Using Patents, Trade Secrets, Industrial Designs, Trademarks and

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Using Using Patents, Patents, Trade Trade Secrets, Secrets, Industrial Industrial Designs, Designs, Trademarks Trademarks and and Geographical Geographical Indications Indications for for the the Business Business Success Success of of SMEs SMEs Guriqbal Singh Jaiya Director, SMEs Division World Intellectual Property Organization (WIPO)

Transcript of Using Patents, Trade Secrets, Industrial Designs, Trademarks and

Page 1: Using Patents, Trade Secrets, Industrial Designs, Trademarks and

UsingUsing Patents,Patents,TradeTrade Secrets,Secrets,IndustrialIndustrial Designs,Designs,TrademarksTrademarks andand

GeographicalGeographicalIndicationsIndications forfor thetheBusinessBusinessSuccessSuccessofof SMEsSMEs

GuriqbalSinghJaiya

Director,SMEsDivision

World IntellectualPropertyOrganization(WIPO)

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WhatWhat makesmakesaa productproductsuccessful?successful?

• Productrepresentsa functional improvementcomparedto otherexistingproducts

• Advantageousprice

• Productor its packagehasanattractive design• Thebrand of theproducthasa goodreputation

(guaranteefor quality)andhasbeenpromotedthroughpublicity

• Productcaneasilybefoundin themainretail placesandis distributedby themaindistributors

• Goodafter-saleservices

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Legal protection of IPgrants exclusiverights

• Innovation - improvementof functionalaspectsorfabricationprocessof theproduct

• Design- theproduct’sappearance

• Brand - commercialization/marketingof theproduct

Patents,UtilityModels

IndustrialDesigns

Trademarks

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Limits on Patents

• Limited in time: protectionfor max20 years.Afterthat,theymaybecommercializedwithoutauthorization

– In Europelessthan25%of thepatentsareupheldfor20 years

• Limited in content: a patentonly protectswhatisspecifiedin theclaims

• Geographical: a patentis only valid in thecountry/countrieswhereprotectionis granted

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A range of IP can be usedtoprotect the sameproduct

Example: Fountain pen• Patent: for thefountainpen

thatcouldstoreink

• Utility Model: for thegrip andpipettefor injectionof ink

• Industrial Design: smartdesignwith thegrip in theshapeof anarrow

• Trademark: on theproductand/orthepackagingtodistinguishit from otherpens

• Source:JapanesePatentOffice

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Regardlessof what product your enterprisemakesor what serviceit provides,

it is likely that it is regularlyusing and creating

a great deal of intellectual property

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IP rights can be acquired for

• Nameof thebusiness: Trade Name• Distinctivesigns: Trademarks, GeographicalIndications,

Certification Marks, CollectiveMarks• Creativedesigns(appearanceor look of theproducts):

Industrial Design• Innovativeproductsandprocesses: Patents,Utility Models• Cultural,artisticandliterary works,including(in most

countries)computersoftwareandcompilationof data:Copyright

• Confidentialbusinessinformation(customerlists,salestactics,marketingstrategies,manufacturingprocess,etc.):Trade Secrets

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Example: Lego

• 1934- Trademark: Leg Godt(“play well”)

• 1958- Patent: studandtubecouplingsystem(thewaybrickshold together)

• 1974- Industrial Designs:legofigures:castles,pirateships,Wild Westranches,cavalryforts,spacestations,people

• Copyright: artisticwork,manuals

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How can IP ‘add value’to your business??

