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- 1. “Making a Mark”: Role of Trademarks in Branding Najmia Rahimi Senior Program Officer Small and Medium-Sized Enterprises Division WIPO
- 2. What is Branding – Branding allows a company to differentiate its products and services from the competition by creating a bond with its customers in order to create customer loyalty. This way, a company can have a position in the marketplace that is much more difficult for the competition to poach. A satisfied customer may leave. But a loyal customer is more likely to stay.
- 3. The Small and Medium-Sized Enterprises (SMEs) Division of WIPO Concept of Branding • A company image as seen by the customer • Good branding = getting people to recognize you first • Having an effective logo with which customers can identify you • A brand is what differentiates you from your competitors • Good advertising and how it attracts customers • A compelling customer experience
- 4. The Small and Medium-Sized Enterprises (SMEs) Division of WIPO Branding is sending a message Think of it this way: Marketing is a conversation. The brand name initiates the conversation which will develop multiple concepts and criteria, namely: Vision, mission, message, service, package, image, differentiation, understanding the customer, advertising, logo, name recognition, customer service, internal training, team work, investment
- 5. The Small and Medium-Sized Enterprises (SMEs) Division of WIPO Branding matters “Consumers are starved for time and overwhelmed by the choices available to them. They want strong brands that simplify their decision making and reduce their risks.” Kevin Lane Keller, Tuck School of Business
- 6. The Small and Medium-Sized Enterprises (SMEs) Division of WIPO Purpose of Branding • Gives a business a significant edge over the competition • Have the customer view a business as the only solution to their problem • A strong brand engenders feelings of trust, reliability, loyalty, empathy, responsiveness and recognition in the customer’s mind
- 7. The Small and Medium-Sized Enterprises (SMEs) Division of WIPO Choose the right format There are several ways the publishing industry can exploit the online publishing market and it’s important that publishers choose the path that will suit them best. Daily newspapers may rely on a website and downloadable news service that allows readers to find out more, access archives and post comments. Magazine publishers, on the other hand, may find that their subscribers want to see an online magazine version – using a page-turning, searchable format that they can browse at their convenience. Book publishers can give readers a taste of new releases by putting the first chapter online, in the same, page-turnable form – already available on Amazon. Podcasts may allow publishers to give their readers access to an audio trailer for the written publication, highlighting columnists, features and special offers, directing the listener to the website or webmag for more details. Careful market and technology research is needed to ensure that publishers are choosing the best option for their core publications.
- 8. The Small and Medium-Sized Enterprises (SMEs) Division of WIPO Content is king In the end, it doesn’t just matter how people choose to access your content; it matters that your content is worth accessing. If you publish good material, people will read it. Newspapers, journals and magazines will still need to employ journalists whose writing is of a high standard. They will still need to have access to photographers who can produce images that make us stop and think, or want to know more. They will need designers who can make the content accessible through a variety of formats. The better your content and the more available it is, the more readers you will attract.
- 9. The Small and Medium-Sized Enterprises (SMEs) Division of WIPO
- 10. The Small and Medium-Sized Enterprises (SMEs) Division of WIPO The Nike’s case • Reflects the popularity of a well-known TM • The “Swoosh” is the well known symbol of Nike • Originally Nike’s logo included also the shoemaker’s name • At the end of the nineties, the Nike’s name disappeared • The swoosh remained as the main identification symbol of the shoemaker • Today there is no need to include the brand into this logo since the recognition of a simple swoosh automatically brings our attention to Nike
- 11. The Small and Medium-Sized Enterprises (SMEs) Division of WIPO The “Swoosh”
- 12. Purpose of Branding • Gives a business/enterprise a significant edge over the competition • Makes the customer view a business/enterprise as the only solution to their need or problem • A strong brand engenders feelings of trust, reliability, loyalty and recognition in the customer’s mind. • Through its brand image an enterprise will attract and retain customer loyalty for its goods and services and increase the value of its business
- 13. Successful Branding • Developing a brand part and parcel of every strategic business plan • Target what customers care about: articulate precise values and qualities that are relevant and of direct interest • Emphasize features that are both important to consumer and quite differentiated from competitors • Sell the brand outside and inside: Motivate employees to identify with brand • Keep brand flexible • Communicate the brand image at all levels of operation • Intellectual Property Rights such as trademarks and industrial designs important tools for branding
