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					    Intellectual Property
             and
  Pharmaceutical Branding


          Dr. Guriqbal Singh Jaiya
                  Director
Small and Medium-Sized Enterprises Division
  World Intellectual Property Organization
          guriqbal.jaiya@wipo.int
             www.wipo.int/sme
 Global Security Study: Perspectives
          for Life Sciences
• ―The chief security officer is the newest member of the C-suite in many
  life sciences companies,‖ said Amry Junaideen, DTT life sciences
  leader for Security & Privacy Services and a principal with Deloitte &
  Touche LLP, who oversaw the study. ―Life sciences companies
  realize that security is an executive level issue, and applies to more
  than just information technology security. Recent trends in the
  industry – including global supply chains, increased regulatory
  pressures, outsourcing, and the importance of brand reputation –
  necessitate that the CSO position is a vital role in the success of any
  organization.‖
• ―Strategically, tracking mechanisms reduce the risk of product theft
  and counterfeiting, allow increased precision of drug recall, and help
  protect the organization‘s brand reputation at a time of increasing
  concern over counterfeit drugs and the subsequent health effects.‖
• http://www.deloitte.com/dtt/article/0%2C1002%2Ccid%25253D119421%2
  C00.html
Brand Medicine: The role of branding in
     the pharmaceutical industry
   By Tom Blackett & Rebecca Robins
           Palgrave (2001)
          Branding in the Pharmaceutical Industry
             By Tom Blackett, Group Deputy Chairman of Interbrand

• With the gradual decline in the power of the patent to secure
  future business earnings, and the rise in patient power and the
  availability of medicines, the brand will play an increasingly
  important role. First in helping customers to find and select
  products which are suitable for their requirements, and then as
  a symbol of high quality and value.
• This is exactly the role that the famous Coke and Pepsi brands
  play - and these brands now represent the most valuable assets
  that their owners possess (in the case of Coke, some 50 per cent
  of the Coca-Cola Corporation's stock market value). There is
  no reason why this should not become the case in the
  pharmaceutical industry. Indeed, if the major drug companies
  are to maintain their historically high levels of profitability
  against a background of declining R&D productivity, then it
  must do.

http://www.samedanltd.com/members/archives/PMPS/Spring2002/TomBlackett.htm
Pharmaceutical Branding Strategies

• Datamonitor
  October 19, 2001
  147 Pages
• Pub ID: DFMN734790
• US $: 6,100.00
    Known as EMD Biosciences in North America and Merck Biosciences in all other countries
•   Product brands – Calbiochem® • Novabiochem® • Novagen®Through EMD Biosciences /
    Merck Biosciences, the product brands provide a single source for a broad range of optimum
    quality research products used worldwide in disease-related life science research. With more
    than 15,000 products in our portfolio, we offer innovative solutions to scientists at the cutting
    edge of research.
•   Calbiochem® Biochemicals offers a wide range of biochemicals and kits for the study of
    disease states, signal transduction, apoptosis, cell cycle and protein chemistry research.
    Calbiochem® Biochemicals also carries a comprehensive range of general biochemicals
    including detergents and proteases.
•   Calbiochem® Immunochemicals offers high quality immunochemical reagents. In January
    2004, the immunochemical product lines of Calbiochem® and Oncogene Research Products™
    were consolidated to form a broader immunochemical product line under the Calbiochem®
    Immunochemicals brand. The Oncogene Research Products™ brand has supplied innovative,
    high quality, application tested antibodies and assay kits in many research areas, including
    apoptosis, cancer, cell cycle and proliferation.
•   The Novabiochem® brand is the industry leader in the manufacture of innovative resins and
    reagents for peptide synthesis, solid phase organic chemistry and combinatorial chemistry. The
    Novabiochem® brand is highly respected worldwide for the wealth of technical information
    available in catalogs and online.
•   The Novagen® brand offers world-class protein expression and purification products. With the
    expansion in proteomics research, the Novagen® brand is well placed to support scientists with
    tools for sample preparation and high-throughput purification and expression systems.
•    http://www.merckbiosciences.co.uk/html/cnuk/about-us.html
  Completion of Acquisition of Boots
     Healthcare International
• Reckitt Benckiser plc (RB.L) today announced that the
  acquisition of Boots Healthcare International (BHI) has been
  completed with effect from 1st February 2006.
  Bart Becht, Chief Executive Officer of Reckitt Benckiser,
  commented today:-
  ”We are excited at getting ownership of BHI. It will give us
  a platform for additional growth at very attractive margins.
  BHI brings three new Power Brands in Nurofen, Strepsils
  and Clearasil whose distribution can be substantially
  expanded over time. In 2006, our major focus for this
  business will be on successful integration and extracting the
  promised synergies while gradually preparing the business
  for growth.”
• http://www.reckittbenckiser.com/newsroom/news_article1.cfm
  ?pressreleaseid=20050
 Modern Medicines Vs Functional
 Foods and Alternative Medicines
Functional Foods (or nutraceuticals as they are sometimes
called) and alternative (natural) medicines have become
immensely popular with consumers who attach a high
importance to maintaining healthy lifestyles. A few years
ago interest in such products, would have been regarded as
faddish. Nowadays their use is considered perfectly normal
– and indeed a very sensible alternative to a visit to the
doctor‘s surgery.
Both functional foods and alternative medicines are
unrestricted in their availability, and the power of choice lies
entirely with the consumer. ‗Conventional‘ medicine still
dominates in the West, but such is the interest in natural
remedies that it is not inconceivable that in many
therapeutic areas they may come to dominate.
         Mature Products
• When a marketing manager treats a mature product as a
  commodity, he or she may feel the only option is to compete
  on price. But if one examines the mature products in the Life
  Sciences market, it becomes apparent that there are wide
  discrepancies in prices, profit margins and market share.
  This would not occur in a true commodity market. In fact,
  what is being observed is brand equity at work. Some
  vendors are able to charge far higher prices than others, for
  essentially the same product, simply because of the
  perceptions, beliefs and behavior exhibited by their
  customer base. As products mature, effective marketing
  designed to build brand equity becomes all the more critical.
• http://www.biotactics.com/Newsletter/v1i1/Brand2.htm
1961 Coca Cola original vintage
       advertisement.

