The intellectual property (IP) registration of homegrown brands can help micro, small, and medium enterprises (MSMEs) recover from the pandemic, according to a former Trade official.
Former Department of Trade and Industry Undersecretary Carissa Cruz-Evangelista, who is the founder-chairman of the Philippine Fashion Coalition, said having IP protection can help MSMEs grow faster.
She called on MSMEs and the government to do more especially in helping the creative economy recover. She noted that the creative economy is the hardest hit due to lockdowns.
“We need to take a look at our IP, our creative economy, how to prevent online piracy and online counterfeiting. Protect your intellectual property and take care of all the avenues where you sell,” Cruz-Evangelista said in a statement.
She said IP protection is crucial especially for those venturing into different markets through e-commerce, which she encouraged MSMEs to pursue following the exponential growth in online trade.
The United Nations Conference on Trade and Development (UNCTAD) earlier said lockdowns increased online retail sales’ share to total retail sales to 19 percent from 16 percent in 2020. In 2019, global e-commerce sales jumped to $26.7 trillion, up four percent from 2018.
“We need to make sure that there’s an IP protection budget for companies who are bigger and even for MSMEs,” Cruz-Evangelista said.
DTI Special Concerns and Trade Promotions Group Undersecretary Abdulgani M. Macatoman, however, said with opportunity comes risks, particularly that of unfair competition from copycats once creations and products of MSMEs are out in the open.
The latest estimates by the Organisation for Economic Co-operation and Development showed that imported faked goods are at $509 billion as of 2016, about 3.3 percent of total trade that year. OECD said counterfeiting may have spiked due to Covid-19 and e-commerce boom.
In the Philippines alone, IPOPHL reported counterfeiting and piracy reports and complaints surging to 121 in 2020, surpassing the 100 reports and complaints that IPOPHL received from 2016 to 2019 which even took into account all types of infringement.
“IP stands as a protective guard to the activities in the e-commerce arena… As such, IP protection must be at the forefront of MSME business strategies more than ever,” Macatoman added.
Philippine Franchising Association President Sherill R. Quintana said “at the height of the pandemic, those who were able to put extra effort in building their brands through the years, they are the top-of-mind.”
She added that many homegrown brands, given their long-term aspirations, proved true to their values by “taking the extra mile” to respond to their customers’ needs in the midst of mobility restrictions.
Quintana defines a brand as the emotional association customers create with a product or company. Building the brand, she said, is linked to everything a company does, from ensuring customers get value for their money to “going the extra mile” for customer service.
This makes protecting trademarks, innovations and creations the ‘integral’ first-step to brand-building as IP assets can highlight the unique, competitive edge of a business and, from there, establish trust with customers.