ACCESSION OF THE EC TO THE MADRID PROTOCOL

1
ACCESSION OF THE EC TO THE MADRID PROTOCOL
Implications for IP Strategies from a Business
Perspective

• Owen Malone
• Vice President - Intellectual Property
• Fosters Group Limited

2
The Era of Intellectual Capital

• Rapid technological change
• Growth in market economies
• Market globalisation
• Shifting emphasis from capital to intellectual
  asset utilisation

3
Fosters Group Limited

• Beer
• Wine
• Spirits
• Non-alcohol beverages

4
FOSTERS GROUPSHAREHOLDER VALUE
6000
5000

4000
2.3b
Net Assets
5.9b
3000
2000
1000
Market Capitalisation
LIABILITIES
ASSETS
30 June 2000
based on position as at 25.10.00
5
Impact on Business

• Intellectual property is a key source of value
  creation
• Intellectual assets are increasingly becoming a
  major basis of differentiation and competitive
  advantage
• Protection and management of intellectual
  property rights are crucial to business strategy
  and market success

6
Anatomy of Fosters as a Contemporary
International Business

• Direct brewing interests in Australia, US, UK,
  Vietnam, China and India
• Direct vineyards/wine businesses in Australia,
  NZ, US, UK, Chile, France, Germany, Italy,
  Netherlands and Switzerland
• Product exports into 150 countries across all
  continents.

7
Key Objectives in IP Brand Management

• Security and economy through effective trade
  mark protection in global markets national laws
  v global markets
• Sustaining competitive advantage through
  developing better methodologies to deal with
  enforcement issues and threats to brand
  dilution/control
• Risk management through maximising the alignment
  between brand protection and market entry
  activity

8
Fosters International Trade Mark Activity

• More than centurys experience in dealing with
  national trade marks systems
• An early adopter and advocate of the CTM system
  since its inception
• A recent participant in International
  Registrations with Australias accession to the
  Madrid Protocol in 2001

9
Primary Advantages of International Registration

• More cost-effective and simpler procedures for
  trade mark protection and maintenance
• Reduced translation, communication and foreign
  currency issues, together with management
  overheads
• More rapid and consistent validation of rights in
  different countries
• Flexibility and enhanced options in trade mark
  strategies

10
Issues with No Linkage between CTM and Madrid

• Unnecessary complexity for brand owners- CTM
  selective national filings?- Madrid selective
  national EC filings?- sometimes just national
  filings?
• Result- Skewing of cost-benefit strategies-
  Impediment to uptake of international
  registrations

11
Key Features of Linking the Systems

• Designation of the EC as a whole in international
  applications
• Extended international coverage of CTM
  registrations/applications via the Madrid system
• Options to covert failed EC designated
  application to national applications or
  designations of EU member states that are party
  to Madrid

12
The Major Benefits to Business

• The opportunity to concurrently capture the
  potential benefits of both system
• More options and greater coherency in
  international trade mark filing strategies
• Significant facilitation of the goal of simple,
  cost effective trade mark registration
  internationally
• New market opportunities and business initiatives

13
Summary

• The IP system is essential infrastructure for
  innovation, trade and economic growth
• Inter-operability between Madrid and the CTM
  improves both market access opportunity, at
  both a firm and national level
• Business threshold criteria re security,
  retention of competitive advantage, speed to
  market cost-benefit will be easier to satisfy
• The linkage may be instrumental in accelerating
  accession by countries to Madrid