(1) Increasingmarketvalueof thefirm(2) Marketing(3) Exportinggoodsandservices(4) Raisingfinances(5) Acquiring newtechnologyandfinding

suppliers(6) Commercializinginnovativeproducts

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(1) IP can increasethe market valueof a business

• IP maygeneratean incomefor your SME

– Exclusiverightsto useandexploit (for limited time) +preventothersfrom commerciallyusingyourcreations

– Licensing, sale(patents,trademarks,industrialdesigns,know-how,copyright)

– Cross-licensing: usingIP asa negotiatingtool toobtainlicensesfrom othercompanies

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(1) IP can increasethe market value

• IP rightscanenhancethevalueof yourSME in theeyesof investorsandfinancing institutions– IP rightsareoneof the5 maincriteriausedby European

venturecapitalistsin theirdecisionsto fund SMEs

• In theeventof a sale,merger or acquisition, IPassetscanprovideanextremelyvaluablebargainingtool

• IP assetsareseparatelyidentifiablebusinessassetsandhavea separatevalue– E.g.Coca-Colabrandvalue:estimatedat US$69 billion

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Examples

• Biobrás: A Brazilianbiotechcompanyobtainedapatenton humanrecombinantinsulin.While saleshaveremainedconstant(companyexploringcommercialization),thevalueof shareshasgoneupsix-fold overthepast5 years.

• Amati Communications(US):TexasInstrumentpaidUS$395million to acquirea smallcomputercompany(Amati Comm.).Thereasonsfor suchahigh pricewere25 key patents.

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(2) IP is an important marketing tool

“Marketingis everythingyoudo

to promoteyour business,

sothat

customersbuyyour productsor services

andbeginto patronizeyour business

on a regular basis”

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IP rights are crucial for (1)

• Differentiating yourproducts/servicesandmakingthemeasilyrecognizable

– Industrialdesigns& trademarksareidentifiers?customersdistinguish, at a glance,betweenyourproductsor servicesandthoseof your competitors.Theyestablisha link betweenyourproductsorservicesandyourSME

• Promotingyourproductsor servicesandcreatingaloyal clientele

– Trademarks, geographicalindications, collectivemarks, certificationmarks? customersassociatethemwith certaindesiredqualities

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IP rights are crucial for (2)

• Creatinga distinct imagefor your businessin themindsof your customersandin positioningyourbusinessin themarket– Trademarks,tradenames, industrialdesigns, patents

• Marketingyour productsor servicesin foreigncountries

• Marketingyour productsin theneweconomy– Useof domainnamesandtrademarksin e-commerce

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(3) Exporting Goodsand Services

• IP rightsare‘territorial’

• SMEsthatintendto exporttheir productsshouldconsiderlegal protection of their IP in theirexport markets in orderto haveexclusivity

• Whetheryou commercializeyourselfor license

• In time!

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(4) Raising Funds

Two waysof raisingfunds:

– Debt - loanwhich theborrowermustrepay

– Venture - which givestheinvestora shareof theactualbusinessof theinvesteeandis notautomaticallyrepaidby theinvesteebusiness,butratherrelieson theinvestorultimatelyrealizingtheequityheldin thebusiness

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4.1 Debt Finance

• Debtfinanceis generally‘secured’by a chargeoverthebusiness’assets.In principle,theseassetscanbeanyclaimsthathavereasonablypredictablecashflows, or evenfuturereceivablesthatareexclusive.

• Securitization of IP assets- a newtrend:collateralizingcommercialloansandbankfinancingby grantinga securityinterestin IP is a growingpractice,esp.in music,Internetandhigh technologysectors.– E.g.,securitizationfor futureroyaltypaymentsfrom licensing

a patent,trademarkor tradesecret,or from musicalcompositionsor recordingrightsof a musician(D. Bowie).

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4.2 Venture Capital

• For theventurecapitalist,returndependsuponfutureprofits.

