Guriqbal Singh Jaiya Director, SMEs Division

The Role of Trademarks, Designs and Geographical Indications in Building a Brand Image
Guriqbal Singh Jaiya Director, SMEs Division World Intellectual Property Organization (WIPO)

“Competitive strategy is about being different
“Competitive strategy is about being different. It means deliberately choosing to perform activities differently or to perform different activities than rivals to deliver a unique mix of value.” Michael E. Porter

Definition Competitive Advantage
An advantage over competitors gained by offering consumers greater value than competitors offer.

Competitive Strategies
How does an organization improve their competitive performance? Must establish a competitive advantage in 3 areas: Uniqueness: of resources & processes (Bill Gates knowledge of IBM) Value: where products/services warrant a higher-than-average price or exceptionally low Difficult to imitate: when products/services are hard to mimic or duplicate

Basic Competitive Strategies: Porter Overall cost leadership Lowest production and distribution costs Differentiation Creating a highly differentiated product line and marketing program Focus Effort is focused on serving a few market segments

Basic Competitive Strategies: Value Disciplines Operational excellence Superior value via price and convenience Customer intimacy Superior value by means of building strong relationships with buyers and satisfying needs Product leadership Superior value via product innovation

CORE COMPETENCES Definition
Hammel and Prahalad defined core competence as a central value - creating capability of an organization/enterprise.

CORE COMPETENCES Core competences are activities or processes that critically underpin an organisation competitive advantage. They create and sustain the ability to meet the critical success factors of particular customer groups better than providers in ways that are difficult to imitate

CORE COMPETENCES Core competences are distinctive capabilities that lead a company to a competitive advantage. Features of an enterprise that cannot be readily reproduced by a competitor.

CORE COMPETENCES Core competences can vary through the time depending on the strategy adapted by the companies and the identification of the core competencies is the first step for a company to decide which business opportunities to pursue.

The Five Generic Competitive Strategies

Low-Cost Provider Strategies
Keys to Success Make achievement of meaningful lower costs than rivals the theme of firm’s strategy Include features and services in product offering that buyers consider essential Find approaches to achieve a cost advantage in ways difficult for rivals to copy or match Low-cost leadership means low overall costs, not just low manufacturing or production costs!

Differentiation Strategies
Incorporate differentiating features that cause buyers to prefer firm’s product over brands of rivals Find ways to differentiate that create value for buyers and are not easily matched or cheaply copied by rivals Not spending more to achieve differentiation than the price premium that can be charged Objective Keys to Success

Where to Find Differentiation Opportunities in the Value Chain
Purchasing and procurement activities Product R&D and product design activities Production process / technology-related activities Manufacturing / production activities Distribution-related activities Marketing, sales, and customer service activities Internally Performed Activities, Costs, & Margins Margins of Suppliers Buyer/User Value Chains Activities, Costs, & Margins of Forward Channel Allies & Strategic Partners

How to Achieve a Differentiation-Based Advantage
Approach 1 Incorporate product features/attributes that lower buyer’s overall costs of using product Approach 2 Incorporate features/attributes that raise the performance a buyer gets out of the product Approach 3 Incorporate features/attributes that enhance buyer satisfaction in non-economic or intangible ways Approach 4 Compete on the basis of superior capabilities

Types of Differentiation Themes
Unique taste – Dr. Pepper Multiple features – Microsoft Windows and Office Wide selection and one-stop shopping – Home Depot, Amazon.com Superior service -- FedEx, Ritz-Carlton Spare parts availability – Caterpillar Engineering design and performance – Mercedes, BMW Prestige – Rolex Product reliability – Johnson & Johnson Quality manufacture – Michelin, Toyota Technological leadership – 3M Corporation Top-of-line image – Ralph Lauren, Starbucks, Chanel

Sustaining Differentiation: Keys to Competitive Advantage
Most appealing approaches to differentiation Those hardest for rivals to match or imitate Those buyers will find most appealing Best choices to gain a longer-lasting, more profitable competitive edge New product innovation Technical superiority Product quality and reliability Comprehensive customer service Unique competitive capabilities

