The Ethiopian Fine Coffee Designations Trade Marking

The Ethiopian Fine Coffee Designations Trade Marking & Licensing Initiative Experience Presented at The WIPO Conference on Building Partnerships for Mobilizing Resources fir Development organized by the World Intellectual Property Organization (WIPO) Geneva, November 5 and 6, 2009 By Getachew Mengistie Intellectual Property Law Consultant and Attorney Geneva, November 5, 2009

I. Introduction A) Initiative started in 2004 B) Initiative is led by Stakeholders committee & facilitated by EIPO C) Initiative has Ø Technical & advisory support from LYIP Ø Free Legal Support from Arnold & Porter Ø Financial support- Donor organizations, stake holders & the government C) highlight the grounds, objectives, Choice of appropriate legal, business and marketing tools, major achievements and Lessons learned Copyright 2007, All rights reserved Copyright 2009 all rights reserved.

II. Grounds for the initiative a) Ethiopian coffee is specialty/ fine coffee Ø Ø Ø Distinct flavor and aroma Can be distinguished from coffee of other countries Distinct feature attributed to hard work of generations of farmers b) Little benefit from the Specialty coffee Ø Ø Ø High retail price-example 2004 -Harar $24/lb, 2005 Sidamo-$26/lb Only 5 -10 percent comes to Ethiopia Fluctuation of price of coffee c) Impacts of low price of coffee Ø unable to meet basic needs, school, health etc Ø Cutting down coffee trees and planting chat d) Cases of misappropriation or attempt to misappropriate coffee names Copyright 2007, All rights reserved Copyright 2009, all rights reserved.

III. Objectives of the Initiative a) b) Ensure Ethiopia’s ownership of coffee brands Increasing & Securing Income of Poor farmers & Exporters ü Delink from commodity coffee ü Ensure stability of income ü Strategically positioning in the growing Specialty Coffee market c) Create & Strengthen partnership with Foreign Coffee Importing, roasting & distributing Companies d) Building IP Asset Protection & Management Capacity Copyright 2007, All rights reserved Copyright 2009, all rights reserved.

IV. Choice of Appropriate IP & Business tools a) Comprehensive study made on the relevant IP tools, merits & demerits of: i. Geographical indications ii. Certification marks iii. Trade marks b) Extensive consultations made in and outside of Ethiopia c) Decisions made by the stake holders to : i. Trade mark three of the fine coffee designations ii. File applications in selected countries iii. Offer royalty free license Copyright 2007, All rights reserved Copyright 2009, all rights reserved.

V. Trade marking of coffee brands q Applications filed ü 36 countries-Australia, Brazil, Canada, China, European Union, India, Japan, Saudi Arabia, South Africa and USA q Certificates obtained Sidamo, yirgacheffe, Harar registered in EU, Canada & USA ü Japan-Sidamo, Yirgacheffe ü q Problems encountered and Measures taken ü European Union ü USA ü Japan etc. , Copyright 2007, All rights reserved Copyright 2009, all rights reserved.

VI. Licensing of Coffee TMs A) Objectives of Licensing ü Facilitate the use of Ethiopian Trademarks ü Capture the reputation & good will of fine coffee around the trademarks ü Establish & strengthen partnership with the coffee importers, retailers & distributors ü Cater to the interests of the key actors etc. , ü Promote the Ethiopian fine coffees B) Strategies Adopted ü ü Offering royalty free License agreement Obligations of licensee to use brand 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 ü Increasing awareness of the initiative ex. Creation of web site of the Initiative www. ethiopiancofeenetwork. com Copyright 2007, All rights reserved Copyright 2009, all rights reserved.

VI. Licensing contd. C) Ninety six coffee importers, roasters and distributors in North America, Europe, Asia & Africa signed the agreement D) Forty seven Ethiopian exporters & three coffee producers unions signed the agreement Licensees played a role in persuading companies and are playing useful role in promoting the Ethiopian Fine coffees and the brands E) Copyright 2007, All rights reserved Copyright 2009, all rights reserved.

VII. Branding Trade Marks a) b) c) d) e) f) 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 Copyright 2007, All rights reserved Copyright 2009, all rights reserved.

Umbrella Brand Copyright 2007, All rights reserved Copyright 2009, all rights reserved.

Individual Brands Copyright 2007, All rights reserved Copyright 2009, all rights reserved.

VIII. Major Achievements q q Ownership & Leadership of the initiative by the stakeholders Establishment of Institutional framework & effective coordination ü ü ü q q The stake holders committee LMU in EIPO & Focal units in Overseas embassies The net work of licensed distributors The Joint forum Excellent working relationship Secured support from parliament, PM office, different Ministries, the general public & stakeholders in Ethiopia and a wide range of supporters from abroad Improved negotiating and Marketing Position-power to control, require disclosure of sales information, joint promotion, uniform branding and negotiate export price 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. Copyright 2007, All rights reserved Copyright 2009, all rights reserved.

VIII. Achievements contd. q q q Building & Strengthening Licensing Capacity at EIPO, overseas embassies, Stakeholders Challenges successfully overcame Partnership established, wider cooperation & assistance example Starbucks farmer support center Promotion of the initiative using print & electronic media, website and international coffee forums and exhibitions Choice of Ethiopia as a portrait country in the 20 th SCAA-May 2008 Greater recognition of the value of intellectual property assets and the need for protection-steps taken-EIPO, MOARD Copyright 2007, All rights reserved Copyright 2009, all rights reserved.

IX. Lessons Learned q Top Leadership Support & Direction is critical for success q Need for initial technical, financial and legal support from international partners while simultaneously building the requisite capacity for IP Asset identification, protection, exploitation & management q Ownership and involvement of stake holders q Significance of public & private partnership q Preemptive, persuasive and engagement strategy essential to prevent or resolve disputes q wining the support of as many partners as possible q Preparatory works, advance planning and regular evaluation q Use foreign companies that buy the cause of initiative q Adoption of Systemic and holistic approach in identifying needs and concerns Copyright 2007, All rights reserved Copyright 2009, all rights reserved.

X. Conclusion q DCs and LDCs need to embark On programs to identify, protect and exploit their IP Assets q Significance of IP demonstrated by the experience of Ethiopia-the coffee Initiative public lauded as innovative and exemplary ü Ethiopia committed to use IP as a tool for creation of wealth and initiate similar programs ü other countries have embarked on or are in the process of initiating similar programs q These are encouraging developments but there is no “one Size fits all Approach” q Need to devise strategies to tap potential support in developed countries and simultaneously building up local capacity Copyright 2007, All rights reserved Copyright 2009, all rights reserved.

Copyright 2007, All rights reserved Copyright 2009, all rights reserved.