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The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

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1 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
WIPO National Seminar on Importance of Intellectual Property Rights for the Indian Handicrafts Sector April 5-7, 2005 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

2 Marketing and Branding Strategies
Branding and Trademarks in Marketing Handicrafts; Case Studies by Guriqbal Singh Jaiya Director, SMEs Division World Intellectual Property Organization (WIPO) The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

3 Does a name really matter?
In 1969 while speaking at a small scientific conference, Sir Roger Penrose, a Cambridge physicist announced his discovery of what he called a "gravitationally totally collapsed object." The world yawned. Months later, he changed his description to a "Black Hole" and the news of his discovery raced around the world. Today, the term Black Hole is a part of the world's working vocabulary. We cannot understand, or maybe we do not care about a collapsed object. But a Black Hole is something very different. It is provocative, intriguing, exciting and conceptual. Most important, it is believable. (quoted from Lexicon Branding, Inc.) The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

4 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Concept of Branding Getting people to recognize your name A brand is a company image as seen by the customer Good branding means getting people to recognize you first A brand means you have an effective logo with which customers can identify A brand is what differentiates you from your competitors Good advertising and how it attracts customers A compelling customer experience The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

5 Branding is sending a message
Think of it this way: marketing is a conversation. The brand name initiates the conversation which will develop multiple concepts and criteria, namely: Vision, mission, message, service, package, image, differentiation, understanding the customer, advertising, logoname recognition, customer service, internal training, team work, investment The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

6 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Branding matters “Consumers are starved for time and overwhelmed by the choices available to them. They want strong brands that simplify their decision making and reduce their risks” Kevin Lane Keller, Tuck School of Business The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

7 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Purpose of Branding Gives a business/enterprise a significant edge over the competition Have the customer view a business/enterprise as the only solution to their problem A strong brand engenders feelings of trust, reliability, loyalty, empathy, responsiveness and recognition in the customer’s mind. The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

8 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Plan to Brand Developing a brand is a milestone in the preparation of every strategic business plan Trademarks, Industrial Designs and Geographical Indications - Three Intellectual Property Rights that are crucial to successful branding The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

9 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Trademarks The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

10 What is a Trademark/Brandname?
“A sign capable of distinguishing the goods or services produced or provided by one enterprise from those of other enterprises” The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

11 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Any Distinctive Words, Letters, Numerals, Pictures, Shapes, Colors, Logotypes, Labels or Combinations The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

12 Less/Non Traditional Forms
Single colors Three-dimensional signs (shapes of products or packaging) Audible signs (sounds) Olfactory signs (smells) The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

13 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Types of Trademarks Trade marks: to distinguish goods Service marks: to distinguish services Collective marks: to distinguish goods or services by members of an association Certification marks Well-known marks: benefit from stronger protection Tradename vs Trademark The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

14 The Functions of Trademarks
Allows companies to differentiate their products Ensures consumers can distinguish between products and ultimately develop brand loyalty/Trust The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

15 The Value of Trademarks
A marketing tool Source of revenue through licensing Crucial component of franchising agreements May be useful for obtaining finance A valuable business asset The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

16 Value of trademarks in 2004 (*)
1 Coca Cola 67,394 2 Microsoft 61,372 3 IBM 53,791 4 GE 44,111 5 Intel 33,499 6 Disney 27,113 7 McDonald’s 25,001 8 Nokia 24,041 * ($ Millions) The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

17 Protecting through registration
Exclusive rights prevent others from marketing products under same or confusingly similar mark Secures investment in marketing effort Promotes customer loyalty/ reputation / image of company Provides coverage in relevant markets where business operates Registered marks may be licensed or basis franchising agreements The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

18 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Practical aspects Selecting a trademark Protecting a trademark through registration Using and maintaining a trademark Enforcing a trademark The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

19 What to avoid when selecting a trademark
Generic terms: CHAIR to sell chairs Descriptive terms: SWEET to sell chocolates Deceptive terms: “ORWOOLA” for 100% synthetic material Marks contrary to public order/morality Flags, armorial bearings, official hallmarks, emblems Negotiating a permission is however possible The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

20 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
The Napapijri’s case Italian skiwear and sportswear company Napapijri means Artic Polar Circle in Finnish Language. Napapijri is also the name of a small village located on the Polar Circle. The Norwegian flag appears on many of the garments as a tribute to the Norwegian explorers that first traveled to Polar Regions by foot and by dog sled over 100 years ago. Permission to use the Norwegian flag as a Napapijri logo was happily granted by the King of Norway, Harald the 5th. The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

21 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Napapijri The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

22 Things to remember in selecting a trademark
Naturally distinctive Coined or fanciful words: “Kodak” Arbitrary marks: “Apple” for computers Easy to memorize and pronounce Fits product or image of the business Not identical or confusingly similar to existing TM Has a positive connotation in all languages Suitable for export markets Corresponding domain name available The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