Best-Cost Provider Strategies
Combine a strategic emphasis on low-cost with a strategic emphasis on differentiation Make an upscale product at a lower cost Give customers more value for the money Deliver superior value by meeting or exceeding buyer expectations on product attributes and beating their price expectations Be the low-cost provider of a product with good-to-excellent product attributes, then use cost advantage to under price comparable brands Objectives

Focus / Niche Strategies
Involve concentrated attention on a narrow piece of the total market Serve niche buyers better than rivals Choose a market niche where buyers have distinctive preferences, special requirements, or unique needs Develop unique capabilities to serve needs of target buyer segment Objective Keys to Success

Examples of Focus Strategies
Animal Planet and History Channel Cable TV Google Internet search engines Porsche Sports cars Cannondale Top-of-the line mountain bikes Enterprise Rent-a-Car Provides rental cars to repair garage customers Bandag Specialist in truck tire recapping

Focus / Niche Strategies and Competitive Advantage
Achieve lower costs than rivals in serving a well-defined buyer segment – Focused low-cost strategy Approach 1 Approach 2 Offer a product appealing to unique preferences of a well-defined buyer segment – Focused differentiation strategy Which hat is unique?

Two Models of Management
Profit-based management Reduce costs Reduce compensation Replace people with technology Price to extract maximum value Sell more products Acquire lots of customers Loyalty-based management Invest in marketing assets Give superior compensation Leverage people with technology Price to reward customers Deepen customer value Acquire customers selectively Source: Frederick Reichheld, The Loyalty Effect

Focus on Building Long-Run Marketing Assets.
Brands and brand equity Customers and customer equity Service quality Stakeholder relationships Intellectual knowledge Corporate reputation

Marketing is More Important than Production!
The manufacturer of a Hugo Boss shirt gets only $12, or 10% of the final price of $120 that is paid by a customer of Saks Fifth Avenue. The retailer gets 60% ($72) and the Brand company gets 30%, or $36. Would you rather be the manufacturer, Brand owner, or retailer? The manufacturer has no defense if the Brand Owner wants to switch to another manufacturer to whom he will pay $8 and keep $2 or pass it to the retailer to get more retail support. Yet in most countries, policy makers and business leaders pay more attention to the product engineer than the marketing “engineer.” But India’s future success will require investing in marketing and branding.

Improving Marketing Efficiency and Effectiveness
buying inputs more efficiently hunting down excessive communication and sales travel expenses closing unproductive sales offices cutting back on unproven promotion programs and tactics putting advertising agencies on a pay-for-performance basis Improving marketing effectiveness replacing higher cost channels with lower cost channels shifting advertising money into better uses reducing the number of brands or sku’s Improving supply chain responsiveness

Dual Strategies Planning for today Planning for tomorrow
Defining the business. Shaping the business to meet needs of today’s customers Improving alignment between functional activities and business definition Organization mirrors current business activities Optimizing current operations to achieve excellence. Planning for tomorrow Redefining the business Reshaping the business to compete for future customers and markets Making bold moves away from the existing ways of doing business Reorganizing for future business challenges Managing change to create future operations and processes

Some Vertical Marketing Methods
Modulation The juice manufacturer varies the sugar content, fruit concentrate, with or without vitamins… Sizing Potato chips are offered in sizes 35 grams, 50 grams, 75grams, 125 grams, 200 grams, multi-packs… Packaging Nestle’s Red Box chocolates comes in different containers: cheap paper box for the grocery trade, premium metal box for the gift trade… Design BMW designs cars with different styling and features... Complements Biscuits with sugar spread on it, with cinnamon, with chocolate, with white chocolate, with black chocolate, filled biscuits… Efforts reduction Charles Schwab offers different channels for transacting such as retail stores, telephone, internet….

Lateral Marketing Process
The case of Cereal Bars Lateral Marketing Process into Cereals for breakfast market Cereal varieties New category Vertical Marketing Process STREETS =

Lateral Marketing Process Vertical Marketing Process
The case of Barbie Lateral Marketing Process Baby dolls market Teenager New category To feel as... = Doll varieties Vertical Marketing Process

Other Examples of Lateral Marketing
Kinder Surprise = candy + toy. Seven Eleven = food + depot. Actimel = yogurt + bacteria protection. Gas station stores = gas station + food. Cyber cafes = cafeteria + Internet. “Be the godfather of a kid” = Donation + adoption. Huggies Pull-ups = diapers + 3 year olds. Walkman = audio + portable Source: Philip Kotler and Fernando Trias de Bes, Lateral Marketing: A New Approach to Finding Product, Market and Marketing Mix Ideas (Wiley, 2004)

