Don’t let your trade mark become generic!

Don’t let your trade mark become generic!

Bakery can continue to use “Granola”

On 8 June 2012, Justice Jagot of the Federal Court of Australia held that Australian Health and Nutrition Association Limited, trading as Sanitarium Health Food Company (Sanitarium), could not enforce its trade mark registration rights over the word “GRANOLA” against Irrewarra Estate Pty Ltd, owner of Irrewarra Sourdough Bakery.

This case demonstrates the importance of ensuring that a registered trade mark does not become generic over time. This is where advertising and branding agencies can play an important role as the way a brand is marketed has a big impact on whether a mark can remain protected.

What happened in the case

Since 1921, Sanitarium has been the owner of the Australian registered trade mark “GRANOLA”. In August 2010, Sanitarium initiated legal proceedings against Irrewarra Sourdough Bakery for infringing its registered trade mark for the word “GRANOLA” (covering “preparations made from cereals”) after the bakery sold packets of toasted nut, seed and oat mix labelled “ALL NATURAL HANDMADE GRANOLA”.

The bakery also owns its own trade mark, pictured below in relation to breads and baked goods:

Sanitarium argued that Irrewarra had infringed its “GRANOLA” registered trade mark by using it in that way.

While Sanitarium conceded that the word “GRANOLA” has been understood in the US to denote a crunchy toasted cereal and was in common use there, it argued that in Australia it has a more “boutique” meaning associated exclusively with Sanitarium-branded breakfast products.

In response to this, the bakery argued that the word “GRANOLA” merely describes the contents of the product and pointed to a list of Australian dictionary entries for the word “GRANOLA” to support its case that the word is now common.

The court’s findings

The judge took the view that the words used by the bakery: “ALL NATURAL HANDMADE GRANOLA” refer to a product consisting of grains, fruits and nuts, which may be baked or toasted into large clusters. She observed that since 2004 the word “GRANOLA” started appearing in Australian dictionaries and has “percolated” into the “consciousness of Australians”.

Thus, the bakery was using “GRANOLA” in a descriptive sense rather than as a trade mark (that is, to indicate the origin of the good) and therefore, Sanitarium could not establish trade mark infringement.

Lessons

An important lesson that flows from the decision is that brand owners should take steps to prevent their brands from becoming generic. This means that while an invented word may be validly registered as a trade mark at the outset (as Sanitarium did with its “GRANOLA” mark, from 1921), its ability to stop other traders from using the brand could be limited if the word becomes used in common language.

A good tip is to use trade marks as adjectives rather than nouns.

To do this have the common descriptive name (ie the noun) of the product or service follow the mark at least the first time that the mark appears in your marketing material.

Tip 1:

Correct: Buy CADBURY chocolate.

Incorrect: Buy CADBURY.

Correct: Use SAVLON cream.

Incorrect: Use SAVLON.

Tip 2:

If you take the trade mark out of the sentence and it still makes sense – that will be good trade mark use.

The Rollerblades example

For example it is well known that the Italian-based company, Nordica S.p.A. actively enforced its “ROLLERBLADE” trade mark rights against various retailers around Australia when they used the word “rollerblades”. As a result, the trade mark is still registered (Trade Mark Number: 480323) and traders now use other words such as “inline skates” instead.

In some situations, a trade mark that has over time, become generic, could even be removed from the Register.

Disclaimer – The contents of this article do not replace tailored legal advice

*Sharon Givoni is an intellectual property lawyer with 16 years and has clients across all industries.

The future of Manufacturing needs to focus on consumer needs and changes in technology

In one word – MARKETING – the changes in the market place!
Mass Marketing & Traditional Advertising as a real science were born after WWII to make the ‘masses’ aware of all the wonderful new products being produced by mass production which was beginning to come out of it’s teenage years of the 1920’s. See our 1-Page Marketing History here

In my last rant about the need for manufacturers to manufacture their own future and stop complaining about the things they can not control, my focus was on the need to start taking marketing seriously to remain competitive and relevant, whilst ignoring statistics and market data that added absolutely no value.

Today’s entry focuses on the future and the trends that can not be ignored!
Here’s a typical headline from the last few months, and there is no doubt that as sad as it maybe these sorts of headlines have become and will continue to become the staple of the business pages here in Australia and globally!

“Manufacturing needs more than promises” – an opinion piece from February 10, 2012 in The Age again argues that Australia must keep the skills to sustain economic diversity. The article makes the following points:

  • ALMOST 1 million Australians work in manufacturing, compared with 135,000 in mining.
  • Only retailing employs more people than manufacturing.
  • Decline in the manufacturing sector has accelerated in the past three years, with more than 100,000 jobs lost.
  • Neither the government nor the opposition has given any indication that they see the crisis in manufacturing as more than an opportunity to lash each other.

But is this really a problem and is it the real problem?
Here are 2 great articles that examine the future of manufacturing and the changes this will bring to the workforce and the economy. They are great because they focus on the future instead of the past and they provide ideas on how to best survive in this time of change!

In summary the future is not bleak:
– the government and the industry (employers and employees) need to let go of nostalgia

– “…we still need to MAKE things but the number of people employed to do so will keep decreasing and this is called productivity. Even in China manufacturing jobs are in decline!”

– “…the manufacturing successes in Australia come from niche manufacturers in areas that require high skills and high precision.” Niche is the operative word here! Differentiation through your product offering and marketing communication (branding – how your customers and prospects perceive your offering) are the order of the day!

