How Brand as an Intellectual Property has Led to Corporate Globalisation?

IntroductionThe World Intellectual Property Organization (WIPO)
Globalisation is referred to as a set of profoundhas initiated and promoted the Madrid Protocol, which
material changes that have an impact on relationsestablishes a system for the international registration
between societies in the past few decades. Theof trademarks to reduce this cost due to multiple
identifiable features of these material changes areregistrations in different countries. This protocol is
witnessed in the development and growth of web,termed as the Intellectual Property Rights. Intellectual
satellite transmission, fibre-optic technology,Property Rights cover Patents, Trade-marks,
broadband operations, transnational corporations andIndustrial designs, Copy rights & related rights,
the emergence of World Trade Organisation.Geographical indications and Trade secrets &
Globalisation is transformation of how ideas travel andUndisclosed information. Trademarks have become
the nature of their final destination leading to increasemore than a means of protecting market share.
in international trade thereby increased competition.They have become an invaluable tool in claiming and
Firms expand by penetrating established markets tocreating markets. From just being a trade mark, they
create new markets for their products. Thisbecome trust marks as brands. According to the
necessitates them to have identity for them byauthor and journalist Naomi Klein, "branded world
establishing trademarks by way of branding and keepwhere the logo is a common language understood by
on administering to create value. While expanding andeveryone" leading to a shift in corporate marketing
penetrating newer markets; developing, promotingstrategies: from promoting commodities based on the
and performing marketing operations using differentneeds of the marketplace, to promoting a brand to
trade marks for different countries become costlier.represent a lifestyle thereby create needs in the
The more the countries a trademark is known, themarketplace. The branding strategy makes the
greater is its value and the greater the need totrademark and the socio-cultural identities associated
protect the same by registering at the global level.with the mark including the product itself.
Trademark registration involves not only higher costsIntellectual property in a brand plan becomes critical
but also procedural constraints while registering theas business incubator or investors need to
same in every country.understand and accept the coherence of the brand
Brands have become part of not only an economicidea including its protection. New or original knowledge
market, but also a metaphorical market because theyand/or creative expression of ideas, protectable by
involve and propagate a system of using signs tothe system of intellectual property (IP), underpin their
control meaning and language as brands fulfils severalcompetitive advantage and success. Therefore, a
different economic functions.brand plan should cogently reflect how the firm plans
Identification: On a basic level, it serves anto protect, manage and leverage its intellectual
identification function by associating a product with aproperty assets for brand success. Patents for
company.Brands provide exclusivity for the commercialization
Communication: More abstractly, it has an informativeof inventions and often play a crucial role in
function, in that it provides a vehicle for the efficientconvincing investors or lenders. One or more patents
communication of information, thereby reducingalong with industrial design registrations reflect as a
consumer search costs in choosing a product.proof of brands ability to dissuade competitors using
Signaling: The use of branding in advertising alsooriginal or aesthetically attractive features of the
serves a signaling function, in that, it suggests that abrand. Therefore, a brand plan should integrate
company who is willing to expend a substantial sumintellectual property and reflect the steps that are
on its advertising must have developed a goodplanned to develop, register and effective use of
product. Expression: Lastly, branding also serves anintangible assets to win and retain market share from
expressive function, in the sense that it links acompetitors.
particular consumer identity or essence with aWhile integrating intellectual property, operational
product.elements that make the brand innovative like,
Mega - branding StrategyChallenge, customer focus, creativity, communication,
Branding involves not just the product name,collaboration, completion and contemplation should
advertisements, or the use of a logo, but the corealso be considered.
assumptions and beliefs that are conjured up whenIssues
one thinks of the brand. The best brands were thoseThe possibility of inadvertently infringing a third
who could generate a certain psychological feelingparty's intellectual property rights is high in high-tech
about the product. Thus, the "brand essence" movedsectors. Confidential information such as details of
away from a focus on the product and toward aproduction, inventions, and technical, financial and
psychological association of the brand with a certainmarketing know-how is often the source of
identity. Today, firms undertake "mega-branding"competitive advantage. Intellectual Property can be a
strategy, in which firms devote a substantial portionhighly valuable asset. Managing and ascribing a value
of their income towards placing their logo on aon the balance sheet of the brand will make it more
variety of different products and events, furtherattractive to potential investors. The more the
amplifying the link between psychological, cultural andposition in the market place is exploited, more the
corporate association. In this way manufacturersvalue will be of the property while licensing it or selling
control both supply and demand by manipulatingthe brand.
consumer trends through the skilful promotion of theConclusion
brand.Administering Intellectual Property is an arduous task
Brand Plan - A Valuable Management Toolfor approaching investors and considering the market
Brand plan is a crucial step in charting a businessopportunities for the brand. As the Intellectual
route to success. A good brand plan provides anProperty provides the brand with competitive
overview of where the brand is, how it plans toadvantages and increases its value, it is necessary to
position or reposition itself, and how it seeks tolet the investors know that the intellectual property
achieve its business objectives. A well-prepared andintegrates with the brand plan. Reference to the
regularly updated brand plan is a valuableassets of the brand and its market opportunities
management tool that serves variety of purposes. Itshould list both the tangible and intangible assets, as
helps examine the feasibility of taking a brand idea tothe latter are often the key to success of the brand.
the market. A written brand plan forces a firm toThe growing emphasis on the brand has been
think through all the key issues - such as the potentialparalleled by a massive expansion of property rights
demand, the nature of the competition, entryin trade symbols. In the past, the law's major
barriers, the unique selling proposition, key employees,emphasis focused on protecting a mark in order to
relevant technologies and strategic partners, raisingavoid the danger of consumer confusion, or piracy
funds, projected start-up costs, and the like.between goods which used similar marks. However,
A brand plan is a reference document that providestoday, the focus has shifted towards trademark
management with an objective basis for determiningprotection. In other words, in order to protect their
whether the brand is on track to meet its goals andtrade marks used in advertisements and logos, firms
objectives with the available resources in a setturn to trademark law, and copyright law. As per the
timeframe. Innovation is very important and critical totrademarks, 1999, the term mark includes a device,
the future of the brands. Context, Leadership andbrand, heading, label, ticket, name signature, word,
core values of the brands are the drivers ofletter or numeral or any combination thereof. The
innovation. One needs to address "What is thenew Trade Marks Act, 1999 has made far reaching
current situation of the brand? What threats forchanges in the act considering the liberalisation and
survival might exist?", "What is the leadershipglobalisation of economy. They include particularly the
passionate about? What drives the choices, decisionsfollowing:a. Registration of Service Marksb. Collective
and behaviour in the organisation? How innovationmarks providedc. Two parts A & B abolishedd.
and creativity improve brand? How this can beWell known trademarks protected even if not
strengthened to be considered as a global brand?registerede. Shape of words can also be registered
Customer analysis and brainstorming help generateHence, intellectual property law should form a key
ideas for innovation. Internal sources and customerspart of every aspect of a good brand plan.
are the best sources of ideas.