The Evolution of Marketing
Transactional Marketing Relationship Marketing Collaborative Marketing Time frame 1950s 1980s Beyond 2000 View of value The company offering in an exchange The customer relationship in the long run Co-created experiences View of market Place where value is exchanged Market is where various offerings appear Market is a forum where value is co-created through dialogue Role of customer Passive buyers to be targeted with offerings Portfolio of relationships to be cultivated Prosumers-active participants in value co-creation Role of firm Define and create value for consumers Attract, develop and retain profitable customers Engage customers in defining and co-creating unique value Nature of customer interaction Survey customers to elicit needs and solicit feedback Observe customers and learn adaptively Active dialogue with customers and communities Adapted from Prahalad and Ramaswamy 2004

Check Where You Stand Marketing does the marketing -> everyone does the marketing. Organizing by product units -> organizing by customer segments. Making everything -> outsourcing more goods and services. Using many suppliers -> working with fewer suppliers. Emphasizing tangible assets -> emphasizing intangible assets. Building brands through advertising -> building brands through integrated communications. Attracting customers to stores -> making products available on-line. Selling to everyone -> selling to target markets. Focusing on profitable transactions -> focusing on customer lifetime value. Focusing on market share -> focusing on customer share. Being local -> being “glocal. Focusing on the financial scorecard -> focusing on the marketing scorecard. Focusing on shareholders -> focusing on stakeholders

Building Brand Equity MARKETING IS THE ART OF BRAND BUILDING *
IF YOU ARE NOT A BRAND, YOU ARE A COMMODITY. THEN PRICE IS EVERYTHING AND THE LOW-COST PRODUCER IS THE ONLY WINNER!

How Important is Branding?
The NUMMI plant in California produces two nearly identical models called the Toyota Corolla and the Chevrolet Prizm. Toyota sold 230,000 Corollas compared to sales of 52,000 Prizms. And Toyota’s net price is $650 higher!

A Strong Brand Improves Demand and Supply
On the demand side: higher price increased sales volume lower churn more brand stretching On the supply side: greater trade acceptance, more favorable supplier terms, lower rejection lower staff acquisition and retention costs lower cost of capital better scale economics through higher volume

Names are Important in Branding
Donald Trump’s family name is Drumpf. But he can’t call it Drumpf Towers. Alan Alda’s name was Alphonso D’Abruzzo. Chinese gooseberry was renamed kiwifruit. Paradise Island in the Bahamas used to be Hog Island.

A Brand Must be More Than a Name
A brand must trigger words or associations (features and benefits). A brand should depict a process (McDonald’s, Amazon). A great brand triggers emotions (Harley-Davidson). A great brand represents a promise of value (Sony). The ultimate brand builders are your employees and operations, i.e., your performance, not your marketing communications.

Your Company’s Brand What word does your brand own?
2. Write down other words triggered by your brand name? A. Circle the favorable words; square the unfavorable words. B. Underline the words that are favorable but not widely known. C. Double underline the words that are unique to your company. 3. Are any of the following a source for strengthening your brand’s personality? A. Founders B. Spokespersons C. Characters D. Objects E. Stories and mythologies

How Do You Develop a Brand Concept?
“The brand must be an essence, an ideal, an emotion. ” It must be supported by beautiful logos, clever tag lines, creative turns, edgy names, rave launch parties, big ticket giveaway promotions, and publicity buzz-making. (Advertising agency view) “The brand should have a target group in mind and be positioned to solve one of their problems better than competitive offerings.” Furthermore the brand’s reputation is ultimately based on product quality, customer satisfaction, employee communications, social responsibility, etc. (Kevin Clancy, CEO of Copernicus)

Branding Components Name Slogan Logo and typeface Colors Music
Short, suggestive, memorable, unique, pronounceable Slogan Logo and typeface Colors Music Taglines/themelines (Got Milk!) Stationery and business cards Offices Trucks Dress code

