In this two-part interview, Davidson Oturu offers his perspectives on the intellectual property, fintech, and venture capital landscapes in Africa. He shares firsthand insights into the legal and practical aspects of navigating these complex sectors. In Part I, he reflects on his journey into legal practice, the founding of Nubia Capital, and the pivotal role of intellectual property in driving innovation within the technology sector. See Part II here.
Davidson Oturu is the Managing Partner at Nubia Capital, a US-based Venture Capital Firm specialising in funding and investing in tech-enabled startups in Africa. He is also part of different angel investment syndicates and SPVs that invest in tech businesses in North America and Africa. He was previously a Partner at AELEX, a law firm in Nigeria and Ghana, where he headed the firm’s Intellectual Property, Startups, Innovation, and Technology Practice and has been recognised in legal directories such as Chambers Fintech Guide, IFLR 1000, Legal 500, Who’s Who Legal, WTR 1000, IP Stars, and Chambers Global.
Davidson is a non-executive director in different companies and mentors entrepreneurs on matters related to regulatory compliance, board management, intellectual property, and startup-related challenges. He also serves as a mentor at the Founder Institute and Techstars, which are renowned international pre-seed accelerators. His involvement in shaping the entrepreneurial landscape in Africa saw him play a pivotal role in heading the drafting team that drafted the Nigeria Startup Act, addressing regulatory and financial challenges faced by tech-enabled startups. He was appointed to the country’s National Council for Digital Innovation & Entrepreneurship for the Act’s implementation and monitoring. Additionally, he was an executive member of the committee set up by the Securities & Exchange Commission to set up a framework for fintech usage in the Nigerian capital market, which led to the creation of a roadmap for the introduction of cryptocurrencies, robo-advisory and other emerging technologies.
In 2022, he launched the Davidson Oturu Law School Scholarship, supporting scholars from underprivileged backgrounds to attend the Nigerian law school. He also runs a mentorship program for young professionals. His academic background includes an LLB from the University of Ibadan, an LL.M in International Business Law from the University of Cumbria, and an MBA from Queen Mary University of London. He writes and speaks on law, finance, and technology, contributing significantly to these discourses.
Flora IP (FI): Can you tell us about your journey into the world of intellectual property law, technology and finance?
Davidson Oturu (DO): My journey started as a lawyer with a focus on a wide corporate law practice at Matrix Solicitors where I worked for about four (4) years before moving to AELEX. At AELEX, I had the opportunity to focus on intellectual property (IP), regulatory compliance, data privacy, cybersecurity, capital markets and finance. It enabled me to work across a broad spectrum of clients in different practice areas. During this time, I pursued an LLM in International Business Law and an MBA in Entrepreneurship and Finance to broaden my knowledge. When I became a partner at AELEX, I decided to set up a technology, media and telecommunications (TMT) practice at AELEX and recruited lawyers to the team. I also started taking several courses and one that was quite transformative was the Fintech Programme at the University of Oxford which was an eight-week course that was very thorough and gave one deep insights into fintech.
I was then appointed to the roadmap committee set up by the Securities and Exchange Commission (SEC) and we were given the mandate to create a framework for the use of fintech in Nigeria’s capital market. We therefore had to review laws and regulations from different jurisdictions like the United Kingdom, Malta, Singapore, China and the United States. This further provided a fuller insight into fintech and how it operates in different countries. It was also a historic chapter for those of us in the committee as our work went on to become the foundation upon which the SEC then rolled out rules on robo advisory, crowdfunding and digital assets.
I was also fortunate to become the head of the intellectual property practice at AELEX and I was active on the global and local scene as I was appointed as the Chairman of the Legislation and Regulation Committee for the Middle East, Asia and Africa (MEASA) at the International Trademark Association (INTA). This required me to engage with legislators and regulators across the region to explore how we could assist them in firming up their IP Laws. After a few years leading that committee, I also had the opportunity to be the chairman for the Trademark Office Practice Committee for MEASA. This role required me to engage with the different trademark offices in the region. I did that in addition with the IP practice at the firm where we had several cases we won for clients on the disputes sides, and were also responsible for managing over 4,000 brands in Nigeria and Ghana.
In working with different founders, I became passionate about the intersection of law, technology, and finance. As my practice at the firm grew, I had close to 100 startups and tech companies and I started angel investing in some of them. This made me interested in creating an enabling environment for them to thrive and when the opportunity came to lead the team to draft the Nigeria Startup Act, I took it and was appointed to the Presidential Advisory Council and was the lead draftsman for the Act. It required engagement with different stakeholders and having sessions with the National Assembly and the Minister of Communications Digital Economy. Having focused on building businesses, advising them and drafting a law to enable the ecosystem, I then had the opportunity to partner with a friend to set up Nubia Capital, which is a venture capital firm, to enable me support startups more actively.
