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Transcript of Using Quality Standards as an SMEs Competitive Advantage: the Role of GIs, Certification TMs and...
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Using Quality Using Quality
Standards as an SMEsStandards as an SMEs Competitive Advantage: Competitive Advantage:
the Role of GIs, the Role of GIs, Certification TMs and Certification TMs and
Collective TMsCollective TMs
PRESENTED AT PRESENTED AT WIPO – ITALY INTERNATIONAL WIPO – ITALY INTERNATIONAL CONVENTION ON INTELLECTUAL PROPERTY CONVENTION ON INTELLECTUAL PROPERTY
AND COMPETITIVENESS OF MICRO, SMALL AND AND COMPETITIVENESS OF MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES (MSMES)MEDIUM-SIZED ENTERPRISES (MSMES)
bybyGetachew Mengistie, Intellectual Property Law Consultant Getachew Mengistie, Intellectual Property Law Consultant
and Attorneyand Attorney
Rome, December 10 and 11, 2009Rome, December 10 and 11, 2009
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IntroductionIntroduction• GI, TMs, certification and collective marks are useful marketing tools • They help to :
distinguish a certain product from similar products, capture and further build good will and reputation of Distinctive products improve competitive position and enhance earnings
• GI, TMs, certification and collective marks are are commonly used as marketing tools by companies in the developed countries and the newly industrialized countries
• Dcs can successfully use similar tools-this evidenced by the Ethiopian Fine coffee designations trade marking and licensing initiative
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Introduction Contd.Introduction Contd.• Initiative started in 2004
• Initiative is led by Stakeholders committee & facilitated by EIPO
• Initiative has Technical & advisory support from LYIPFree Legal Support from Arnold & PorterFinancial support- Donor organizations, stake holders & the
government
• Purpose and scope of presentation-highlight the grounds, objectives, Choice of appropriate legal, business and marketing tools, major achievements and Lessons learned
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Grounds for the InitiativeGrounds for the Initiative
• Ethiopia produces some of the finest coffee in the world
having Distinct flavor and aroma Can be distinguished from coffee of other countries
• The Fine coffees have been recognized, identified and sold by Coffee Designations/ brand names as “ Harar’, “Yirgacheffee” and Sidamo”
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Grounds Contd.Grounds Contd.• Little return from the Specialty coffee
High retail price-example 2004-Harar $24/lb, 2005 Sidamo-$26/lb Only 5-10 percent comes to Ethiopia Fluctuation of price of coffee
• Impacts of low price of coffeeunable to meet basic needs, school, health etc Cutting down coffee trees and planting chat
• Cases of misappropriation or attempt to misappropriate coffee names
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Objectives of the InitiativeObjectives of the Initiative• Ensure Ethiopia’s ownership of coffee brands
• Increase Income of Poor farmers & Exporters
• Create & Strengthen partnership with Foreign Coffee importing, roasting & distributing Companies
• Building IP Asset Protection & Management Capacity
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Trade marking of the Fine Trade marking of the Fine coffee brandscoffee brands
• TM Applications filed in 36 countries• Trade mark registration for three of the coffee
designations secured in 29 countries and two of the coffee designations are protected in one country
• Applications are pending in the rest of the countries
• TM registration only meets one of the objectives set
• Need for Business strategy• Stake holders opted for Licensing
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Licensing of Coffee TMsLicensing of Coffee TMs• The Licensing program aims at
Facilitating the use of Ethiopian Trademarks Capturing the reputation & good will of fine coffee
around the trademarks Establishing & strengthening partnership with the
coffee importers, retailers & distributors Catering to the interests of the key actors etc., Promote the Ethiopian fine coffees
• License agreement is made simple and clear• License is offered free of royalty• Obligations of Licensees
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Licensing contd.Licensing contd.• Negotiated license agreements with 96 foreign coffee
companies and 50 local coffee exporting companies and coffee producers unions.
• Example of use of the Trademarks
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Branding Trade MarksBranding Trade Marks
• Need for Marketing strategy• Stakeholders opted for branding• A UK based branding company employed• Brands and brand guidelines developed under
supervision of the Stakeholders Committee• Stake holders decision and unveiling of the brands
on May 2008• Brand guideline approved in July 2008
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Umbrella BrandUmbrella Brand
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Individual BrandsIndividual Brands
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Impact of the InitiativeImpact of the Initiative• Strategy helped to:
differentiate the Ethiopian fine coffees from the coffee of other countries
build confidence and Improve bargaining position of coffee producers and exporters
Enhance the demand of the Fine Coffees
• Improved negotiating and Marketing Position-power to control, require disclosure of sales information, joint promotion, uniform branding and negotiate export price
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Impact contd.Impact contd.
• Increased demand, rise in the price of coffee and income of coffee producers /export income of the country
• Encouraging Change in the lives of Producers-housing, sending children to school etc.
• Contributed to an increase in export earning – ex. 2007-2008 • Greater recognition of the value of intellectual property assets
and the need for protection in Ethiopia• Stimulated other countries to embark on a similar initiative
•
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Lessons LearnedLessons Learned• Top Leadership Support & Direction is critical for
success
• Need for initial technical, financial and legal support from international partners while simultaneously building the requisite capacity for IP Asset identification, protection, exploitation & management
• Ensure ownership and involvement of stake holders
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Lessons contd. Lessons contd. • Significance of public & private partnership
• wining the support of as many partners as possible
• Preparatory works, advance planning and regular evaluation
• Use foreign companies that buy the cause of initiative
• Seek for a win-win situation
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ConclusionConclusion• GI, TMs,CTMs, CTMs may be used as a significant
marketing tool• Ownership of TMs, GIs, CTMs or CMs not enough-
need to develop and implement business and marketing strategies
• Need to devise strategies to establish and strengthen partnership with foreign companies
• Need to develop IP assets management capacity
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Contact AddressContact Address Getachew Mengistie
IP Law Consultant & Attorney
P.O.Box 4706Addis Ababa, Ethiopia
Tel-251-11-6183571 (office)Fax 251-11-6183563
E-mail- [email protected]
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Thank YouVer y Much