23 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Registration steps The applicant Application form, contact details, graphic illustration of mark, description of goods, fees The trademark office Formal examination Substantive examination Publication and opposition Registration certificate valid for 10 years Renewal The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

24 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Scope of rights The exclusive right to use the mark The right to prevent others from using an identical or similar mark for identical or similar goods or services The right to prevent others form using an identical or similar mark for dissimilar goods or services The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

25 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Keep in mind The time it takes to register a TM The costs associated with TM protection The need for a trademark search A trademark agent may be required Protecting at home and abroad Renewing your registration The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

26 Protection at home and abroad
The national route Each country where you seek protection The regional route Countries members of a regional trademark system: African Regional Industrial Property Office; Benelux TM office; Office for Harmonization of the Internal Market of the EU; Organisation Africaine de la Propriété Intellectuelle The international route The Madrid System administered by WIPO (77 member countries) The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

27 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Using a trademark Actively using a TM Using/maintaining a TM in marketing and advertising Using the mark on the internet Using the mark as a business asset Offering the goods or services Affixing the mark to the goods or their packaging Importing or exporting the goods under the mark Use on business papers or in advertising The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

28 TM in marketing and advertising
Use exactly as registered Protect TM from becoming generic Set apart from surrounding text Specify font, size, placement and colors Use as a name not as noun or verb Not plural, possessive or abbreviated form Use a trademark notice in advertising and labeling ® Monitor authorized users of the mark Review portfolio of trademarks The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

29 Using TM on the Internet
Use of TM on internet may raise controversial legal problems Conflict between trademarks and domain names (internet addresses) - cybersquatting WIPO procedure for domain name dispute (http://arbiter.wipo.int/domains/index.html) The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

30 Using the TM as a business asset
Licensing: owner retains ownership and agrees to the use of the TM by other company in exchange for royalties > licensing agreement (business expansion/diversification) Franchising: licensing of a TM central to franchising agreement. The franchiser allows franchisee to use his way of doing business (TM, know-how, customer service, etc.) Selling/assigning TM to another company (merger & acquisitions/raising of cash) The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

31 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Enforcing trademarks Responsibility on TM owner to identify infringement and decide on measures “ Cease and desist letter” to alleged infringer Search and seize order Cooperation with customs authorities to prevent counterfeit trademark goods Arbitration and mediation (preserve business relations) The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

32 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
IP for Business Series The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

33 Use of IPRs in Advertizing
The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

34 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Nature of IPRs Designed to protect the exclusive right of exploitation for limited periods of time This is probably encouraging creativity while creativity is stimulated by a reasonable and fair use of other’s ideas “I have never made the slightest effort to compose anything original” (Wolfang Amadeus Mozart) The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

35 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Originality Applying legal concepts is essential for advertisement professionals In the case of trademarks, words, symbols and logos must clearly identify a brand, good or service To do so, they have to show sufficient artistic originality A too simple presentation of the creation would probably cause the rejection of IP protection by the IP Office The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

36 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
Slogans and headlines The word “Slogan” comes from the Gaelic term for “battle cry” Many slogans begin as headlines and become familiar, such as “Just do it” (Nike) or “We Try Harder” (Avis) Continuos use of a slogan can create trademark rights Advertising text is copyrightable and may be classified as literary work, provided it has a creative and original component A long text increases the possibility of copyright protection while a short text requires an additional creativity and originality The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

37 Advertising and trademarks
Essential to allow consumers to identify the product/service Trademarks law protect the mark owner as well as the buying public, avoiding possible confusion Importance of performing a trademark search before investing in a slogan or advertisement campaign The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

38 Advertising and copyright
Ownership generally follows authorship To be copyrightable, the work must be original In addition, it must fall into one of the following work categories: literary, musical, dramatic, pantomimes and choreographic, pictorial, graphic and sculptural works, audio-visual, sound recording, three-dimensional architectural works. It must be fixed in a tangible support The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

39 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
The Nike’s case This case reflects the popularity of a well-known TM The “Swoosh” is the well known symbol of Nike Originally Nike’s logo included also the shoemaker’s name At the end of the nineties, the Nike’s name disappeared The swoosh remained as the main identification symbol of the shoemaker Today there is no need to include the brand into this logo since the recognition of a simple swoosh automatically bring our attention to Nike The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

40 The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
The “Swoosh” The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

41 Comparative Advertisement (CA)
Advertising that claims superiority to competitors In many legislations, the owner of a well-known trademark cannot prevent a competitor to fairly refer to the owner’s mark in the context of comparative advertisement Few rules in CA: be fair, honest, accurate and especially do not mislead Opinions should never be expressed as facts The Small and Medium-Sized Enterprises (SMEs) Division of WIPO

42 e-mail: guriqbal.jaiya@wipo.int http://www.wipo.int/sme/
Thank you The Small and Medium-Sized Enterprises (SMEs) Division of WIPO


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