malaysia.ahk.de MAY/JUNE 2010 Volume 16, No. 3 KDN PP 8818/3/2010

QUARTERLYThe Business Magazine of the Malaysian-German Chamber of Commerce and Industry

Germany’s Q1 2010 Economic Results

MGCC Business Survey Outlook

Malaysias Schiffbau Steuert Erfolgeichen Expansionskurs

German Leadership in the Environment, Energy and Technology Sector

malaysia.ahk.de MAY/JUNE 2010 Volume 16, No. 3 KDN PP 8818/3/2010

QUARTERLYThe Business Magazine of the Malaysian-German Chamber of Commerce and Industry

Every part of the street should be asafe place to cross.

www.mercedesbenz-malaysia.com

At Daimler, we look at the road with pedestrians in mind. Which is why we’re developing an intelligent recognition system for our vehicles. The purpose of this technology will be to sense if there’s an obstacle ahead of the car, and help the driver to avoid it. Good news for motorists. And for anyone crossing their paths.

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Crossing PressAd.ai 5/8/09 5:20:53 PM

Regal 3000 Modular Shelving Systems offer frame system configurations for flexible bay-size adjustment. The extreme versatility of this system makes it suitable for virtually any storage or warehouse application.

Pre-assembled support frames made from high-quality, galvanized steel are available in various heights for single-level and multi-tier constructions.

Interested to find out more?

Call us today, or visit us at www.ssi-schaefer-asia.com

“Regal 3000 Shelving System offers complete flexibility with adjustability on 53mm pitch. Height of the mezzanine floor can also be set to suit individual requirements.”

SSI SCHAEFER SYSTEMS (M) SDN BHD (Company no. 226345-M)

Suite G-2, N-Tatt Building, No. 2, Jalan TP 5Taman Perindustrian UEP Subang Jaya47600 Subang JayaSelangor Darul EhsanPhone +60/ 3/ 8024 6373 Fax +60/ 3/ 8024 6273 eMail malaysia@ssi-schaefer.com.my www.ssi-schaefer.com.my

(Penang Office)Phone +60/ 4/ 645 6033 Fax +60/ 4/ 645 6032

(Johor Office)Phone +60/ 7/ 755 7451 Fax +60/ 7/ 755 7184

R3000 Modular Shelving SystemReliable, Flexible, Easy to Configure

MGCC 217x304_R3000.indd 1 1/22/2010 1:58:52 PM

BOARD OF DIRECTORS2009-2011

P. KandiahPRESIDENT

andreas PrinzVICE PRESIDENT

aLeXander sTedTFeLdEXECUTIVE DIRECTOR

daTo’ roberT Teo Keng TuanTREASURER

daTuK MuhaMMad FeisoL b. hj. hassan

Tan sri daTo’ g.s. giLL

LiM Khiang hua

rayMond yeoh

yusoFF Md sahir

yee boon yeow

haraLd e. burchardT

KnuT herzer

PeTer T. honegg

bernhard racK

daTo’ herberT weiLer

PeTer zuber

M A Y / J U N E 2 0 1 0

MGCC QUARTERLY

is published six times p.a. by theMalaysian-German Chamber of

Commerce and Industry.

PUBLISHER

Datuk Muhammad Feisol Bin Haji HassanIt is distributed free of charge to members

and qualified non-members in Malaysia and abroad.

MALAYSIAN-GERMAN CHAMBER OF COMMERCE AND INDUSTRY

(171131-U)Supported by the Federal Ministry of Economics and

Technology based on a resolution of the German Bundestag.

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50450 Kuala Lumpur, Malaysia.Tel : 603-9235 1800

Fax : 603-2072 1198homepage : malaysia.ahk.de

e-mail : info@malaysia.ahk.de

* All opinions expressed in articles do not necessarily reflect the views of MGCC.

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UR GRAPHIC SDN. BHD.No. 6, Jalan PBS 14/6,

Taman Perindustrian Bukit Serdang,43300 Seri Kembangan,

Selangor Darul Ehsan, Malaysia.Tel : 603-8945 8640

QUARTERLYThe Business Magazine of the Malays ian-German Chamber of Commerce and Industry

focus 6 Goethe Institute Raises Awareness On Sustainable Development and Green Building

8 Solar Photovoltaic – Plug into the Sun Part 2

12 The Importance of Trademarks & Branding Part 2

members 16 Merck Sdn Bhd Goes the Extra Mile to Protect the Environment

17 Elektrisola CSR: “This is the German Way of Doing It”

18 Ground Breaking - B. Braun Penang Begins its RM300 mil Expansion Project

20 Bayer CropScience Celebrates National Stakeholders Appreciation Night

22 OE Fine Jewellery Showroom Opens at Suria KLCC

24 TNT Wins at the Brand Laureate Awards 2010

25 German MP and Ambassador Visit Q-Cells Malaysia

27 Crown Relocations Malaysia Celebrates Family Day with Charity Homes

29 Opening Ceremony at Asia’s First LED Chip Production Plant by OSRAM

34 T-Systems - Best Place to Perform and Grow

35 MGCC Welcomes New Members

events 38 Talk on Credit Risk Management Co-organised by MGCC, Euler Hermes & MSIG