Brand Slogans BA, “The World’s Favorite Airline”
American Express, “The Natural Choice” AT&T, “The Right Choice” Budweiser, “King of Beers” Ford, “Quality is #1 Job” Holiday Inn, “No Surprises” Lloyds Bank, “The Bank that Likes to Say Yes” Philips, “From Sand to Chips” “Philips Invents for You” “Let’s Make Things Better”

Design the Marketing From the Customer-Back
Marketing must be run as a set of value finding, creation, and delivery processes, not 4P functions. The four Ps are seller oriented. The 4As are buyer oriented. Awareness (A1) Acceptability (A2) Affordability (A3) Accessibility (A4) Market value potential = A1 x A2 x A3 x A4 If A1=100%, A2=100%, A3=50%, A4=50%, Then MV=25% Source: Jagdish Sheth

Focus on Delivering Outcomes, Not Products.
Company Product focus Solutions focus Akzo Nobel Gallons of paint Painted cars BP Nutrition-Hendrix Animal feed Animal weight gain Cummings Diesel engines Uninterruptible power ICI Explosives Explosives Broken rock Scania Trucks Guaranteed uptime WW Grainger MRO items Indirect materials mgt. Source: Kumar

The Challenge of Marketing for SMEs
Some products have to face competition of other products on the market that are often similar or almost identical Need to find mechanism that creates and maintains loyal clientele - what are the most important products from Cambodia - choose mass products: what are the problems SMEs encounter to market their products

Choosing a textile product
Materials and texture: quality silk, pure wool vegetable colors Quality: colorfastness easy to clean density of the knots Design: traditional designs fashion trends unique Manufacturing technique: weaving/knitting technique hand woven woven by women Reputation

Marketing a textile product
Materials and texture Quality Manufacturing technique Design Give information Send a message Create image that differentiates you To maintain credibility, confidence and loyalty Reputation

Role of IP in Marketing Consumers are unable to assess the quality of products on the market Trademarks, collective marks, certifications and geographical indications (GIs) refer to the reputation and to certain qualities of the products Trust in the mark/GI is the reason why consumers may be willing to pay more

IP and Marketing Joint marketing Trademarks Collective marks
Ind Designs Collective marks Certification marks GIs Individual marketing Joint marketing

What is a trade mark ? A mark that
is associated with a particular product or service helps to distinguish it from other products and services, use of the mark in marketing and advertising, Achieves distinguishing from other products or services creates economic advantages to the trade mark owner or trade mark licensee

What can be a trade mark A trade mark is not limited to a sign or words Can be: Words Letters Numerals Drawings Shapes Colours Logo Audible sounds

What is an industrial design
The physical characteristics that makes an article Recognisable Attractive and appealing Recognition Customers will recognise your product and buy it Customers will also want to buy it

Recognisable industrial designs
Customers do not buy Coca cola because the bottle is attractive They buy Coca cola because they like Coca cola Coca cola is recognisable By its trade mark By the unique design of the bottle that it comes in The design of the bottle is an industrial design that can be protected

Recognisable industrial designs
Other products with unique recognisable designs: Perrier Toblerone Recognition enables a customer to recognise it, and to choose to buy it, in preference to another product

Attractive and appealing industrial designs
A customer that finds a product’s design attractive and appealing will want to buy it A strong motivator to purchase a product Designs are an important part of the branding strategy

Acting individually, it is often difficult to gain recognition for your products in the marketplace
Some knowledge and production techniques belong to entire communities and can therefore hardly be attributed to a particular individual “If you can’t beat them, join them” SMEs have grouped in associations ( organized geographically or per industrial sector) Working collectively, SMEs can benefit from the advantages of a joint undertaking.

What is a certification mark?
Sign indicating that the goods/services have been certified by an independent body in relation to one or more characteristics Origin, material, mode of manufacture, quality, accuracy, etc. Owner is usually an independent enterprise, institution, governmental entity, etc. that is competent to certify the products concerned (My: ‘person’) Registered in trademarks register

How does certification mark work?
Rules of use Cases in which the owner is to certify the goods/services quality, composition, other characteristics Cases in which the owner is to authorize the use Other provisions required by Registrar e.g. control measures, sanctions My: Mark must be to the public advantage Authorization to use anyone who meets with the prescribed standards not confined to membership generally: licence agreement (fee) owner not allowed to use Control

