Intellectual Property Rights and Marketing
Marketing Your Products and Services in the New Economy
For
most small and medium-sized enterprises (SMEs), marketing products or services
is a major challenge. A marketing strategy should establish a clear link between
your products or services and your SME, as the producer or provider of such
products or services. That is to say, customers should be able to
distinguish,
at a glance, between your products or services and those of your competitors and
associate them with certain desired qualities.
Intellectual property, when efficiently used, is an important tool in creating
an image for your business in the minds of your current and potential customers
and in
positioning your business in the market. IP rights, combined with other
marketing tools (such as advertisements and other sales promotion activities)
are crucial for:
Differentiating your products and services and making them easily recognizable
Promoting your products or services and creating a loyal clientele
Diversifying your market strategy to various target groups
Marketing your products or services in foreign countries (see “How
can Intellectual Property Enhance the Export Opportunities of Your SME?")
Intellectual Property
Rights and
Marketing
Different IP rights may contribute to your marketing strategy in different ways:
Trade
and Service Marks
A
well-crafted mark is often a decisive tool for the success of your SME in the
market place. It will enable consumers to distinguish products or services of
your SME from those of your competitors and to associate your products or
services with desired qualities. Furthermore, it may play an important part in
the ability of your product or service to penetrate a new market, especially
if care was taken while selecting or creating the mark so that it appeals to
the target market. It is crucial that you search for conflicting marks prior
to filing an application or using a new mark on your products or services. For
this purpose, you may wish to use the services of a competent attorney or
agent. This would save your SME from incurring unnecessary expenses if there
is already an identical or conflicting mark in the target market (see "Conducting
Trademark Searches").
Collective Marks
The
use of a collective
mark (by a cooperative or an association of enterprises) allows
the member SMEs to benefit from a reputation acquired on the basis of the
common origin or other common characteristics of the goods produced or
services rendered by different enterprises. This is, particularly, the case
where the origin or other common characteristics are the main contributing
factor in determining the quality or good taste of a product or service. The
use of a collective mark may foster an alliance or facilitate cooperation with
other SMEs so as to take full advantage of common resources.
Industrial Designs
In
today’s highly competitive global economy, a visually attractive design alone
may enable you to captivate a demanding and extremely diversified clientele.
Through creative designs, your SME could reach out to and appeal to diverse
groups of customers from different age groups, regions, cultures, etc. Having
design rights on an attractive shape or style of a product may give you the
much-needed edge over the competition.
Geographical Indications
Inherent in certain products from a particular region are characteristics that
are due to the soil, climate or particular expertise of the people of that
area which consumers of those products expect and have confidence in.
Capitalizing on that reputation for your products that emanate from such area
or benefit from such skills in your marketing strategy makes sound business
sense in differentiating your products from those of others. It is important
to note that in the case of such products, your SME must maintain the
standards and quality expected of goods produced in that region or with such
expertise.
Patents
The
market for your newly introduced product can effectively be protected by
obtaining patent protection. Being a patent holder can also open other
business avenues such as licensing or strategic alliances (see “How
do you Turn Inventions Into Profit-making Assets of Your SME”).
Utility
Models
Effective utilization of utility models, where such protection is available,
can help your SME stay abreast of its competitors. If strategically used, the
protection of utility models can be an effective tool in positioning your SME
in the marketplace especially if your SME is active in a business where
technological advantage plays an important role in determining who holds a
larger share of the market. By paying close attention to your competitors’
products and their promise of benefits, you can always improve products of
your SME in order to provide the same or even greater benefits and protect
your innovation as utility models, especially if the criteria of patentability
are not fully met.
Marketing Your Products and
Services in the
New Economy
Impact of Electronic Commerce on IP and Your SME
While
the Internet can open a lot of opportunities for SMEs, it may also pose a number
of challenges for the effective protection and enforcement of intellectual
property rights, in general, and for copyright and related rights, trademarks
and patents, in particular. The protection of copyright and related rights in
the digital environment, the protectability of e-commerce business methods by
patents, the use of trademarks as “metatags” and keywords, the infringement of
trademark rights through the use of a sign on the Internet, the scope of
protection of well-known marks and unfair competition in electronic commerce are
some of the controversial issues and challenges which your SME may have to face.
For further information, see
Intellectual Property in
E-Commerce.
Domain Names
If you
intend to do business via the Internet then you need an Internet address,
technically known as a domain name. In spite of their different function, domain
names often conflict with marks which are used to identify and distinguish your
products or services from those of your competitors. Your SME should, therefore,
avoid using a domain name that is already protected by another enterprise as a
mark. When your SME is faced with the use of its mark as a domain name by a
competitor, you may wish to seek advice on how a dispute can be settled
efficiently and at a reasonable cost. While conflicts between marks and domain
names can be resolved in courts, many SMEs may prefer to take advantage of
faster and cheaper special procedures under alternative dispute settlement
mechanisms (see IP Issues When you Design and Build Your Web Site).
WIPO's Domain Name
Dispute Resolution Services is a leading institution in this
area.
Getting the Best out of
Intellectual Property Protection
To make
sure that your marketing program gets the best out of your IP rights, the
following points are worth considering:
Register or seek protection of your IP assets at the earliest in order to take
full advantage of your IP rights while undertaking advertising and other
promotional activities.
Check
carefully to make sure that your SME does not infringe the IP rights of
others. In this respect, it is advisable to conduct trademarks and patent
searches before commercializing products and services which may conflict with
the IP rights protected by other persons or enterprises.
Use,
or make reference to, your IP rights in your advertisements and other
promotional activities in order to make your customers and potential customers
aware of the IP protection of your products and services.
Monitor the market and be ready to contact an IP lawyer or an official
enforcement authority wherever you detect infringement of your IP rights that
may be damaging your SME’s profits or reputation (see
"What Should Your SME do to
Resolve Disputes Related to Intellectual Property?"). IP rights
in fact allow you to fight unauthorized copying, imitation and other kinds of
infringement. National legislation or case law may also provide protection
against unfair competition, such as false allegations aimed at discrediting
your products or services, allegations aimed at misleading the public as to
the characteristics of your products and services and acts which aim at
creating confusion with your products and services.
|