40 Sundowners

42 German Centre Opening

44 Minister of Green Technology, Water and Energy Malaysia Visits Germany

economics 45 Malaysias Schiffbau steuert erfolgreichen Expansionskurs

48 Germany’s Economic Performance in Q1/2010

49 MGCC Business Outlook Survey – March 2010

50 AHK- ASEAN office opens in Frankfurt

education 50 Happy New Ears

52 Opening the Door to the Experiential Journey

trade fairs 55 Intersolar Europe 2010

56 bauma China 2010

57 ILA Berlin Air Show 2010

58 Mifb 2010

59 ARCHIDEX 2010

upcoming 60 Trade Fairs in Munich and Berlin June – November 2010

73, Jalan Raja Chulan, 50200 Kuala Lumpur, Malaysia. T : 603 2141 9988 F : 603 2144 0111 E : general@hotelistana.com.mywww.hotelistana.com.my

5/6 2010 MGCC Quarterly4

EDITORIAL

Going green is not only a social responsibility or about passing on a better world to our children. Importantly, it is also a sustainable business model.

The Paris based International Energy Agency predicts that almost 5,000 billion dollars will be invested worldwide in renewable energies alone over the next 20 years.

Environmental technology is one of the few sectors that withstood the economic crisis. But not only that: the renewables sector – for example - even expanded in Germany. As a result of rising investments, the sector was able to record an additional growth in employment with over 300,000 people, up by 8% from 2008. Furthermore, while electricity generation from conventional energy forms declined in 2009, the share of renewable energy increased to 16.1%.

Energy is one of the most important pillars of economic growth. For this reason, one of the key tasks of governments is to design and implement sustainable energy policies. Germany has become a leader in the field of environmental technology. Germany has also become an exporter of government policies and implementation strategies, for instance its Renewable Energy Sources Act (EEG). Recently in Malaysia, a similar and important step has been taken by passing a Feed-in Law shaped after the German model in the cabinet. In taking the next step towards implementation,

the Chamber has organised a Photovoltaic Study Tour to Germany. In June 2010, the Chamber will lead almost 30 Malaysian deci-sion makers from the government, industry, trade and commerce to Germany and converge them with policy makers, solar industry manufacturers, suppliers, institutes and asso-ciations. We will also present solutions “in the field”, including a visit to Freiburg, Germany’s Solar City.

On a broader level, representatives from the German government and businesses discussed issues pertaining to “green” topics with their partners from the Asia Pacific region, during the 12th Asia Pacific Conference of German Business which was held in Singapore from 13 to 15 May 2010. The significance and the timeliness for such a dialogue was highlighted in the conference through the participation of 8 ministers from the ASEAN countries, inclu-ding Malaysia. In various forums, such as Sustainability, Innovation or Marketing of Environmental Friendly Technologies, a vivid exchange of views took place, building a foundation for an even closer cooperation to jointly take on these global tasks.

At the same time, it became clear that economies can not only benefit in terms of growth, employment and technological advancement. There was a common under-standing that going green may well be the only path down the road. ▼

* ascribed to Franz Kafka

Green“Paths are madeby walking” *

Alexander StedtfeldExecutive Director

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MGCC: The Goethe Institute has collaborated with Alliance Francaise, University Malaya, NST Think Green and Sime Darby Property to raise awareness on sustainable development through a competition called Green Affordable Residential Challenge (ARC). How was this idea mani­fested?

V.Wolf: The current concern with sustainable development in Malaysia was the prime motivation for this competition. Therefore, the compe-tition was initiated with the aim to raise awareness among the general public for the importance of sustain-able development and green building.

Alliance Francaise and the Goethe Institute are involved as cultural institutes of their countries, as active observers of the Malaysian scene, and as representatives of a lively green and environmental expertise in their own home-countries of France and Germany.

Since Alliance Francaise’s and the Goethe Institute’s cultural work in Malaysia is closely woven into the local network, all projects and ideas are based on interests and demands of our partners in their own local contexts.

MGCC: Who is the competition targeted towards and how does the competition benefit the participants and the public?

V.Wolf: The competition is targeted towards year 4-5 advanced architec-ture students. Competitions not only challenge students, but they are also a motivational factor to showcase talents.

In regards to the ‘Green ARC’, we feel that architecture students are parti-cularly sensitized when it comes to

Goethe Institute Raises Awareness On Sustainable Development And Green Building

environmentally friendly construction and to the Green Building Index as they need to produce papers in their fourth and fifth year Master Course curriculum on these respective themes.