Benefits For Consumers: For SMEs:
Guarantee for consumers of certain quality For SMEs: Benefit from the confidence that consumers place in users of certification mark Strengthen reputation

 No children were employed in the production process
For example, certify that:  Product is handmade  Certain ecological requirements have been respected in the production procedure  No children were employed in the production process  Products have been produced in specific geographical region  Products are made 100% of recyclable materials  Products are made by indigenous group

Case Study: “RUGMARK” Global non-profit organization working to end child labor and offer educational opportunities for children in India, Nepal and Pakistan RUGMARK label is assurance that no illegal child labor was employed in the manufacture of a carpet or rug

Case Study: “RUGMARK” To be certified by RUGMARK, carpet-manufacturers sign legally binding contract to: Produce carpets without illegal child labor Register all looms with the RUGMARK Foundation Allow access to looms for unannounced inspections Carpet looms are monitored regularly by RUGMARK Each labeled carpet is individually numbered  enables origin to be traced back to the loom on which is was produced  also protects against counterfeit labels

Case Study: “WOOLMARK”
Registered by Woolmark Company Quality assurance symbol denoting that the products on which it is applied are made from 100% wool and comply with strict performance specification set down by the Woolmark Company Registered in over 140 countries

“Through ownership and licensing of the Woolmark, we provide unique worldwide quality endorsement.
Our brands and symbols are protected by rigorous and extensive control checks and recognized globally as unrivalled signs of quality and performance. If a wool product carries our brands, it carries our guarantee of product quality.”

Case Study: “TOI IHO” Exciting initiative for Maori artisans, artists and businesses Denotes that products are authentic quality indigenous Maori arts and crafts The creation of the mark was facilitated by Te Waka Toi, the Maori arts board of Creative New Zealand, in consultation with Maori artists.

Case Study: “CRAFTMARK”
Registered by the All India Artisans and Craftworkers Welfare Association (AIACA) Logo symbolizes ‘threads’ from craft product. Also metaphor for the hands of the craft worker. Certifies that product is genuine Indian handicraft or handloom

Minimum standards + norms for labeling
Fee based on turnover of the applicant Increases consumer awareness of distinct handicraft traditions AIACA is working towards building the Craftmark into a strong brand national advertising campaign in-store displays and posters direct mailing to consumers tying up with international craft support organizations to publicize the Craftmark in other countries Website:

Case Study: “SIRIMLINK”
SIRIMLINK provides access to technical information, stored in SIRIM Malaysian Standards Malaysian Patents Technical Abstracts from journals Malaysian Experts in Science and Technology, etc Owner = Sirim Berhad (government owned company) Logo can be used by? Rules of Use? Certifies what?

“VETERINARY HEALTH MARK”
Case Study: “VETERINARY HEALTH MARK” Awarded under the Veterinary Inspection and Accreditation Program of the Department of Veterinary Services (DVS), Ministry of Agriculture, Malaysia Given to plants processing livestock products

Accredited plants allowed to imprint the logo on the label of approved products / packaging material
Benefits: Consumer confidence on food safety marketing tool easier acceptance in applications for access to foreign markets

What is a collective mark?
Sign capable of distinguishing the origin or any other common characteristics of different enterprises which use the sign under the control of the registered owner Typically, the owner of collective mark is an association of which the producers are members Registered as such in trademarks registry

How does collective mark work?
Rules of use persons authorized to use criteria for membership conditions of use e.g. particular features/qualities of the products sanctions against misuse Authorization to use membership application or automatic comply with the rules Control

Thus, function of collective mark is to INFORM the customers :
About the origin of the products e.g. ceramic artisan, member of a specific association in Thailand About a level of quality or accuracy, geographical origin, or other features set by the association

Benefits for SMEs 1. Economies of scale (registration cost, advertising campaign, enforcement, etc.) 2. Reputation acquired on the basis of common origin or other characteristics of the products made by different producers/traders 3. May facilitate cooperation amongst local producers/traders

 collective marks can become powerful tool for local development
4. Creation of collective mark hand in hand with development of certain standards and criteria (rules) and common strategy  collective marks can become powerful tool for local development  harmonization of products/services, enhancement of quality  no licenses

