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 - PowerPoint PPT Presentation

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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


1
WIPO NATIONAL SEMINAR ON ENHANCING AWARENESS
AND BUILDING CAPACITYOF SMES TO BENEFIT FROM
THE INTELLECTUAL PROPERTY SYSTEMKuala Lumpur,
Malaysia, Sep 7 and 8, 2006
2
Marketing 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)
3
1.Introduction
4
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

5
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

6
Marketing a textile product
  • Materials and texture
  • Quality
  • Manufacturing technique
  • Design
  • Reputation

7
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

8
IP 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

10
2.Certification MarksMy certification
trade marks - Section 56 TMA
11
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

12
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

13
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

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

15
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

16
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

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
  • 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

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

25
3.Collective MarksMy not available
26
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

27
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

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

29
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

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

32
CASE STUDY La Chamba
33
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
  • Mapa del Tolima

34
Project La Chamba, Tolima
The product
  • Added value
  • traditional know-how transferred from generation
    to generation
  • 89 handwork or with simple tools

35
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

36
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)

37
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

38
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
39
4.Geographical IndicationsMy Geographical
Indications Act 2000
40
What 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

42
How 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

44
GI 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
49
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
    agro-research
  • Sarawaks tropical climate and fertile hill
    slopes are ideal for pepper cultivation

50
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 PEPPER-BASED PRODUCTS
FROM MALAYSIA
51
Quality, 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.
52
How 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

57
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

58
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)

59
GI Protects indication that links products origin and quality/reputation based on that origin Most often public right owner State Anyone can use Proscribed list of unauthorized actions Action private public Certification Protects certification of products particular characteristics (not necessarily origin) Most often private right owner trade association or producer group License needed Protection against those who dont have license Action owner of certification
60
4.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 

62
Economic 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

63
IP and Marketing
  • Collective marks
  • Certification marks
  • GIs

Trademarks
Individual marketing
Joint marketing
  • Origin enterprise
  • Individual reputation
  • Origin geographical
  • Common reputation,
  • characteristics,
  • qualities

64
thank you
Lien Verbauwhede Koglin WIPO, SMEs Division
www.wipo.int/sme/
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