227.   Canada is pleased to introduce the first paper, titled "Making MSMEs Competitive Through Trademarks", under the group of Friends of IP and Innovation's theme for 2020, "Making MSMEs Competitive". The group of Friends of IP and Innovation is indeed returning to a theme focused on MSMEs, after having explored MSMEs and related IP issues in 2017. And we believe that there is a lot more to discuss, challenges to identify, and ideas to share. 228.   The critical role and importance of MSMEs in the global economy cannot be overstated, but some numbers bear mentioning, or repeating, for context. According to figures quoted by the International Trade Centre, small and medium-sized enterprises account for over 95% of firms and 65% of employment worldwide, while figures quoted by the World Bank place the number of formal and informal MSMEs in the developing world between 365 million and 445 million. 229.   In other words, by more than one token, MSMEs make up most of our audience here at the WTO. As drivers of employment, growth and trade, it is fitting and indeed always timely that we should be talking about the realities and needs of MSMEs, including with regard to the IP system, hence our focus on trademarks for this first paper. 230.   Trademarks are the most widespread form of registered IP rights, and have a close relationship with MSMEs, including in the developing world. Trademark ownership among MSMEs is associated with firm growth – by some measures, even more than patent ownership is. Awareness of, access to and use of trademarks can provide MSMEs with a gateway into the IP system, and into more innovation and broader IP portfolios. But more importantly, here at the WTO, trademark ownership, like IP ownership generally, also correlates positively with trade and export performance. 231.   Despite some outstanding work by scholars and by WIPO here in Geneva, trademarks are not nearly as closely and comprehensively studied as patents. Canada and the other Friends of IP and Innovation hope that this paper, and the discussion it fosters, make a modest contribution to a better understanding of the relationship between trademarks, MSMEs, growth and trade. 232.   Moving on to the topic for today's discussion, we would take this opportunity to present an overview of recent initiatives intended to improve MSMEs' access to and leveraging of trademarks in Canada. As part of its National IP Strategy, which launched in 2018, Canada has focused on three building blocks towards achieving this objective: (1) increased awareness, (2) facilitated registration, and (3) effective use of trademark rights. 233.   By way of context, small businesses make up 98% of all Canadian businesses and employ 8 million Canadians, making today's conversation particularly relevant to our general economic landscape. According to Statistics Canada data, 9% of Canadian MSMEs held registered trademarks in 2017 – by far the highest proportion across the forms of formal IP that were included in the survey. The correlation between IP ownership and growth/trading potential drawn in the paper is evident in Canada: in 2017, 23% of SMEs that exported held a registered trademark (compared to only 7% of SMEs that did not export), and 15% of high-growth SMEs held a registered trademark (compared to only 6.5% of no-growth SMEs). 234.   Turning first to awareness, it is worth noting that trademarks were the formal IP right of which Canadian MSMEs were most "aware" in 2017 (with 65.3% of MSMES slightly, moderately or very familiar with registered trademarks). In an attempt to build general knowledge of trademarks even further, the Canadian IP Office (CIPO) recently launched an IP Awareness and Education Program, which includes services and products that make it easier for businesses to access specific trademarks resources, tools and advice. The CIPO IP Toolbox now includes short factsheets ("Trademarks" and "Protect your brand") and a full trademarks guide. Moreover, our IP advisors lead IP seminars and other training events to act as a source of information for MSMEs, as well as to provide information and guidance to innovators as they develop their IP strategy. 235.   Resources available under CIPO's IP Toolbox also extend to trademarks registration, with the making available of a user-friendly roadmap to trademark registration and a Canadian Trademarks Database tutorial for searching existing marks. Moreover, with the aim of facilitating the trademarks registration process for all businesses, including MSMEs, Canada has recently modernized its IP legal framework and office practices to fully implement the Madrid Protocol, Singapore Treaty and Nice Agreement. We consider that participation in the Madrid System, which allows applicants to apply for trademark protection in up to 120 countries with a single application, in one language and with fees paid in one currency, offers important benefits for users that are critical to encouraging trademarks registration by MSMEs. 236.   Lastly, making an IP system more accessible is one thing, but ensuring viable and quality rights for that system's users is another one and may weigh heavily in those users' ability to successfully leverage their rights. In this spirit, and with a view to preventing the cluttering and misuse of its trademark registration system (what is sometimes referred to as "trademark squatting"), Canada has recently introduced new bad faith trademark opposition and invalidation grounds under its Trademarks Act. Canada has also reinforced the importance of "use" in its trademark regime by introducing a new requirement to demonstrate use within the first three years after registration to enforce the resulting registration in the event of infringement. 237.   To conclude, Canada would be pleased to discuss these and other initiatives with any interested Member on the margins of this meeting. In the meantime, we would like to thank in advance those Members that will share their insights and experiences under this agenda item and look forward to further views on making MSMEs competitive going forward.