  Features a Valentine's Day
  The Value of Brands
   Global Brand Scoreboard
   1. Coca-cola 67.52$ billion
   2. Microsoft 59.95$ billion
   3. IBM       53.37$ billion
   4. GE        46.99$ billion
   5. Intel     35.58$ billion
(German survey January 17, 2006)
         Branding As An Internal
         Competency In Pharma
We are focusing on branding because it adds value to the organization.
Schwarz Pharma is a company with an emerging pipeline that will
drive our future. If each aspect of our organization does their part to
help us properly brand and position these products, we will be able to
leverage opportunity into market value.

My best advice is to take branding seriously because it adds great value
– not only to your products, but also to your company. We are not just
talking about improving the bottom line, we are talking about a direct
impact on shareholder value. I have seen the difference in company
valuation between pharmaceutical firms that have built solid brands
and those who have not. This is too important not to treat as a strategic
issue.

                         Thomas J. Willard, Vice President, Marketing,
                                                Schwarz Pharma Inc.,
                   Naming Drugs
• Chemical Name: Nomenclature rules of the International Union
  of Pure and Applied Chemistry (IUPAC).
• Nonproprietary Name: Official nonproprietary names given by
  national and international nomenclature bodies. Jointly with the
  World Health Organization’s (WHO) International
  Nonproprietary Name (INN) Committee: (PARACETAMOL)
• Established Name: found in the official (e.g., The United States
  Pharmacopeia); or given by the regulatory agency
• Proprietary Name: Trademark (CROCIN)
• Trivial Name: coined for convenience such as ASA
  (acetylsalicylic acid), HCTZ (hydro- Drug chlorthiazide), or
  AZT (azidothymidine).
• Pharmacy Equivalent Name (PEN): primarily recommended
  for combination products, for example, Co-triamterpharzide is
  a representation of the Combination of triamterene and
  hydrochlorothiazide.
                Paracetamol
• Crocin® Other common brand
  names for it include Tylenol in
  the US and Canada, Panadol
  in the UK, Tachipirina and
  Efferalgan in Italy, Crocin in
  India, Gelocatil in Spain,
  Alvedon in Sweden, Panodil in
  Denmark and Iceland and
  Depon in Greece.
• IUPAC Name:
  N-(4-
  hydroxyphenyl)ethanamide
• Chemical Formula
  C8H9NO2
A Typical Primary Display Panel
Brand Awareness in the Life Science
            Market
•   With fierce competition, industry consolidation and rapid technological changes,
    establishing a strong brand identity in the life sciences marketplace is more
    critical than ever. Designed to help you understand the role brand perceptions
    play in a scientist's decision to choose one supplier over another, this study
    examines the following ten product categories in one report (pdf):
•   Cell Biology Kits & Reagents
•   Cell Culture Media & Reagents
•   Chromatography Products & Supplies
•   Electrophoresis Products & Supplies
•   High Throughput Screening & Analysis Systems
•   Immunology Kits & Reagents
•   Molecular Biology Kits & Reagents
•   Protein Kits & Reagents
•   Scanners, Visualization & Image Analysis Systems
•   Sequencing Equipment & Instrumentation
•   Over 2,000 life scientists responded to our detailed questionnaire regarding their
    perceptions of the market's leaders and what drives their purchase decisions.
•   http://www.bioportfolio.com/reports/Brand%20Awareness%20in%20the%20Life%
    20Science%20Market.htm
Brand Engineers—The Positioning
            Agency
Brand Engineers focuses exclusively on
developing and validating highly focused
and differentiated positioning for new
and existing Brands in the
pharmaceutical and biotechnology
industries, with a particular emphasis in
specialty care.
http://www.brandengineers.com/about.html
• Medibrand is a collaboration of: •
  Creative Group Members • Branding
  Strategists • Life Sciences Marketing
  Professionals • Attorneys/Legal
  Research staff and • Medical
  Consultants.
• http://www.medibrand.com/
   Branding Drugs for a Market of One
• It becomes apparent that pharmacogenomics, somehow, will change
  the usual marketing rules.
• How do you brand the same drug for three different diseases? Do
  you create three different identities (like GlaxoSmithKline has done
  for bupropion, which is branded as Wellbutrin for depression and
  Zyban for smoking cessation) or have a single, super brand?
• "Branding will be more difficult because companies won't have the
  patient population to support heavy advertising," argued Nathan
  Dowden, a managing partner with the Frankel Group. However, he
  conceded that strong branding for smaller populations is not
  impossible and points to Gleevec, Novartis' cancer drug as an
  example.
• Gleevec treats a subset of people with leukemia who have white
  bloods cells with a particular chromosome abnormality, easily
  identified with a microscope. The drug targets the genetic
  mechanism caused by the abnormality that leads to cancer. Since its
  launch, it has been highly successful. Every physician knows that if a
  leukemia patient has the Philadelphia chromosome, he needs
  Gleevec.
• http://www.brandchannel.com/features_effect.asp?pf_id=131
  WHAT IS A TRADEMARK?
• Any sign, or any combination of signs,
  capable of distinguishing the goods or
  services of one undertaking from those of
  other undertakings, shall be capable of
  constituting a trademark.
• Words including personal names, letters,
  numerals, figurative elements (logos),
  combination of colors, sounds, smells, etc
• Visually perceptible; 2D or 3D (shape)
GUIDE on TRADEMARKS
Brand/Trademark
•Trademark: Legal concept
•Brand: Marketing concept
•Registration of a brand adds value as it
protects its other inherent assets
•Brand profile and positioning may vary
over time, but trademark protection
remains the same
  Value of Strong Brand

