ACCESSION OF THE EC TO THE MADRID PROTOCOL Owen Malone Vice President - Intellectual Property Foster’s Group Limited Implications for IP Strategies from

ACCESSION OF THE EC TO ACCESSION OF THE EC TO

THE MADRID PROTOCOLTHE MADRID PROTOCOL

Owen MaloneOwen MaloneVice President - Intellectual PropertyVice President - Intellectual Property

Foster’s Group LimitedFoster’s Group Limited

Implications for IP Strategies from a Implications for IP Strategies from a Business PerspectiveBusiness Perspective

WIPO & OHIM & EC Conference WIPO & OHIM & EC Conference October 2004October 2004

The Era of Intellectual Capital

• Rapid technological change

• Growth in market economies

• Market globalisation

• Shifting emphasis from capital to intellectual asset utilisation


Foster’s Group Limited

• BeerBeer

• WineWine

• SpiritsSpirits

• Non-alcohol beveragesNon-alcohol beverages


ASSETS LIABILITIES

Net Assets

Market Capitalisation *

1000

2000

3000

4000

5000

6000

} $2.3b$5.9b

FOSTER’S GROUPSHAREHOLDER VALUE

* based on position as at 25.10.00

30 June 2000


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


Anatomy of Foster’s as a Anatomy of Foster’s as a Contemporary International BusinessContemporary 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.


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


Foster’s International Trade Mark Foster’s International Trade Mark ActivityActivity

• More than century’s 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 Australia’s accession to the Madrid Protocol in 2001


Primary Advantages of International Primary Advantages of International RegistrationRegistration

• 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


Issues with No Linkage between CTM Issues with No Linkage between CTM and Madridand 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


Key Features of Linking the SystemsKey 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


The Major Benefits to BusinessThe 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


SummarySummary• 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

Documents

ACCESSION OF THE EC TO THE MADRID PROTOCOL Owen Malone Vice President - Intellectual Property Foster’s Group Limited Implications for IP Strategies from