So, we do have high hopes that we will receive some stunning and creative designs of low cost urban housing construction that we can exhibit and show to the Malaysian public. In this particular project, the scope of green architecture is extended to touch on social urban issues in affordable housing as well.

MGCC: What does the Goethe Institute and what do its partners hope to achieve with the Green ARC com­petition?

We want to raise awareness, we want to educate, and we want to challenge students to come up with creative ideas!

Through this project and competition, we would like to exemplify to future academicians and young professionals in the building industry, new concepts and applications of green building, to generate discussions with a focus on social, cultural and psychological needs in affordable housing, as well as to provide an opportunity for training and creative production.

We also hope that the competition will raise issues and generate dis-cussions on sustainable development with an emphasis on urban con-servation and preservation.

MGCC: Goethe Institute is also actively involved in organising cultural programmes. Please elaborate on some of the programmes that the Goethe Institute has been involved in this past year?

V.Wolf: In 2009, Goethe Institute organised 65 cultural projects. Amongst these, various training pro-grammes with regional partners were offered for young conductors in Bangkok, orchestra managers in Manila and the composers of the KLContemporary Music Festival, South East Asia.

Goethe Institute also organised modern dance programmes for regional dancers in Jakarta, residency programmes for German choreo-graphers of ASWARA, which is a performing arts centre in Kuala Lumpur and German artists exhibiting at the Lost Generation Space-a gallery and atelier for young artists in KL, and not to mention many Jazz and Modern Music events.

MGCC: What other projects will Goethe Institute be organising for the remaining of this year and for 2011?

This year we will continue our translation programme and publish a bilingual Malaysian-German Poetry Book together with the National Translators Institute, as well as continue our German film shows at the HELP University College. We are also working on a book entitled

We want to raise awareness, we want to educate, and we want to challenge students to come up with creative ideas!

“ “

Dr Volker Wolf

5/6 2010 MGCC Quarterly6

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German Leadership in the Environment, Energy & Green Technology Committee

“Berlin-Kuala Lumpur” for the Frankfurt Book Fair.

In addition to that, we will be bringing German Jazz to Malaysia with the generous support from Mercedes-Benz, the main sponsor and presenter of the Penang Island Jazz Festival in December. In January and February 2011, a large German Design exhibition will be showcased at the Petronas Gallery. Then in June, we will be sending the Heidelberg Youth Choir and their Malaysian host, the Young Choral Academy from KL to Ipoh and thereafter to Penang.

Last but not least, we hope to continue our Green ARC series with the “Green Retro Fitting of Shop Lots” in Kuala Lumpur.

housing, building, planning or any other related disciplines presently enrolled fulltime in advance degree or advance diploma level courses (Part II LAM or equival ent) at a Malaysian Tertiary Institutions. The idea is to formulate and design affordable green housing with social infra­structure, flexible space with a minimum of three bedrooms and two bathrooms, at an estimated cost of below RM100,000 per unit/apart­ment in a central urban area in line with the Malaysian Green Building Index www.greenbuildingindex.org

The transfer of European technology and know-how will provide Malaysia with all the required pre-requisites in becoming a regional leader in Green Technology. On 1 October 2009, the European Union Malaysian Chamber of Commerce and Industry (EUMCCI) established the Environment, Energy & Green Technology Committee (EEGT), under the chairmanship of Thomas Brandt, General Manager of the Malaysian-German Chamber of Commerce and Industry (MGCC). The committee is experiencing strong par-ticipation from EU as well as Malay-sian compa nies, in line with the development of the green technology industry.

On 12 March 2010, 30 participants from the EEGT committee joined a meeting with KeTTHA’s employees, the Ministry of Green Technology, in Putrajaya for discussions, exchange of information and a networking session. The monthly meeting is also attended by many German technology

partners, indicating German leadership in the field of renewable energies and green technologies. A very successful exchange on capacity building and joint targets within the leaders of the sub-committees for renewable energy, energy efficiency, water, waste and green buildings took place.

MGCC with its wide expertise and experience in Environmental Techno-logies and related services will be responsible for the sub-sector of Green Technology. It will offer specific information and studies related to that field.

“Malaysia will certainly benefit from enhancements in the field of envi-ronmental sustainability”, says Thomas Brandt, General Manager of MGCC. Findings of the project will be promoted via European Chambers of Commerce and their Environmental Committees, which again would lobby the results to different authorities, resulting in South-East Asia increa-

If you would like to receive our monthly Newsletter on upcoming events and activities organised by the Goethe Institute, please join our Mailing List at http://www.goethe.de/ins/my/kua/knt/mll/enindex.htm. ▼

The Green ARC Competition commences on 3rd May 2010 and the deadline for entries is the 5 November 2010. The compe tition is open to Year 4­5 advanced architecture stu dents who are studying

sing the use of renewable energy sources and thus mitigating the level of pollution. ▼

For information on the EU positioning paper contributed by the EEGT committee, please visit : www.eumcci.com/publications4.html

Thomas Brandt, General Manager, MGCC and Chairperson for EEGT addressing the participants at the meeting held in Putrajaya.

