1 The Role of Trademarks, Designs and Geographical Indications in Building a Brand Image Guriqbal Singh JaiyaDirector, SMEs DivisionWorld Intellectual Property Organization (WIPO)
2 “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
3 Definition Competitive Advantage An advantage over competitors gained by offering consumers greater value than competitors offer.
4 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 lowDifficult to imitate: when products/services are hard to mimic or duplicate
5 Competitive Strategies Basic Competitive Strategies: PorterOverall cost leadershipLowest production and distribution costsDifferentiationCreating a highly differentiated product line and marketing programFocusEffort is focused on serving a few market segments
6 Competitive Strategies Basic Competitive Strategies: Value DisciplinesOperational excellenceSuperior value via price and convenienceCustomer intimacySuperior value by means of building strong relationships with buyers and satisfying needsProduct leadershipSuperior value via product innovation
7 CORE COMPETENCES Definition Hammel and Prahalad defined core competence as a central value - creating capability of an organization/enterprise.
8 CORE COMPETENCESCore 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
9 CORE COMPETENCESCore competences are distinctive capabilities that lead a company to a competitive advantage.Features of an enterprise that cannot be readily reproduced by a competitor.
10 CORE COMPETENCESCore 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.
12 Low-Cost Provider Strategies Keys to SuccessMake achievement of meaningful lower costs than rivals the theme of firm’s strategyInclude features and services in product offering that buyers consider essentialFind approaches to achieve a cost advantage in ways difficult for rivals to copy or matchLow-cost leadership means low overall costs, not just low manufacturing or production costs!
13 Differentiation Strategies Incorporate differentiating features that cause buyers to prefer firm’s product over brands of rivalsFind ways to differentiate that create value for buyers and are not easily matched or cheaply copied by rivalsNot spending more to achieve differentiation than the price premium that can be chargedObjectiveKeys to Success
14 Where to Find Differentiation Opportunities in the Value Chain Purchasing and procurement activitiesProduct R&D and product design activitiesProduction process / technology-related activitiesManufacturing / production activitiesDistribution-related activitiesMarketing, sales, and customer service activitiesInternallyPerformedActivities,Costs, &MarginsMargins ofSuppliersBuyer/UserValueChainsActivities, Costs,& Margins ofForward ChannelAllies &Strategic Partners
15 How to Achieve a Differentiation-Based Advantage Approach 1Incorporate product features/attributes that lower buyer’s overall costs of using productApproach 2Incorporate features/attributes that raise the performance a buyer gets out of the productApproach 3Incorporate features/attributes that enhance buyer satisfaction in non-economic or intangible waysApproach 4Compete on the basis of superior capabilities
16 Types of Differentiation Themes Unique taste – Dr. PepperMultiple features – Microsoft Windows and OfficeWide selection and one-stop shopping – Home Depot, Amazon.comSuperior service -- FedEx, Ritz-CarltonSpare parts availability – CaterpillarEngineering design and performance – Mercedes, BMWPrestige – RolexProduct reliability – Johnson & JohnsonQuality manufacture – Michelin, ToyotaTechnological leadership – 3M CorporationTop-of-line image – Ralph Lauren, Starbucks, Chanel
17 Sustaining Differentiation: Keys to Competitive Advantage Most appealing approaches to differentiationThose hardest for rivals to match or imitateThose buyers will find most appealingBest choices to gain a longer-lasting, more profitable competitive edgeNew product innovationTechnical superiorityProduct quality and reliabilityComprehensive customer serviceUnique competitive capabilities
18 Best-Cost Provider Strategies Combine a strategic emphasis on low-cost with a strategic emphasis on differentiationMake an upscale product at a lower costGive customers more value for the moneyDeliver superior value by meeting or exceeding buyer expectations on product attributes and beating their price expectationsBe the low-cost provider of a product with good-to-excellent product attributes, then use cost advantage to under price comparable brandsObjectives
19 Focus / Niche Strategies Involve concentrated attention on a narrow piece of the total marketServe niche buyers better than rivalsChoose a market niche where buyers have distinctive preferences, special requirements, or unique needsDevelop unique capabilities to serve needs of target buyer segmentObjectiveKeys to Success
20 Examples of Focus Strategies Animal Planet and History ChannelCable TVGoogleInternet search enginesPorscheSports carsCannondaleTop-of-the line mountain bikesEnterprise Rent-a-CarProvides rental cars to repair garage customersBandagSpecialist in truck tire recapping
21 Focus / Niche Strategies and Competitive Advantage Achieve lower costs than rivals in serving a well-defined buyer segment –Focused low-cost strategyApproach 1Approach 2Offer a product appealing to unique preferences of a well-defined buyer segment – Focused differentiation strategyWhich hat is unique?
