I N N O V A T I O N L A W PHILIP MENDES BRADLEY THOMAS (ASSOC) Level 3, 380 Queen St
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Transcript of I N N O V A T I O N L A W PHILIP MENDES BRADLEY THOMAS (ASSOC) Level 3, 380 Queen St
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I N N O V A T I O N L A WPHILIP MENDES BRADLEY THOMAS (ASSOC)
Level 3, 380 Queen StBrisbane QLD, Australia
Ph + 61 7 3211 9033Fax + 61 7 3211 9025
[email protected]@innovationlaw.com.au
Marketing and Branding Strategies: Use of Trade Marks, Geographical Indications, Industrial Designs
for Business Success: Case Studies
Shanghai15 December 2004
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Tools to promote the business of an SME
Tools Trade marks Industrial designs Geographical indications
How do these branding tools help promote the business of an SME ?
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What is a trade mark ?
A mark that is associated with a particular product or service helps to distinguish it from other products and services,
use of the mark in marketing and advertising, Achieves distinguishing from other products or services creates economic advantages to the trade mark owner or trade mark
licensee
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What can be a trade mark
A trade mark is not limited to a sign or words Can be:
Words Letters Numerals Drawings Shapes Colours Logo Audible sounds
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Economic benefits of a trade markCustomer Recognition
Customer recognition A customer will be able to recognise the SME’s product or service
and distinguish it from a competitor’s product or service A customer that was satisfied with the product when the customer
used it on a previous occasion, will recognise that product again, and purchase that product again, instead of a competitors’
If that brand recognition was not there, a customer would be unable to recognise the product to be able to buy it again
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Economic benefits of a trade markCustomer Loyalty
Customer loyalty Customer loyalty is more than recognition for the purpose of
buying again A customer that is a repeated user of the same product or service
will become a loyal customer Customer trust Customer emotional attachment
All based on the qualities or attributes of the desired product A loyal customer may stick to the familiar, trusted product, even if
a technically superior product enters the market
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Economic benefits of a trade markSME Image
SME Image Trade mark of a product or service will enhance the reputation and
standing of the SME A customer that is satisfied with one product that the customer recognises,
will consider purchasing a different additional product from the same SME
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Economic benefits of a trade markSME Goodwill
What is goodwill ?
The reputation and standing of a business Customer recognition Customer loyalty Customer trust Customer attachment
The economic value of the expectation of loyal customers buying again, expressed as a lump sum amount of money
An asset on the SME’s balance sheet An asset against which an SME can borrow
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Economic benefits of a trade markSME Goodwill and trade marks
Goodwill is therefore almost entirely dependent upon trade marks It is often the difference between the total value of a business, less the
value of its physical assets, and that can produce a very high number
How valuable can trade marks be ? All these are valued in excess of hundreds of millions of USD
Coca Cola IBM Microsoft
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What is an industrial design
The physical characteristics that makes an article Recognisable Attractive and appealing
Recognition Customers will recognise your product and buy it
Attractive and appealing Customers will also want to buy it
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Recognisable industrial designs
Customers do not buy Coca cola because the bottle is attractive
They buy Coca cola because they like Coca cola Coca cola is recognisable
By its trade mark By the unique design of the bottle that it comes in
The design of the bottle is an industrial design that can be protected
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Recognisable industrial designs
Other products with unique recognisable designs: Perrier Toblerone
Recognition enables a customer to recognise it, and to choose to buy it, in preference to another product
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Attractive and appealing industrial designs
A customer that finds a product’s design attractive and appealing will want to buy it
A strong motivator to purchase a product Designs are an important part of the branding strategy
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What is a geographical indication ?
A sign Placed on goods To identify their geographical origin To identify that the goods have the qualities, characteristics, or
reputation, associated with that geographical origin
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Why is a geographical indication important ?
