SOME KEY ISSUES FOR CONSIDERATION IN A NATIONAL IP STRATEGY PART FIVE – Trademark, GI and Branding...

SOME KEY ISSUES FOR CONSIDERATION IN A NATIONAL IP STRATEGY

PART FIVE – Trademark, GI and Branding Strategy to Leverage local Products in

the international market

OGADA TOM

Innovation and Technology Management ServicesT&P

WIPO Asia Pacific Conference on National IP Strategies and Development, October 27 and 28, 2009, Manila,

Philippines

Content of Presentation

Changing Focus in Africa’s International Trade

Importance of Trademarks, GI and Branding

Few Examples

Conclusion

2. Changing focus on International Trade

Economy based on export of raw products

In the past economy has been based on AgricultureAfrica is known for export of

TeaCoffee CocoaCottonHides and skinFruits and vegetables

Africa is also known for export of unprocessed natural products

MineralsOilTimber


Challenges of depending on export of raw products

Low return to the country Low incentive to the farmer Unpredictable world market Higher value product imported back

Processed coffee Processed fruit juices Processed Cocoa


Economic disadvantages of exporting of raw products

Loss of income Export of employment opportunity Poverty Higher value product imported back

Processed coffee Processed fruit juices Processed Cocoa


Income potential for value addition according tlght years IP

In 2006 African earned $ 29 billion from export of non mineral merchandiseLight years IP estimates that 30 % of these products have potential of increasing earnings through application of IP techniques from $ 8.7 billion to $ 20-27 billion dollarsThis increase is far greater than that which can be obtained through conventional techniques such as improving quality, infrastructure, training and market access


Conference of African Ministers of IndustriesSouth Africa 2008

1. Only 6 countries contribute more 10 % GDP thro manufacturing

2. Stressed the need to move from export of raw products to value added products

3. Identified science, technology and innovation as key

4. Identified SMEs as key to industrialization of Africa

1. Only 6 countries contribute more 10 % GDP thro manufacturing

2. Stressed the need to move from export of raw products to value added products

3. Identified science, technology and innovation as key

4. Identified SMEs as key to industrialization of Africa

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Importance of Trademarks, Geographical Indications and Brand

7. Trademarks

Distinctive sign Identifies goods and services Helps consumers to identify good and services Increases sales and profitability provide protection to the inventor

TM most known IP Protection is enforceable by law and hinders infringement

8. Geographical Indicators

A sign used on goods

that have specific geographical origin

that posses qualities or reputation that bare due to the place of origin


Building a brand takes time and resources and may involve a combination of IP rights

Innovation power

Marketing power

Patent

Tra

dem

arkG

eog

r. in

dica

tion

Brand

Design

Copyright

Trade secret


9. Brand

10. Brand Values of top world products (2006)

1. Coca-Cola US $ 67,000 million

2. Microsoft US $ 56,925 million

3. IBM US $ 56,201 million

4. GE US $ 48,907 million

5. Intel US $ 32,319 million

6. Nokia US $ 30,131 million

7. Toyota US $ 27,941 million

8. Disney US $ 27,848 million

9. MacDonald’s US $ 27,501 million

10. Mercedes Benz US $ 21,795 million


1. Unilever was the first company to commercially produce margarine in Kenya in 1955, through its strategic partner East Africa Industries.

2. Over the last fifty years Blue Band has grown to be a household name and is currently used by over 2.3 million households in Kenya annually

3. Unilever has spent a lot of money to build and maintain the Brand


11. Blue Band East African Best known

1. Blue Omo was first launched in 1962

2. then a further re launch in 1972 to become Extra Active Blue Omo

3. In 1986 it was re launched with a new perfume and

4. later into Omo Powerfoam with new formulation, packaging, and pricing in 1991.


11. OMO East African Best known washing powder

Beans processed

Packaged products

Service

Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market access

12. Ethiopian Coffee Brand – value chain (1)

Beans processed

Packaged products

Service

$3/cup (100)

$2.7/kg (0.6)

$70/kg (15)

$80/kg (17)

Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market access


Beans processed

Packaged products

Service

$3/cup (100)

$70/kg (15)

$2.7/kg (0.6)

Geographical indication or Trademark

Trademark & franchising (Starbucks)

Patent, Design & Trademark (Nestlé)

$80/kg (17)

Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market


15. Sidamo Coffee Brand

1. Ethiopian IP Office worked with coffee beans growers and IP advisors for implementing branding strategy of their coffee beans (Sidamo, Harrar and Yirgacheffe).

2. They registered trademarks in some 30 countries including US, EU and Japan in 2006.

3. Negotiated with coffee retailers (like Starbucks) which opposed to trademark registration.


16. Sidamo Coffee Brand

4. Ethiopian government and Starbucks reached a win-win agreement (recognizing the indications, and securing good quality and stable supply of the beans to the retailer)

5. The price of beans increased by 45% (from $1.4 to $2 a pound) in 2007.

6. Lesson: Trademark/Geographical indication is a tool to add value to agricultural products and increase income of farmers

Strategic use of Trademarks, Geographical Indications and Brand can enhance sales and

market

17. Conclusion

This experience from Ethiopian can be used by


Cocoa farmers in Ghana Tea Farmers in Kenya Cotton farmers in Sudan Marula oil farmers in Namibia Senegalese Artisanal Tuna Cashew nut farmers in Mozambique vanilla farmers in Uganda

Source> Light Years IP

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18.Example from Kenya

Vision 2030 for the manufacturing sector

Envisages Kenya becoming Africa’s most competitive economy Projects to increase the contribution of the manufacturing sector to the GDP from 10 % to at least 20 % by 2030Defines a target of 15 % contribution to the GDP by 2012


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19. The main pillars for the manufacturing sector for the next 5 years

Promoting value addition to agricultural produce

Increasing productivities and competitiveness of our local industries,

Promoting the development and growth of SMEs


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20. Why SMEs

In 2005 there were 1.74 million enterprises in Kenya

1000 large

34000 medium

1.7 m MSEs

High potential for wealth creation and employment generation

Contributes 20 % GDP


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Kenya Bureau of Standards

Kenya Industrial Research and Development Institute

Kenya National Federation of Juakali Association

Kenya Industrial Property Institute

MSE ProductUpgrading

Competitiveness of MSE Products

TechnologyTechnology StandardsStandards

IPIP MSEMSE

21. Upgrading MSE products though technology and branding


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1. Low efficiency2. Ugly3. Unsafe4. No Name

22. Upgrading MSE Arc Welding Machine


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Improve on the manufacture of the core electrical part

Introduce meter reading

Improve on casing

Use standards in selecting components

Patent and brand

Reasonable price

23. Upgrading MSE arc welding machine


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24. Upgrading Jua-kali arc welding machine


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24. Upgrading MSE arc welding machine


25. Conclusion

This Kenyan Experience can be used for promoting the products of MSE in other developing country through application of trademarks and branding


SOME KEY ISSUES FOR CONSIDERATION IN A NATIONAL IP STRATEGY PART FIVE – Trademark, GI and Branding...

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