22 Two Models of Management Profit-based managementReduce costsReduce compensationReplace people with technologyPrice to extract maximum valueSell more productsAcquire lots of customersLoyalty-based managementInvest in marketing assetsGive superior compensationLeverage people with technologyPrice to reward customersDeepen customer valueAcquire customers selectivelySource: Frederick Reichheld, The Loyalty Effect
23 Focus on Building Long-Run Marketing Assets. Brands and brand equityCustomers and customer equityService qualityStakeholder relationshipsIntellectual knowledgeCorporate reputation
24 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.
25 Improving Marketing Efficiency and Effectiveness buying inputs more efficientlyhunting down excessive communication and sales travel expensesclosing unproductive sales officescutting back on unproven promotion programs and tacticsputting advertising agencies on a pay-for-performance basisImproving marketing effectivenessreplacing higher cost channels with lower cost channelsshifting advertising money into better usesreducing the number of brands or sku’sImproving supply chain responsiveness
26 Dual Strategies Planning for today Planning for tomorrow Defining the business.Shaping the business to meet needs of today’s customersImproving alignment between functional activities and business definitionOrganization mirrors current business activitiesOptimizing current operations to achieve excellence.Planning for tomorrowRedefining the businessReshaping the business to compete for future customers and marketsMaking bold moves away from the existing ways of doing businessReorganizing for future business challengesManaging change to create future operations and processes
27 Some Vertical Marketing Methods ModulationThe juice manufacturer varies the sugar content, fruit concentrate, with or without vitamins…SizingPotato chips are offered in sizes 35 grams, 50 grams, 75grams, 125 grams, 200 grams, multi-packs…PackagingNestle’s Red Box chocolates comes in different containers: cheap paper box for the grocery trade, premium metal box for the gift trade…DesignBMW designs cars with different styling and features...ComplementsBiscuits with sugar spread on it, with cinnamon, with chocolate, with white chocolate, with black chocolate, filled biscuits…Efforts reductionCharles Schwab offers different channels for transacting such as retail stores, telephone, internet….
28 Lateral Marketing Process The case of Cereal BarsLateral Marketing ProcessintoCereals for breakfast marketCereal varietiesNew categoryVertical Marketing ProcessSTREETS=
29 Lateral Marketing Process Vertical Marketing Process The case of BarbieLateral Marketing ProcessBaby dolls marketTeenagerNew categoryTofeelas...=Doll varietiesVertical Marketing Process
30 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 + portableSource: Philip Kotler and Fernando Trias de Bes, Lateral Marketing: A New Approach to Finding Product, Market and Marketing Mix Ideas (Wiley, 2004)
31 The Evolution of Marketing Transactional MarketingRelationship MarketingCollaborative MarketingTime frame1950s1980sBeyond 2000View of valueThe company offering in an exchangeThe customer relationship in the long runCo-created experiencesView of marketPlace where value is exchangedMarket is where various offerings appearMarket is a forum where value is co-created through dialogueRole of customerPassive buyers to be targeted with offeringsPortfolio of relationships to be cultivatedProsumers-active participants in value co-creationRole of firmDefine and create value for consumersAttract, develop and retain profitable customersEngage customers in defining and co-creating unique valueNature of customer interactionSurvey customers to elicit needs and solicit feedbackObserve customers and learn adaptivelyActive dialogue with customers and communitiesAdapted from Prahalad and Ramaswamy 2004
32 Check Where You StandMarketing 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
33 Building Brand Equity MARKETING IS THE ART OF BRAND BUILDING * IF YOU ARE NOT A BRAND,YOU ARE A COMMODITY.THEN PRICE IS EVERYTHINGAND THE LOW-COST PRODUCERIS THE ONLY WINNER!
34 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!
35 A Strong Brand Improves Demand and Supply On the demand side:higher priceincreased sales volumelower churnmore brand stretchingOn the supply side:greater trade acceptance, more favorable supplier terms, lower rejectionlower staff acquisition and retention costslower cost of capitalbetter scale economics through higher volume
36 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.
37 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.
