Ethiopian Coffee, intellectual property and
geographical indications perspective
Seble G. Baraki
Open A.I.R. Research Fellow
March 15, 2013
Outline
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Ethiopian Coffee: background
Coffee trading and governance
IP in Ethiopia: Trademarks and GIs
GIs or TM for coffee: the Trend
Concluding remarks
Ethiopian Coffee: Background
• Ethiopia an agrarian country- 47% of the GDP and about 80% of
the population depend on the agricultural sector
• Birth place of coffee (Kaffa region)- grows around 6000 varieties
of Arabic coffee
• Coffee is the most significant commodity in Ethiopia: economic &
social importance
• About 25% of the total population depend on coffee production &
its trade thereof
• Around 50% of production is consumed domestically- a unique
and purely Ethiopian coffee ceremony
Background contd…
• Contributes the most fine/specialty coffee types to the world
market – traditional method of production and unique climate
condition
• Limmu, Jimma, Wollega, Yirgacheffee, Sidama, Harar, Kaffa
• Method of Production: forest coffee (8-10%), semi-forest coffee
(30-35%), garden coffee (50-55%) and plantation coffee (5-6%) small scale farmers, private sector and government
• Southern (SNNPR) and south western(Oromia Regional state)
• Each district produces a coffee variety with distinct characteristics
Coffee trading and governance
• Was very fragmented and unstructured with a long value chain
• No systematic institution until recently
• Ethiopia commodity exchange (ECX) revolutionized agricultural trading
in general and coffee trading in particular- autonomous gov’t body
o Trading, quality control mechanism and warehousing (could be useful in case of
over production- to avoid price deflation )
o Tries to reduce market asymmetric- makes available price information in remote
areas
o Has also put in place specialty coffee trading system since February 2010
• Federal and state institutions and laws- Ministry of Agriculture (MOA),
Ministry of Trade (MOT), ECX, State agriculture and trade bureaus
• Private parties- cooperative unions, exporters associations
IP in Ethiopia- TM and GIs
• IP is only of a recent development- over all weak- with the relative
exception to the case of copyright
• Low level of awareness by all stakeholders especially the general
public
• Copyright (1960 Civil code then Proc. No. 410/2004), Inventions,
minor inventions & industrial Designs (Proc. No.123/1995 &
Regulation No. 119/1996 ), Trademarks (Proc. No.501/2006 and
Regulation No. 273/2012), trade secrets (Proc. No. 683/2010), New
plant variety (Proc. 481/2006)
• Ethiopian intellectual property office(EIPO)- Proc. No. 320/2003
• Geographical indications- two drafts (DO/AO and GIs )
Trademarks- Proclamation No. 501/2006
• “…any visible sign capable of distinguishing goods or services of one
person from those of other persons” Article (2(17))
• Excluded: sound, smell and marks that are contrary to public order or
morality as well as geographically descriptive or geographically
misleading terms/signs
• Ownership of trademark: upon registration (article 4)- article 7(2)
ownership through use
• Duration of protection : 7 years- unlimited renewals
• Rights : to use and preclude others (misleading the public and
prejudicial to the public)
• Enforcement- provisional measures, civil, criminal, customs
Sui generis GIs- Draft DO and GIs Proclamtions
• Two draft laws; DO(initially EPA, now MOA) and GIs (EIPO) proclamations
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Draft DO Proclamation aims to:
o protect the reputation of a unique product of local communities
o safeguard the traditional knowledge, technology & practice of the communities
essential for its production
o conservation and sustainable use of the land the name of which the unique product
bears- art. 3
• Association of local communities in a specified Kebele (village) are eligible
where:
o a product originates in that specific Kebele
o unique characteristics are essentially and exclusively due to the ecosystem services of
that precisely defined geographical area, the collective knowledge, techniques and skills
of production or process of the local community
o the production and processing of the product takes place within that delimited boundary
Sui generis GIs contd...
• Scope of application: processed or unprocessed unique home garden plant and
animal
• Rights- non transferable rights to use/ authorize and preclude others
• Generic, homonymous and names that are registered as TM are cannot be DOs
• An association should develop and implement its own local environmental
management plan- conservation
• Responsible organs: organization of local communities/cooperatives; regional
agricultural bureaus, MOA, EPA, EIPO
• Periodic inspection and verification by assigned assessors from respective
agricultural bureaus
• Enforcement: provisional measures, civil remedies, criminal sanctions and
measures at customs ports and stations
• There seems to be a deadlock- misunderstanding between responsible organs
Sui generis GIs contd...
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Draft GIs proclamation: to protect the reputation and goodwill associated with
GIs- recognizing them as valuable economic symbols
A GI is defined some how in a similar manner as is under TRIPS- may compose of
any geographic name, sign or image that is not generic
Registration: if it qualifies the definition of GIs, not already registered in the
office and satisfies the criteria for protection by EIPO (art. 6)
Right to use- belongs to any person, legal or natural- possible issue of leaving out
some producers
EIPO- responsible for registration, administration and cancellation/revocation of
GIs
Relationship with TM not dealt under this draft law
Enforcement: civil remedies only
GIs or TM for coffee- the trend
• Trademarking and licensing initiative- branded fine Ethiopia coffee
varieties abroad
• To capture large share of retail prices for Ethiopian Farmers; increase
export revenue and negotiating powers of stakeholders
• Ownership- Ethiopian gov’t through EIPO
• EIPO working closely with- cooperatives, exporters and gov’t agencies
• Ethiopian fine Coffee Stakeholders Committee
• Ethiopian coffee Network- licensed exporters, importers, retailers, and
roasters www.ethiopiancoffeenetwork.com
• Key features- value chain analysis, trademarking &branding, licensing & brand
management and creating a transparent market
GIs or TM for coffee- the trend
• More than 110 licensees in over 30 countries worldwide- voluntary and
royalty free
• Not registered in Ethiopia- geographically misleading or descriptive
• Collective marks are available for trade unions, trade union federations
and associations- the above restrictions apply
• Certification marks- not provided under the TM proclamation
• Acquired distinctiveness not clearly provided under Proc. 510/2006article 6(2) briefly stipulates as an exception
GIs or TM for coffee- the trend
• A sui generis system- to transfer coffee from pure commodity to a
gourmet one- by harnessing the intangible assists of our coffee varieties
• Taking advantage of global market structure - production method and
origin which lead to higher prices
• Potentials- market access, revenue for the farmers and gov’t, benefits
consumers outside and locally
• Some challenges with a GIs systems :
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Initial cost of building the culture as well as infrastructure- especially physical
Governance: demarcation, quality control
Finance to administer and maintain including marketing strategies
Differentiation might keep out many producers
Concluding Remarks
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The aim of these IP tools – to benefit
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small-scale farmers, Ethiopian buisness
persons involved and the gov‘t
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The Trademarking initiative‘s benefits
are not backed by independant
researches
Each IP tool has its advantages and
disadvantage
A definite need to have a GIs system
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Valuing our immaterial assets &
benefiting from them is timely
Two fold strategy- Colombian coffee
style
Having a DO and GI legislations
separately could allow for a positive
differentiation
Extensive promotional strategies
needed
Taking
advantage
of
recently
established instituions and Initiatives ECX,
Extension
programs
and
cooperative societies
THANK YOU!