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The Role of Trademarks, Designs and Geographical Indications in Building a Brand Image Guriqbal Singh Jaiya Director, SMEs Division World Intellectual.

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Presentation on theme: "The Role of Trademarks, Designs and Geographical Indications in Building a Brand Image Guriqbal Singh Jaiya Director, SMEs Division World Intellectual."— Presentation transcript:

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

2 2 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 3 Definition Competitive Advantage –An advantage over competitors gained by offering consumers greater value than competitors offer.

4 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 low –Difficult to imitate: when products/services are hard to mimic or duplicate

5 5 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 Competitive Strategies

6 6 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 Competitive Strategies

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

8 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

9 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.

10 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.

11 11 The Five Generic Competitive Strategies

12 12 Low-Cost Provider Strategies Make achievement of meaningful lower costs than rivals the theme of firms 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 Keys to Success Low-cost leadership means low overall costs, not just low manufacturing or production costs!

13 13 Incorporate differentiating features that cause buyers to prefer firms 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 Differentiation Strategies

14 14 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 Activities, Costs, & Margins of Suppliers Buyer/User Value Chains Activities, Costs, & Margins of Forward Channel Allies & Strategic Partners

15 15 How to Achieve a Differentiation-Based Advantage Approach 1 Incorporate features/attributes that raise the performance a buyer gets out of the product Approach 2 Incorporate features/attributes that enhance buyer satisfaction in non-economic or intangible ways Approach 3 Compete on the basis of superior capabilities Approach 4 Incorporate product features/attributes that lower buyers overall costs of using product

16 16 Unique taste – Dr. Pepper Multiple features – Microsoft Windows and Office Wide selection and one-stop shopping – Home Depot, 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 Types of Differentiation Themes

17 17 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

18 18 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

19 19 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

20 20 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

21 21 Focus / Niche Strategies and Competitive Advantage Achieve lower costs than rivals in serving a well-defined buyer segment – Focused low-cost strategy Offer a product appealing to unique preferences of a well-defined buyer segment – Focused differentiation strategy Approach 1 Approach 2 Which hat is unique?

22 22 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

23 23 Focus on Building Long-Run Marketing Assets. Brands and brand equity Customers and customer equity Service quality Stakeholder relationships Intellectual knowledge Corporate reputation

24 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 Indias future success will require investing in marketing and branding.

25 25 Improving Marketing Efficiency and Effectiveness Improving marketing efficiency –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 skus –Improving supply chain responsiveness

26 26 Dual Strategies Planning for today –Defining the business. –Shaping the business to meet needs of todays 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

27 27 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 –Nestles 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….

28 28 into Cereals for breakfast market Cereal varieties New category STREETS = The case of Cereal Bars

29 29 Baby dolls market Doll varieties New category To feel as... = Teenager The case of Barbie

30 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 + portable Source: Philip Kotler and Fernando Trias de Bes, Lateral Marketing: A New Approach to Finding Product, Market and Marketing Mix Ideas (Wiley, 2004)

31 31 The Evolution of Marketing Transactional Marketing Relationship Marketing Collaborative Marketing Time frame1950s1980sBeyond 2000 View of valueThe company offering in an exchange The customer relationship in the long run Co-created experiences View of marketPlace where value is exchanged Market is where various offerings appear Market is a forum where value is co- created through dialogue Role of customerPassive buyers to be targeted with offerings Portfolio of relationships to be cultivated Prosumers-active participants in value co-creation Role of firmDefine 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

32 32 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


34 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 Toyotas net price is $650 higher!

35 35 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

36 36 Names are Important in Branding Donald Trumps family name is Drumpf. But he cant call it Drumpf Towers. Alan Aldas name was Alphonso DAbruzzo. Chinese gooseberry was renamed kiwifruit. Paradise Island in the Bahamas used to be Hog Island.

37 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 (McDonalds, 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 38 Your Companys Brand 1.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 brands personality? A. Founders B. Spokespersons C. Characters D. Objects E. Stories and mythologies

39 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 brands reputation is ultimately based on product quality, customer satisfaction, employee communications, social responsibility, etc. (Kevin Clancy, CEO of Copernicus)

40 40 Branding Components Name –Short, suggestive, memorable, unique, pronounceable Slogan Logo and typeface Colors Music Taglines/themelines (Got Milk!) Stationery and business cards Offices Trucks Dress code

41 41 Brand Slogans BA, The Worlds 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 –Lets Make Things Better

42 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 A4 –If A1=100%, A2=100%, A3=50%, A4=50%, Then MV=25% Source: Jagdish Sheth