5/6 2010 MGCC Quarterly 7

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Photovoltaic Technologies: Pho-tovoltaic is a technology which de-pends on sunlight to generate elec-tricity. Photovoltaic is a semiconductor (typi cally silicon-based) and when the semiconductor is exposed to sunlight, electrons in the semiconductor which receives sufficient photon energy will break free from their valence bond and this flow of free electrons give rise to electricity. At this juncture, the photovoltaic (PV) market is dominated by 2 generations of PV technologies: crystalline silicon and thin film. There are 2 types of solar cells from cry-stalline silicon: monocrystalline and polycrystalline. Monocrystalline solar cells are made up of a single and very pure silicon crystal. Because of the single cell structure, the efficiency of the monocrystalline solar cell is the highest. The operating efficiency is typically between 14 - 18 %. The cost of monocrystalline solar cell is reflected in the efficiency of the cell. Polycrystalline solar cells are made up of many monocrystalline silicon and the increase in the number of crystalline cells meant the electrons have to overcome the barriers of crossing between the ‘walls’ of the crystalline cells and this reduces the efficiency of the polycrystalline solar cells. The operating efficiency of polycrystalline solar cell is typically between 11 - 15% and the price of polycrystalline solar cells is lower than the monocrystalline. Crystalline solar cells constitute 86% of the total PV market of which polycrystalline solar cells have nearly double the market share of monocrystalline.

The second generation of PV tech-nology is the thin film which holds a much lower market share due to its new presence in the market. Thin film can also be made from crystalline

Solar Photovoltaic – Plug into the Sun

Welcome to the 2nd part of the 3-part series of article on solar photovoltaic. Quick recap: Part 1 focused on background information on solar photovoltaic, policy mechanism and market condition while this series will focus on photovoltaic technologies and their different applications.

(amorphous) or other chemical depo-sition such as Cadmium Telluride (as used by First Solar Inc) and Copper Indium Diselenide (CIS). Thin film is highly versatile in its application as chemical deposition can be applied on any shapes of surfaces making curvilinear structure possible for PV. The efficiency of thin film is lower than the first generation; typical operating efficiency is around 7 %. However, cost of manufacturing thin film is also lower than first generation and to date, results have indicated that thin film technology produces much higher energy yield making the return based on cost per kWh a much more viable investment. The con-ditions which crystalline silicon and thin film technologies thrive in are different. Crystalline technologies prefer direct sunlight and are more sensitive to changing temperatures. The efficiency of crystalline solar cells drops by roughly 0.5 % for one degree Celsius increase in temperature. Thin

film has a higher tolerance of tem-perature change; the efficiency loss is roughly 0.1 % for each degree Celsius increase in temperature. Unlike cry-stalline solar cells which require direct sunlight, thin film thrives well under diffused sunlight (i.e. cloudy con-dition).

PV modules usually come with alumi-nium frames although there are some PV modules which come in the form of laminates (i.e. no frames). The aluminium frames provide support to the PV modules and if the owner or architect of the building prefer to use laminates, then care must be given to install the laminates as laminates are vulnerable to breakages and the mounting structure that holds the laminates needs to withstand the wind load. The capacity of PV modules differs for different brands and models. PV capacity is expressed in Wp (watt peak) and the figures (e.g. voltage, current) provided in the

by Chen Wei Nee, Technical Advisor, MBIPV Project

Part 2:

Source: Polycrystalline Solar Cell are made up of many monocrystalline silicon, Schott AG

5/6 2010 MGCC Quarterly8

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datasheet are for standard testing condition (STC). Some manufacturers may provide additional information such as performance of PV module under Nominal Operating Cell Tem-perature (NOCT). It is important that these PV modules comply with inter-nationally renowned quality stan-dards. In Malaysia, the MS 1837:2005 on Installation of Grid Connected Photovoltaic (PV) System requires crystalline silicon PV module to comply with the IEC 61215 and thin film with IEC 61646.

PV modules have no mechanical parts which will result in accelerated wear and tear. Theoretically, these modules can have a very long life span. How-ever, manufacturers have limited their liabilities to offer warranties for PV modules typically from 20 – 25 years. Some manufacturers provide linear performance guarantee for their PV modules. Basically, the linear gua-rantee includes a first year of opera-tion guarantee of at least (say) 97% of the nominal power output, with the second year of operation declining by no more than (say) 0.7% of the nominal output. In the final year of the warranty (say 25th year), the mo-dule would have an actual per-formance of at least 80.2% of the nominal output. This slow declining rate of performance is to cater for aging factor of PV modules.

