I N N O V A T I O N L A W PHILIP MENDES BRADLEY THOMAS (ASSOC) Level 3, 380 Queen St - PowerPoint PPT Presentation

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  1. Marketing and Branding Strategies: Use of Trade Marks, Geographical Indications, Industrial Designs for Business Success: Case Studies Shanghai 15 December 2004 I N N O V A T I O N L A W PHILIP MENDES BRADLEY THOMAS (ASSOC) Level 3, 380 Queen St Brisbane QLD, Australia Ph + 61 7 3211 9033 Fax + 61 7 3211 9025 Philip@innovationlaw.com.au Bradley@innovationlaw.com.au

  2. Tools to promote the business of an SME • Tools • Trade marks • Industrial designs • Geographical indications • How do these branding tools help promote the business of an SME ?

  3. What is a trade mark ? • A mark that • is associated with a particular product or service • helps to distinguish it from other products and services, • use of the mark in marketing and advertising, • Achieves distinguishing from other products or services • creates economic advantages to the trade mark owner or trade mark licensee

  4. What can be a trade mark • A trade mark is not limited to a sign or words • Can be: • Words • Letters • Numerals • Drawings • Shapes • Colours • Logo • Audible sounds

  5. Economic benefits of a trade markCustomer Recognition • Customer recognition • A customer will be able to recognise the SME’s product or service and distinguish it from a competitor’s product or service • A customer that was satisfied with the product when the customer used it on a previous occasion, will recognise that product again, and purchase that product again, instead of a competitors’ • If that brand recognition was not there, a customer would be unable to recognise the product to be able to buy it again

  6. Economic benefits of a trade markCustomer Loyalty • Customer loyalty • Customer loyalty is more than recognition for the purpose of buying again • A customer that is a repeated user of the same product or service will become a loyal customer • Customer trust • Customer emotional attachment • All based on the qualities or attributes of the desired product • A loyal customer may stick to the familiar, trusted product, even if a technically superior product enters the market

  7. Economic benefits of a trade markSME Image • SME Image • Trade mark of a product or service will enhance the reputation and standing of the SME • A customer that is satisfied with one product that the customer recognises, will consider purchasing a different additional product from the same SME

  8. Economic benefits of a trade markSME Goodwill • What is goodwill ? The reputation and standing of a business • Customer recognition • Customer loyalty • Customer trust • Customer attachment • The economic value of the expectation of loyal customers buying again, expressed as a lump sum amount of money • An asset on the SME’s balance sheet • An asset against which an SME can borrow

  9. Economic benefits of a trade markSME Goodwill and trade marks • Goodwill is therefore almost entirely dependent upon trade marks • It is often the difference between the total value of a business, less the value of its physical assets, and that can produce a very high number • How valuable can trade marks be ? • All these are valued in excess of hundreds of millions of USD • Coca Cola • IBM • Microsoft

  10. What is an industrial design • The physical characteristics that makes an article • Recognisable • Attractive and appealing • Recognition • Customers will recognise your product and buy it • Attractive and appealing • Customers will also want to buy it

  11. Recognisable industrial designs • Customers do not buy Coca cola because the bottle is attractive • They buy Coca cola because they like Coca cola • Coca cola is recognisable • By its trade mark • By the unique design of the bottle that it comes in • The design of the bottle is an industrial design that can be protected

  12. Recognisable industrial designs • Other products with unique recognisable designs: • Perrier • Toblerone • Recognition enables a customer to recognise it, and to choose to buy it, in preference to another product

  13. Attractive and appealing industrial designs • A customer that finds a product’s design attractive and appealing will want to buy it • A strong motivator to purchase a product • Designs are an important part of the branding strategy

  14. What is a geographical indication ? • A sign • Placed on goods • To identify their geographical origin • To identify that the goods have the qualities, characteristics, or reputation, associated with that geographical origin

  15. Why is a geographical indication important ? • Consumer will buy a product because of the characteristics of the product when originating from a particular place • This is so in relation to agricultural products • They are influenced by the geographical location of where they are produced, and that is what makes them unique • This is also so in relation to manufacturing skills and reputations in a country eg, Swiss watches • They are: • Source identifiers • Indicators of quality • They again promote recognition, and customer loyalty

