IP Law: Protecting Your Reputation in a Changing Marketplace
January 04, 07Keeping Up With the Joneses by Taking Care of Intellectual Property Concerns
“The practice of registering intellectual property rights complements the traditional way of doing business; based on trust and personal integrity.” (Anon.)
Since the early 1990s, the diamond industry has seen the introduction of new business practices, as more and more younger diamantaires enter the marketplace, vying for success in arguably one of the most exciting and successful spheres in international commerce today.
So how have they been making their fortunes, and how have established diamantaires, often representing several generations of a family business, maintained, and improved, their market status? There are many answers, but without doubt, branding and innovation are critical. Both are used to create a distinct identity in this highly competitive marketplace.
The identity of a diamond firm is composed of many factors, including new brand names for new diamond cuts, the forming of new enterprises with new and memorable names, and the use of branding slogans. Undoubtedly, a strong Internet presence has also become increasingly important. While these tools are not in themselves new, there is no question that more money than ever before is being invested in brand creation. It is therefore critical to properly protect that investment.
During the past decade, increasing numbers of diamantaires have been protecting their businesses and investments by the registration of intellectual property rights. Principally, this is achieved by registering brand names and slogans as trademarks, and by securing the registration of new diamond cuts as design patents.
The reality is that more of your competitors are registering their intellectual property rights, and are therefore shrinking your marketplace. This situation may be compared to the development of real estate in rural areas. What were once green rolling hills ten or 20 years ago, are now the domain of the property developer; something you may only notice once it arrives on your doorstep. And of course, by then, it may be too late.
Similarly, while you may feel that the registration of trademarks and designs runs counter to the diamantaires’ unspoken business code; this will be of small comfort when you are sued for allegedly copying someone else’s registered trademark or design. The legal claim against you may be false, but it will still have blemished your name.
The solution to reducing your exposure to these situations lies in taking both defensive and offensive measures. By way of a defensive measure, before embarking on a marketing campaign with new brand names and/or slogans, and before investing in a new diamond cut, you should conduct clearance searches in the markets of interest. This is a vital measure, as it will help you to avoid undesired conflict with a third-party holder of prior rights.
A further, offensive measure is to register your own intellectual property rights. This will assist you in preventing a competitor from copying your successful brand name, slogan, or diamond cut. It’s not just about protecting your investment of considerable amounts of time and money in selecting names and coming up with eye-catching designs; it’s also about preserving your reputation as a producer of the highest caliber, and preventing others from sullying that reputation by using similar names or cuts, but supplying sub-standard service and products to your clients.
Times have changed. They are no longer the same as when your father or grandfather could trust their peers and be trusted in return, and when they enjoyed a good reputation simply by being hard-working, honest people. Even if the world of the diamantaire has changed, this does not mean that your reputation should suffer. It pays to take intellectual property rights seriously. Your good name may depend upon it.
Jeremy Ben-David, originally from the UK, has been involved in IP since 1985, and since 1995 has been managing partner of JMB & Co, a full service Intellectual Property firm. He can be reached by email at: jmbendavid at israel-patents.co.il.