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

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

The Role of Trademarks, Designs and
Geographical Indications in Building a
Brand Image
Guriqbal Singh Jaiya
Director, SMEs Division
World Intellectual Property Organization (WIPO)
“Competitive strategy is about being
different. 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
2
Definition
• Competitive Advantage
–An advantage over
competitors gained by
offering consumers greater
value than competitors offer.
3
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
4
Competitive Strategies
• 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
5
Competitive Strategies
• 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
6
CORE COMPETENCES
Definition
Hammel and Prahalad
defined core competence as
a central value - creating
capability of an
organization/enterprise.
CORE COMPETENCES
• Core competences are activities or
processes that critically underpin an
organisation competitive advantage.
• They create and sustain the ability to
meet the critical success factors of
particular customer groups better than
providers in ways that are difficult to
imitate
CORE COMPETENCES
• Core competences are
distinctive capabilities that lead
a company to a competitive
advantage.
• Features of an enterprise that
cannot be readily reproduced
by a competitor.
CORE COMPETENCES
Core competences can vary
through the time depending on
the strategy adapted by the
companies and the identification
of the core competencies is the
first step for a company to
decide which business
opportunities to pursue.
The Five Generic Competitive
Strategies
11
Low-Cost Provider Strategies
Keys to Success
• Make achievement of meaningful lower
costs than rivals the theme of firm’s strategy
• Include features and services in product
offering that buyers consider essential
• Find approaches to achieve a cost
advantage
inLow-cost
ways difficult
formeans
rivalslow
to copy
match
leadership
overallor
costs,
not
just low manufacturing or production costs!
12
Differentiation Strategies
Objective
• Incorporate differentiating features that cause
buyers to prefer firm’s product over brands of
rivals
Keys to Success
• 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 charged13
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
Activities,
Costs, &
Margins of
Suppliers
Internally
Performed
Activities,
Costs, &
Margins
Activities, Costs,
& Margins of
Forward Channel
Allies &
Strategic Partners
Buyer/User
Value
Chains
14
How to Achieve a
Differentiation-Based Advantage
Approach 1
Incorporate product features/attributes that
lower buyer’s overall costs of using product
Approach 2
Incorporate features/attributes that raise the
performance a buyer gets out of the product
Approach 3
Incorporate features/attributes that enhance buyer
satisfaction in non-economic or intangible ways
Approach 4
Compete on the basis of superior capabilities15
Types of Differentiation Themes
• Unique taste – Dr. Pepper
• Multiple features – Microsoft Windows and Office
• Wide selection and one-stop shopping – Home
Depot, Amazon.com
• Superior service -- FedEx, Ritz-Carlton
• Spare parts availability – Caterpillar
• Engineering design and performance – Mercedes,
BMW
• Prestige – Rolex
• Product reliability – Johnson & Johnson
• Quality manufacture – Michelin, Toyota
• Technological leadership – 3M Corporation
16
• Top-of-line image – Ralph Lauren, Starbucks, Chanel
Sustaining Differentiation:
Keys to Competitive Advantage
• Most appealing approaches to differentiation
– Those hardest for rivals to match or imitate
– Those buyers will find most appealing
• Best choices to gain a longer-lasting, more profitable
competitive edge
– New product innovation
– Technical superiority
– Product quality and reliability
– Comprehensive customer service
– Unique competitive capabilities
17
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
Objectives
• 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-toexcellent product attributes, then use cost
advantage to under price comparable brands 18
Focus / Niche Strategies
• Involve concentrated attention on a narrow piece of
the total market
Objective
–
Serve niche buyers better than rivals
Keys to Success
• Choose a market niche where buyers have
distinctive preferences, special requirements, or
unique needs
• Develop unique capabilities to serve needs of target
19
buyer segment
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
20
Focus / Niche Strategies
and Competitive Advantage
Approach 1
• Achieve lower costs than rivals in
serving a well-defined buyer segment –
Focused low-cost strategy
Approach 2
• Offer a product appealing to unique
preferences of a well-defined buyer
segment – Focused differentiation
strategy
Which
hat is
unique?