FI: Nubia Capital invests in African businesses. Its mission is to support exceptional individuals in building and growing remarkable enterprises. Tell us more about Nubia Capital and how it engages with startups and businesses.
DO: Nubia Capital is committed to investing in Africa’s tech-driven future by backing exceptional entrepreneurs who are building innovative and scalable businesses. Our mission is to not just provide funding but to create a supportive ecosystem for startups. We engage with these businesses by offering mentorship, strategic advice, and access to a robust network of industry experts, investors, and potential partners. Our focus is on sectors like fintech, agritech, healthtech, and cleantech, where we see opportunities for significant impact and long-term value creation across the continent.
FI: Having previously served as a Partner at AELEX, how did your legal background shape your approach to venture capital and investment?
DO: My legal background has been instrumental in shaping my approach to venture capital and investment. At AELEX, I worked across a variety of sectors, including IP, regulatory compliance, and capital markets, which allowed me to understand the complexities of business operations and the regulatory landscape. I helped guide startups through different funding rounds and also assisted them in drafting documents such as Simple Agreements for Future Equity (SAFEs), Convertible Notes, Term Sheets, and other relevant agreements and documentation that startups and tech companies usually require to effectively operate their businesses. Those activities gave me a lot of insights the importance of due diligence, risk management, and structuring deals in a way that aligns with both legal requirements and business growth. In venture capital, these skills help ensure that the investments we make are not only financially sound but also legally protected.
FI: What is the role of intellectual property law in fostering innovation within the tech sector in Africa?
DO: IP law is fundamental to fostering innovation, particularly in Africa’s growing tech sector. IP law offers protection for innovative ideas, inventions, and creative works, allowing businesses to secure their intellectual assets. This protection not only incentivises inventors and entrepreneurs by granting them exclusive rights but also promotes competition and creativity within the sector. It provides a mechanism for startups to leverage their IP as valuable assets, helping them attract funding, forge partnerships, and build sustainable business models.
- How do intellectual property rights impact the ability of entrepreneurs to attract investment?
IP rights, especially patents, trademarks, trade secrets and copyrights, enhance the value of a startup by making its intellectual assets legally protected. Investors are more inclined to invest in startups with well-protected IP because it ensures that the startup’s innovations are secure from infringement or imitation. Having robust IP also demonstrates a startup’s market differentiation and long-term potential. In many cases, IP assets become critical collateral for securing financing, making startups more attractive to venture capitalists and other investors. Without IP protection, startups risk losing their competitive edge, which could deter potential investors.
- What are some effective strategies that startups can employ to protect their intellectual property while fostering innovation and collaboration?
Startups should employ a combination of proactive legal strategies to protect their IP while encouraging innovation and collaboration. First, they must identify and document their IP early—whether through patents, trademarks, or copyrights. Second, they can use non-disclosure agreements (NDAs) when sharing sensitive information with potential partners or collaborators. Licensing agreements are also an effective tool for monetizing IP while enabling other businesses to build on the innovation. Additionally, startups should foster a culture of IP awareness within the company, training employees on the importance of IP protection and encouraging the disclosure of new inventions.
FI: What should startups do to ensure they are compliant with intellectual property laws, particularly when expanding into global markets?
DO: To ensure compliance with IP laws in global markets, startups must conduct thorough research into the IP laws of the countries they plan to operate in. This includes understanding local regulations regarding IP registration, patent laws, and IP enforcement. Many startups overlook the importance of registering IP in international markets, but this can be crucial for protecting their brand and inventions abroad. Furthermore, they should engage local IP attorneys or consultants to guide them through the legal complexities in each jurisdiction. Startups should also review and adjust their IP agreements (like licensing and distribution) to align with international IP standards.
FI: With the rise of digital technologies, how do you foresee the evolution of intellectual property law in relation to emerging technologies like blockchain and artificial intelligence?
DO: As emerging technologies such as blockchain and artificial intelligence (AI) gain prominence, IP law will need to evolve to address the new challenges they present. AI technologies, for instance, raise questions about ownership, as AI-generated works or inventions might not clearly fit within traditional IP frameworks. Similarly, blockchain technologies, with their decentralized nature, could challenge traditional IP enforcement methods. IP laws may need to evolve to account for issues like the ownership of AI-generated innovations, and how blockchain can be used to track and authenticate IP transactions. This will require new legal frameworks and international cooperation to ensure IP protection in the digital era.
