart from the fact that the ultimate decision whether or not to accept the MCC's recommendations or to use
the insert is that of the applicant, the major problem with the approach is that it focuses on the meaning of a
word in isolation.15 The issue is not whether the MCC had the power to approve or disapprove the insert but
whether the insert was made under its control. This appears to be a factual rather than a legal issue. An insert
is of the utmost commercial importance to a pharmaceutical company. Not only is it required for purposes of
registration of a medicine but it is also the "passport" of the medicine because it is the document that
prescribing medical practitioners will have regard to in deciding whether or not to prescribe any particular
medicine. In this case Dr Kritzinger prepared the draft insert in his capacity as employee of SmithKline
Beecham. As soon as it was completed, section 3 conferred copyright thereon as a literary work of which
SmithKline Beecham was the owner by virtue of section 21(1)(d). Thereafter the draft was submitted to the
MCC for its approval. During the approval process SmithKline Beecham amended the document, sometimes
upon the suggestion or request of the MCC but, as conceded by Biotech, the MCC did not change the
substance of the insert nor did it coauthor the end result. Copyright once conferred in any particular work
cannot again be conferred on the same work and copyright once vested in a party remains so vested unless
transmitted under section 22.
[21] In order to meet this consequence Biotech submitted that once Dr Kritzinger conceived of the idea to prepare
an insert he thenceforth acted under the control of the State. The proposition merely has to be stated to be
rejected. The anomalies abound. It would for instance mean that if SmithKline Beecham had decided not to
submit the insert to the MCC, the copyright therein would still have vested in the State, it being blithely
unaware that it had controlled the making of the work. If Beecham had prepared the leaflet in the UK for use in
its UK application and had submitted it to the UK authorities, copyright would have vested in either Beecham or
the UK government. Beecham would then have required the UK government's licence to submit the insert to
the MCC and upon submission to the latter, copyright would have been transferred to the South African
government.
Page 662 of [2002] 3 All SA 652 (SCA)
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[22] I prefer to adopt and adapt Ricketson's16 approach: the production of the work needs to be the principal
object of State direction and control and not merely an incidental or peripheral consequence of some
generalised governmental licensing or monitoring power; the direction and control should be directly and
specifically expressed with respect to the work in question, and should not be inferred from the fact of some
residual or ultimate government veto. On the facts of this case, the MCC did not "control" the making of the
work or the intellectual effort involved in its genesis; it controlled its fate to the extent that it had to determine
administratively whether the insert complied with the regulations. Its statutory function is to control the sale of
medicines and not to be the controlling mind behind the creation of the insert. An editor is not an author and
even if "the meaning of a word is always another word",17 control does not mean cooperation or
consultation, at least not in the present context.
[23] I therefore agree with Swart J that the copyright in the insert vests in SmithKline Beecham and the appeal
must consequently be dismissed. It would not be out of order to say something about the concerns of the
MCC. It joined the Biotech team by claiming through its deponents that the "whims" of copyright law should not
interfere with its policies. It insists that the same medicines should have identical inserts. That may be a
commendable ideal but it does not entitle it to disregard other parties' proprietary rights, in this case based
upon statute. The evidence also establishes that identical inserts are not necessary and that at least��one
other competitor was able to produce an insert acceptable to the MCC that was not a copy of SmithKline
Beecham's insert. This is not a case where the information can be presented in only one format, for instance, a
mathematical formula, the batting list of a cricket team or an alphabetical list of the members of a society and it
was thus unnecessary to consider whether or not this factor may affect the conferral of copyright.
[24] The appeal is dismissed with costs, including the costs consequent upon the employment of two counsel.
(Nienaber, Zulman, Navsa and Nugent JJA concurred in the judgment of Harms JA.)
For the appellant:
AP Joubert SC and RM Robinson instructed by Livingston Crichton, Sandton
For the respondent:
CE Puckrin SC and JN Cullabine instructed by DM Kisch Ingelyf, Sandton