In the world today, there are four generations of PV technologies. The third and fourth generations are still in R&D and some are close to commercialization. The fundamen tal

philosophies in these later gene-rations are driving towards lower manufacturing cost and increasing efficiency e.g. by making use of multiple spectrum of white light from the sun. Today, China (e.g. Suntech, Trina, Yingli, Canadian Solar Inc) is the leading country in PV manufacturers while Germany (Q-Cells AG), Japan (Sharp Corpo-ration) and USA (First Solar Inc, SunPower Corporation) pioneered in many PV technologies as these countries have been in the PV

market for much longer period of time. First Solar Inc (Kulim), Q-Cells AG (Selan gor), SunPower Corporation (Melaka) and Tokuyama Corporation (Sarawak) have established their manufacturing presence in Malaysia, this helps to elevate the status of Malaysia as a significant producer of solar PV.

Aside from the PV modules, the other key component of a grid-connected PV system is the inverter. The function of the inverter is to convert direct current (dc) generated by the PV

modules on rooftop face different directions. For PV capacities between 10 – 20 kWp, multiple string inverters can be used as the PV array can be divided into sub-arrays. For PV systems greater than 20 kWp, central inverters are required. Central in-verters typically range from 20 – 1,000 kWp. Warranties for inverter range from 5 – 10 years with some manufacturers offering the option to extend their warranties for another 10 years. In Malaysia, the MS1837:2005 on inverters require compliance to the MS IEC 61000-3-2, MS IEC 61000-6 and BS EN 50178. In the event of power failure from the public grid, the inverters will shut down auto-matically. This is to prevent islanding effect. In Malaysia, Universiti Tekno-logi Malaysia in Skudai, Johor Darul Takzim has been appointed by MBIPV Project to be the inverter quality control centre (IQCC). While inverters have been extensively tested by manufacturers before launching into the market, the role of IQCC is to test these imported inverters under local conditions. In addition, the IQCC will

also test locally manufactured in-verters to ensure product quality and reliability. For more informa-tion on IQCC, please visit http://www.mbipv.net.my/content.asp?higherID=20&zoneid=5&categoryid=21.

Further information on PV industry is readily available from http://www.pv-tech.org/, http://www.solarbuzz.com/ and http://www.photon-magazine.com/registry/registry.aspx.

PV Applications: Now that we’ve gained some insight about the key PV components, let’s move towards understanding the various applications of grid-connected PV systems. Grid-connected PV systems require easy access to the public electricity grid. There are two types of grid-connected PV systems: (i) directly connected to public grid and (ii) connected to public grid via house (or building) grid. Solar PV power plants are

Source: Flexible thin film, Dupont Photovoltaic Solutions

modules to alternating current (ac) to feed to the ac load or public grid. There are different sizes of inverters in the market today to cater for different PV capacities. For PV capacity of less than 10 kWp, string inverters are used. These inverters typically range from 700 W to 8,000 W. String inverters can be single or multi-string depending on how the PV array is designed. Multi-string configuration is desired if the PV

Source: String inverter, Fronius

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examples of direct connection to the public grid. The PV modules are mounted on either stationary moun-ting structure or tracking mounting frame. Tracking mounting frames are able to move (either single or dual axial movements) and tracking can be either in active or passive mode. In passive tracking, mechanical move-ment is achieved without the use of motor usually based on achieving balance within the tracker by means of differential heating of the refrige-rant liquid within the tracker structure by the sun (Sulaiman et al 2009). Active tracking requires typi cally microprocessor to power the move-ment. Large PV power plants are ideal for land which has little agri culture or development use (e.g. desert, brown land).

The second type of grid-connected PV systems connects to the public grid via house (or building) grid and is configuration is highly suitable for urban applications. PV modules can be either integrated into the building (hence the name “building integrated”) or retrofitted on existing buildings. In

building applications, PV serves the dual roles of generating electricity as well as a building material. In a building integrated application, when the PV modules are mounted on the roofs, roof tiles are no longer required as the PV modules act as roofing materials. Similarly, PV modules can be the building’s facade; glass-glass PV modules serve as natural day-lighting for atrium and PV modules can also serve as window awning and pergola for the garden. Some compa-nies have installed PV modules as part of their corporate responsibility to consciously reduce their carbon