38 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. FoundersB. SpokespersonsC. CharactersD. ObjectsE. Stories and mythologies
39 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)
40 Branding Components Name Slogan Logo and typeface Colors Music Short, suggestive, memorable, unique, pronounceableSloganLogo and typefaceColorsMusicTaglines/themelines (Got Milk!)Stationery and business cardsOfficesTrucksDress code
41 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”
42 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 A4If A1=100%, A2=100%, A3=50%, A4=50%, Then MV=25%Source: Jagdish Sheth
43 Focus on Delivering Outcomes, Not Products. CompanyProduct focusSolutions focusAkzo NobelGallons of paintPainted carsBP Nutrition-HendrixAnimal feedAnimal weight gainCummingsDiesel enginesUninterruptible powerICI ExplosivesExplosivesBroken rockScaniaTrucksGuaranteed uptimeWW GraingerMRO itemsIndirect materials mgt.Source: Kumar
44 The Challenge of Marketing for SMEs Some products have to face competition of other products on the market that are often similar or almost identicalNeed 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
45 Choosing a textile product Materials and texture:quality silk, pure woolvegetable colorsQuality:colorfastnesseasy to cleandensity of the knotsDesign:traditional designsfashion trendsuniqueManufacturing technique:weaving/knitting techniquehand wovenwoven by womenReputation
46 Marketing a textile product Materials and textureQualityManufacturing techniqueDesignGive informationSend a messageCreate image that differentiates youTo maintain credibility, confidence and loyaltyReputation
47 Role of IP in MarketingConsumers are unable to assess the quality of products on the marketTrademarks, collective marks, certifications and geographical indications (GIs) refer to the reputation and to certain qualities of the productsTrust in the mark/GI is the reason why consumers may be willing to pay more
48 IP and Marketing Joint marketing Trademarks Collective marks Ind DesignsCollective marksCertification marksGIsIndividual marketingJoint marketing
49 What is a trade mark ? A mark that is associated with a particular product or servicehelps to distinguish it from other products and services,use of the mark in marketing and advertising,Achieves distinguishing from other products or servicescreates economic advantages to the trade mark owner or trade mark licensee
50 What can be a trade markA trade mark is not limited to a sign or wordsCan be:WordsLettersNumeralsDrawingsShapesColoursLogoAudible sounds
51 What is an industrial design The physical characteristics that makes an articleRecognisableAttractive and appealingRecognitionCustomers will recognise your product and buy itCustomers will also want to buy it
52 Recognisable industrial designs Customers do not buy Coca cola because the bottle is attractiveThey buy Coca cola because they like Coca colaCoca cola is recognisableBy its trade markBy the unique design of the bottle that it comes inThe design of the bottle is an industrial design that can be protected
53 Recognisable industrial designs Other products with unique recognisable designs:PerrierTobleroneRecognition enables a customer to recognise it, and to choose to buy it, in preference to another product
54 Attractive and appealing industrial designs A customer that finds a product’s design attractive and appealing will want to buy itA strong motivator to purchase a productDesigns are an important part of the branding strategy
55 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.
56 What is a certification mark? Sign indicating that the goods/services have been certified by an independent body in relation to one or more characteristicsOrigin, 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
57 How does certification mark work? Rules of useCases in which the owner is to certify the goods/servicesquality, composition, other characteristicsCases in which the owner is to authorize the useOther provisions required by Registrare.g. control measures, sanctionsMy: Mark must be to the public advantageAuthorization to useanyone who meets with the prescribed standardsnot confined to membershipgenerally: licence agreement (fee)owner not allowed to useControl
58 Benefits For Consumers: For SMEs: Guarantee for consumers of certain qualityFor SMEs:Benefit from the confidence that consumers place in users of certification markStrengthen reputation
59 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
60 Case Study: “RUGMARK”Global non-profit organization working to end child labor and offer educational opportunities for children in India, Nepal and PakistanRUGMARK label is assurance that no illegal child labor was employed in the manufacture of a carpet or rug
61 Case Study: “RUGMARK”To be certified by RUGMARK, carpet-manufacturers sign legally binding contract to:Produce carpets without illegal child laborRegister all looms with the RUGMARK FoundationAllow access to looms for unannounced inspectionsCarpet looms are monitored regularly by RUGMARKEach labeled carpet is individually numbered enables origin to be traced back to the loom on which is was produced also protects against counterfeit labels
62 Case Study: “WOOLMARK” Registered by Woolmark CompanyQuality 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 CompanyRegistered in over 140 countries
63 “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.”
64 Case Study: “TOI IHO”Exciting initiative for Maori artisans, artists and businessesDenotes that products are authentic quality indigenous Maori arts and craftsThe creation of the mark was facilitated by Te Waka Toi, the Maori arts board of Creative New Zealand, in consultation with Maori artists.