A Strong Brand brings with it the
opportunity to raise the profile of
a product and the company that
sells it, setting them apart from
rivals in the marketplace.
Value of Strong Brand Contd...

•A Strong Brand can also command
a price premium for its producer,
and can reduce the price elasticity,
that is, soften consumer reaction to
price increase/change
         Brand Equity (IBEF)
  Brand equity is defined as the customers'
  perception of a brand's value, and is generally
  considered to be composed of five major elements:

• Brand awareness

• Brand loyalty

• Competitive advantage

• Perceived quality/Value

• Brand association
        Brand Identity
• Mind share (cognitive level)
• Heart Share (Emotional relationship)
• Buying intention share
• Self share (self-expression and self-
  design)
• Legend Share (cultural-sociological
  proposition; legendary; mythological)
 Corporate Image, Product
 Positioning and Brand Equity
• TRUST and RELATIONSHIPS are the bulwark of
any enterprise, be it big or small, with a global or
local ambit, having a traditional or modern
management style, high tech or low tech, leader or
follower, and irrespective of it being a part of the old
world of ‗brick and mortar‘ or a rising star reliant
on e-commerce
•Credence Goods
             Brand Strategy
• In recent years, the most successful pharmaceutical
  companies have been distinguished as much by their
  marketing clout as their scientific innovation. The
  growing importance of creating strong brands,
  supported by focused marketing plans, have prompted
  many pharmaceutical companies to adopt business
  plans that allocate more resources to brand building.
• This competitive new business environment means
  increased risk - the launch of a lifestyle drug
  supported by direct-to-consumer advertising can cost
  hundreds of millions of dollars, with most of the cash
  spent before patients have even paid for their
  prescription.
             Auquisition of brands
•   Alliance Pharmaceuticals, a privately owned specialty pharmaceutical company
    based in Chippenham, UK, is one of the companies that successfully saw this
    opening – from start of trading in July 1998, Alliance now has 23 acquired brands,
    with turnover of around £10 million. The company specializes in acquiring brands
    in a range of therapeutic areas, which would benefit from some additional TLC, or
    have become surplus as the result of a merger. Andrew Dean, Business Development
    Director, describes this as ―repairing and polishing the family silver.‖
•   The process of acquisition of established brands can involve developing new
    indications or doses, or simply improving supply and updating paperwork. An
    example of the development of new uses is amantadine – originally launched as
    Symmetrel for Parkinson‘s disease, Alliance is extending its use in Parkinson‘s
    disease and as an antiviral (Lysovir) for use in influenza. Alliance is the primary
    supplier of oxytocin in the UK, and supplies Nu-Seals (enteric-coated aspirin), one of
    the biggest brands in Ireland, for cardiovascular indications. Its most recent
    agreement was with Lilly for Nu-Seals – other partners include Procter & Gamble
    and Novartis. Investors and collaborators include well-known companies such as
    KPMG, Eversheds and the Bank of Scotland.
•   ―Established brand acquisition favors products which will otherwise fall by the
    wayside – these can provide good cash flow, which in turn both funds future
    development and gives investor and licensor companies confidence,‖ Mr Dean said.
    Advancis Pharmaceutical Acquires
        Keflex Brand From Lilly
•   GERMANTOWN, Md., July 1 /PRNewswire-FirstCall/ -- Advancis
    Pharmaceutical Corporation (Nasdaq: AVNC), a pharmaceutical company
    focused on developing and commercializing novel anti-infective products, today
    announced it has acquired the U.S. rights to the Keflex(R) brand of cephalexin
    from Eli Lilly and Company (Lilly) (NYSE: LLY). Under the terms of the
    agreement, Advancis paid Lilly $11 million for the exclusive rights to
    manufacture, market and sell Keflex (cephalexin capsules, USP) in the United
    States. With the acquisition, Advancis acquires Keflex trademarks, technology,
    and new drug applications (NDAs) supporting the approval of Keflex.