within the equatorial sun belt, PV is best located on rooftops of inclination not more than 15 degree facing south. The energy yield from PV facade application in Malaysia will result in nearly 50 % drop compared to rooftop applications. Therefore customers who wish to have PV facade applica-tions must be alerted of the drop in energy output. While building integrated PV applications can be much more aesthetic than retrofitted ones, care must be given to ensure sufficient ventilation behind the PV modules. As a rule of thumb, a 15 cm gap will ensure negligible loss in efficiency, a 5 cm gap will have approximately 5 % drop in efficiency and if there is no gap for ventilation, the PV module will suffer approxi-mately 10 % drop in efficiency (Ruoss 2007). Hence, a retrofitted PV system will typically have less system losses compared to integrated ones. Today, nearly 90% of total global urban PV applications are retrofitted mainly because the buildings exist before the owners decide on the PV installation. In countries like Japan, the Govern-ment-funded PV systems must be retrofitted even on new buildings. In Malaysia, the local grid-connected PV installations can be viewed from http://www.mbipv.net.my/products.asp?higherID=14&zoneid=4&categoryid=15 . While in Malaysia, the focus is developing building integrated photo-voltaic (BiPV) market, elsewhere, the trend is moving from BIPV to deve-loping a city integrated photovoltaic (CiPV) market. ▼

This concludes the second part of the 3­part series on Solar Photo­voltaic – Plug into the Sun. The final part of the series will focus on practical issues con cerning installations of PV systems from the perspectives of potential PV owners. I welcome your comments on this article, please email to weinee@mbipv.net.my. Wei­nee Chen is the Technical Advisor (Strategic Communications) of MBIPV Project.

footprints. In most cases, these com-panies will have a display at their main reception area to show the amount of CO2 avoidance as a result of generating clean electricity from their PV system. Some of these companies have also opted for PV facade application to increase their visibility in commitment towards conserving the environment. In Malaysia where the country lies

Source: Ohta City Land Develop ment

Corporation

BIPV application, Shah Alam, 4.8 kWp, Selangor, Malaysia

Optical sensor for active tracking mounting structure

5/6 2010 MGCC Quarterly10

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The Importance of Trademarks & Branding

“TM” OR “®” ?So far, this column has covered the functions of trade marks, the im-portance of trademark registration and the various types of trademarks out there. In this article we talk about the usage of the symbols “TM” and “®” on trademarks.

Once the trademark has been chosen and designed to suit the long term plan of the business, the trademark application should be filed at the Trademark Office. There are profes-sionals who specialise in this area of law, who can provide sound profes-sional advice in the selection of a mark and the description of goods or services on which the mark is used. They can handle the processing of the application at the Trademark Office and provide advice on any legal issues that crop up during the application stage. Currently, it takes about 18-24 months to register a trademark if there are no problems during the application process. Should there be any ob-jections to the application from the Trademark Office or from a member of the public (normally, com petitors will be the ones who object if the new application is similar to their trademark), the application process may be delayed by a further 12-18 months.

An owner of a trademark need not wait until his/her mark is registered to use the mark. They can start using the mark at any time. They are advised to use the symbol ™ at the “end” of the mark. The ™ symbol should be used on the trademark wherever and whenever the trademark is produced; on websites, on product packaging, on product labels, on promotion or marketing materials, etc. This symbol can be used regardless of whether the trademark is registered or not.

The ™ symbol acts to inform other

traders as well as members of the public that the particular word/term/logo/phrase is being used as a trademark. There is no set rule in regard to where the ™ symbol should be placed but the usual practice is for the symbol to be placed at the top right corner in small and standard font, and in black colour. This is to ensure that the symbol is incon-spicuous, allowing the trademark to stand out and be in the limelight.

Upon registration, the owner of the trademark is advised to use the sym-bol ® at the “end” of the mark to inform the public that the mark is a registered trademark. The use of the symbol ® on trademarks implies to the public that the owner of the trade-mark is serious about his/her trade-mark rights, has obtained registered rights and will take action against people who try to copy the trademark. This acts as a deterrent to copycats.

E.g., oror non-registered for registeredtrademark trademark

Once the owner has received the Certificate of Trademark Registration, he/she can initiate “trademark infringement” actions against any copycats. The registration of a mark is only in respect of the goods or services which have been applied for. There are no registered trademark rights available for marks that are entered in the wrong class of goods. For instance, textiles and garments (e.g., skirts, trousers, etc) fall under different classes of goods just as beer and wine fall under different classes of goods. Sometimes, it is necessary to register a single mark in more than one class to protect the mark. There are a total 34 classes of goods and 11 classes of services under the Inter-national Classification System that Malaysia (and most countries) uses for categorising trademark applica-tions. Therefore, it is important that proper care and attention is given to the application procedure itself; akin to preparing a Birth Certificate for a new born baby, where the name and spelling of the father’s and mother’s name must be provided correctly and accurately. Otherwise, the child will have problems later on. Similarly a

by Geetha K., Director of Trademarks and Industrial Design, KASS International Sdn Bhd

Ms. Geetha K. joined KASS International after completing her pupilage at a reputable law firm in Kuala Lumpur. She handles domain name disputes and all aspects of trade marks in a variety of industries, including those in the pharmaceuticals, foods & beverages and apparel industries, and has experience in handling international portfolios.