65 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
66 Minimum standards + norms for labeling Fee based on turnover of the applicantIncreases consumer awareness of distinct handicraft traditionsAIACA is working towards building the Craftmark into a strong brandnational advertising campaignin-store displays and postersdirect mailing to consumerstying up with international craft support organizations to publicize the Craftmark in other countriesWebsite:
67 Case Study: “SIRIMLINK” SIRIMLINK provides access to technical information, stored in SIRIMMalaysian StandardsMalaysian PatentsTechnical Abstracts from journalsMalaysian Experts in Science and Technology, etcOwner = Sirim Berhad (government owned company)Logo can be used by? Rules of Use?Certifies what?
68 “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, MalaysiaGiven to plants processing livestock products
69 Accredited plants allowed to imprint the logo on the label of approved products / packaging material Benefits:Consumer confidence on food safetymarketing tooleasier acceptance in applications for access to foreign markets
70 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 ownerTypically, the owner of collective mark is an association of which the producers are membersRegistered as such in trademarks registry
71 How does collective mark work? Rules of usepersons authorized to usecriteria for membershipconditions of usee.g. particular features/qualities of the productssanctions against misuseAuthorization to usemembershipapplication or automaticcomply with the rulesControl
72 Thus, function of collective mark is to INFORM the customers : About the origin of the productse.g. ceramic artisan, member of a specific association in ThailandAbout a level of quality or accuracy, geographical origin, or other features set by the association
73 Benefits for SMEs1. 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/traders3. May facilitate cooperation amongst local producers/traders
74 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
75 Example: “Interflora” To buy, order and send flowers at almost anywhere in the world> florists in 150 countriesemblem : Mercurio with flowers in handSlogan: “Say it with flowers"Guarantees freshness, flower quality and value of every Interflora relay orderMercurio, dios del comercio de los antiguos romanos y antiguo Heraldo de los dioses griegosGarantia de calidad de servicio + flores. Yo utilizo (internet)Permite de livrar en todo el mundo
77 Project “La Chamba, Tolima” The project3 municipalities: El Guamo, Flandes, El EspinalPopulation: inhabitants1.300 ceramic artisans (10%)284 workshops70% women12% without formal eduction21% without public servicesMapa del Tolima
78 Project “La Chamba, Tolima” The productAdded value:traditional know-how transferred from generation to generation89%: handwork or with simple tools
79 Project “La Chamba, Tolima” OrganizationProblems:little enterprise management capacitypaternalismindividual leaderslack of organizational structureSolution:cooperationdevelopment of enterprise management capacitycommon strategy
80 Project “La Chamba, Tolima” MarketingProblem:Added value (handmade, tradition, quality) of the product not advertisedNeed to find new clients, enter new marketsSolution:Certification “Hecho a Mano” (handmade)Creation of culture of CONSISTENT QUALITYCollective Mark (joint project WIPO)
81 Project “La Chamba, Tolima” COLLECTIVE MARK Association:Members allowed to use the collective markExchange of experiencesJoint advertising and promotionRegulation of use:Production process (mine extraction, preparation of clay, moulding, heating, glazing)Quality control and inspection homogeneous productsObjectives:Strenghten image of Chamba ceramicsReputation of consistent quality and traditionDifferentiate on the market Chamba ceramics from other ceramicsPreserve cultural heritageFoster commercialization
82 Collective Mark Certification Only members that complyControl by associationSimple authorizationFree useOwner allowed to useCooperationCertificationAnyone who compliesControl by independent entity: strongerAuthorization through license agreementFeeOwner not allowed to use
83 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 originSource identifiersIndicators of qualityNot 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
84 In some countries : can also be figurative sign Most commonly, consists of the name of the place of origin of the goodsCountry, region, cityE.g., Champagne (France), Havana (Cuba)In some countries : can also be figurative signE.g., Eiffel tower, Egyptian pyramidE.g., birds, animals associated with a placeMatterhorn, SwitzerlandEiffel Tower,ParisTower 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
85 How does a Geographical Indication work? Authorization to useCollective right of useEach enterprise located in the area has right to useFor products originating from that area LINKPossibly subject to certain quality requirementsLink between product and placePlace where product is produced (industrial products, crafts)Place where product is extracted (clay, salt)Place where product is elaborated (liquor,cheese)