FI: In your experience, how does the intellectual property landscape in Africa differ from that in other markets? What lessons can be drawn from these differences
DO: The IP landscape in Africa is distinct from other markets due to factors like varying levels of enforcement, the complexity of local IP laws, and the lack of awareness in many countries about the importance of IP. In developed markets, IP frameworks are typically more robust and streamlined, with clear protection mechanisms. In contrast, many African countries face challenges such as inadequate infrastructure, limited resources for IP offices, and inconsistent application of IP laws. However, Africa’s IP landscape presents an opportunity to build stronger legal frameworks and foster innovation in the region. By drawing lessons from more established markets, African countries can create conducive environments for entrepreneurs and innovators to protect and monetize their intellectual assets.
- What do you believe are the key factors that will drive the future of intellectual property law in Africa, particularly in relation to technology and innovation?
The future of IP law in Africa will likely be shaped by several key factors, including the growing focus on technology and digital innovation, the rise of startups, and increased regional cooperation through treaties like AfCFTA. The digital transformation across the continent will require IP laws to adapt to emerging technologies such as AI, blockchain, and the Internet of Things (IoT). Additionally, the increasing importance of e-commerce, fintech, and mobile solutions necessitates the need for stronger IP protection, especially in sectors where IP is often the primary asset of the business. Enhanced IP education and training for entrepreneurs, and the creation of regional IP harmonization policies, will also be pivotal in driving innovation.
- How can African governments enhance their intellectual property law frameworks to support the growth of startups and tech innovation?
Governments in Africa can enhance their IP frameworks by improving the accessibility and efficiency of IP registration processes, reducing bureaucratic delays, and providing more affordable legal services for startups. Another crucial step is raising awareness about IP, particularly among young entrepreneurs and tech innovators, ensuring they understand the value of protecting their ideas. Governments could also facilitate collaborations between IP offices and startups to ensure that businesses are aware of the latest legal tools to protect their innovations. Moreover, implementing regional IP systems, such as the ARIPO and OAPI (for African IP organization), could streamline IP protection across multiple jurisdictions, providing startups with easier access to pan-African markets.
FI: What are the implications of international treaties, such as the African Continental Free Trade Area (AfCFTA), on IP rights and enforcement in Africa?
DO: The African Continental Free Trade Area (AfCFTA) is expected to enhance IP rights and enforcement across the continent. By promoting intra-African trade, AfCFTA encourages harmonisation of IP laws across member states. This can lead to a more standardized approach to IP protection, making it easier for startups to navigate multiple jurisdictions within Africa. However, for AfCFTA to be fully effective in strengthening IP rights, countries must align their national IP laws with regional agreements and ensure efficient enforcement mechanisms. This also includes educating governments, regulators, and businesses about the importance of IP for cross-border trade and regional economic integration.
FI: Can you elaborate on any recent developments in intellectual property law that may impact startups and investors in the tech space?
DO: Recent developments in IP law that could significantly impact startups and investors in the tech space include the rise of new protections for digital technologies such as blockchain, AI, and data privacy. In many regions, there’s been a push to update IP frameworks to address the unique challenges of these technologies, such as patenting software algorithms, securing blockchain-based assets, and protecting AI-driven innovations. For instance, in 2021, the European Patent Office (EPO) suggested that AI may be an inventor in a case involving AI-generated inventions, which could shape how IP law accommodates emerging technologies like AI.
IP rights in blockchain, especially regarding NFTs, have been evolving. In 2021, the U.S. Patent and Trademark Office introduced new trademark registration rules related to blockchain-based products. Also, as tech startups increasingly deal with vast amounts of personal data, stronger data privacy regulations like GDPR (Europe) and California’s CCPA are pushing startups to refine their IP strategies to protect consumer data and intellectual assets. Additionally, international treaties like the WIPO Copyright Treaty and emerging regional agreements, such as AfCFTA, offer greater consistency in IP laws across countries, which is crucial for cross-border tech startups.
Furthermore, the increased recognition of trade secrets, as well as clearer regulations surrounding digital copyrights and open-source software, are creating more favorable environments for tech innovation. For investors, this evolution presents greater certainty in IP protections, making tech startups more appealing targets for investment, knowing their intellectual property is safeguarded. In short, these legal updates are helping to ensure that tech startups can protect their intellectual assets effectively, fostering innovation and encouraging further investment in the sector.