- 14. Trademarks
- 15. What is a Trademark? • “A sign capable of distinguishing the goods or services produced or provided by one enterprise from those of other enterprises”
- 16. Any Distinctive Words, Letters, Numerals, Pictures, Shapes, Colors, Logotypes, Labels • Examples:
- 17. Less Traditional Forms • Single colors • Three-dimensional signs (shapes of products or packaging) • Audible signs (sounds) • Olfactory signs (smells) • Moving or Fluid Marks
- 18. Types of Trademarks • Trade marks: to distinguish goods • Service marks: to distinguish services • Collective marks: to distinguish goods or services by members of an association • Certification marks • Well-known marks: benefit from stronger protection • Tradename vs Trademark
- 19. The Function of a Trademark • Allows companies to differentiate their products • Ensures consumers can distinguish between products and ultimately develop brand loyalty
- 20. The Value of a Trademark • A marketing tool • Source of revenue through licensing • Crucial component of franchising agreements • May be useful for obtaining finance • A valuable business asset
- 21. The Value of Trademarks • Global Brand Scoreboard • 1. Coca-cola 70.45$ billion • 2. IBM 64.73 $ billion • 3. Microsoft 60.89 $ billion • 4. Google 43.56 $ billion • 5. GE 42.81$ billion • (Interbrand Business Week 2010)
- 22. Trademark Protection > Registration = • Exclusive rights prevent others from marketing products under same or confusingly similar mark • Secures investment in marketing effort • Promotes customer loyalty/ reputation / image of company • Provides coverage in relevant markets where business operates • Registered marks may be licensed or basis franchising agreements
- 23. Practical Aspects • Selecting a trademark • Protecting a trademark through registration • Using and maintaining a trademark • Enforcing a trademark
- 24. What to avoid when selecting a Trademark • Generic terms: CHAIR to sell chairs • Descriptive terms: SWEET to sell chocolates • Deceptive terms: “ORWOOLA” for 100% synthetic material • Marks contrary to public order/morality • Flags, armorial bearings,official hallmarks, emblems
- 25. What to Remember when selecting Trademark? • Inherently distinctive – Coined or fanciful words: “Kodak” – Arbitrary marks: “apple” for computers – Suggestive marks: SUNNY for heaters • Easy to memorize and pronounce • Fits product or image of the business • Has no legal restrictions – Reasons for rejection – TM search>not identical or confusingly similar to existing TM • Has a positive connotation • Suitable for export markets • Corresponding domain name available
- 26. Protecting a TM through registration • The applicant – Application form, contact details, graphic illustration of mark, description of goods, fees • The trademark office – Formal examination – Substantive examination – Publication and opposition – Registration certificate valid for 10 years – Renewal
- 27. Scope of Rights • The exclusive right to use the mark • The right to prevent others from using an identical or similar mark for identical or similar goods or services • The right to prevent others form using an identical or similar mark for dissimilar goods or services
- 28. Keep in Mind • The time it takes to register a TM • The costs associated with TM protection • The need for a trademark search • A trademark agent may be required • Protecting at home and abroad • Renewing your registration
- 29. Protecting at Home and Abroad • The national route – Each country where you seek protection • The regional route – Countries members of a regional trademark system: African Regional Industrial Property Office; Benelux TM office; Office for Harmonization of the Internal Market of the EU; Organisation Africaine de la Propriété Intellectuelle • The international route – The Madrid system administered by WIPO (over 70 member countries)
- 30. Using a Trademark • Actively using a TM • Using/maintaining a TM in marketing and advertising • Using the mark on the internet • Using the mark as a business asset
- 31. Actively using a Trademark • Offering the goods or services • Affixing the mark to the goods or their packaging • Importing or exporting the goods under the mark • Use on business papers or in advertising
- 32. Using a Trademark in Advertising • Use exactly as registered • Protect TM from becoming generic – Set apart from surrounding text – Specify font, size, placement and colors – Use as an adjective not as noun or verb – Not plural, possessive or abbreviated form – Use a trademark notice in advertising and labeling ® • Monitor authorized users of the mark • Review portfolio of trademarks • An evolving trademark
- 33. Using a TM on the Internet • Use of TM on internet may raise controversial legal problems • Conflict between trademarks and domain names(internet addresses) - cybersquatting • WIPO procedure for domain name dispute (http://arbiter.wipo.int.domains)
- 34. Using a Trademark as a business asset • Licensing: owner retains ownership and agrees to the use of the TM by other company in exchange for royalties > licensing agreement (business expansion/diversification) • Franchising: licensing of a TM central to franchising agreement.The franchiser allows franchisee to use his way of doing business (TM, know-how, customer service, s/w, shop decoration. Etc) • Selling/assigning TM to another company (merger & acquisitions/raising of cash)