•   Following a transition period, Advancis will assume product inventory and
    begin marketing and distributing the Keflex brand. Cephalexin is the third most
    prescribed outpatient antibiotic in the United States, with over 24 million
    prescriptions written and sales of $140 million in 2003. Keflex is the most-
    recognized brand of cephalexin in the United States with more than 15 million
    prescriptions written each year. Although the majority of these prescriptions are
    substituted with generic cephalexin, Lilly's Keflex net sales in 2003 were
    approximately $4 million. First introduced in the 1970s, Keflex is most
    commonly prescribed for skin and skin structure infections. In addition to
    assuming sales and marketing responsibilities for Keflex, Advancis expects to
    begin clinical development of an enhanced cephalexin utilizing Advancis'
    proprietary once-a-day pulsatile dosing technology called PULSYS(TM).
Trust is to Business
What Trademark is to Brand
•Brand Equity built on the foundation of a
      protected Trademark
•Brand/Trademark can:
(a) be disposed off separately from other
      company assets (Free-standing
Institutions); and
(b) give rights that can be legally protected
 Centrality of
 Knowledge


KNOWLEDGE underpins
   PERFORMANCE
But...

 Wolfgang Stofer, Director of BMW‘s
 Treasury Department:
 ―Whenever the technology becomes
 commoditized, we buy it from third
 parties‖.
 Role of Brands: For the Company

In a highly competitive world where
manufacturers are losing their pricing
power, branding is seen as a way of
clawing back some of the lost influence.
Role of Brands: For the Company

•Real and marketable asset
•Higher profit margin (Price Premium)
•Incremental cash flow
•Reduces cash flow sustainability risk
Role of Brands: For the Company

•Accelerates speed of cash flow
•Increases bonding and customer loyalty
•Increased market share
•Entry barrier
•Limits growth of competitors
  Role of Brands: For the Company
•Requires lower investment levels
•Better negotiating position with trade and
     other suppliers
•Facilitates higher product availability
     (better distribution coverage)
•Dealers order what customers explicitly request
Role of Brands: For the Company

•Extends products‘ life cycle
•Allows lower cost brand extensions
•Can be the basis for international expansion
•Provides legal protection;
•Licensing; Franchising; Merchandising
•Buffer to survive market or product problems
 Role of Brands: For the Company

•Value of Brands is a key determinant of
enterprise value and stock market capitalization
•Financial markets reward consistently focussed
brand strategies
•Brand management a vital ingredient for
success in corporate strategy
But...
•Brand Building Requires Time and Money;
•Brand Nourishing Should be a Continuous
Process;
•Higher Profile/Exposure, Greater its
Vulnerability;
•Can be Target of Counterfeiting/Criminal
Activities;
Time required...
―It took seven years of marketing before car
buyers began to recognize that the BMW
brand was distinctive‖: Jorg Zintzmeyer,
board member of Interbrand, p 33 of
FORBES Global, July 22, 2002 in ―The best-
driven brand‖ by Nigel Hollway
So...
The cost of building a brand can be
very substantial over a period of
time. That is why buying a brand
sometimes makes sense to many
companies.
Creating/Designing a Trademark

• Inherently distinctive
• Easy to memorize and pronounce
• Fit the product or image of the
  business
• No legal restrictions
• Positive connotation
      USING A TRADEMARK IN
          ADVERTISING
• Shall be used exactly as registered

• Protect TM from becoming generic
   – Set apart from surrounding text
   – Specify font, size, placement and colors
   – Use as an adjective not as noun or verb
   – Not plural, possessive or abbreviated form
   – Use a trademark notice in advertising and labeling ®

