Minutes - TRIPS Council - View details of the intervention/statement

H.E. Ambassador Xolelwa Mlumbi-Peter (South Africa)
13 INTELLECTUAL PROPERTY AND INNOVATION: MAKING MSMES COMPETITIVE - MAKING MSMES COMPETITIVE THROUGH INCLUSIVE PROTECTION OF VARIOUS IPS

604.   Switzerland would like to thank Japan for introducing this TRIPS Council agenda item. We are pleased to support both the agenda item and submission document IP/C/W/667, together with the other co-sponsors. 605.   We welcome the opportunity to exchange national experiences and to hear about different approaches on how to support and strengthen the capacities of micro, small and medium-sized enterprises (MSMEs) to make use of and take advantage of intellectual property rights (IPRs) for their business activity. 606.   Compared to large companies, MSMEs face a number of challenges with regard to the use of IPRs. Although many such companies are founded on excellent and innovative ideas, just as many unfortunately fail. This is because, among other things, they did not or were not able to protect their IPRs appropriately and effectively, thus putting the innovative potential of their product at risk or losing their competitive edge during its marketing. Even if they do, with the IP protection comes along the burden to enforce a registered right in cases of infringement, which requires know-how, time and resources, as well. 607.   In today's times, protecting an innovative or creative product with a single IPR may no longer suffice. The combination of various IPRs, the development of a coherent and sustainable IP strategy as well as the management of a company's IP portfolio in fiercely competitive markets, is today just as relevant for smaller innovative companies as it is for larger ones. Much time, effort and resources may be spent on developing a product or a service. It goes without saying that MSMEs are often more constrained by budget considerations compared to their larger competitors. This can have various effects. MSMEs often neglect the importance of IP portfolio management. This said, it is also important that an IP strategy is guided by a company's size and capacity. Before investing in any kind of IP protection, it is crucial for MSMEs to analyse the market and assess how best to set up an appropriate and effective IP strategy to reap the rewards of their inventive and creative efforts on the market. 608.   Intellectual property develops dynamically both at the national and international level. Accordingly, time and attention need to be dedicated to what new developments may mean for a company's IP strategy. An awareness and a capacity MSMEs sometimes simply do not have. Although a patent, trademark, copyright, design or a geographical indication are IPRs, they all have their own characteristics and requirements for protection to be considered in each case individually. 609.   For this reason, the Swiss Federal Institute of Intellectual Property (IPI) supports MSMEs actively and assists companies as concerns know how and the use of IP. For instance, by offering trainings to both newcomers and experts, through assistance in patent searches for inventors, along with a free initial consultation on issues concerning patent protection or software copyright protection via our IP advisory network. Patent attorneys from both Switzerland and Liechtenstein participate in our network, advising MSMEs, as well as individuals, free of charge for up to an hour. There is a proverb that says: Many roads lead to Rome – as far as Intellectual property in Switzerland is concerned, these roads lead to IPI in Berne. 610.   In the following, my delegation would like to present an example of a Swiss medium-sized enterprise and demonstrate how it has made use of various IPRs to protect its innovative and creative products and has thus built and managed an IP portfolio to help it stay at the top of the competition in its field of business. 611.   Caran d'Ache is a Swiss manufacturing company of drawing and writing instruments, headquartered in Thônex, here in the Canton of Geneva. Since its foundation in 1915, Caran d'Ache has been an inspiring example of innovation and creativity. Since its early years, Caran d'Ache was successful and excelled with a number of technological innovations, such as the first mechanical pencil, the first watercolour pencil and the first wax pastel. As concerns their use of IPRs, Caran d'Ache's initial focus for their products was thus on patent protection. 612.   In later years, not least for reasons of costs involved in building and managing a patent portfolio, Caran d'Ache also opted for relying on trade secrecy for some of its inventive steps to protect their confidential business and technical information. They had to be aware, however, that this form of IPR carries its own risks and requires a number of precautionary measures for it not to be lost due to wilful or negligent disclosure. Caran d'Ache also started to actively protect their brand using various trademarks. This ensured that its brand could not be free-ridden upon by potential competitors. Caran d'Ache's in-house IP management is in charge, with the assistance of external IP counsels, of managing the company's IP portfolio at a global level in its major markets of distribution, thus ensuring effective legal protection of their IP. 613.   Companies like Caran d'Ache take advantage of the IP system for the protection and marketing of their products and brands, often making use of more than just one IPR for a particular product. A forward-looking IP strategy for innovative and creative products or services may thus be multipronged, considering the whole range of IPRs when building a company's portfolio, as an important component of a company's overall business strategy.

The Council took note of the statements made.
75. The Chair said that the agenda item had been requested by Australia, Canada, Chile, the European Union, Japan, Singapore, Switzerland, Chinese Taipei, the United Kingdom and the United States of America. These delegations had also submitted a communication to allow Members to prepare for the discussion. Since the circulation of the revised agenda, the Republic of Korea has been added to the co-sponsors of this item and the corresponding submission. She invited the cosponsors to introduce the communication.
76. The representatives of Japan; the United States of America; Singapore; Australia; the European Union; Ecuador; the Republic of Korea; Switzerland; Canada; the United Kingdom; El Salvador; Chinese Taipei; Philippines; Brazil; Mexico; Peru; China; and India took the floor.
77. The Council took note of the statements made.
IP/C/M/96, IP/C/M/96/Add.1