Example: “Interflora”
To buy, order and send flowers at almost anywhere in the world > florists in 150 countries emblem : Mercurio with flowers in hand Slogan: “Say it with flowers" Guarantees freshness, flower quality and value of every Interflora relay order Mercurio, dios del comercio de los antiguos romanos y antiguo Heraldo de los dioses griegos Garantia de calidad de servicio + flores. Yo utilizo (internet) Permite de livrar en todo el mundo

CASE STUDY: “La Chamba”

Project “La Chamba, Tolima”
The project 3 municipalities: El Guamo, Flandes, El Espinal Population: inhabitants 1.300 ceramic artisans (10%) 284 workshops 70% women 12% without formal eduction 21% without public services Mapa del Tolima

The product Added value: traditional know-how transferred from generation to generation 89%: handwork or with simple tools

Organization Problems: little enterprise management capacity paternalism individual leaders lack of organizational structure Solution: cooperation development of enterprise management capacity common strategy

Marketing Problem: Added value (handmade, tradition, quality) of the product not advertised Need to find new clients, enter new markets Solution: Certification “Hecho a Mano” (handmade) Creation of culture of CONSISTENT QUALITY Collective Mark (joint project WIPO)

Project “La Chamba, Tolima” COLLECTIVE MARK
Association: Members allowed to use the collective mark Exchange of experiences Joint advertising and promotion Regulation of use: Production process (mine extraction, preparation of clay, moulding, heating, glazing) Quality control and inspection  homogeneous products Objectives: Strenghten image of Chamba ceramics Reputation of consistent quality and tradition Differentiate on the market Chamba ceramics from other ceramics Preserve cultural heritage Foster commercialization

Collective Mark Certification
Only members that comply Control by association Simple authorization Free use Owner allowed to use Cooperation Certification Anyone who complies Control by independent entity: stronger Authorization through license agreement Fee Owner not allowed to use

What is a Geographical Indication?
Sign used on goods that have a specific geographical origin and possess qualities or a reputation that are due to that place of origin Source identifiers Indicators of quality Not created. Can only be recognized - ask examples of GIs (champagne, cognac, roquefort, havana, burgundy, tequilla - what do they have in common? Famous places + relate to products of certain quality and nature - in commerce: valuable assets, able to acquire high reputation, often exposed to counterfeiting, protection is highly desired

In some countries : can also be figurative sign
Most commonly, consists of the name of the place of origin of the goods Country, region, city E.g., Champagne (France), Havana (Cuba) In some countries : can also be figurative sign E.g., Eiffel tower, Egyptian pyramid E.g., birds, animals associated with a place Matterhorn, Switzerland Eiffel Tower, Paris Tower Bridge, London - ask examples of GIs (champagne, cognac, roquefort, havana, burgundy, tequilla - what do they have in common? Famous places + relate to products of certain quality and nature - in commerce: valuable assets, able to acquire high reputation, often exposed to counterfeiting, protection is highly desired

How does a Geographical Indication work?
Authorization to use Collective right of use Each enterprise located in the area has right to use For products originating from that area  LINK Possibly subject to certain quality requirements Link between product and place Place where product is produced (industrial products, crafts) Place where product is extracted (clay, salt) Place where product is elaborated (liquor,cheese)

Unauthorized persons may not use GIs if such use is likely to mislead the public as to the true origin of the product for not originating from geographical place for not complying with prescribed quality standards Stronger protection for wines & spirits Sanctions: Court injunctions preventing unauthorized use Payment of damages Fines Imprisonment

GI – Who does what? Government: – supplies the legal framework
– approves GIs, verifies compliance – “external” (independent) control system + enforcement Producers groupings: – talk to government – help define the mandatory specifications (book of requirements) to be met – ‘’internal”control

Typical examples: Agricultural products that have qualities that derive from their place of production and are influenced by specific local factors, such as climate, type of soil, altitude, etc E.g., wine, champagne, cognac, port, sherry, whiskey E.g., cheese, yoghurt E.g., olive oil, ham, potatoes, honey, rice

Also: handicrafts and medium-tech goods
Typical examples: Also: handicrafts and medium-tech goods E.g., ‘Hereke’ (Turkey) for carpets E.g., ‘Limoges’ (France) for porcelain E.g., ‘Swiss’ for watches E.g., ‘Arita’ (Japan) for ceramics