21
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
22
Focus on Building
Long-Run Marketing Assets.
• Brands and brand equity
• Customers and customer equity
• Service quality
• Stakeholder relationships
• Intellectual knowledge
• Corporate reputation
23
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
24
investing in marketing and branding.
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
25
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
• 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
26
business challenges
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….
27
The case of Cereal Bars
New category
Cereals for breakfast market
into
STREETS
=
Cereal varieties
28
The case of Barbie
Teenager
Baby dolls market
To
feel
as...
New category
=
Doll varieties
29
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)
30
The Evolution of Marketing
Transactional
Marketing
Relationship
Marketing
Collaborative
Marketing
Time frame
1950s
1980s
Beyond 2000
View of value
The company
offering in an
exchange
The customer
relationship in the
long run
Co-created
experiences
View of market
Place where value is Market is where
exchanged
various offerings
appear
Market is a forum
where value is cocreated 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 cocreating 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
31
Adapted from Prahalad and Ramaswamy 2004
Check Where You Stand
• Marketing does the marketing -> everyone does the marketing.
• Organizing by product units -> organizing by customer
segments.
• Making everything -> outsourcing more goods and services.
• Using many suppliers -> working with fewer suppliers.
• Emphasizing tangible assets -> emphasizing intangible assets.
• Building brands through advertising -> building brands through
integrated communications.
• Attracting customers to stores -> making products available online.
• 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
32
Building Brand Equity
MARKETING IS THE ART OF BRAND BUILDING
*
IF YOU ARE NOT A BRAND,
YOU ARE A COMMODITY.
*
THEN PRICE IS EVERYTHING
AND THE LOW-COST PRODUCER
IS THE ONLY WINNER!
33
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!
34
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
35
– better scale economics through higher volume
Names are Important in Branding
 Donald Trump’s family name is Drumpf. But
he can’t call it Drumpf Towers.
 Alan Alda’s name was Alphonso D’Abruzzo.
 Chinese gooseberry was renamed kiwifruit.
 Paradise Island in the Bahamas used to be
Hog Island.
36
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.
37
Your Company’s 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 brand’s
personality?
A. Founders
B. Spokespersons
C. Characters
D. Objects
E. Stories and mythologies
38
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 39
Copernicus)
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
40
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”
41
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
42
Focus on Delivering Outcomes,
Not Products.
Company
Akzo Nobel
Product focus
Gallons of paint
Solutions focus
Painted cars
BP NutritionHendrix
Cummings
Animal feed
Animal weight
gain
Uninterruptible
power
ICI Explosives
Scania
Explosives
Trucks
WW Grainger
MRO items
Source: Kumar
Diesel engines
Broken rock
Guaranteed
uptime
Indirect materials
mgt.
43
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
44
Choosing a textile
product
• Materials and texture:
– quality silk, pure wool
– vegetable colors
• Quality:
– colorfastness
– easy to clean
– density of the knots
• Manufacturing technique:
– weaving/knitting technique
– hand woven
– woven by women
• Reputation
• Design:
– traditional designs
– fashion trends
– unique
45
Marketing a textile product
• Materials and texture
• Quality
• Manufacturing
technique
•Give information
•Send a message
• Design
• Create
image that
differentiates you
• Reputation
• To maintain credibility,
confidence and loyalty
46
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
47
IP and Marketing
Trademarks
Ind Designs
• Collective marks
• Certification marks
• GIs
Individual marketing
Joint marketing
48
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
49
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
50
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
51
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
52
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
53
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
54
• 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.
55
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
56
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
57
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
58
• 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
59
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
60
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
61
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
62
“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.”
63
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.
64
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
65
– 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
66
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?
