271.   My delegation wishes to thank Canada and the US delegation for introducing the submissions IP/C/W/661 and IP/C/W/662 to the TRIPS Council today. Switzerland is pleased to co-sponsor both the agenda item and the written submissions. 272.   MSMEs have a crucial role for a national economy. In Switzerland, 99% of all companies are micro, small or medium enterprises (MSMEs). According to a survey by the Swiss IPO², 93% of these Swiss MSMEs consider innovation, creativity and to be 'special' as essential to the survival and competitiveness of their businesses. Trademarks (TM) are the intellectual property right most frequently used by MSMEs. The main benefits that a TM offers to MSMEs are product distinction, protection against unfair competition, marketing and branding. 273.   Effective branding helps a company and its products and services to build consumer trust and loyalty. Building consumer trust in trademark takes time and often considerable effort. Once gained, the TM can be an incentive for companies to continue producing new goods and services under their TM. Besides the protection against free riders, from a consumer's perspective, trademarks contribute essentially to the recognition and differentiation between the enormous selection of goods and services. In turn, this requires business owners to invest also in sound trademark management in order to maintain the value of the IP. Trademark management means more than just registering a TM. 274.   Particularly small companies sometimes lose sight of this and do not pay sufficient attention to TM and quality management. As the following example shows, this can have serious consequences for a business, whether big or small. A kebab store in Zurich had quick success with customers selling kebabs using high quality and local ingredients. Marketed under the registered trademark "New Point", the business became known as "the best kebab in town". This success enabled a quick expansion of the business, with the establishment of a chain of franchise stores around Zurich. However, the expansion of the business did not adopt a sound TM strategy and lacked product quality maintenance. 275.   Through this franchise business, the value of the brand was damaged due to significant deviations from the original store's standards and quality by the franchisees. Checks on the quality of the products were insufficient to ensure the products' high-quality standard which damaged the reputation of the trademark. Loyal customers and recommendations of "the best kebab in town" were almost as quickly lost as they were initially gained, particularly today, where customers share their views and experience with followers on the internet. In consequence, the chain's profits declined and most of the franchisees had to close their stores in due time. While four "New Point" chains alongside the original store remain, this example serves as a lesson on how multifaceted the right use of trademarks and IP strategies can be for MSMEs. "New Point" has since re-established itself on the market and rebranded itself and its trademark, even created a new logo, and set strict conditions regarding quality in its franchise agreements. The lesson to be learned here is that registration of trademarks alone is not a promise of success. A solid IP strategy and its maintenance to accompany and evolve with the company are additionally required and indispensable. 276.   When asked about their use of Intellectual Property Rights (IPRs), some Swiss MSMEs replied in the survey of the Swiss IPO mentioned earlier, that they did not apply for a trademark because they thought that filing procedures would be too complicated or costly. They added, that they had limited knowledge of the system or that they had no "innovation" that would warrant protection.³ Certainly, the last point hints at a lack of knowledge about what a TM actually is and what it can do for an MSME. To address this information gap and to raise awareness, the Swiss IP-Office inter alia, established an online portal for MSMEs⁴ 10 years ago. This portal serves as an entry point for all IP-related topics. MSMEs can learn about the different IP strategies, seek guidance on how to manage their intellectual property portfolio or read about other MSMEs' experiences. Online informative brochures and short explanatory videos on how to register a trademark are available. Next to the application via e-mail or post, the IP-Office offers an electronic application system⁵, which guides applicants step-by-step through the application process. Additionally, a free and easy-to-use online database is made available for preliminary searches on existing Swiss trademarks from the comfort of one's home – or the administrative office of an MSME. 277.   Providing access to more easily understandable information and application tools reduces costs for filing and allows to manage TMs more efficiently. Without discharging MSMEs from developing their own sound IP and TM strategy, the Swiss IPO continuously works on improving these mechanisms in order to enhance the value of an overall well-functioning, more accessible trademark system.