Marketing and Branding Strategies: The Role of Collective Marks, Certification Marks and Geographical Indications for Bu

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 Strategies:The 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 competitionof 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. Give information • Send a message • Create image that differentiates you • To maintain credibility, confidence and loyalty 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 • Collective marks • Certification marks • GIs Trademarks Individual marketing Joint marketing

9. SMEs have grouped in associations ( organized geographically or per industrial sector) Working collectively, SMEs can benefit from the advantages of a joint undertaking. • 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 can’t 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 • > 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: “LaChamba”

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. Added value: traditional know-how transferred from generation to generation 89%: handwork or with simple tools Project “La Chamba, Tolima” The product

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

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. Tower Bridge, London Matterhorn, Switzerland Eiffel Tower, Paris • In some countries : can also be figurative sign • E.g. Eiffel tower, Egyptian pyramid • E.g. birds, animals associated with a place • Most commonly, consists of the name of the place of origin of the goods • Country, region, city • E.g. Champagne (France), Havana (Cuba)

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 Producers groupings: – talk to government – help define the mandatory specifications (book of requirements) to be met – ‘’internal”control

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 • Sarawak’s 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