– “…service industries are more diverse and less tangible. But productive work is productive work. What should it matter if we make a dollar’s worth of tractors or code a dollar’s worth of websites?” Smart manufacturers have realised that the greatest value is in new product ideas, products that solve problems in new and cost effective or convenient ways! They have realised that design and marketing of these products is what actually makes money! And the one thing that can not be replicated quickly and easily is the relationship that you build with your customers! The rest can and will be copied and patents are unlikely to help you for long!

To illustrate the point here’s another quote “Factories used to move to low-wage countries to curb labour costs. But labour costs are growing less and less important: a $499 first-generation iPad included only about $33 of manufacturing labour, of which the final assembly in China accounted for just $8.” Guess where the other costs went? Design, Marketing, Distribution…

– “Offshore production is increasingly moving back to rich countries not because Chinese wages are rising, but because companies now want to be closer to their customers so that they can respond more quickly to changes in demand. And some products are so sophisticated that it helps to have the people who design them and the people who make them in the same place.”

– “The first two industrial revolutions made people richer and more urban. Now a third revolution is under way. Manufacturing is going digital…the applications of 3D printing are especially mind-boggling. Already, hearing aids and high-tech parts of military jets are being printed in customized shapes. The geography of supply chains will change.”

You can read and watch more about 3D printing on Morris Miselowski’s blog (he’s a highly regarded futurist who consults to business leaders around the globe!) http://youreyeonthefuture.wordpress.com/2011/12/04/print-yourself-a-new-hip/

– “The lines between manufacturing and services are blurring. Rolls-Royce no longer sells jet engines; it sells the hours that each engine is actually thrusting an aeroplane through the sky.”

You can learn more about the often ignored and certainly underestimated P of the marketing mix – Pricing by watching this fantastic video http://www.youtube.com/watch?v=YwBkKvGfjRo&feature=relmfu by Jon Manning, a leading Pricing expert who has assembled a global panel of Pricing experts (www.pricingprophets.com) as well as  thought-leaders to help you with the most important decision your business faces: Pricing. Their experts will tell you not only what price you should charge, but more importantly, why you should charge that price. How is that for crowd sourcing?!

– “Like all revolutions, this one will be disruptive. Digital technology has already rocked the media and retailing industries, just as cotton mills crushed hand looms and the Model T put farriers out of work.” The question is – are you manufacturing your future by listening to the market?

Junk Mail in my Letterbox: An urgent need for proper content strategy

Junk Mail in my Letterbox: An urgent need for proper content strategy

A recipe for depressing consumers and marketers alike! Here they are laid out on my kitchen counter:


The quality of “stuffing” in our letter boxes certainly justifies this paper waste being called Junk Mail! Here’s a sample from just one day, which is typical of type and quality SME (small medium enterprise) Junk Mail versus big retailer catalogs.

These are 2 distribution companies:

1. Letterbox Deals which comes in a brochure format – this one had around 30 pages and 27 Advertisers

2. Business Link, which is Local Advertising company which sells the space, prints and then distributes into mailbox – they had 21 advertisers all as loose leaf or brochures in different sizes and formats.

The overall standard of these and all other junk mail I have ever received is pathetic.

Most rules of design and copywritng have been broken / ignored (fact is the owners of these brands just don’t know what they don’t know).

Letterbox Deals – 8 out of 27 were just reasonable, or at least acceptable.

Business Link – 1 out of 21 was good (and it was a Franchise – Step Into Life), 1 was ok, the rest a perfect example of what not to do when it comes to Copywriting and Design.

The ratio of terrible to reasonable is the same in your local newspaper, Manufacturer’s Monthly and most other trade mags.

Interestingly the standard in North America (USA and Canada) is much higher, due to the more competitive nature of their markets.

The only reason most of these businesses are still alive is because their competition is just as bad and consumers have effectively no choice!

And here’s the bit that makes me happy – business owners who get this will prosper with the proper content strategy: by developing a brand, communicating clearly, effectively and utilizing basic communication principles.

Junk Mail in my Letterbox: An urgent need for proper content strategy

Junk Mail in my Letterbox

A recipe for depressing consumers and marketers alike! Here they are laid out on my kitchen counter:

The quality of “stuffing” in our letter boxes certainly justifies this paper waste being called Junk Mail! Here’s a sample from just one day, which is typical of type and quality SME (small medium enterprise) Junk Mail versus big retailer catalogs.

These are 2 distribution companies:

1. Letterbox Deals which comes in a brochure format – this one had around 30 pages and 27 Advertisers

2. Business Link, which is Local Advertising company which sells the space, prints and then distributes into mailbox – they had 21 advertisers all as loose leaf or brochures in different sizes and formats.

The overall standard of these and all other junk mail I have ever received is pathetic.

Most rules of design and copywritng have been broken / ignored (fact is the owners of these brands just don’t know what they don’t know).

Letterbox Deals – 8 out of 27 were just reasonable, or at least acceptable.

Business Link – 1 out of 21 was good (and it was a Franchise – Step Into Life), 1 was ok, the rest a perfect example of what not to do when it comes to Copywriting and Design.

The ratio of terrible to reasonable is the same in your local newspaper, Manufacturer’s Monthly and most other trade mags.

Interestingly the standard in North America (USA and Canada) is much higher, due to the more competitive nature of their markets.

The only reason most of these businesses are still alive is because their competition is just as bad and consumers have effectively no choice!

And here’s the bit that makes me happy – business owners who get this will prosper by developing a brand, communicating clearly, effectively and utilizing basic communication principles.