Part 2: Integrating intellectual property tools in OLP strategies
Producers may wish to integrate IP tools in the overall business strategy for their OLP for several reasons. There is the matter of economies of scale, where small producers of an OLP can come together and collectively market their product under agreed-to product specifications and control system; use a collective branding and promotion strategy and communicate the value of their product to obtain consumer recognition and loyalty.
Intellectual property tools for collective action
Individual trade marks are used by an individual business in the market to distinguish their goods and services from other businesses operating in the market. The use of collective signs, such as collective and certification marks and GIs, allow for a group of small producers to benefit from joint marketing and communication about the reputation and qualities of their OLP.
Collective signs
Collective signs can be used by OLP producers to identify the collective entity and the product in the market; to strategically brand their products to capture market shares and to communicate to consumers the value of the product and to gain consumer trust. The type of distinctive sign used by OLP producers in association with their product will be defined by the type of IP tool they use. Likewise, the type of IP tool used will define the quality control management system developed for the OLP.
Learning exercise
Question 1: Why it is important for producers of origin-linked products to work collectively in developing and implementing a strategy for their product?
Working collectively, SMEs and small producers can benefit from economies of scale when branding and marketing their products. They may also benefit from brand name recognition.
Question 2: Why would producers be interested in using collective signs for the protection and promotion of origin-linked products?
Collective signs allow for joint marketing and for communicating about the origin, reputation and quality of the products.