  16. Geographical Indications Appellation of Origin • Portuguese Port

  17. Geographical Indications Appellation of Origin • Scotch Whiskey

  18. Geographical indications • Swiss watches

  19. Geographical Indications • Indian Banarassi Sari

  20. Geographical Indications • Cuban Cigars

  21. Geographical Indications • Darjeeling Tea

  22. Branding Tools • All of these • Trade Marks • Industrial Designs • Geographical Indications are business branding tools • Aimed at • Promoting product recognition • Promoting customer loyalty • Promoting repeat business • Enhancing the reputation of the product and its producer • Tools used to capture economic benefits to a business

  23. Making the most Effective use of your Trade Mark Case Study: Ozgene Pty Limited I N N O V A T I O N L A W PHILIP MENDES BRADLEY THOMAS (ASSOC) Level 3, 380 Queen St Brisbane QLD, Australia Ph + 61 7 3211 9033 Fax + 61 7 3211 9025 Philip@innovationlaw.com.au Bradley@innovationlaw.com.au

  24. Ozgene Pty Limited • Its Trade Mark: • Outline: • What Ozgene’s business is • Its outstanding growth • How its use of its trade mark has contributed to its outstanding growth and success

  25. Snapshot of Ozgene • Its business: • A biotechnology company making transgenic mice and rats to validate potential drug targets • Formed in November 1999 • Commenced incubated operations in 2000 • Graduated from the incubator in 2001 into rented labs • Built and moved into its own laboratories in 2003 • Staff in 2000: 2 • Staff in 2004: 51

  26. Snapshot of Ozgene’s revenues 2000 2001 2002 2003 2004

  27. What is responsible for such outstanding success and revenues ? A unique business Outstanding technical expertise of CEO Innovative branding and use of trade mark

  28. What is Ozgene’s business • Ozgene’s technical expertise is providing transgenic services • That is, using its technical expertise to produce a mouse or rat which: • Has had a gene randomly inserted • Has had a gene removed • Has had a gene inserted. • Specific skills are in • Construction of gene vectors • Micro-injection techniques to insert gene vectors into a fertilised mouse or rat egg • Use a suicide virus to “infect” or carry a gene vector into a fertilised egg

  29. Why genetically modify a mouse or rat in that way ? • Human beings have some 40,000 genes • Genes are a genetic blueprint that determine • Colour of hair • Colour of eyes • Tall / short • High matabolism and thin, low metabolism and overweight • But genes also are • responsible for predisposition to disease • Diabetes, cancer, heart disease, psoriosis • the cause of specific diseases – because of genetic defects or mutations • Cystic Fibrosis, Haemophilia, Huntington’s disease

  30. Why genetically modify a mouse or rat in that way ? • All human beings are 99.9% genetically identical • The other 0.1% genetic difference accounts for difference in hair colour, eye color, skin colour, etc • Human beings and chimpanzees are 98.5% identical • Human beings and mice are 97.5% identical • Gene function that is observed in a chimpanzees or mouse is an indicator of the function of that gene in a human being • Observing a predisposition to a particular disease in a mouse into which a gene has been inserted or deleted • Observing a disease caused by a gene that is inserted or deleted will assist the understanding of that gene in human beings, and assist in developing a drug targeted at that gene to treat or prevent that disease

  31. Ozgene at Work Movie

  32. Ozgene’s beginnings • Formed in November 1999 • Commenced operations in 2000 in Perth, Western Australia • Why Perth ? – the location of the Animal Resources Center that supplies animals for research use throughout Australia and much of Asia • Incubated within the Western Australian Institute for Medical Research • It provided • laboratory space, • first staff • Initial capital to kickstart operations

  33. Ozgene’s CEO • Founding CEO: Dr Frank Koentgen – 36 years old • Worked in the mouse facilities of Roche in Switzerland – one of the world’s largest pharmaceutical companies • Set up mouse facilities for Roche’s US operations in New Jersey • Set up mouse facilities at Walter and Eliza Hall Institute for Medical Research in Melbourne, Australia • First scientist in the world to successfully knockout a gene from a Black 6 species mouse

