The role of trademarks, industrial
MODULE I designs and geographical
indications in the market
GLOBAL MARKETS AND IP PROTECTION
In a non-market situation, there is no need for Intellectual Property Rights (IPRs).
Consumers cannot choose which product to buy, they are forced to get what it is
available.
Consumers need a source identifier (such as a trademark) to distinguish products
that originate from different makers.
This is a powerful incentive for less successful competitors to innovate, improve
quality or reconsider pricing.
The market of a product or a service can be local or regional instead of global.
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INTELLECTUAL PROPERTY RIGHTS IN THE COURSE -1
TRADEMARKS -TM
General Definition
Signs that distinguish goods or services in a given market.
Examples:
PEPSI for Beverages; BMW for cars.
Rationale for Protection:
TMs protect the rights of Producers and of Consumers and the Public Interest (by
protecting fair practices in the market). TM owners can prevent third parties from
using confusingly similar TMs. for similar products or services.
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INTELLECTUAL PROPERTY RIGHTS IN THE COURSE -2
GEOGRAPHICAL INDICATIONS -GI
General Definition
Distinctive sign used in goods that have a specific geographical origin, and whose
qualities or reputation depend on that place of origin.
Examples:
“Champagne,” “Cognac,” Tequila, “Roquefort,” “Chianti,” “Pilsen,” “Porto.”
Rationale for Protection:
GIs grant exclusive rights to those who produce the item that meets the standards and
was produced in the designated territory. GIs protect consumers and assist local
communities that produce the goods.
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INTELLECTUAL PROPERTY RIGHTS IN THE COURSE -3
INDUSTRIAL DESIGNS -ID
General Definition
IDs refer to the ornamental or aesthetic aspects of a product.
Examples:
IDs can protect the 3 dimensional shape (a phone, a car), or 2 dimensional design
(the pattern in a cloth) of products.
Rationale for Protection:
IDs promote fair competition, encourages creativity, and promotes more aesthetically
attractive products. IDs help economic development, by encouraging creativity in the
industrial and manufacturing sectors, as well as in traditional arts and crafts.
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UNFAIR COMPETITION
Competition among companies is beneficial to the public interest.
Competing companies are not free to adopt every possible business strategy,
including disloyal or extremely aggressive behaviors. This impairs the private
interests of competitors and consumers, and the correct functioning of
competitive markets.
Companies are usually required by law to behave according to “honest
practices”.
It is generally accepted that it is unfair to cause confusion on the market about
the origin of a product or to denigrate a competitor.
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IP PROTECTION IN THE NATIONAL, REGIONAL,
INTERNATIONAL LEVELS
Protection at national level: The legal protection of IP is based on the principle of
territoriality. It means that IP Rights have a geographical limit and protection has to
be sought locally.
Protection at the international level: Since the XIX Century there have been
international treaties that grant standardized IP Rights in all member countries, such
as national treatment, most favored nation treatment and priority rights.
International Systems of Registration: There are systems that provide a centralized
registration or deposit system for obtaining multiple local IPRs (such as Madrid thru
the International TM system) or that offer a single procedure protection in multiple
territories such as the EU Trademark Office (EUIPO).
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INTELLECTUAL PROPERTY RIGHTS AS MEANS FOR
BUILDING BRANDS
As per the information and communication technologies (ICT), society is becoming
knowledge-based. Businesses rely on their intangible assets.
The value of a company depends on innovation and branding. Innovative ideas and
brands could be effectively protected by intellectual property rights.
Any company should have something special and unique to offer. This is a crucial
factor for the success of businesses in this century.
TMs, GIs and IDs are powerful tools for branding, and the most valuable assets of a
many companies, exceeding the value of physical assets.
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INTERNATIONAL IP PROTECTION AND A BALANCE
BETWEEN DEVELOPED AND DEVELOPING COUNTRIES
It’s believed that IPRs deprive the public of something which unrestricted exploitation
could lead to broader access to quality products. However, there is some consensus
that to grant exclusive rights is beneficial.
There has been discussions on the protection of IP within developed and developing
countries. The question remains whether IP delivers what it promises.
Foreign entrepreneurs could profit more from extended protection of well-known
trademarks. This could be negative for developing countries. However there are
successful stories from developing countries.
Concerning GIs, some European and developing countries support stronger protection
but countries with less traditional products refuse to agree on the greater protection.
Sometimes companies located in GI zones aim to lower the standards needed to have
the right to the GI.
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ROLE OF WIPO
WIPO plays a crucial role on the international dimension of intellectual property.
WIPO shall promote the protection of intellectual property through the world by way
of cooperation among States and in collaboration with other international
organizations. WIPO is a proper forum where issues relating to the protection of
intellectual property should be discussed.
WIPO encourages the conclusion of new international agreements and helps Member
States in complying with existing treaties in a manner that best suits their social and
economic conditions.
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