Consumer will buy a product because of the characteristics of the product when originating from a particular place
This is so in relation to agricultural products They are influenced by the geographical location of where they are
produced, and that is what makes them unique This is also so in relation to manufacturing skills and reputations in a
country eg, Swiss watches They are:
Source identifiers Indicators of quality
They again promote recognition, and customer loyalty
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Geographical Indications Appellation of Origin
Portuguese Port
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Geographical Indications Appellation of Origin
Scotch Whiskey
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Geographical indications
Swiss watches
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Geographical Indications
Indian Banarassi Sari
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Geographical Indications
Cuban Cigars
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Geographical Indications
Darjeeling Tea
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Branding Tools
All of these Trade Marks Industrial Designs Geographical Indications
are business branding tools Aimed at
Promoting product recognition Promoting customer loyalty Promoting repeat business Enhancing the reputation of the product and its producer
Tools used to capture economic benefits to a business
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I N N O V A T I O N L A WPHILIP MENDES BRADLEY THOMAS (ASSOC)
Level 3, 380 Queen StBrisbane QLD, Australia
Ph + 61 7 3211 9033Fax + 61 7 3211 9025
[email protected]@innovationlaw.com.au
Making the most Effective use of your Trade Mark
Case Study: Ozgene Pty Limited
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Ozgene Pty Limited
Its Trade Mark:
Outline: What Ozgene’s business is Its outstanding growth How its use of its trade mark has contributed to its outstanding growth
and success
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Snapshot of Ozgene
Its business: A biotechnology company making transgenic mice and rats to
validate potential drug targets
Formed in November 1999 Commenced incubated operations in 2000 Graduated from the incubator in 2001 into rented labs Built and moved into its own laboratories in 2003
Staff in 2000: 2 Staff in 2004: 51
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Snapshot of Ozgene’s revenues
7.0m6.5m6.0m5.5m5.0m4.5m4.0m3.5m3.0m2.5m2.0m1.5m1.0m0.5m0.0m 2.1m420K 3.2m 6.5m
20012000 2002 2003 2004
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What is responsible for such outstanding success and revenues ?
A unique business
Outstanding technical expertise of CEO
Innovative branding and use of trade mark
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What is Ozgene’s business
Ozgene’s technical expertise is providing transgenic services That is, using its technical expertise to produce a mouse or rat which:
Has had a gene randomly inserted Has had a gene removed Has had a gene inserted.
Specific skills are in Construction of gene vectors Micro-injection techniques to insert gene vectors into a fertilised
mouse or rat egg Use a suicide virus to “infect” or carry a gene vector into a
fertilised egg
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Why genetically modify a mouse or rat in that way ?
Human beings have some 40,000 genes Genes are a genetic blueprint that determine
Colour of hair Colour of eyes Tall / short High matabolism and thin, low metabolism and overweight
But genes also are responsible for predisposition to disease
Diabetes, cancer, heart disease, psoriosis the cause of specific diseases – because of genetic defects or mutations
Cystic Fibrosis, Haemophilia, Huntington’s disease
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Why genetically modify a mouse or rat in that way ?
All human beings are 99.9% genetically identical The other 0.1% genetic difference accounts for difference in hair colour, eye
color, skin colour, etc Human beings and chimpanzees are 98.5% identical Human beings and mice are 97.5% identical
Gene function that is observed in a chimpanzees or mouse is an indicator of the function of that gene in a human being Observing a predisposition to a particular disease in a mouse into which a
gene has been inserted or deleted Observing a disease caused by a gene that is inserted or deleted
will assist the understanding of that gene in human beings, and assist in developing a drug targeted at that gene to treat or prevent that disease
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Ozgene at Work
Movie
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Ozgene’s beginnings
Formed in November 1999 Commenced operations in 2000 in Perth, Western Australia Why Perth ? – the location of the Animal Resources Center that
supplies animals for research use throughout Australia and much of Asia
Incubated within the Western Australian Institute for Medical Research It provided
laboratory space, first staff Initial capital to kickstart operations
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Ozgene’s CEO
Founding CEO: Dr Frank Koentgen – 36 years old Worked in the mouse facilities of Roche in Switzerland – one of the
world’s largest pharmaceutical companies Set up mouse facilities for Roche’s US operations in New Jersey Set up mouse facilities at Walter and Eliza Hall Institute for Medical
Research in Melbourne, Australia First scientist in the world to
successfully knockout a gene
from a Black 6 species mouse
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Ozgene’s Board of Directors
Initial Board Frank Koentgen Gabi Suess Philip Mendes Zisi Fotev Kevin Fahey
Present Board Frank Koentgen Philip Mendes Zisi Fotev
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Ozgene’s capital requirements
Ozgene has always operated from cash flows
No debt capital – no borrowings No equity capital – no venture capital - Ozgene remains privately owned
How was that possible: Incubation from Western Australian research for Medical Research which
provided initial capital, (and continues to receive a royalty, until the royalty cap is reached)
Cash flows from first orders
When Ozgene first graduated from incubation it did seek out venture capital investment. One road show only As weeks and months passed the drop dead zero cash date was extended out,
until it was within everyone’s comfort to keep going without capital injection
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Ozgene’s technical intellectual property
Techniques for making transgenic mice and rats are not no much subject to patents as to skill, techniques, and expertise