• Monitor authorized users of the mark
• Review portfolio of trademarks
• An evolving trademark
      USING A TM ON THE
          INTERNET


• Use of TM on internet may raise controversial legal
  problems

• Conflict between trademarks and domain
  names(internet addresses) - cyber squatting

• WIPO procedure for domain name dispute
  (http://arbiter.wipo.int.domains)
      USING A TRADEMARK AS A
          BUSINESS ASSET

• Licensing: owner retains ownership and agrees to the use of the TM
  by other companies in exchange of royalties > licensing agreement
  (business expansion/diversification)

• Franchising: licensing of a TM central to franchising
  agreement.The franchiser allows franchisee to use his way of doing
  business (TM, know-how, customer service, s/w, shop decoration,
  etc)

• Selling/assigning TM to another company (merger &
  acquisitions/raising of cash)
COMMON MISTAKES
of
High Technology Industries

Promote their Brands
  based on a list of
  features or attributes
COMMON MISTAKES
of
High Technology Industries contd..

  Tend to think of Brand
    as a TECHNICAL
        FEATURE
―Brand‖ Companies
Nike...
Adidas...
Reebok...
Levi-Strauss…
        …Own No Factories
Proactive Protection Program (1)

•Trademark Search/Investigation
•Domain Name Investigation/Internet
Search
•Counterfeiting Investigation
•Grey Market Investigation
•Market Evaluation
Proactive Protection Program (2)

   •Market Evaluation
   •Factory/License audits
   •Consumer Agency Audit
   •Human Rights Audit
  Value of Strong Brand Contd...

A Strong Brand can reduce the risk
that new product launches will flop
and can be used as a platform for
successful brand stretching (including
launching a completely new product
segments or sector)
                AJI-NO-MOTO
In 1908, Professor Kikunae Ikeda identified the source of
the flavor of kelp, a common ingredient in Japanese
food, as glutamic acid (monosodium glutamate or MSG),
which is naturally present at high levels in kelp, tomatoes
and parmesan cheese.
Professor Ikeda discovered that soup stocks made from
kelp contained high levels of this substance, a discovery
forming the foundation of a major industry producing
MSG from seaweed.
It was introduced onto the market the following year
under the brand AJI-NO-MOTO.
 Trademarks


Vivalis
The Company is developing Sulonex™ (sulodexide oral
gelcap), previously referred to as KRX-101, as a
treatment for diabetic nephropathy, a long-term
complication of diabetes in which the kidneys are
progressively damaged.

Sulonex™ belongs to a proposed new class of
nephroprotective, or kidney protecting, drugs, known as
the glycosaminoglycans.
The CoroWise™ line of plant
sterols can be incorporated into a
variety of food and beverage
applications. Plant sterols are an
important functional food
ingredient and are eligible for an
approved FDA heart health claim.
• The Oliggo-Fiber® range of natural soluble
  fibers, extracted from chicory roots, have a
  number of health and functional benefits. In
  particular, this range of natural fibers may
  help to promote bone health by boosting
  calcium absorption.
• Oliggo-Fiber® may also promote a healthy
  digestive system by stimulating the growth of
  beneficial bifidobacteria.
Our new proprietary technology
for producing Prolísse® soy
protein isolate has created a
bland-flavored isolate that creates
better-tasting products compared
to other isolates on the market.
 Accelerating Health Innovation™

Cargill HFT collaborates with customers to
create sophisticated food solutions demanded by
consumers. Our world class ingredient brands
create distinct value and marketplace
differentiation while addressing customer
concerns regarding:
Heart Health
Joint & Bone Health
Health & Wellness
Aminogen®
Aminogen, a vital ingredient in high-quality protein supplements,
is clinically proven to increase amino acid levels and boost
nitrogen retention. Developed by Triarco Industries, Aminogen is
a patented, designer enzyme which breaks down protein and
improves amino acid absorption.
A natural, plant-derived enzyme, Aminogen is ideal for increasing
lean body mass and strength and promoting deep muscle
recovery. And Aminogen does all this while supporting protein
digestion and reducing or eliminating the gas, bloating and
constipation protein can sometimes cause.
Get more out of your protein and get bigger, stronger…faster™
with Aminogen.
Demand Your Aminogen!
 Examples of Ingredient Brands
• Please select one logo and click to get more information about our
  brands.