Case Study: “Sarawak pepper”
Exported throughout the world over the last 100 years Gained international recognition by chefs and gourmets Distinctive flavour and taste through years of agro- research Sarawak’s tropical climate and fertile hill slopes are ideal for pepper cultivation

Goods: In respect of the following goods
Geographical Indications No: GI Class: 3 Name of Registered Proprietor: Pepper Marketing Board Registered From: 4th day of November 2003 Expiry Date: 3rd day of November 2013 Goods: In respect of the following goods SARAWAK PEPPER IN ANY FORMS (WHOLE, GROUND, PICKLED, ETC). ALL GRADED PEPPER, VALUE ADDED PEPPER PRODUCTS AND PEPPER-BASED PRODUCTS FROM MALAYSIA

Quality, Reputation or Other Characteristic
Sarawak, the largest state in Malaysia is an establish producer of “King Of Spice”-Pepper, where about 98% of pepper production in Malaysia comes from Sarawak. Pepper cultivation in Sarawak was commercialized by the White Rajah Charles Brooke with the introduction of ‘Gambier and Pepper Proclamation’* in the 1870’s. Ironically, Sarawak a latecomer, went on to become a significant producer in world pepper industry. Starting with a modest output of 4 tonnes* in 1870s, pepper production now averages 30,000 tonnes a year (over 90% is for export) and in 2002, Malaysia was the fourth biggest pepper exporter in the world. Currently, there are about 70,000 pepper farmers throughout Sarawak and their cultivation covered about 14,000 hectares. Sarawak Pepper is synonymous with quality in the spice trade and it has been recognized in the international market as one of the high quality pepper. Nowadays, Sarawak Pepper Sarawak value-added pepper such as Creamy White Pepper (CWP), Mikrokleen (MK) and Naturally Clean Pepper (NCP) are well accepted, particularly by clients who would not compromise on quality. (Refer to the brochures on CWP, MK and NCP and Grade Specification of Sarawak Pepper attached). In this respect, Pepper Marketing Board (PMB) as one of the main government agencies entrusted with the development of the pepper industry in Malaysia has to ensure that only quality Sarawak Pepper will be exported to overseas. In order to enhance buyers confidence towards Sarawak Pepper, the Board has embarked on efforts to improve the quality of Sarawak Pepper right from the farm level up to the export level. In 2002, the board was awarded with SAM ISO accreditation and ISO 9001:2000 for Testing Laboratory and Statutory Grading respectively. This recognition has to put PMB on the fast track of pepper industry by having a testing laboratory and grading unit with worldwide recognition.

How is a GI protected? National Regional International

Protection on national level
Specific title of protection Registration with IP office (Russia) Decree (France) Special laws for the protection of GIs (India, Malaysia) Act of public law Defines area of production and production standards Enforcement through public law bodies (fair trading bodies, consumer protection bodies, etc) Unregistered: through Passing-off, Unfair Competition, Consumer Protection laws if reputation + misleading Passing off: e.g., Scotch whisky – Peter Scot in India Consumer protection: e.g., ‘made in Japan’; Egyptian cotton Only successful if you can prove damages (if goodwill) Protection only effective between parties of the proceedings. Entitlement to protection of given GI must be demonstrated every time enforcement is sought. Passing off = legal remedy for cases in which the goods/services of one person are presented as being those of somebody else. As regards the enforcement of GIs in India, the Khoday Distilleries case shows how sensitive the Indian courts are towards protecting world famous GIs. In this case the Scotch Whisky Association, based in Scotland, argued that the use of the word Scot in relation to whisky by an Indian company passes off the reputation of Scotch Whisky, which is geographically indicative. The mark in question was Peter Scot. This mark was registered in India in the name of Khoday Distilleries Limited (registration in class 33) in The Scotch Whisky Association asked the Trade Marks Registrar in India to remove the mark Peter Scot from the Register. The Registrar allowed the application. Khoday Distilleries subsequently appealed to the High Court. While hearing the appeal, the judge in the Madras High Court said that even the use of the word "Scot" by an Indian Distillery in relation to whisky is unacceptable. Unfair competition = act of competition contrary to honest practices in commercial or industrial matters At international level: Paris Convention: basic international rule concerning protection against unfair competition. National level: remedy against unlawful and dishonest practices of competitors. Commercial practices which are misleading the public with respect to the geographical origin of products offered by an enterprise = act of unfair competition