86 Unauthorized persons may not use GIs if such use is likely to mislead the public as to the true origin of the productfor not originating from geographical placefor not complying with prescribed quality standardsStronger protection for wines & spiritsSanctions:Court injunctions preventing unauthorized usePayment of damagesFinesImprisonment
87 GI – Who does what? Government: – supplies the legal framework – approves GIs, verifies compliance– “external” (independent) control system + enforcementProducers groupings:– talk to government– help define the mandatory specifications (book ofrequirements) to be met– ‘’internal”control
88 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, etcE.g., wine, champagne, cognac, port, sherry, whiskeyE.g., cheese, yoghurtE.g., olive oil, ham, potatoes, honey, rice
89 Also: handicrafts and medium-tech goods Typical examples:Also: handicrafts and medium-tech goodsE.g., ‘Hereke’ (Turkey) for carpetsE.g., ‘Limoges’ (France) for porcelainE.g., ‘Swiss’ for watchesE.g., ‘Arita’ (Japan) for ceramics
90 Case Study: “Sarawak pepper” Exported throughout the world over the last 100 yearsGained international recognition by chefs and gourmetsDistinctive flavour and taste through years of agro- researchSarawak’s tropical climate and fertile hill slopes are ideal for pepper cultivation
91 Goods: In respect of the following goods Geographical Indications No: GIClass: 3Name of Registered Proprietor: Pepper Marketing BoardRegistered From: 4th day of November 2003Expiry Date: 3rd day of November 2013Goods: In respect of the following goodsSARAWAK PEPPER IN ANY FORMS (WHOLE, GROUND, PICKLED, ETC). ALL GRADED PEPPER, VALUE ADDED PEPPER PRODUCTS AND PEPPER-BASED PRODUCTS FROM MALAYSIA
92 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.
93 How is a GI protected?NationalRegionalInternational
94 Protection on national level Specific title of protectionRegistration with IP office (Russia)Decree (France)Special laws for the protection of GIs (India, Malaysia)Act of public lawDefines area of production and production standardsEnforcement through public law bodies (fair trading bodies, consumer protection bodies, etc)Unregistered: through Passing-off, Unfair Competition, Consumer Protection lawsif reputation + misleadingPassing off: e.g., Scotch whisky – Peter Scot in IndiaConsumer protection: e.g., ‘made in Japan’; Egyptian cottonOnly 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 mattersAt 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
95 Protection on national level Certification marks or collective marksMay certify or indicate origin of productsCert: e.g., in the U.S.A.: Darjeeling, Swiss, StiltonColl: e.g., Japan; agricultural label in FrancePassing 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 mattersAt 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
96 Protection on international level No legally binding international register for all GIsBilateral agreementse.g. EU-Bulgaria for wine namesInternational treatiesTRIPS- does not prevent GIs from becoming generic- does not prevent abuse of GI name by trademark holder
97 International treaties TRIPS:minimum standard of protection for WTO membersif misleading or act of unfair competitionenhanced level of protection for wines and spiritsno protection if GI is generic term for the goods in the member stateLisbon:international registration systemmember countries must prohibit imitations, including terms like “type” or “kind”cannot become generic, as long as protected in country of originTRIPS- does not prevent GIs from becoming generic- does not prevent abuse of GI name by trademark holder
98 Benefits for SMEs GIs shift focus of production to quality increased production local job creationReward producers with higher income in return for efforts to improve qualityProvide consumers with high-quality products whose origin and mode of production is guaranteed
99 Disadvantages Inconsistent protection Absence of GI system in many countriesCivil lawRegistrationOnly similar goodsCommon lawRepution enough (e.g. Champagne in India)Also dissimilar productsAdditional protection for wines and spiritsGIs 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 bubblesE.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.
100 GIProtects indication that links product’s origin and quality/reputation based on that originMost often: public right; owner= StateAnyone can useProscribed list of unauthorized actionsAction: private + publicCertificationProtects certification of product’s particular characteristics (not necessarily origin)Most often: private right; owner = trade association or producer groupLicense neededProtection against those who don’t have licenseAction: owner of certification
101 Innovative branding - with a sense of humour Mouse characters started to have themesBio 2002 in Toronto
102 Innovative branding - with a sense of humour Bio 2003 Washington DC
103 Innovative branding - with a sense of humour Bio 2004 San Francisco
104 Innovative branding - with a sense of humour Transgenic Mouse Conference 2004 Nashville
105 Innovative branding - with a sense of humour 2004 Marketing Tour Japan
106 Innovative branding - with a sense of humour Bio Philadelphia
107 Innovative branding - with a sense of humour Bio 2006 Chicago
108 Innovative advertising in scientific publications Promoting viral delivery technology
109 Innovative advertising in scientific publications Spring special price promotion