FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA ETHIOPIAN INTELLECTUAL PROPERTY OFFICE Ethiopian Fine Coffee Initiative Prospec

1. FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA ETHIOPIAN INTELLECTUAL PROPERTY OFFICE Ethiopian Fine Coffee Initiative Prospect November , 2012 Addis Ababa ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

2. STRUCTURE OF THE PRESENTATION • Introduction • Why the Initiative? • Administration of the initiative • Objectives of the Initiative • Implementation of the Initiative Phase I • Some of the achievements of Phase I • The Challenges • Measures taken by the Government Phase II • The way forward ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

3. Introduction This presentation focuses on the prospect of the Ethiopian fine coffee Initiative, particularly on major achievements, challenges and the way forward. ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

4. Why the Initiative? • Ethiopia produces some of the finest coffees in the world having unique flavors and aromas. • These qualities, which constitute the intangible value incorporated in each of the coffees, are the result of the hard work of generations of Ethiopian Coffee farmers. ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

5. The study made in 2004 revealed that only 5-10 percent of Specialty Coffee retail prices come to Ethiopia while the rest goes to distributors and middlemen.(LYIP 2004) • Out of the income received by Ethiopia 56.9 percent goes to the coffee producers. • Low income from fine coffees and lack of incentives has forced formers to cut down coffee trees and substitute them with other cash crops. ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

6. 25 million peoples drive their lively hoods from this sector • generates about35% of foreign currency. • 10% of the country´s GDP ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

7. Despite these huge importance of our coffees, the intangible values are not adequately captured through appropriate Intellectual property tools. • The country has not yet gained equitable benefit from this sector, farmers were unable to meets their basic needs • In addition, since these coffee names are not protected in most foreign coffee market areas, there was an attempt to misappropriate our coffee names by using similar names to other coffees or by giving their own names to our specialty coffee(e.g a Japanese company had registered and owned Harar as a coffee trademark up to 2007 and there was an attempt by starbucks to register the brand Sidamo as a trademark in 2005. ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

8. 1. Administration of the initiative /governance structure/ A)Initiative started in 2004 B) Initiative is led by Stakeholders committee & facilitated by EIPO The Committee is composed of: • Leaders of farmers’ Cooperative unions • Ethiopian Coffee exporters Association • Representatives of Government bodies, such as EIPO, MoT, MoA and MoCB. ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

9. c)Initiative has • Technical & advisory support from LYIP • Free Legal Support from Arnold & Porter • Financial support- Donor organizations & the government ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

10. Selection of the appropriate IP tool • Comprehensive study made on the relevant IP tools, merits & demerits of: • Geographical indications • Certification marks • Trade marks • Extensive consultations made in and outside of Ethiopia • Decisions made by the stake holders to : • Trade mark three of the fine coffee designations • File applications in selected countries • Offer royalty free license ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

11. Why not Geographical Indications Geographical indications, which mainly indicate the places of origin of a product, were found inappropriate for a number of reasons, namely: • The products are not confined to one locality but grow in different localities that are known by their own names. • The designation Yirgacheffe is a name of a village in the Southern Peoples and Nationalities Regional States. However, the coffee that is produced in this area is not all Yirgacheffe; ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

12. The designations Sidamo and Harar do not represent geographical locations where the coffee grows. • The designations are well know as designation of fine coffees and not places. • The designation are not generic, unlike geographical indications which consist of a geographic name denoting the geographic origin of a product, not usually protected as a trade mark. • The designations are not protected as geographical indications in Ethiopia as required under relevant international treaties and national laws; and • There is no uniformity in the form, requirement and scope of protection for geographical indications. ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

13. Why not Certification of Marks It denote that a certain product meets specified requirements and standards Certification of Marks was not selected due to • It provides less control over the use of brands than does a trade mark • It entails more administrative and financial burden- i.e it is more costly to the small farmers and the Government of Ethiopia ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

14. Trade Marking considered as appropriate IP tool due to: • It ascertains ownerships of the mark and avoid misappropriation. • Control the use of brands and insure long term benefits through licensing arrangements • Distinguish the Ethiopian fine coffees from commodity coffees and build the goodwill and reputation of the specialty coffees around brand names. • Maximize benefits by improving the marketing position, • Prevent registration of similar confusing marks and avoid the damage of the reputation and good will of the fine coffees, • securing protection for trademarks is faster and administering the rights is easier and less costly compared with other possible forms of protection. ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

15. Objectives of the Initiative • Ensure Ethiopia’s ownership of coffee brands • Increasing & Securing Income of Poor farmers & Exporters • Delink from commodity coffee • Ensure stability of income • Strategically positioning in the growing Specialty Coffee market ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