She read law at the University of Bristol where she was awarded a bursary. Her final year dissertation was on the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs), where she analysed and dissected the advantages and disadvantages TRIPs brought to many developing nations.

Upon graduation, she pursued the Bar Vocational Course at the University of the West of England, Bristol, and completed the course with a Very Competent grade. She attended training with a well-established IP firm in France for a month in April 2007 where she trained under European Trademark Attorneys.

Part 2:

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wrongly registered trademark will not be of much use to the owner of the trademark.

Trademarks have an infinite lifetimeRegistered trademarks, unlike other Intellectual Property rights, are renewable every ten years on a limitless basis. This means the owner of a trademark can own that trademark for generations as long as the mark is renewed before its expiry date every ten years.

In 2002, the International Trademark Association (INTA) conducted an analysis on the world’s oldest regis-tered trademarks and the results of the survey revealed the following:

• The first Australian trademark tobe registered was in 1905, where a pine tree logo, still in use by Fisons plc for chemicals, was registered.

• In 1874, the trademark NESTLE’SEAGLE BRAND, became the first registered mark in Hong Kong, used on condensed milk. The mark is still in use today.

• In Japan, the design of a seatedfigure for pills and wound dressings was registered in 1884.

• ThefamousBassredtrianglelogofor beer gets the recognition in the UK as the first registered mark, registered in 1875.

• Whereas, intheUS,aneaglelogoused for paints by Averill Paints (which is no longer in use) was the first trademark registration, regis-tered in 1870.

Like almost everything in business, even the marks used at the start of the business will evolve with time. Marks need to be revamped and freshened up to suit the next genera-tion of consumers. Many well-known marks have evolved in the past years to be the trademarks they are today. Observe how the trademarks Pepsi, Shell and Peugeot have evolved.

How are amendments treated at the Trademark Office? Generally, only minor amendments are allowed.

A registered trademark should be used in the same manner as shown in the Certificate of Trademark Registration. The Certificate gives no protection to a trademark that is very different from that shown in the Certificate. So if a businessmen or companies want to change or make amendments to their trademarks, they can do so. But whether the changed trademark is protected by the Registration has to be decided on a case-by-case basis. In practice, if there is a significant change in the mark it is strongly advisable to apply for a new registra-tion, so as to be sure that the changed mark is also protected by registration. Otherwise the unregistered trademark receives no protection at all.

So check whether your mark as currently used is the same as that shown in your Certificate of Trade-mark Registration. If there are changes in the marks, e.g., addition/deletion of features, change in type fonts,

stylizing of images, etc, you should consult your trademark attorney to decide whether a fresh application is required.

Too famous? It may backfire on your business!!Aspirin, Escalator, Sellotape and Kerosene are names that we are familiar with. Were you aware that they were all trademarks at one period of time? They were all owned by a certain individual or a company and no one apart from the owners were allowed to use the mark when referring to the products or services the mark was used for.

“Aspirin” or acetylsalicylic acid, a drug used as an analgesic to relieve minor pain, was a trademark owned by Bayer. However, through extensive use as a generic name in relation to pain relief pills, Bayer lost its trademark rights to “Aspirin” in France, Russia, Australia, UK, US and several other countries. It still has rights in Germany, Canada, Mexico and over 80 countries.

“Escalator” was a trademark once owned by The Otis Elevator Company, the world’s largest manufacturer of vertical transportation systems, parti-cularly elevators and escalators.

“Sellotape” is a European brand of transparent, cellulose-based adhesive tape, and dates back to 1937 when Colin Kininmonth and George Gray coated Cellophane film with a natural rubber resin, creating a ‘sticky tape’ product.

“Kerosene”, also known as paraffin, is a combustible hydrocarbon liquid. It was originally registered as a trade-mark by Abraham Gesner in 1854.

The marks above became very famous and were unfortunately used in a wrong manner by the public. The

Note: The trademarks referred to in this article belong to their respective owners. KASS does not claim any proprietary right whatsoever. The marks are used in this article purely for educational purposes.

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public started to refer to the trade-marks when they wanted any product or service of the same type. The marks were used as nouns and verbs and became part of the daily use of the English language. Instead of referring to the product as “Aspirin” pills or “Kerosene” oil, the marks were so famous and so widely used that the public started referring to the pills as “Aspirin” and the oil as “Kerosene” by themselves. Both the fame of the mark and the lack of restriction on the trademark owners’ part on the usage of their trademark by consumers caused the registered trademarks to become a word in the English lan-guage, that is, a word everybody including competitors can use!

As the public become more internet savvy and the use of search engines becomes routine, another mark is at risk of becoming generic and losing its trademark rights. Why don’t you Google it to find out the mark in question?

