SOME KEY ISSUES FOR CONSIDERATION IN A NATIONAL IP STRATEGY PART FIVE – Trademark, GI and Branding Strategy to Leverage local Products in the international market OGADA TOM Innovation and Technology Management Services T&P WIPO Asia Pacific Conference on National IP Strategies and Development, October 27 and 28, 2009, Manila, Philippines

Content of Presentation Changing Focus in Africas International Trade Importance of Trademarks, GI and Branding Few Examples Conclusion

2. Changing focus on International Trade Economy based on export of raw products In the past economy has been based on Agriculture Africa is known for export of Tea Coffee Cocoa Cotton Hides and skin Fruits and vegetables Africa is also known for export of unprocessed natural products Minerals Oil Timber

3. Changing focus on International Trade Challenges of depending on export of raw products Low return to the country Low incentive to the farmer Unpredictable world market Higher value product imported back Processed coffee Processed fruit juices Processed Cocoa

4. Changing focus on International Trade Economic disadvantages of exporting of raw products Loss of income Export of employment opportunity Poverty Higher value product imported back Processed coffee Processed fruit juices Processed Cocoa

5. Changing focus on International Trade Income potential for value addition according tlght years IP In 2006 African earned $ 29 billion from export of non mineral merchandise Light years IP estimates that 30 % of these products have potential of increasing earnings through application of IP techniques from $ 8.7 billion to $ billion dollars This increase is far greater than that which can be obtained through conventional techniques such as improving quality, infrastructure, training and market access

6. Changing focus on International Trade Conference of African Ministers of Industries South Africa Only 6 countries contribute more 10 % GDP thro manufacturing 2.Stressed the need to move from export of raw products to value added products 3.Identified science, technology and innovation as key 4.Identified SMEs as key to industrialization of Africa

8 Importance of Trademarks, Geographical Indications and Brand 7. Trademarks Distinctive sign Identifies goods and services Helps consumers to identify good and services Increases sales and profitability provide protection to the inventor TM most known IP Protection is enforceable by law and hinders infringement

8. Geographical Indicators A sign used on goods that have specific geographical origin that posses qualities or reputation that bare due to the place of origin Importance of Trademarks, Geographical Indications and Brand

Building a brand takes time and resources and may involve a combination of IP rights Innovation power Marketing power Patent Trademark Geogr.indication Brand Design Copyright Trade secret Importance of Trademarks, Geographical Indications and Brand 9. Brand

10. Brand Values of top world products (2006) 1.Coca-ColaUS $ 67,000 million 2.MicrosoftUS $ 56,925 million 3.IBMUS $ 56,201 million 4.GEUS $ 48,907 million 5.IntelUS $ 32,319 million 6.NokiaUS $ 30,131 million 7.ToyotaUS $ 27,941 million 8.DisneyUS $ 27,848 million 9.MacDonaldsUS $ 27,501 million 10.Mercedes BenzUS $ 21,795 million Importance of Trademarks, Geographical Indications and Brand

1.Unilever was the first company to commercially produce margarine in Kenya in 1955, through its strategic partner East Africa Industries. 2.Over the last fifty years Blue Band has grown to be a household name and is currently used by over 2.3 million households in Kenya annually 3.Unilever has spent a lot of money to build and maintain the Brand Importance of Trademarks, Geographical Indications and Brand 11. Blue Band East African Best known

1.Blue Omo was first launched in then a further re launch in 1972 to become Extra Active Blue Omo 3.In 1986 it was re launched with a new perfume and 4.later into Omo Powerfoam with new formulation, packaging, and pricing in Importance of Trademarks, Geographical Indications and Brand 11. OMO East African Best known washing powder

Beans processed Packaged products Service Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market access 12. Ethiopian Coffee Brand – value chain (1)

Beans processed Packaged products Service $3/cup (100) $2.7/kg (0.6) $70/kg (15) $80/kg (17) Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market access 13. Ethiopian Coffee Brand – value chain (2)

Beans processed Packaged products Service $3/cup (100) $70/kg (15) $2.7/kg (0.6) Geographical indication or Trademark Trademark & franchising (Starbucks) Patent, Design & Trademark (Nestlé) $80/kg (17) Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market 14. Ethiopian Coffee Brand – value chain (3)

15. Sidamo Coffee Brand 1.Ethiopian IP Office worked with coffee beans growers and IP advisors for implementing branding strategy of their coffee beans (Sidamo, Harrar and Yirgacheffe). 2. They registered trademarks in some 30 countries including US, EU and Japan in Negotiated with coffee retailers (like Starbucks) which opposed to trademark registration. Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market

16. Sidamo Coffee Brand 4. Ethiopian government and Starbucks reached a win-win agreement (recognizing the indications, and securing good quality and stable supply of the beans to the retailer) 5. The price of beans increased by 45% (from $1.4 to $2 a pound) in Lesson: Trademark/Geographical indication is a tool to add value to agricultural products and increase income of farmers Strategic use of Trademarks, Geographical Indications and Brand can enhance sales and market

17. Conclusion This experience from Ethiopian can be used by Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market Cocoa farmers in Ghana Tea Farmers in Kenya Cotton farmers in Sudan Marula oil farmers in Namibia Senegalese Artisanal Tuna Cashew nut farmers in Mozambique vanilla farmers in Uganda Source> Light Years IP

20 18.Example from Kenya Vision 2030 for the manufacturing sector Envisages Kenya becoming Africas most competitive economy Projects to increase the contribution of the manufacturing sector to the GDP from 10 % to at least 20 % by 2030 Defines a target of 15 % contribution to the GDP by 2012 Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market

The main pillars for the manufacturing sector for the next 5 years Promoting value addition to agricultural produce Increasing productivities and competitiveness of our local industries, Promoting the development and growth of SMEs Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market

Why SMEs In 2005 there were 1.74 million enterprises in Kenya 1000 large medium 1.7 m MSEs High potential for wealth creation and employment generation Contributes 20 % GDP Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market

23 Kenya Bureau of Standards Kenya Industrial Research and Development Institute Kenya National Federation of Juakali Association Kenya Industrial Property Institute MSE Product Upgrading Competitiveness of MSE Products Technology Standards IP MSE 21. Upgrading MSE products though technology and branding Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market

24 1.Low efficiency 2.Ugly 3.Unsafe 4.No Name 22. Upgrading MSE Arc Welding Machine Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market

25 Improve on the manufacture of the core electrical part Introduce meter reading Improve on casing Use standards in selecting components Patent and brand Reasonable price 23. Upgrading MSE arc welding machine Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market

Upgrading Jua-kali arc welding machine Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market

Upgrading MSE arc welding machine Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market

25. Conclusion This Kenyan Experience can be used for promoting the products of MSE in other developing country through application of trademarks and branding Strategic use of Trademarks, Geographical Indications and Brand to enhance sales and market