Using Quality Standards as an SMEs Competitive Advantage: the Role of GIs, Certification TMs and Collective TMs

1. Using Quality Standards as an SMEsCompetitive Advantage: the Role of GIs, Certification TMs and Collective TMs PRESENTED AT WIPO – ITALY INTERNATIONAL CONVENTION ON INTELLECTUAL PROPERTY AND COMPETITIVENESS OF MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES (MSMES) byGetachew Mengistie, Intellectual Property Law Consultant and Attorney Rome, December 10 and 11, 2009

2. Introduction • GI, TMs, certification and collective marks are useful marketing tools • They help to : • distinguish a certain product from similar products, • capture and further build good will and reputation of Distinctive products • improve competitive position and enhance earnings • GI, TMs, certification and collective marks are are commonly used as marketing tools by companies in the developed countries and the newly industrialized countries • Dcs can successfully use similar tools-this evidenced by the Ethiopian Fine coffee designations trade marking and licensing initiative

3. Introduction Contd. • Initiative started in 2004 • Initiative is led by Stakeholders committee & facilitated by EIPO • Initiative has • Technical & advisory support from LYIP • Free Legal Support from Arnold & Porter • Financial support- Donor organizations, stake holders & the government • Purpose and scope of presentation-highlight the grounds, objectives, Choice of appropriate legal, business and marketing tools, major achievements and Lessons learned

4. Grounds for the Initiative • Ethiopia produces some of the finest coffee in the world • having Distinct flavor and aroma • Can be distinguished from coffee of other countries • The Fine coffees have been recognized, identified and sold by Coffee Designations/ brand names as “ Harar’, “Yirgacheffee” and Sidamo”

5. Grounds Contd. • Little return from the Specialty coffee • High retail price-example 2004-Harar $24/lb, 2005 Sidamo-$26/lb • Only 5-10 percent comes to Ethiopia • Fluctuation of price of coffee • Impacts of low price of coffee • unable to meet basic needs, school, health etc • Cutting down coffee trees and planting chat • Cases of misappropriation or attempt to misappropriate coffee names

6. Objectives of the Initiative • Ensure Ethiopia’s ownership of coffee brands • Increase Income of Poor farmers & Exporters • Create & Strengthen partnership with Foreign Coffee importing, roasting & distributing Companies • Building IP Asset Protection & Management Capacity

7. Trade marking of the Fine coffee brands • TM Applications filed in 36 countries • Trade mark registration for three of the coffee designations secured in 29 countries and two of the coffee designations are protected in one country • Applications are pending in the rest of the countries • TM registration only meets one of the objectives set • Need for Business strategy • Stake holders opted for Licensing

8. Licensing of Coffee TMs • The Licensing program aims at • Facilitating the use of Ethiopian Trademarks • Capturing the reputation & good will of fine coffee around the trademarks • Establishing & strengthening partnership with the coffee importers, retailers & distributors • Catering to the interests of the key actors etc., • Promote the Ethiopian fine coffees • License agreement is made simple and clear • License is offered free of royalty • Obligations of Licensees

9. Licensing contd. • Negotiated license agreements with 96 foreign coffee companies and 50 local coffee exporting companies and coffee producers unions. • Example of use of the Trademarks

10. Branding Trade Marks • Need for Marketing strategy • Stakeholders opted for branding • A UK based branding company employed • Brands and brand guidelines developed under supervision of the Stakeholders Committee • Stake holders decision and unveiling of the brands on May 2008 • Brand guideline approved in July 2008

11. Umbrella Brand

12. Individual Brands

13. Impact of the Initiative • Strategy helped to: • differentiate the Ethiopian fine coffees from the coffee of other countries • build confidence and Improve bargaining position of coffee producers and exporters • Enhance the demand of the Fine Coffees • Improved negotiating and Marketing Position-power to control, require disclosure of sales information, joint promotion, uniform branding and negotiate export price

14. Impact contd. • Increased demand, rise in the price of coffee and income of coffee producers /export income of the country • Encouraging Change in the lives of Producers-housing, sending children to school etc. • Contributed to an increase in export earning – ex. 2007-2008 • Greater recognition of the value of intellectual property assets and the need for protection in Ethiopia • Stimulated other countries to embark on a similar initiative

15. Lessons Learned • Top Leadership Support & Direction is critical for success • Need for initial technical, financial and legal support from international partners while simultaneously building the requisite capacity for IP Asset identification, protection, exploitation & management • Ensure ownership and involvement of stakeholders

16. Lessons contd. • Significance of public & private partnership • wining the support of as many partners as possible • Preparatory works, advance planning and regular evaluation • Use foreign companies that buy the cause of initiative • Seek for a win-win situation

17. Conclusion • GI, TMs,CTMs, CTMs may be used as a significant marketing tool • Ownership of TMs, GIs, CTMs or CMs not enough-need to develop and implement business and marketing strategies • Need to devise strategies to establish and strengthen partnership with foreign companies • Need to develop IP assets management capacity

18. Contact Address Getachew Mengistie IP Law Consultant & Attorney P.O.Box 4706Addis Ababa, Ethiopia Tel-251-11-6183571 (office) Fax 251-11-6183563 E-mail- getachewal@gmail.com