Kenya’s creative economy is growing rapidly. The sector contributes five percent to Kenya’s gross domestic product, employs 300,000 people directly, and is valued at nearly Sh21 billion.
These statistics highlight the significant role this sector plays in supporting livelihoods for many individuals and families. A key component of this sector includes digital assets created by techpreneurs and content creators.
Digital assets encompass works such as audio recordings, video recordings, audio-visuals, photographs, animations, social media content, source codes, and other digitally generated works.
Despite their prevalence, not many people understand that digital assets can be legally categorised as property according to the legal definition of property.
This recognition is crucial for establishing effective management practices for digital assets. By understanding digital assets as property, individuals and families can better manage and optimise the utility of these assets.
Digital assets as property
Most digital assets qualify for intellectual property rights, particularly copyrights. Copyrights are divided into subclasses, including literary works, audio-visual works, audio works, and computer programs.
An essential aspect of copyrights is the proprietary rights they confer to the copyright holder. These rights allow the holder to control the monetisation of their works and ensure moral association with them. The proprietary rights granted through copyright enable the owners of digital assets to generate income from their creations.
Copyrights, as intellectual property rights, are recognised under the Kenyan Constitution, specifically Article 40(5). The constitutional recognition affirms that intellectual property rights, like other forms of property, are protected from arbitrary deprivation and other infringements. Managing digital assets
Managing digital assets effectively is just as important as managing physical assets like land. Below are some key strategies for managing digital assets:
Register ownership of your digital assets
It is advisable to obtain proprietary registration for your digital assets. While registration is not mandatory, securing intellectual property rights over your assets provides additional legal and financial benefits.
Similar to a land title deed, a certificate of registration offers proof of ownership and enhances the value of your digital assets.
Value your digital assets
Many individuals and families overlook the valuation of digital assets when assessing their net worth. However, these assets can significantly contribute to overall wealth.
For example, Peter, a software developer, owns a piece of land worth Sh500,000 and a car valued at Sh300,000. Additionally, Peter has created several software programmes that he licenses to other entities, collectively valued at Sh5 million.
Peter’s net worth should account for both his tangible and intangible assets, including the digital ones. Structure your digital assets
Proper structuring of digital assets is critical for monetisation and succession planning. Did you know you can pass on your digital assets to your heirs? Or that you can generate income from them?
The key lies in establishing the right structure to support monetisation and estate planning. Structured digital assets ensure seamless transitions and optimised financial benefits.
