Ethiopian Coffee, intellectual property and geographical indications perspective

Seble G. Baraki Open A.I.R. Research Fellow

March 15, 2013

Outline

• 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

areaso 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

1. Draft DO Proclamation aims to: o protect the reputation of a unique product of local communitieso safeguard the traditional knowledge, technology & practice of the communities

essential for its productiono 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 Kebeleo 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...

2. 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. 510/2006-

article 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 : o Initial cost of building the culture as well as infrastructure- especially physical o Governance: demarcation, quality control o Finance to administer and maintain including marketing strategieso Differentiation might keep out many producers

Concluding Remarks

THANK YOU!THANK YOU!