  34. Ozgene’s Board of Directors • Initial Board • Frank Koentgen • Gabi Suess • Philip Mendes • Zisi Fotev • Kevin Fahey • Present Board • Frank Koentgen • Philip Mendes • Zisi Fotev

  35. Ozgene’s capital requirements • Ozgene has always operated from cash flows • No debt capital – no borrowings • No equity capital – no venture capital - Ozgene remains privately owned • How was that possible: • Incubation from Western Australian research for Medical Research which provided initial capital, (and continues to receive a royalty, until the royalty cap is reached) • Cash flows from first orders • When Ozgene first graduated from incubation it did seek out venture capital investment. • One road show only • As weeks and months passed the drop dead zero cash date was extended out, until it was within everyone’s comfort to keep going without capital injection

  36. Ozgene’s technical intellectual property • Techniques for making transgenic mice and rats are not no much subject to patents as to skill, techniques, and expertise • Many people throughout the world have the skills to make transgenic animals • All pharmaceutical companies • Most universities and research institutes doing medical research • When all these skills are widely available how has Ozgene been successful ? • Ozgene expertise is widely regarded • Ozgene can make a transgenic animal more reliably and faster • 6 – 9 months instead 2 to 3 years • 100% success rate, as opposed to the high failure rate of others • Customers are paying for Ozgene’s expertise, efficiency, and track record • Customers pay USD $70,000 per knockout mouse strain

  37. Ozgene’s technical intellectual property • Micro injection and other techniques are public domain • Ozgene’s highly skilled use of that public domain knowledge, and trade secrets, makes it a preferred supplier • Pharmaceutical companies have their own transgenic mouse facilities • They come to Ozgene for their hard ones • But Ozgene is also at the cutting edge of new technological developments • It jointly invented a viral technology that uses a suicide virus to deliver a gene to a fertilised egg • It validated a gene switch that turns genes on and off • This results in Ozgene’s competitive advantage

  38. Ozgene’s premises • 2000 located at Western Australian Institute for Medical Research • 2001 – June 2003 located at Animal Resources Center • January 2003 – bought land to build own laboratories • January 2003 – designed 4 stage new laboratory facilities

  39. Ozgene’s labs – stage 1 June 2003 – Ozgene completed Stage 1 and moved in

  40. Ozgene’s labs – next stages • In 2004 critical decision – how to accommodate growth ? • Staff already 51 strong • A challenge was whether Perth’s universities could train staff at the rate that will support Ozgene’s needs and future growth • Choices: • Build stage 2, or • Invest in robots • Decision to invest in two robots, the price of which were approximately equal to the cost of having built stage 2 • Robots undertake repetitive work, such as analytical test preparation in high volumes, leaving skilled staff to do more value added work

  41. Ozgene’s labs – next stages • Stage 2 deferred until late 2005. May build stage 3 at the same time

  42. Ozgene’s customers • 5% of customers in Australia • 95% of customers are export customers • Located in • United States • Europe • Japan • Amongst those customers are • The largest pharmaceutical companies in the world • The most prestigious universities and research institutes in the world

  43. Ozgene’s customers

  44. Ozgene’s customers • March 2004 • Major Milestone: • USD $ 8.5 m five year contract with United States National Institutes of Health

  45. Ozgene’s success • How has Ozgene, located in the most remote capital city on Earth established a global reputation and competitive edge • Ozgene could have been nothing more than a boutique biotechnology company in Australia, serving only the needs of the Australian research community • How did Ozgene establish a global reputation and global recognition Outstanding technical expertise of CEO Innovative branding and use of trade mark

  46. Innovative branding - with a sense of humour • Ozgene’s initial marketing effort was attending Bio • Bio: United States Biotechnology Industry Organisation annual Conference and Exhibition • Capitalised on American inquisitiveness with Australian capability • Use of “Australianisms” • “Oz” • Southern Cross

  47. Innovative branding - with a sense of humour • Put the trade mark onto T-shirts, web sites, and presentations • Not just the trade mark – but some mouse characters as well

  48. Innovative branding - with a sense of humour • Mouse characters started to have themes • Bio 2002 in Toronto

  49. Innovative branding - with a sense of humour • Bio 2003 Washington DC

  50. Innovative branding - with a sense of humour • Bio 2004 San Francisco