• IP ownershipis importantto convinceinvestorsof themarketopportunitiesopento theenterprisefor thecommercializationof theproductsorservicesin question:

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ConvinceVenture Capitalist (1)

– Strongtrademarksarea guaranteefor a loyalclientele

– Patentsandindustrialdesignsprovideexclusivityfor thecommercializationof inventionsresp.attractivedesigns? maybeimportantto convinceinvestorsfor thecommercializationof yourproduct

– Patentsmayconvinceinvestorsthatyourproductisinnovative, unique,or superiorto theofferingsofcompetitors

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ConvinceVenture Capitalist (2)

– Tradenames, trademarksanddomainnamesmaybetheprimeelementsthatdifferentiateyourproductfrom thoseof competitors

– For manycompanies,tradesecrets(suchasdetailsofproduction,secretinventions,andtechnical,financialandmarketingknow-how)alonemaybethesourceoftheir competitiveadvantage

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Therefore…

�Ensurethatyour IP portfolio protectsthoseaspectsof thebusinesswhich determinetheventure’ssuccess

�ReflectproprietaryIP in yourbusiness’books,balancesheet,businessplan

�Any indicationthatconfirmsduediligenceon yourpartin themanagementof IP assetsis likely to playanimportantrole in convincinginvestorsof yourcompany'spotential

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(5) Acquiring New Technology&Finding Suppliers

• SMEsseekingaccessto innovative technologydevelopedby othercompaniesshouldconsultpatentdatabasestoidentify thenecessarytechnology.

• Theymayhaveto negotiatelicensingagreementswith thepatentholderin orderto obtaintheright to usethetechnology.

• Informationin patentdocumentsmayalsoassistentrepreneursin their searchfor alternative suppliersofidenticalor similar technologies.

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Patent Information:Other Sideof the Coin

• Patent ? 1. “deedsecuringto a personanexclusiveright grantedfor aninvention”

? 2. “open,evident,manifest”;“opento publicperusal”< Latin patens

(Collins Dictionary)

• Patentasaninterchangebetweensocietyandtheinventor

• All patentsarepublishedandareopento public

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What is Open to the Public?

• “Patentinformation” is thetechnicalandlegalinformationcontainedin patentdocumentsthatarepublishedperiodicallyby patentoffices.

• A patentdocumentincludesthefull descriptionof howa patentedinventionworksandtheclaimswhichdeterminethescopeof protectionaswell asdetailsonwho patentedtheinvention,whenit waspatentedandreferenceto relevantliterature.

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Patent information

Technologicalrelevance

Legal relevance

Relevanceof PatentDocuments

Commercial relevance

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Using Patent Information

Legal relevance:

• Avoid possibleinfringementproblems• Assesspatentabilityof your own inventions

• Opposegrantof patentswherevertheyconflict with your own patent

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Using Patent Information

TechnologicalRelevance:

• Keepabreastwith latesttechnologiesin yourfield of expertise

• Avoid unnecessaryexpensesin researchingwhatis alreadyknown– “Discoveryconsistin seeingwhateverybodyhasseen,and

thinkingwhatnobodyhasthought” (Albert Szent-Györgyivon Nagyrapolt)

– In Europe,morethanUS$30 mill. peryearis waistedinunnessaryresearch- 30%of thetotal investmentin R&D

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Using Patent Information

Technologicalrelevance:

• Identify andevaluatetechnologyfor licensingandtechnologytransfer

• Getideasfor furtherinnovation

• Identify alternativetechnologies

• Find readysolutionsto technicalproblems

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Using Patent Information

Commercial Relevance

• Locatebusinesspartners• Locatesuppliersandmaterials

• Monitor activitiesof competitors

• Identify nichemarkets

• Usewhatis allowedto use(limits of patents)

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Using Patent Information

Did you know?

• Theentiresetof patentdocumentsworldwideincludesapproximately40 million items.

• Everyyearapproximately1 million patentapplicationsarepublished.

• About two-thirdsof thetechnicalinformationrevealedinpatentsis neverpublishedelsewhere.

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Using Patent Information

Did you know?

• Most of theinventionsaredisclosedto thepublic for thefirst time whenthepatentis beingpublished.

• Theinformationcontainedin thepatentdocumentsISNOT SECRET!

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ThomasEdison:

“I start wherethelast manstopped”

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(6) Commercializing Innovative Products

• An inventionon its own haslittle valuefor anSME ? How do you turn inventions intoprofit-making assetsof your SME?