Many people throughout the world have the skills to make transgenic animals All pharmaceutical companies Most universities and research institutes doing medical research
When all these skills are widely available how has Ozgene been successful ? Ozgene expertise is widely regarded Ozgene can make a transgenic animal more reliably and faster 6 – 9 months instead 2 to 3 years 100% success rate, as opposed to the high failure rate of others
Customers are paying for Ozgene’s expertise, efficiency, and track record Customers pay USD $70,000 per knockout mouse strain
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Ozgene’s technical intellectual property
Micro injection and other techniques are public domain Ozgene’s highly skilled use of that public domain knowledge, and trade
secrets, makes it a preferred supplier Pharmaceutical companies have their own transgenic mouse facilities
They come to Ozgene for their hard ones But Ozgene is also at the cutting edge of new technological developments
It jointly invented a viral technology that uses a suicide virus to deliver a gene to a fertilised egg
It validated a gene switch
that turns genes on and off This results in Ozgene’s competitive
advantage
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Ozgene’s premises
2000 located at Western Australian Institute for Medical Research 2001 – June 2003 located at Animal Resources Center January 2003 – bought land to build own laboratories January 2003 – designed 4 stage new laboratory facilities
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Ozgene’s labs – stage 1
June 2003 – Ozgene completed Stage 1 and moved in
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Ozgene’s labs – next stages
In 2004 critical decision – how to accommodate growth ? Staff already 51 strong A challenge was whether Perth’s universities could train staff at the
rate that will support Ozgene’s needs and future growth Choices:
Build stage 2, or Invest in robots
Decision to invest in two robots, the price of which were approximately equal to the cost of having built stage 2
Robots undertake repetitive work, such as analytical test preparation in high volumes, leaving skilled staff to do more value added work
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Ozgene’s labs – next stages
Stage 2 deferred until late 2005. May build stage 3 at the same time
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Ozgene’s customers
5% of customers in Australia 95% of customers are export customers
Located in United States Europe Japan
Amongst those customers are The largest pharmaceutical companies in the world The most prestigious universities and research institutes in the
world
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Ozgene’s customers
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Ozgene’s customers
March 2004
Major Milestone: USD $ 8.5 m five
year contract with United States National Institutes of Health
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Ozgene’s success
How has Ozgene, located in the most remote capital city on Earth established a global reputation and competitive edge
Ozgene could have been nothing more than a boutique biotechnology company in Australia, serving only the needs of the Australian research community
How did Ozgene establish a global reputation and global recognition
Outstanding technical expertise of CEO
Innovative branding and use of trade mark
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Innovative branding - with a sense of humour
Ozgene’s initial marketing effort was attending Bio Bio: United States Biotechnology Industry Organisation annual
Conference and Exhibition
Capitalised on American inquisitiveness with Australian capability Use of “Australianisms”
“Oz” Southern Cross
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Innovative branding - with a sense of humour
Put the trade mark onto T-shirts, web sites, and presentations Not just the trade mark – but some mouse characters as well
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Innovative branding - with a sense of humour
Mouse characters started to have themes Bio 2002 in Toronto
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Innovative branding - with a sense of humour
Bio 2003 Washington DC
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Innovative branding - with a sense of humour
Bio 2004 San Francisco
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Innovative branding - with a sense of humour
Transgenic Mouse Conference 2004 Nashville
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Innovative branding - with a sense of humour
2004 Marketing Tour Japan
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Innovative advertising in scientific publications
Promoting viral delivery technology
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Innovative advertising in scientific publications
Spring special price promotion
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The branding strategy
The branding strategy was to promote the trademark and the “globe” design using eye catching humorous cartoons
that had a relationship to the company and its business that captured attention that were instantly recognisable and connected to Ozgene
Use of the cartoons on T shirts, advertising, presentations T shirts that were given away at Bio in limited numbers and were
sought after T shirts that are given to each customer and at presentations
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Effect of the branding strategy
Ozgene became well recognisable globally On marketing trips staff all wore the familiar T shirts Even at airport lounges people would walk up and say:
“You’re the guys from Ozgene” Ozgene’s quick recognition throughout the industry set itself apart from
competitors That is attributed to its trade mark and how it has been used
Humour and distinctiveness in the presentation of the trade mark resulted in Capturing the market’s attention Reminding the market of Ozgene’s existence Reinforcing in the market Ozgene’s reputation
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Effect of the branding strategy
But global success was not because of cartoons of cute mice Global success was due to passionate leadership of the CEO,
outstanding technical staff, outstanding technical success, and recognition and reinforcement of technical success by attention capturing branding
Attention capturing branding was something that Ozgene’s competitors did not do.
There are only some 6 competitors in the world Ozgene quickly captured a large market share in such a specialised
market because of its technical excellence, and the effective branding strategy that constantly reminded people of that
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Ozgene’s sense of humour
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The Ozgene team