• This web page mentions filed and/or registered trademarks of the
  company. However, the absence of an according designation by ® or
  TM should be regarded as not effecting the legal status of any of those
  trademarks and can not be interpreted as not existing trademark
  rights.
    http://www.bioactives.de/bioactives/html/e/products/brands/brands.htm
Successful Ingredient Brands

Most successful ingredient
brands have used a symbol
— such as
the Nutrasweet swirl; and
the Dolby ―double D‖
           Ingredient brands

ADM: www.admhealth.com
Cargill: www.cargillnutraceuticals.com
Degussa: www.bioactives.de
DuPont Protein Technologies: www.dupont.com
Inter-Cal: www.esterc.com/index2.html
Kemin: www.kemin.com
Martek: www.martekbio.com
sigma-tau: www.biosintcarnitines.com
Triarco: www.triarco.com
Wennstrom: www.wennstrom-integrated.com
Is Collective Branding the Answer?
•   ISHS Acta Horticulturae 570: VIII International Symposium on Flowerbulbs BENEFIT
    SHARING FROM FLOWERING BULB - IS IT STILL POSSIBLE?
•   Author: J.H. CoetzeeKeywords: benefit sharing, genetic resources, indigenous bulbous
    plants, Southern AfricaAbstract:
    Genetic material from Africa, but more specifically from Southern Africa, was used to develop a
    large number of the world's most popular cut flowers and other ornamental plants. The most well
    known bulbous plants originating from genetic material from Southern Africa are Agapanthus,
    Amaryllis, Begonia, Clivia, Freesia, Gladiolus, Ixia, Nerine, Ornithogalum, Sandersonia, Watsonia
    and Zantedeschia. Two of the ten best sellers on the Dutch flower auctions in 1999 were originally
    developed out of genetic material from South Africa namely Gerbera and Freesia. A total of $ 143
    million was earned from the sale of these two products on the Dutch auctions. A general
    statement can be made that the Netherlands earns more from South African flowers than South
    Africa earns from its gold. Does a mechanism exist whereby African countries can share in the
    profits from indigenous genetic material? Is the concept of benefit sharing viable for ornamental
    bulbous plants? According to the clauses of the Convention on Bio-diversity (CBD) it is
    theoretically possible, but in practice it is fraught with difficulties. The main reason why benefit
    sharing is not an option is that all the best bulbous genetic material has, for centuries been in the
    public domain. The original custodians of the genetic material cannot claim ownership according
    to the international treaties. Benefit sharing in the form of intellectual property rights is only
    possible if genetic material is improved to cultivar level through breeding and selection. In most
    African countries the necessary expertise and research funds do not exist to develop cultivars on
    which plant breeder's rights or patents can be registered. The only realistic option for benefit
    sharing is to go into agreements with international organizations. An alternative is to promote
    cultivation of indigenous bulbs that can be exported as cut flowers or bulbs from the country of
    origin. This humble approach gives the lawful owners a small share in the financial benefit.
    Is Collective Branding the Answer?
•   ISHS Acta Horticulturae 630: XXVI International Horticultural Congress: Nursery Crops;
    Development, Evaluation, Production and Use SUSTAINABLE TRADE IN
    ORNAMENTAL HORTICULTURE
•   Author: B. JørgensenKeywords: Fair trade, benefit sharing, new ornamental
    plantsAbstract:
    A large proportion of ornamental potted plants produced in developed countries are based
    on import of plant material from less developed countries, and most "potted plant species"
    originate in less developed countries. There are, however, an increasing awareness and
    concern about the intellectual property rights on native plant species and about economic
    sustainability at the grower and, particularly, at consumer level. Sustainable or "fair
    trade" is an alternative approach to conventional international trade. It is a trading
    partnership which aims at sustainable development for disadvantaged producers. Fair
    trade is well established within a range of edible horticultural products (coffee, tea and
    cocoa) and has been adapted to a range of other products but, as yet, not to ornamental
    horticultural products. It is obvious that fair trade, if adapted to ornamental horticulture,
    will not only create a whole new product line but may also create a new niche in the global
    potted plant market. Ornamental horticulture is an industry with great job opportunities
    and with a great potential for generating much needed export income. It is, however,
    difficult for small and medium sized businesses in developing countries to enter the export
    market for horticultural products, especially because the demands to the transport chain
    are high for horticultural products. It is evident that fair trade of ornamental plants will be
    a viable and sustainable business on a longer term, but this will require training and
    education and increased research into the practical aspects of plant export and
    reestablishment.
                               • Origin function
                                  – allows identification of
                                    the enterprise offering a
                                    good or service

Functions of Marks             • Quality function
                                  – consumers associate
                                    certain quality with a
Art. 15(1) TRIPS:                   mark
                                  – encourages the holder
“…capable of distinguishing         to maintain the quality
the goods or services of one        standard
undertaking from those of
other undertakings…”           • Communication function
                                  – can become a carrier of
                                    additional information
                                  – “mark image”
       What is a Collective Mark?
• Individual mark        holder: individual person
                         » focus on the enterprise as the
                           source of the good or service
• Collective mark        holder: association
                         » focus on the good or service


geographical origin
                                          other characteristics
            specific nature
                              specific quality
Montréal InVivo : Metro Montréal Life Sciences Cluster
adopts a branding strategy to better meet international
competition Montréal, March 30, 2005 – Metropolitan
Montréal’s life sciences cluster is adopting an international
branding strategy in order to take its rightful place among
sector leaders. The cluster’s name, Montréal InVivo, and
logo were unveiled as a headliner at the launch of the
Biomedex forum this morning in Montréal.

