Upload
sierra-ward
View
217
Download
0
Tags:
Embed Size (px)
Citation preview
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
3. Changing focus on International Trade
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
4. Changing focus on International Trade
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
5. Changing focus on International Trade
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
6. Changing focus on International Trade
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
8
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
Importance of Trademarks, Geographical Indications and Brand
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
Importance of Trademarks, Geographical Indications and Brand
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
Importance of Trademarks, Geographical Indications and Brand
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
Importance of Trademarks, Geographical Indications and 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.
Importance of Trademarks, Geographical Indications and Brand
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
13. Ethiopian Coffee Brand – value chain (2)
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
14. Ethiopian Coffee Brand – value chain (3)
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.
Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market
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
Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market
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
20
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
Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market
21
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
Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market
22
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
Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market
23
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
Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market
24
1. Low efficiency2. Ugly3. Unsafe4. No Name
22. Upgrading MSE Arc Welding Machine
Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market
25
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
Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market
26
24. Upgrading Jua-kali arc welding machine
Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market
27
24. Upgrading MSE arc welding machine
Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market
25. Conclusion
This Kenyan Experience can be used for promoting the products of MSE in other developing country through application of trademarks and branding
Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market