16. c) Create & Strengthen partnership with Foreign Coffee Importing, roasting & distributing Companies d) Building IP Asset Protection & Management Capacity ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

17. The strategies designed to achieve the above Objectives are:- • Offering royalty free License agreement • Obligations of licensee to use brand and educate consumers • Establishment of network of Licensed distributors • Establishment of a Joint forum where stakeholders and network partners exchange relevant information and work for mutual benefits • Increasing awareness about the initiative e.g. Creation of web site of the Initiative www.ethiopiancofeenetwork.com ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

18. Implementation of the Initiative Phase I During the initial phase of the Initiative remarkable achievements have been registered as a result of integrated efforts of various stakeholders. ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

19. Some of the achievements of Phase I • Applications filed in 36 countries and certificates obtained from 34 countries , • Sidamo, yirgacheffe, Harar registered in EU, Canada, China, USA,India, Saudi Arabia etc. • Japan-Sidamo, Yirgacheffe(the court case litigation is decided in favour of Ethiopia in Feb. 2012 after long litigation) • More than 98 coffee importers, roasters and distributors in North America, Europe, Asia & Africa signed the agreement such as Green Mountain , Starbucks, Illycafé,Eden Café and others • 47 coffee buyers and distributers signed the trademark license agreement , ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

20. A UK based branding company employed(BrowenEdwards,LisaMcWilliam Brand House) • Brands and brand guidelines (Logos) developed under supervision of the Stakeholders Committee • Stake holders decision and unveiling of the brands in May 2008 • Brand guideline approved in July 2008 • Development of Ethiopian fine coffee network website, ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

21. Achievements…. • successful campaign measures were taken to convince major coffee buyers, like starbucks, • series of trainings have been given by Light Years IP to different stake holders ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

22. Umbrella Brand ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

23. Individual Brands ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

24. The Challenges • In the USA the application for Sidamo could not initially be processed as a result of an earlier application by Starbucks Corporation Shirkina Sun-Dried Sidamo and the National Coffee Association of America. Measure taken • the Corporation forced to withdraw its application through public pressure . ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

25. Ethiopia rebutted NCA of America based of relevant laws and precedents. • 2. In Europe, Neuform, a German Company opposed the application for “Sidamo” reasoning its confusion with “Sesamo”. The company was persuaded to withdraw its opposition because the name “Sesamo” is different from Sidamo and used for different classes of goods (coffee V grocery products). ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

26. In Japan, All Japan Coffee Association had filed a petition for the invalidation of the titles granted to Sidamo and Yirgacheffe. After long process the matter is now decided in favour of Ethiopia (Feb, 2012) 4. In Australia all the applications were rejected on the grounds that the names lack distinctiveness. ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

27. Phase II Government Decided to strengthen the initiative Accordingly: • Inter-Ministerial Committee is established from MoA,MoST,MoT and EIPO in March 2011. measures taken by the Inter-ministerial Committee • Establishment of a Technical committee to provide technical assistance, • Approval of action plan to reinvigorate the initiative • Activities are identified and assigned to LYIP and different Government organs ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

28. To finance activities assigned to LYIP, Ministry of Agriculture secured 283,189 USD from UNDP. • Government of Ethiopia Signed 6 month contract agreement with Light years IP on June 4,2011 ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

29. The Committee decided to renegotiate with Arnold and Porter • Drafted MOU and communicated to Arnold and Porter • Invited H.E Mr. Winter to visit Addis Ababa and to discuss the matter in Addis Ababa. ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

30. Activities accomplished after the visit of Arnold and Porter representative • Signed the revised MoU with Arnold and Porter, • Opened trust account in USA to finance the administrative expenses of Arnold and Porter related with the initiative, • Joint technical committee established by EIPO and MoT, • Drafted annual plan, • Designing marketing and promotion strategy, ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

31. In Collaboration with UNDP EIPO is • Taking Institutional Capacity building measures, • Awareness creation activities like seminars, panel discussion and promotional activities, • Review of the draft GI law (legislation) to be submitted to the parliament, • Planning to conduct study tour to Colombia to benchmark their experience, ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

32. The Way Forward • Stakeholders coordination- the need to unify the diverse stakeholders, • Regular Communication and Legal framework, • Capacity building and monitoring the impact, • Revisiting the Existing Strategy, • Increase the Awareness of Stakeholder • Financial support –sustainable source of funding ETHIOPIAN INTELLECTUAL PROPERTY OFFICE

33. THANK YOU!!! BerhanuAdello Director General EIPO ba4552@gmail.com WWW.eipo.gov.et Tel-+2515528000 Fax- +2515529299 ETHIOPIAN INTELLECTUAL PROPERTY OFFICE