The branding strategy, developed under the stewardship of the
Metropolitan Montréal Life Sciences Committee (MMLSC), is
part of a concerted effort to strengthen the cluster’s positioning
among local and foreign investors and increase its
attractiveness to researchers and venture capital specialists.
    What is a Certification Mark?
• Certification mark    holder: control institution
                        » focus on specific characteristics

  specific functions:          control concerning:

   – distinction function?      – geographical origin
   – guarantee function         – production process
   – securing quality           – specific nature
   – informing consumers        – other characteristics
Examples
  Origin
   Examples
Geographical Origin
Examples
 Nature
Examples
 Quality
                Collective Marks
What are the different forms of use?
• use by the members of the association
• use by the association itself
• use by both the association and its members
• use by third parties
• use by third parties as well as the association
  and/or its members
     Collective Mark Regulations -
          for what purposes?
    internal relations:            external relations:
– clarifying the relationship   – informing the public
  between the association         about the association
  and its members                 and its members
– clarifying the relationship   – ensuring transparency
  of members to each              as to the conditions of
  other                           use of the collective
                                  mark
             Collective Marks
       Regulations - what contents?
• association:              • use authorization:
  – name and                  – criteria
    headquarters              – all members?
  – purpose                   – third parties?
  – representation          • conditions of use:
• membership:                 –   term
  – requirements              –   form
  – obligatory admission?     –   nature of goods/services
                              –   quality standard
                              –   specific region?
           Collective Marks
Is a change in ownership possible?
• in principle: not precluded
• same organizational structure required
   – collective mark: association
   – certification mark: control institution

• changes to the regulations?
• conditions of use to be observed
   – quality standard
   – nature of goods/services
                      Conclusion
 Business approach to individual and
          collective marks
  Individual marks              Collective marks

• full direct control         • no direct control
• reflects “goodwill” of an   • forms rather an additional
  individual enterprise         marketing instrument
• subject of direct           • not necessarily subject of
  investment                    direct investment
• becomes individual asset    • useful starting point when
  of an enterprise              setting up a business
• no limits to assignment     • specific rules for assignment
  and licensing                 and licensing
       Certification Marks
   Example: VIDALIA for onions
“The certification mark is intended to be used
by persons authorized by certifier, and will
certify that the goods in connection with
which it is used are yellow Granex type
onions and are grown by authorized growers
within the Vidalia onion production area in
Georgia as defined in the Georgia Vidalia
Onion Act of 1986.”
Certification Mark v. Collective Mark
Certification Mark                Collective Mark
• Generally used by trade         • Used only by members of
  associations or other             an organization to identify
  commercial groups to
                                    goods or services and
  identify a particular type of
  goods.                            distinguish them from
   – e.g. “UV” - Ultra-Violet       those of nonmembers.
     protection for sunglasses;
     “Intel Inside”.
                                  • The collective itself does
• Serve to certify conformity
                                    not sell goods or perform
  with centralized standards.       services.
• Meant to bear the “seal of      • Sole purpose is to
  approval” of a central             indicate membership.
  organization.
  The Case of ROQUEFORT
          CHEESE

Some aspects of the cheese-
making process used in the
Roquefort district are
protected as trade secrets
       Importance of GIs
GIs provide added value to our producers. French GI
cheeses are sold at a premium of 2 euro. Italian
―Toscano‖ oil is sold at a premium of 20% since it
has been registered as a GI in 1998. Many of these
products whose names are protected, are exported.
85% of French wine exports use GIs. 80% of EU
exported spirits use GIs. GIs are the lifeline for
138000 farms in France and 300000 Italian
employees.             Trade Issues, EU Commission,
                      30 July 2003 http://europa.eu.int/
                            comm/trade/issues/sectoral/
                           intell_property/argu_en.htm
Trademarks and Geographic Indications

