Title: WIPO NATIONAL SEMINAR ON ENHANCING AWARENESS AND BUILDING CAPACITY OF SMES TO BENEFIT FROM THE INTELLECTUAL PROPERTY SYSTEM Kuala Lumpur, Malaysia, Sep 7 and 8, 2006
1WIPO NATIONAL SEMINAR ON ENHANCING AWARENESS
AND BUILDING CAPACITYOF SMES TO BENEFIT FROM
THE INTELLECTUAL PROPERTY SYSTEMKuala Lumpur,
Malaysia, Sep 7 and 8, 2006
2Marketing and Branding StrategiesThe Role of
Collective Marks, Certification Marks and
Geographical Indications for Business Success
Lien Verbauwhede Koglin Consultant, SMEs
Division World Intellectual Property Organization
(WIPO)
31.Introduction
4The 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
5Choosing 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
6Marketing a textile product
- Materials and texture
- Quality
- Manufacturing technique
- Design
7Role 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
8IP and Marketing
Trademarks
- Collective marks
- Certification marks
- GIs
Individual marketing
Joint marketing
9- 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
102.Certification MarksMy certification
trade marks - Section 56 TMA
11What 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
12How 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
13Benefits
- For Consumers
- Guarantee for consumers of certain quality
- For SMEs
- Benefit from the confidence that consumers place
in users of certification mark - Strengthen reputation
-
14- 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
15Case 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
16Case 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
17- 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
18 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.
19- 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.
20- 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
21- 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
22- 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?
23- 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
24- 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
253.Collective MarksMy not available
26What 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
27How 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
28- 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
29Benefits 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
30- 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
31- Example Interflora
- To buy, order and send flowers at almost anywhere
in the world - gt 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
32CASE STUDY La Chamba
33Project 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
34Project La Chamba, Tolima
The product
- Added value
- traditional know-how transferred from generation
to generation - 89 handwork or with simple tools
35Project 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
36Project 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)
37Project 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
38Collective 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
394.Geographical IndicationsMy Geographical
Indications Act 2000
40What is a GI?
- 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
41- 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
42How does a GI 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)
43- 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
44GI Who does what?
Government supplies the legal framework
approves GIs, verifies compliance external
(independent) control system enforcement Produc
ers groupings talk to government help define
the mandatory specifications (book of
requirements) to be met internalcontrol
45- 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
46- 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
47- Examples in Asia
- Laos
- Coffee and Green tea from Paksong
- Silk from Pak Eum
- Algea from Luang Prabang
- Benzoin from Laos
- Indonesia
- Tobacco from Deli (Sumatra)
- Cocoa from Bone Bone
- Coffee from Kintanami (Bali) or Toraja
- Clove from Ternate
Benzoin raisins
clove
48- Examples in Asia
- Vietnam
- Pepper from Phu Quoc
- Pomelo from Nam Roi
- Tan Lam Coffee
- Cambodia
- Khampot Pepper
- Prahoc
- Durian
- Philippines
- Dried mangos from Cebu
Pomelo Nam Roi
durian
Cebu mango
49Case 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
agro-research - Sarawaks tropical climate and fertile hill
slopes are ideal for pepper cultivation
50Geographical 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 PEPPER-BASED PRODUCTS
FROM MALAYSIA
51Quality, Reputation or Other Characteristic Sarawa
k, 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 17025
accreditation and ISO 90012000 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.
52How is a GI protected?
- National
- Regional
- International
53- 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
- Pass off e.g. Scotch whisky Peter Scot in
India - Cons prot 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.
54- 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
55- Protection on international level
- No legally binding international register for all
GIs - Bilateral agreements
- e.g. EU-Bulgaria for wine names
- International treaties
56- 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
57Benefits 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
58Disadvantages
- 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)
59GI 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
604.Conclusions
61- Trademark is powerful instrument to differentiate
your individual products from those of your
competitors - However, in order to be effective (strong
reputation), the enterprise in question must have
a high level of organization and production - Collective marks, certification marks and GIs may
be useful (additional) tools to help enterprises
overcome the disadvantages associated with their
small size and isolation in the marketplace
62Economic benefits of collective marks,
certification marks and GIs
- Capable to acquire a high reputation
- Protection can be maintained indefinitely
- No monopoly, but simply limit group of people who
can use a specific symbol - Protect goodwill and reputation acquired by a
group of producers over centuries
63IP and Marketing
- Collective marks
- Certification marks
- GIs
Trademarks
Individual marketing
Joint marketing
- Origin enterprise
- Individual reputation
- Origin geographical
- Common reputation,
- characteristics,
- qualities
64thank you
Lien Verbauwhede Koglin WIPO, SMEs Division
www.wipo.int/sme/