The Role of Trademarks, Designs and The Role of Trademarks, Designs and Geographical Indications in Building a Geographical Indications in Building a

Brand ImageBrand Image

Guriqbal Singh JaiyaDirector, SMEs Division

World Intellectual Property Organization (WIPO)

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“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

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Definition• Competitive Advantage

–An advantage over competitors gained by offering consumers greater value than competitors offer.

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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

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• 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

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• 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

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.

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The Five Generic Competitive Strategies

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Low-Cost Provider Strategies

• Make achievement of meaningful lower costs than rivals the theme of firm’s strategy

• Include features and services in productoffering that buyers consider essential

• Find approaches to achieve a cost advantagein ways difficult for rivals to copy or match

Keys to SuccessKeys to Success

Low-cost leadership means low overall costs, not just low manufacturing or production costs!

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• 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 differentiationthan the price premium that can be charged

ObjectiveObjective

Keys to SuccessKeys to Success

Differentiation Strategies

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Where to Find DifferentiationOpportunities 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

InternallyPerformedActivities, Costs, &Margins

Activities, Costs, &

Margins ofSuppliers

Buyer/UserValue

Chains

Activities, Costs,& Margins of

Forward ChannelAllies &

Strategic Partners

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How to Achieve aDifferentiation-Based Advantage

Approach 1

Incorporate features/attributes that raise theperformance 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 thatlower buyer’s overall costs of using product

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• 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

Types of Differentiation Themes

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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

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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

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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

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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

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Focus / Niche Strategiesand Competitive Advantage

• Achieve lower costs than rivals inserving a well-defined buyer segment –

Focused low-cost strategy

• Offer a product appealing to uniquepreferences of a well-defined buyer segment – Focused differentiation strategy

Approach 1

Approach 2Which hat is unique?

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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

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Focus on Building Long-Run Marketing Assets.

• Brands and brand equity

• Customers and customer equity

• Service quality

• Stakeholder relationships

• Intellectual knowledge

• Corporate reputation

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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.

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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 sku’s

– Improving supply chain responsiveness

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Dual Strategies• Planning for today

– 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

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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….

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into

Cereals for breakfast market

Cereal varieties

New category

STREETS =

The case of Cereal Bars

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Baby dolls market

Doll varieties

New category

Tofeelas...

=

Teenager

The case of Barbie

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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)

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The Evolution of MarketingTransactional 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

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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 

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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 PRODUCERIS THE ONLY WINNER!

Building Brand Equity

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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!

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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

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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.

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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.

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Your Company’s Brand1. 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

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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)

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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

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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”

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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

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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

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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

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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

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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

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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

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IP and Marketing

• Collective marks• Certification marks• GIs

TrademarksInd Designs

Individual marketing

Joint marketing

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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

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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

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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

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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

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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

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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

                                                    

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• 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.

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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

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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

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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

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• 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

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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

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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

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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

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“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.”

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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.

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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

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– 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: www.craftmark.org

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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?

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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

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– 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

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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

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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

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• 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

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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

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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

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Example: “Interflora”

• To buy, order and send flowers at almost anywhere in the world

• > 70.000 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

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CASE STUDY: “La Chamba”

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Project “La Chamba, Tolima”

• Mapa del Tolima

The project

• 3 municipalities: El Guamo, Flandes, El Espinal

• Population: 12.100 inhabitants

• 1.300 ceramic artisans (10%)• 284 workshops • 70% women• 12% without formal eduction• 21% without public services

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Project “La Chamba, Tolima”

Added value:

• traditional know-how transferred from generation to generation

• 89%: handwork or with simple tools

The product

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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

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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)

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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

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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

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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

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• 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

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• 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)

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• 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

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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

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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

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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

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- 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

Case Study: “Sarawak pepper”

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Geographical Indications No: GI03-00001Class: 3Name of Registered Proprietor: Pepper Marketing BoardRegistered From: 4th day of November 2003Expiry 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

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Quality, Reputation or Other CharacteristicSarawak, 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 17025 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.

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• National

• Regional

• International

How is a GI protected?

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

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

Protection on international level

– No legally binding international register for all GIs

– Bilateral agreements • e.g. EU-Bulgaria for wine names

– International treaties

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

• 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

– 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

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

101

Innovative branding - with a sense of humour

• Mouse characters started to have themes

• Bio 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 2005 - 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

110

Guriqbal Singh Jaiya

WIPO, SMEs Division: www.wipo.int/sme/