43 43 Focus on Delivering Outcomes, Not Products. CompanyProduct focusSolutions focus Akzo NobelGallons of paintPainted cars BP Nutrition- Hendrix Animal feedAnimal weight gain CummingsDiesel enginesUninterruptible power ICI ExplosivesExplosivesBroken rock ScaniaTrucksGuaranteed uptime WW GraingerMRO itemsIndirect materials mgt. Source: Kumar

44 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 identical Need to find mechanism that creates and maintains loyal clientele

45 45 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: –w eaving/knitting technique –hand woven –woven by women Reputation

46 46 Marketing a textile product Materials and texture Quality Manufacturing technique Design Reputation Give information Send a message Create image that differentiates you To maintain credibility, confidence and loyalty

47 47 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

48 48 IP and Marketing Collective marks Certification marks GIs Trademarks Ind Designs Individual marketing Joint marketing

49 49 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

50 50 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

51 51 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 Attractive and appealing –Customers will also want to buy it

52 52 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

53 53 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

54 54 Attractive and appealing industrial designs A customer that finds a products 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

55 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 cant 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 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 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

57 57 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

58 58 Benefits For Consumers: –Guarantee for consumers of certain quality For SMEs: –Benefit from the confidence that consumers place in users of certification mark –Strengthen reputation

59 59 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 60 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

61 61 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

62 62 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

63 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 64 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.

65 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 66 –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:

67 67 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?

68 68 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

69 69 –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

70 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 owner Typically, the owner of collective mark is an association of which the producers are members Registered as such in trademarks registry

71 71 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

72 72 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

73 73 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

74 74 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 75 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

76 76 CASE STUDY: La Chamba

77 77 Project La Chamba, Tolima Mapa del Tolima The project 3 municipalities: El Guamo, Flandes, El Espinal Population: inhabitants ceramic artisans (10%) 284 workshops 70% women 12% without formal eduction 21% without public services

78 78 Project La Chamba, Tolima Added value: traditional know-how transferred from generation to generation 89%: handwork or with simple tools The product

79 79 Project La Chamba, Tolima Problems: little enterprise management capacity paternalism individual leaders lack of organizational structure Solution: cooperation development of enterprise management capacity common strategy Organization

80 80 Project La Chamba, Tolima 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)

81 81 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

82 82 Collective Mark 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

83 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 origin Source identifiers Indicators of quality Not created. Can only be recognized

84 84 Most commonly, consists of the name of the place of origin of the goods Country, region, city E.g., Champagne (France), Havana (Cuba) Matterhorn, Switzerland Eiffel Tower, Paris Tower Bridge, London In some countries : can also be figurative sign E.g., Eiffel tower, Egyptian pyramid E.g., birds, animals associated with a place

85 85 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 How does a Geographical Indication work? 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)

86 86 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

87 87 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 – internalcontrol

88 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, etc –E.g., wine, champagne, cognac, port, sherry, whiskey –E.g., cheese, yoghurt –E.g., olive oil, ham, potatoes, honey, rice

89 89 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

90 90 -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 -Sarawaks tropical climate and fertile hill slopes are ideal for pepper cultivation Case Study: Sarawak pepper

91 91 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

92 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 1870s. 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 93 National Regional International How is a GI protected?

94 94 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.

95 95 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

96 96 Protection on international level –No legally binding international register for all GIs –Bilateral agreements e.g. EU-Bulgaria for wine names –International treaties

97 97 –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

98 98 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 Benefits for SMEs

99 99 –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) Disadvantages

100 100 GI Protects indication that links products 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 products particular characteristics (not necessarily origin) Most often: private right; owner = trade association or producer group License needed Protection against those who dont have license Action: owner of certification

101 101 Innovative branding - with a sense of humour Mouse characters started to have themes Bio 2002 in Toronto

102 102 Innovative branding - with a sense of humour Bio 2003 Washington DC

103 103 Innovative branding - with a sense of humour Bio 2004 San Francisco

104 104 Innovative branding - with a sense of humour Transgenic Mouse Conference 2004 Nashville

105 105 Innovative branding - with a sense of humour 2004 Marketing Tour Japan

106 106 Innovative branding - with a sense of humour Bio Philadelphia

107 107 Innovative branding - with a sense of humour Bio 2006 Chicago

108 108 Innovative advertising in scientific publications Promoting viral delivery technology

109 109 Innovative advertising in scientific publications Spring special price promotion

110 110 Guriqbal Singh Jaiya WIPO, SMEs Division:

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