- 35. Enforcing Trademarks • Responsibility on TM owner to identify infringement and decide on measures • “ Cease and desist letter” to alleged infringer • Search and seize order • Cooperation with customs authorities to prevent counterfeit trademark goods • Arbitration and mediation (preserve business relations)
Editor's Notes
- Branding and IP are closely linked from a business perspective. Enterprises today know the value of branding. The ultimate aim of an enterprise should be to create a loyal customer, because a loyal customer insists on buying a certain product or service even if the price is higher than that of the competition - and That is the type of customer an enterprise can gain through branding
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- A good branding strategy and a cleverly developed brand image can make the customer view a business or enterprise as the only solution to their need or problem
- To maintain a successful brand image it should be sold not only to customers outside but to employees inside because when employees are motivated about a brand image, it will be communicated at all operational levels. It is important for companies to recognize that IP rights such as trademarks, industrial designs, patents and trade secrets are important tools for successful branding and help a company to differentiate itself from the competition. Therefore, enterprises need to understand the IP system and use it to their advantage
- This brings us to the main subject of this presentation, namely trademarks. We will be looking at what trademarks are, their function and value from a business perspective, why it is important to protect your trademark and various other practical aspects related to the registration and enforcement of trademarks.
- Audible signs: meaning sounds such as the jingle of the NOKIA tune or the sound of an engine to evoke the Harley Davidson motorcycle Olfactory signs: specific smells used in a much less traditional way as a trademark
- Collective marks: usually owned by an association or cooperative whose members may use the collective mark to market their products - it is the association that establishes a set of criteria for using the collective mark and individual companies can use it if they comply with such standards. Certification Marks: are given for compliance with certain standards but are not confined to membership of an association or cooperative. The Woolmark symbol is one such example. Well-known marks are considered well known by the competent authority in the country and may be protected even if they are not registered in a given territory.
- Trademarks play a pivotal role in the branding and marketing strategies of companies. TM in fact contribute to defining the image and reputation of a company’s product in the eyes of a consumer.
- This gives an idea of how trademarks can become valuable business assets and why it is important to protect them.
- When choosing a trademark for your product or service, keep in mind what you should NOT choose as a trademark so that your choice does not end up being rejected by the trademark office.
- Before submitting an application to register a trademark, a search should be carried out to ensure that the trademark you choose is not being used by someone else. You can do that individually through your national trademark office by consulting commercially operated trademark databases or you can go through a trademark agent.
- While filling in a TM application, you are required in most countries to indicate the good and services under which you wish to register your trademark and group them according to classes which refer to the trademark classification system. It is critical to register your trademark in all classes in which you use or intend to use your trademark. The most widely used classification system (Nice0 has 34 classes for goods and 11 for services. Some TM offices such as in US and Canada require the proof that the TM is used A substantive examination may be required if there is a conflict with an existing Mark on the register Some countries publish the TM in a journal allowing 3rd parties to oppose during a given period Once it is decided that there is no grounds for refusal, a certificate is issued which is valid for 10 years. Registration can be renewed indefinitely but may be cancelled if TM is not actively used for a certain period stated in the TM law.
- Remember that trademark registration is territorial - if you have registered in your country it does not mean that your TM is protected abroad. . . . . International Route: if a country is member of the Madrid Union for the registration of TM administered by WIPO (check the status of country in question where presentation is being given): advantage is as a member can apply to all other member countries with one application 1 language 1 set of fees. Renewal also single procedure.
- Once TM is registered, it is important to use it or else run the risk of loosing your right to the TM
- Monitor those authorized to use the TM to control quality of goods and services offered under licensed mark Conduct annual checks to ensure that all TM are registered and renew registrations if necessary Evolving mark: there are no restrictions on modifying a TM but should check with TM office procedure and cost of the change