Yes! Google, the world’s top search engine today is facing the same problem the marks above faced years ago. Google has appeared in the Merriam-Webster Online Dictionary as “to use the Google search engine to obtain information about (as a person) on the World Wide Web” and has also been included as an English word in the Oxford English Dictionary. In WordSpy, the online service for new words, “googling” is taken as a verb to the word “google”. One of the examples given on the use of “googling” is:

So if you’re Googling your prospective dates, a word of warning: Don’t jump to conclusions about someone just because Google says she murdered 50 people. Chances are, that’s an over-statement. — Amy Gilligan said in her article in Telegraph­Herald, “Googling is newest date thing,”

The trademark lawyers of Google Inc have been taking all measures possible

to ensure the trademark does not become generic by sending warning letters to all those who use their trademark as a common verb. They have placed proper usage guidelines on their website to prevent the wrong use of their marks.

Even the owners of the trademark “Jacuzzi” by Jacuzzi Brands, Inc. are extremely concerned at the way their famous trademark – used on bathtubs and home spas – is used by the public and their competitors to the extent that they have laid down guidelines for the use of their trademark on their website www.jacuzzi.com. The exam-ple below was given on how their “Jacuzzi” mark should be used as an adjective and not a noun.

Example:

Incorrect

Let’s sit in the jacuzzi.

We know you will enjoy your jacuzzi.

Correct

Let’s sit in the Jacuzzi® whirlpool bath.

We know you will enjoy your Jacuzzi® hot tub.

If the trademark becomes a noun, then it will be considered generic and trademarks rights will be lost. This means that the mark belongs in the public domain and competitors may lawfully use the mark to describe the product. The owner of the mark will no longer be able to stop copycats from using its trademark. The brand, built through hard work and heavy marketing, will decline in value while the market share previously held by the owner of the mark will be reduced when the brand is freely used by competitors.

This is why extreme care must be taken by the owners to ensure their trademark is used as a badge of origin for their goods and services. Guide-lines to how the trademark should be

referred to should be provided to the public, through the owner’s website, brochures, packaging and other mar-keting collateral. Sales people should also be trained on how to use the trademark as an adjective and not a verb or noun.

The Right Way to Use a TrademarkNow that we have seen how aspirin, escalator, kerosene, sellotape and so forth were once trademarks for products, and how these trademarks were used so extensively as descriptors that they had unfortunately become normal “everyday” words when referring to the product, how do you safeguard your trademark rights so your mark does not become a generic term that even your competitors can use? Success in branding has to be managed. This article looks at some methods of managing the use of trademarks. How do you go about doing so?

First a trademark should be used as an adjective and not as a noun. For example, “Bring me a cup of NESCAFE® coffee” and not “Bring me a Nescafe®”. Similarly, it should be “I love my WALKMAN® music player” and not “I love my Walkman®. In this case, SONY® Corporation invented and was the first company to introduce the compact, portable music player equipment. How should SONY® Corporation have called their product? It would seem almost as if the public had decided for them, as they began referring to the music player by the trademark “WALKMAN®”.

Secondly, the trademark, if used in a sentence, can be highlighted in a different font or a different colour, for instance, to show that it is a trademark. Some examples to illustrate this are “I love to drink ALICAFE® coffee”, “My wife uses BABA’S® curry powder” and “Please buy three cases of SPRITZER® drinking water”.

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Thirdly, the trademarks should not be used as a verb. We should, for example, say “Please photocopy two copies of this letter” and not “Please xerox two copies of this letter”, and “Do not forget to vacuum the carpet” instead of “Do not forget to hoover the carpet”.

The owners of the trademarks would normally use their trademarks in a proper manner. But others may not know the correct usage. The marketing department, sales department, public relations and/or advertising agencies, etc, should be under strict instruction when it comes to the proper manner of usage of the trademark. An identified person or department should regularly monitor the market to see that the trademark is properly used. This would include monitoring

the print media, e.g., newspapers, magazines, as well as the electronic media, e.g., websites, e-mails, recordings and broadcasts. If wrong usage is spotted, a polite letter can be communicated to the editor, or author or broadcaster of the message.

So while it is important to create a strong and famous brand value for your product, the manner of usage of the trademark must be managed effectively. Otherwise the mark could degenerate into a descriptive term or name for the product over a period of time. A dreadful situation for trademark owners would be:-

We enjoyed sitting in a “Jacuzzi”, drinking “Milo” and “Spritzer”, while I listened to my “Walkman” and my friend used her “iPhone” to call her friend.

In the next column, we will take a look at why trademark owners should not stop using their mark once they have registered it, and what being the first to use a trademark vs. being the first to register one means for trademark owners. Keep an eye on this space.

(Note: The trademarks referred to in this article belong to their respective owners. KASS does not claim any proprietary right whatsoever. The marks are used in this article purely for educational purposes only.) ▼

Geetha K can be reached at geetha@kass.com.my.For more information, please visit www.kass.com.my.

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