• Tradesecretvs.Patent- Theacquisitionof apatent givestheSME exclusivity overthecommercializationof aninnovativeproductortheinnovationprocessof fabrication– either:commercializetheinventionyourself

– or: allowing its commercializationby others

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Commercializing Innovative Products (2)

• If you choosenot to exploit thepatentyourself? you may

- sell or

- licensetherightsto otherfirms thathavethecapacityto

commercializethepatentedinventions

• A licensingagreementis a partnershipbetweenanIP rightsowner(licensor)andanotherwho is authorizedto usesuchrights(licensee)in exchangefor anagreedpayment(feeorroyalty)

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Advantagesof Licensing Technology

• you canensurea steadystreamof additionalincomefrom your invention(royalties)

• no needto invest yourselfin thecommercializationof theinvention

• your SME canexpandits businessto thefrontiersof your partners'business

• cross-licensing

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Cross-licensing:Cross-licensing:exampleexample

• Dell (computercompany)hasnumberof patentsin theUS on its uniquebusinessmodels

• In 1999,Dell usedits patentportfolio ascollateralin aUS$billion cross-licensingdealwith IBM with lowercostcomputercomponents

• This freedDell from havingto payIBM severalmillions of dollarsin royalties

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Attention !

� Internationalcontext? IP right you wish tolicensemustbeprotectedin thecountries

concerned.

�Licenseagreement:written + recordin register

�Choosetheright partner

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Commercializing innovative products

Example: ring-pull cans

• Theinventorlicensedthesystemto Coca-Colaat 1/10of apennypercan.During theperiodof validity of thepatenttheinventorobtained148,000UK poundsa dayon royalties.

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Commercializing innovative products

Example: Post-it

• Theglueusedfor Post-itswasdiscoveredby chanceby 3M.Initially ignored,it wasthenpatented.Post-itssubsequentlybroughthugeprofits to thecompanythroughlicensingagreements.

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Somekey strategies

1. IP audit: takingstockof all IP (how is itcurrentlyexploited?)

2. IP valuation: like physicalassets,IP assetsshouldbeidentifiedandvaluedindividually (asastand-aloneasset)

• importantfor licensing,duringM&As, for raisingfunds,to reportto shareholdersandinvestors

3. Licensing: mayprovidea constantrevenuestreamfrom royalties

4. Cross-licensing: usingIP to obtainaccessto othercompanies’technology

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SomeKey Strategies

5. Announceyour IP: let potentialinvestors,lenders,businesspartners,shareholders,etc.know thatyouhaveproprietaryIP.

• IncludeIP assetsin accountsbooks,balancesheet,businessplan

6. IP search: consultIP databaseson aregular basis.

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Conclusion

By establishinga cultureof

identifying,cultivatingandstrategicallyusing

its IP assets,

anenterprisecanincreaseits revenue,

haveanedgeoverits competitors

and

positionitself well in themarket.

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TradeTrade SecretsSecrets• Definition : Any confidentialbusinessinformationwhich

providesanenterprisea competitiveedgemaybeconsidereda tradesecret

• Examples: salesmethods,marketingstrategies,innovativemanufacturingprocess,lists of suppliers,newproductsorservices,financialinformation

• Famousexamples: Coca-Colaformula,Microsoft’ssourcecodefor Windows

• Everycompanyhasits tradesecrets.Informationthatit doesnot wantcompetitorsto knowabout.

• Tradesecretsarealsointellectualproperty!

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HowHow toto protectprotect tradetrade secrets?secrets?

• No needfor registration.But 3 essentialrequirements:

– Theinformationmustbesecret!

– It musthavecommercialvaluebecauseit’ssecret

– It musthavebeensubjectto reasonablestepsbytheholderto keepit secret(e.g.confidentialityagreements)

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TradeTrade secretssecretsvs.vs. PatentsPatents• Advantagesof tradesecrets:

– No needto register

– Not limited in time– No disclosure

– Canprotectunpatentableinformation

• Disadvantagesof tradesecrets:– Costsof keepingit secretcanbehigh

– Othersmaydiscover/inventit independently– Othersmaypatentit (if patentable)

– If thesecretis embodiedin a productit maybereverseengineered

– More difficult to enforce

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TradeTrade secretssecretsoror patents?patents?