    The rights to control trademarks
    and geographic indications can be
    maintained in perpetuity, and they
    do not confer a monopoly right
    over the use of certain information,
    but simply limit the class of people
    who can use a certain symbol.
Importance of GIs for TK
Geographic indications are based upon
collective traditions and a collective decision-
making process; they protect and reward
traditions while allowing evolution; they
emphasize the relationships between human
cultures and their local land and environment;
and they are not freely transferable from one
owner to another; and they can be maintained
as long as the collective tradition is maintained.
       GIs and the Community
• Geographical indications lend themselves better to
  communal organization than do other IPRs.
• A producer qualifies to use a geographical
  indication according to its location and method of
  production.
• It is immaterial whether the producer is an
  individual, family, partnership, corporation,
  voluntary association or municipal corporation.
• Typically, the producers based in the relevant
  region work cooperatively to establish, maintain
  and enforce guidelines for production of the good
  subject to the geographical indication.
The Roquefort Societe des Caves was
established in 1842, a company
formed by local producers, and it
registered
a distinctive oval trade mark in 1863.
    Protected Appellation of Origin
The French Government, in 1924, gave formal recognition to the
term ‗Roquefort‘ as a protected appellation of origin (a form of
geographical indication). Similar protection has been gained
overseas. For example, the Community of Roquefort registered
the word Roquefort as a certification trade mark for cheese in the
United States in 1952, with the condition that:
THE CERTIFICATION MARK IS USED UPON THE GOODS
TO INDICATE THAT THE SAME HAS BEEN
MANUFACTURED FROM SHEEP'S MILK ONLY, AND HAS
BEEN CURED IN THE NATURAL CAVES OF THE
COMMUNITY OF ROQUEFORT, DEPARTMENT OF
AVEYRON, FRANCE.
  Geographical Indication
A geographical indication is an indication
which identifies a good as originating in
the territory of a Member, or a region or
locality in that territory, where a given
quality, reputation or other characteristic
of the good is essentially attributable to its
geographical origin.

(TRIPS-Agreement)
Council Regulation (EEC) No. 2081/92
  (Scope: limited to certain agricultural products for which a
  link between product or foodstuff characteristics and
  geographical origin exists)
  Protected Designation of      Protected Geographical
  Origin (PDO)                  Indication (PGI)




  Product must be               Product must be
  produced and                  produced or
  processed and                 processed or
  prepared                      prepared
  in geographical area          in geographical area
PDO/PGI registrations under Reg.
  (EEC) No. 2081/92 (cheeses)
   Sweden          1

    Ireland        1
                                                                                    total 154
   Belgium         1

  Denmark              2
                                                                                     (2004)
Netherlands                4

  Germany                  4

    Austria                        6

        UK                                  11

   Portugal                                      12

     Spain                                                 19

    Greece                                                      20

       Italy                                                                   31

    France                                                                                       42

               0               5       10             15   20        25   30          35    40        45
        PDO / PGI
Share of cheese production
                                        55 %
60%



50%



40%



30%      ?%                   20 %


20%


                 < 0,5 %
10%



 0%
      EU 25   Germany      France    Italy
      German GI cheeses
 Allgäuer Bergkäse

 Allgäuer Emmentaler

 Altenburger Ziegenkäse

 Odenwälder
  Frühstückskäse
Generic Cheeses

 Emmental, Cheddar,
     Gouda, Edam,
   Camembert, Brie,
Provolone, Mozzarella...
    Feta (C-465/02),
 Parmesan (C-132/05)
        GIs in India
• Geographical Indication of Goods
  (Registration and Protection) Act,
  adopted in 2000
• Examples of Geographical Indications in
  India: Darjeeling Tea, Kanchipuram Silk
  Saree, Alphonso Mango, Nagpur Orange,
  Kolhapuri Chappal, Bikaneri Bhujia, etc
  Peru seeks geographical indication
     protection for Pisco in India
• This is the first such application filed by a foreign country after
  the GI Registry started receiving applications in September
  2003. The Registry has issued the examination report and the
  application is in an advanced stage of prosecution.
• A product or good can claim protection as a GI in another
  country only after securing protection in the country of its
  origin. Pisco has secured GI protection not only in Peru but also
  in a few Latin American countries.
• Peruvian national pride Pisco, a clear, strong, aromatic brandy
  distilled from fermented black grapes of Quebranta variety,
  derives its name from the 'Pisco Valley' and now known as the
  city of Pisco, 300 km to the south of Peru's capital Lima from
  where it has been produced since the 16th Century. Its name
  also comes from the port town of Pisco from where it has been
  shipped to markets worldwide. Pisco has been a part of
  Peruvian culture for over 400 years and its production has been
  passed from generation to generation and is a ritual in many
  families.
Indian geographical indication "Darjeeling"
     being misused by tea from Nepal
 Tea grown in Nepal is reportedly being passed off in Indian
 markets as "Darjeeling" tea which takes its name from the
 sub-Himalayan district in the east Indian state of West
 Bengal. "Darjeeling" tea is protected as a certification mark
 and may be applied to the tea variety grown in the
 aforesaid geographical region only.
 Nepalese varieties are similar in appearance to Darjeeling tea
 and have some of the flavour too, as they too are grown in
 sub-Himalayan regions. However, the mark "Darjeeling"
 and logo can be used only by tea that has been purely grown
 in the Darjeeling district.
 Tea from Nepal is freely importable into India after the
 payment of the necessary import duty. 90 per cent of the 97
 privately owned tea gardens in Nepal are owned by Indian
 businessmen.

				
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