Protection on national level
Certification marks or collective marks May certify or indicate origin of products Cert: e.g., in the U.S.A.: Darjeeling, Swiss, Stilton Coll: e.g., Japan; agricultural label in France Passing off = legal remedy for cases in which the goods/services of one person are presented as being those of somebody else. As regards the enforcement of GIs in India, the Khoday Distilleries case shows how sensitive the Indian courts are towards protecting world famous GIs. In this case the Scotch Whisky Association, based in Scotland, argued that the use of the word Scot in relation to whisky by an Indian company passes off the reputation of Scotch Whisky, which is geographically indicative. The mark in question was Peter Scot. This mark was registered in India in the name of Khoday Distilleries Limited (registration in class 33) in The Scotch Whisky Association asked the Trade Marks Registrar in India to remove the mark Peter Scot from the Register. The Registrar allowed the application. Khoday Distilleries subsequently appealed to the High Court. While hearing the appeal, the judge in the Madras High Court said that even the use of the word "Scot" by an Indian Distillery in relation to whisky is unacceptable. Unfair competition = act of competition contrary to honest practices in commercial or industrial matters At international level: Paris Convention: basic international rule concerning protection against unfair competition. National level: remedy against unlawful and dishonest practices of competitors. Commercial practices which are misleading the public with respect to the geographical origin of products offered by an enterprise = act of unfair competition

Protection on international level
No legally binding international register for all GIs Bilateral agreements e.g. EU-Bulgaria for wine names International treaties TRIPS - does not prevent GIs from becoming generic - does not prevent abuse of GI name by trademark holder

International treaties
TRIPS: minimum standard of protection for WTO members if misleading or act of unfair competition enhanced level of protection for wines and spirits no protection if GI is generic term for the goods in the member state Lisbon: international registration system member countries must prohibit imitations, including terms like “type” or “kind” cannot become generic, as long as protected in country of origin TRIPS - does not prevent GIs from becoming generic - does not prevent abuse of GI name by trademark holder

Benefits for SMEs GIs shift focus of production to quality
 increased production  local job creation Reward producers with higher income in return for efforts to improve quality Provide consumers with high-quality products whose origin and mode of production is guaranteed

Disadvantages Inconsistent protection
Absence of GI system in many countries Civil law Registration Only similar goods Common law Repution enough (e.g. Champagne in India) Also dissimilar products Additional protection for wines and spirits GIs may become generic terms (e.g., Chablis in America, China for porcelain) Common law: USA protects GIs that are not registered. E.g., Cognac is protected as a common law (unregistered) certification mark in the USA. Purchasers primarily understand Cognac to refer to a brandy originating in the Cognac region of France, and not to a brandy produced elsewhere. Generic: TRIPS does not require that a WTO member extend protection to a GI if that GI is the generic name for the goods of the member. E.g., in the USA Chablis is often used to refer to any sort of white wine: a generic term in the USA. Therefore, the USA can continue to permit the use of Chablis as a synonym for white wine. E.g. Champagne in the USA is generic term for light-colored wine with bubbles E.g. Parmigiano cheese in Italy is generically known as parmesan cheese in Australia and the USA. Other exception in TRIPS: situations where a trademark already exists.

GI Protects indication that links product’s origin and quality/reputation based on that origin Most often: public right; owner= State Anyone can use Proscribed list of unauthorized actions Action: private + public Certification Protects certification of product’s particular characteristics (not necessarily origin) Most often: private right; owner = trade association or producer group License needed Protection against those who don’t have license Action: owner of certification

Innovative branding - with a sense of humour
Mouse characters started to have themes Bio 2002 in Toronto

Bio 2003 Washington DC

Bio 2004 San Francisco

Transgenic Mouse Conference 2004 Nashville

2004 Marketing Tour Japan

Bio Philadelphia

Bio 2006 Chicago

Innovative advertising in scientific publications
Promoting viral delivery technology

Innovative advertising in scientific publications
Spring special price promotion

thank you Guriqbal Singh Jaiya WIPO, SMEs Division:

Guriqbal Singh Jaiya Director, SMEs Division

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Guriqbal Singh Jaiya Director, SMEs Division

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