Suppose:

• An SME developsa processfor themanufacturingof itsproductsthatallowsit to produceits goodsin a morecost-effectivemanner.

• Theprocessis not sufficiently inventiveto beprotectedby a patent,but it providestheenterprisea competitiveedgeoverits competitors.

• Theenterprisein questionmaythereforevalueitsknow-howasa tradesecretandwould not wantcompetitorsto learnaboutit.

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TradeTrade secretssecretsoror patents?patents?

• 1958: Patent for studandtubecouplingsystem(theway brickshold together)

• But: Todaythepatentshavelongexpiredandthecompanytrieshardto keepout competitorsbyusingdesignsandcopyright

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TradeTrade secretssecretsoror patents?patents?

• Case-by-casebasis

• Tradesecretprotectionmaybeadvisable:

– For inventionsor manufacturingprocessesthatdo notmeetthepatentabilitycriteriaandthereforecanonly beprotectedastradesecrets(thoughtheymayqualify forprotectionasa utility model)

2. Whenthetradesecretis not consideredto beof suchgreatvalueto bedeemedworth a patent(thoughutilitymodelmaybegoodalternative)

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3. Whenit is likely thattheinformationcanbekept secretfor a considerableperiodof time.

• If thesecretinformationconsistsof a valuablepatentableinvention,tradesecretprotectionwould only beconvenientif thesecretcanbekeptconfidentialfor over20 years(periodof protectionof a patent)andif othersarenot likelyto comeup with thesameinventionin a legitimateway.

4. Whenthesecretrelatesto a manufacturingprocess ratherthanto a product,asproductswould bemore likely to bereverseengineered.

5. Whenyou haveappliedfor a patentandarewaiting for thepatentto begranted.

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• However,bear in mind:– Tradesecretprotectionis generallyweak

– Thecourtsmayrequirevery significantandpossiblycostlyeffortsto preservesecrecy

– Patent/utilitymodelprotectionwill providemuchstrongerprotection

– Patent/utilitymodelmayreveala lot of valuableinformation,but at thesametime, it providesexclusivityin themarketplace

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StrategiesStrategiesforfor ProtectingProtectingTradeTrade SecretsSecrets

• Considerwhetherthesecretis patentableand,if so,whetherit would not bebetterprotectedby a patent

• Makesurethata limited numberof peopleknow thesecretandthatall thosewho do arewell awarethatitis confidentialinformation

• Includeconfidentiality agreementswithinemployees’contracts

• Signconfidentialityagreementswith businesspartnerswheneverdisclosingconfidentialinformation

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IPIP andand MarketingMarketing

• How to makemy producteasilyrecognizable?

– Createa distinct identity throughindustrialdesignsandtrademarks

• How to developtrustandconfidencein myproducts?

– Referto reputation andcertainqualities in theproductthroughcollectivemarks,certificationmarks,geographicalindications

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IndustrialIndustrial DesignsDesigns

• Industrialdesignsarecompositionsof linesorcolorsor anythree-dimensionalformswhich givea specialappearanceto a product

• Theyprotecttheornamental or aestheticaspectof a product(not functional)

• Exclusiverights: Right to preventothersfromapplying(making,sellingor importing)theprotecteddesignto commercialproductsfor aperiodof 10 to 25 years(Estonia:25y)

• Requirementof registration (newEU legislationincludesunregistereddesignprotection)

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WhatWhat isis aa GoodGood Design?Design?

