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
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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-(4hydroxyphenyl)ethanamide
• Chemical Formula
C8H9NO2
A Typical Primary Display Panel
Brand Awareness in the Life Science
Market
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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
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Mind share (cognitive level)
Heart Share (Emotional relationship)
Buying intention share
Self share (self-expression and selfdesign)
• 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
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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
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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 mostrecognized 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 bestdriven 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?
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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
Art. 15(1) TRIPS:
“…capable of distinguishing
the goods or services of one
undertaking from those of
other undertakings…”
• Quality function
– consumers associate
certain quality with a
mark
– encourages the holder
to maintain the quality
standard
• 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:
– distinction function?
– guarantee function
– securing quality
– informing consumers
control concerning:
– geographical origin
– production process
– specific nature
– 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
between the association
and its members
– clarifying the relationship
of members to each
other
– informing the public
about the association
and its members
– ensuring transparency
as to the conditions of
use of the collective
mark
Collective Marks
Regulations - what contents?
• association:
– name and
headquarters
– purpose
– representation
• membership:
– requirements
– obligatory admission?
• use authorization:
– criteria
– all members?
– third parties?
• conditions of use:
–
–
–
–
–
term
form
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
• full direct control
• reflects “goodwill” of an
individual enterprise
• subject of direct
investment
• becomes individual asset
of an enterprise
• no limits to assignment
and licensing
Collective marks
• no direct control
• forms rather an additional
marketing instrument
• not necessarily subject of
direct investment
• useful starting point when
setting up a business
• specific rules for assignment
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
• Generally used by trade
associations or other
commercial groups to
identify a particular type of
goods.
– e.g. “UV” - Ultra-Violet
protection for sunglasses;
“Intel Inside”.
• Serve to certify conformity
with centralized standards.
• Meant to bear the “seal of
approval” of a central
organization.
Collective Mark
• Used only by members of
an organization to identify
goods or services and
distinguish them from
those of nonmembers.
• The collective itself does
not sell goods or perform
services.
• Sole purpose is to
indicate membership.
The Case of ROQUEFORT
CHEESE
Some aspects of the cheesemaking 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 decisionmaking 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
Origin (PDO)
Protected Geographical
Indication (PGI)
Product must be
produced and
processed and
prepared
in geographical area
Product must be
produced or
processed or
prepared
in geographical area
PDO/PGI registrations under Reg.
(EEC) No. 2081/92 (cheeses)
Sweden
1
Ireland
1
Belgium
1
total 154
(2004)
2
Denmark
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.