67
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
68
– 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
69
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
70
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
71
• 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
72
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
73
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
74
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
75
CASE STUDY: “La Chamba”
76
Project “La Chamba, 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
•
77
Mapa del Tolima
Project “La Chamba, Tolima”
The product
Added value:
• traditional know-how
transferred from
generation to generation
• 89%: handwork or with
simple tools
78
Project “La Chamba, Tolima”
Organization
Problems:
•
•
•
•
little enterprise management
capacity
paternalism
individual leaders
lack of organizational structure
Solution:
•
•
•
cooperation
development of enterprise
management capacity
common strategy
79
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)
80
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
81
Collective Mark
Certification
•Only members that comply •Anyone who complies
•Control by association
•Control by independent
entity: stronger
•Simple authorization
•Authorization through
license agreement
•Free use
•Fee
•Owner allowed to use
•Owner not allowed to use
•Cooperation
82
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)
• In some countries : can also be figurative sign
• E.g., Eiffel tower, Egyptian pyramid
• E.g., birds, animals associated with a place
Matterhorn,
Switzerland
Eiffel Tower,
Paris
Tower Bridge,
London
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How does a Geographical Indication
work?
• Authorization to use
– Collective right of use
– Each enterprise located in the area has right to use
• For products originating from that area  LINK
• Possibly subject to certain quality requirements
• Link between product and place
• Place where product is produced (industrial products,
crafts)
• Place where product is extracted (clay, salt)
• Place where product is elaborated (liquor,cheese)
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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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Case Study: “Sarawak pepper”
- Exported throughout the
world over the last 100 years
- Gained international
recognition by chefs and
gourmets
- Distinctive flavour and taste
through years of agroresearch
- Sarawak’s tropical climate and
fertile hill slopes are ideal for
pepper cultivation
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Geographical Indications No: GI03-00001
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 PEPPERBASED PRODUCTS FROM MALAYSIA
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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 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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How is a GI protected?
• National
• Regional
• International
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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.
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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
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Protection on international level
– No legally binding international register for
all GIs
– Bilateral agreements
• e.g. EU-Bulgaria for wine names
– International treaties
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–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
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Benefits for SMEs
• GIs shift focus of production to quality
 increased production
 local job creation
• Reward producers with higher income in
return for efforts to improve quality
• Provide consumers with high-quality
products whose origin and mode of
production is guaranteed
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Disadvantages
– Inconsistent protection
• Absence of GI system in many countries
• Civil law
– Registration
– Only similar goods
• Common law
– Repution enough (e.g. Champagne in India)
– Also dissimilar products
• Additional protection for wines and spirits
– GIs may become generic terms (e.g., Chablis in
America, China for porcelain)
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GI
Certification
•Protects indication that links
product’s origin and
quality/reputation based on that
origin
•Protects certification of product’s
particular characteristics (not
necessarily origin)
•Most often: public right; owner=
State
• Most often: private right; owner
= trade association or producer
group
•Anyone can use
•Proscribed list of unauthorized
actions
•Action: private + public
•License needed
•Protection against those who
don’t have license
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•Action: owner of certification
Innovative branding
- with a sense of humour
• Mouse characters started to have
themes
• Bio 2002 in Toronto
101
Innovative branding
- with a sense of humour
• Bio 2003 Washington DC
102
Innovative branding
- with a sense of humour
• Bio 2004 San Francisco
103
Innovative branding
- with a sense of humour
• Transgenic Mouse Conference 2004
Nashville
104
Innovative branding
- with a sense of humour
• 2004 Marketing Tour Japan
105
Innovative branding
- with a sense of humour
• Bio 2005 Philadelphia
106
Innovative branding
- with a sense of humour
• Bio 2006 Chicago
107
Innovative advertising
in scientific publications
• Promoting viral delivery technology
108
Innovative advertising
in scientific publications
• Spring special price promotion
109
Guriqbal Singh Jaiya
WIPO, SMEs Division: www.wipo.int/sme/
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