Legal point of view:

• appealto theeye(e.g.shapeof toothbrush)

• usefularticle

• newor original

• designshouldnot bedictatedby functionalortechnicalnecessity(handle+ brush)

• mustbereproducibleby industrialmeans

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WhatWhat isis aa GoodGood Design?Design?(2)(2)Businesspoint of view:

– Makeyourproductappealingto consumers

– Customizeproductsin orderto targetdifferentcustomers(e.g.Swatch)

– Developthebrandimage(e.g.Apple’s"Think Different" strategy)

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TrademarksTrademarks

• A trademarkis a distinctive sign which identifiescertaingoodsor servicesasthoseproducedorprovidedby a specificpersonor enterprise

• Exclusiverights: To preventothersfrom usingidenticalor similar markson identicalor similargoodsin respectof which markis registered

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WhatWhat isis aa GoodGood Trademark?Trademark?

Legal point of view:

• Distinctive : allow to distinguishgoodsandservicesfrom thoseof anothercompany

• Signseligible for registration:

– words(includingpersonalnames)

– letters

– numerals

– figurativeelements

– colors

– anycombinationof thesignsmentioned

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• Bars for Registration:

– Generic(too descriptive)• E.g.“chair” for chairs;“sweet” for chocolate

– Contraryto moralityor publicorder– Misleading (asto thenatureof goods,source,

characteristics,or suitability for thepurpose)• E.g.“wool”

– Stateemblems• E.g.NationalFlag

– Existingthird partyrights? trademarksearch

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WhatWhat isis aa GoodGood Trademark?Trademark?

Businesspoint of view:

– sufficientlydistinctive

– easyto read,spell,memorizeandpronounce

– suitablefor exportmarkets(no adversemeaningin foreignlanguages)(e.g.Pajero)

– fit theproductor imageof thebusiness

– haveno legalrestrictions

– havea positiveconnotation

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PossibleCategories

1. Fanciful words: inventedwordswithout anyrealmeaninginanylanguage(e.g.Kodakor Exxon)

Pos: easyto protect(likely to beconsidereddistinct)

Neg: difficult to remember? greatereffortsin advertising

2. Arbitrary marks: wordsthathavea realmeaningin a givenlanguage.This meaning,however,hasno relationto theproductitself or to anyof its qualities(e.g.Apple)

Pos: level andeaseof protectionis generallyhighNeg: no directassociationbetweenthemarkandtheproduct

? greatermarketingpowerto createsuchanassociationin themind of theconsumer

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3. Suggestivemarks: markswhich hint at oneor someoftheattributesof theproduct(e.g.Benecol,Bonaqua)

Pos: actasa form of advertisingandmaycreatea directassociationin themind of theconsumersbetweenthetrademark,certaindesiredqualitiesandtheproduct

Neg: Risk too descriptiveor not sufficientlydistinctive to meetthelegalcriteriafortrademarkprotection

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How to Protect a Trademark?

• Registration is requiredin mostcountries(exceptwell-knowntrademarks).

• Trademark search: To besurethatit is notregisteredby anothercompanyin thecountryfor thesameproducts(goodsor services).

• It is importantto registerearly, andin anycasebefore launching a newproducton themarket

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How to Protect a Trademark?

• Territorial : only protectedin thecountryin whichregistrationhasbeenobtained

• Term : 10 years– renewableindefinitely !

• Somecountries:obligation to use(3 or 5ynon-use? invalid)

• Doesnot protectanyfeatureof theproductitself

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How to take full advantageof a trademark?

• Registeryour trademarkassoonaspossible.

• Monitor themarketandbesurethatno oneinfringesyour trademarkrights.

• Useyour trademarkin publicity andmarketingcampaigns.

• Considerlicensingandfranchising

• License? besurethatthequality is maintained

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Example: “ ArtesaníaLatina”

- word + figurativeelement

- Spain? CTM (registeredwith theOHIM)

- for toys,especially“maquettes”(sailingboats, woodencars,teddybears,etc.)

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CollectiveCollective MarksMarks

• Signswhich distinguishthegeographicalorigin,material,modeof manufacture,quality or othercommoncharacteristicsof goodsor servicesofdifferententerprisesusingthecollectivemark

• Typically, theowneris anassociationof whichthoseenterprisesaremembers

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CollectiveCollective MarksMarks

• Theowneris responsiblefor ensuringcompliancewith certainstandardsby its members.

• Thus,thefunctionof thecollectivemarkis to informthepublicaboutcertainparticularfeaturesof theproductfor which thecollectivemarkis used.

• Oftenusedto promoteproductswhich arecharacteristicof a givenregion.In suchcases,collectivemarksmayalsoprovidea frameworkforcooperationbetweenlocal producers.

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Example: “ Interflora ”

- internationalchain; usedall overtheworld toorden andsendflowers

- morethan70.000flower shopsin 150countries

- theemblemof Interflora is Mercurius,baringflowers asa symbolof theservicethat theassociatedflower shopsprovide

- thesloganof theorganizationis thefamous“Sayit with flowers".

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Example: “ Cajamarca” (Peru)

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CertificationCertification MarksMarks

• usuallygivenfor compliancewith certainstandards

• not confinedto anymembership

• maybeusedby anyonewho cancertify thattheproductsinvolvedmeetcertainestablishedstandards.

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Example: “Max Havelaar”

– ownedby theMax Havelaarfoundation

– eachproducer/importerof coffee,chocolate,tea,honey,bananasor orangescanbeconsideredasa potentiallicenseholder

– theyhaveto complywith certainconditionsoftrade

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Example: “Tooth friendly”

– appearson thepackagingof foodstuffs

– certifiesthat its ingredientsdo not producecavitiesandthusare not badfor your teeth

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Example: “Woolmark”

– registeredby theWoolmarkCompany

– a qualityassurancesymboldenotingthat theproductson whichit is appliedare madefrom 100%wool andcomplywith strict performancespecificationsetdownby theWoolmarkCompany

– registeredin over140countries

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GeographicalGeographicalIndicationsIndications

• A signusedon goodsthathavea specificgeographicalorigin andpossessqualitiesor areputationthataredueto thatplaceof origin

• Most commonly,a geographicalindicationconsistsofthenameof theplaceof origin of thegoods– E.g.Champagne

• In somecountries(incl Estonia):canalsobefigurativeelement– E.g.Eiffel tower

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• Agriculturalproductstypically havequalitiesthatderiveform their placeof productionandareinfluencedby specificlocal factors,suchasclimateandsoil (e.g.cheese)

• In Azerbaijan:– no owners– perpetualprotection– registration

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Example: “ TalaveradePuebla”

- Consideredto beoneof thefinestceramicsin Mexico

- Handmadeandpaintedby hand

- Historical linkedwith Arabicculture

- Typicalare thegeometricdesignsin bluecolor paintedon awhitebackground

- Thedesigneandcolorsof theartwork are createdfollowingtraditional rulesandknowhow

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ExamplesExamples

– Champagne,Sherry,Porto,ScotchWhisky– Bulgarianyoghurt

– Pilsen,Budweis– EgyptianCotton– Tuscany (olive oil < Italy)– Roquefort(cheese< France)

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GeographicalGeographicalIndicationsIndications

• Inherentin certainproductsfrom a particularregionarecharacteristicsthataredueto thesoil, climateorparticularexpertiseof thepeopleof thatareawhichconsumersexpectandhaveconfidencein

• Capitalizingon thatreputationfor yourproductsthatemanatefrom suchareaor benefitfrom suchskills inyourmarketingstrategymakessoundbusinesssensein differentiatingyourproductsfrom thoseof others.

• But ! You SME mustmaintainthestandardsandquality expected

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Messagefor SMEs:If you can’t beatthem,join them

• Oneof thegreatestchallengesfor SMEsis not somuchtheir size,but their isolation.

• Difficulties facedby SMEsactingindividually togainrecognitionfor their goodsor servicesin themarketplace.

• Working collectively,SMEscanbenefitfrom theadvantagesof collectivestrengths.

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WIPO’s website:

http://www.wipo.int

WIPO’s websitefor SMEs:

http://www.wipo.int/sme