• Seeing Red: Can a Brand Trademark a Signature Color? - Knowledge Wharton
    http://knowledge.wharton.upenn.edu/article/louboutin-red-soles

    “Every time we think about trademarking, we start with the brand name and the logo. Those are the things that companies want to protect first,” Cesareo said. “But, especially in luxury, there are other things that consumers come to recognize as a symbol or a signature for the brand that need to be protected. For Christian Louboutin, the red sole is the signature of the shoe. It makes sense that he wants to protect it in every jurisdiction in the world. You need to understand that for a consumer, the red sole means something. It signals luxury, it signals quality, it’s a status symbol. It signals sexiness in general.”

    Cesareo referenced the hit song “Bodak Yellow” by Cardi B., who raps about buying “red bottoms” as a benchmark of her own success.

    Gerhardt, who is working on an article about color ownership, said color works so well in branding, yet few companies try to protect that commercial distinctiveness.

    “Even though color is so expressive, 80% of the marks that have been registered in the last 25-year period are words; they’re text. Another 20% are designs,” she said. “If you try to make a pie chart of all the brands that claim color in terms of trying to register them as a trademark, it is .02% It is such a small sliver in my pie chart, you can barely see it.”

    Copying a design is a form of piracy. In this case, Van Haren is trying to steal the status and appeal of the original, according to Cesareo. “Even though they weren’t knockoffs legally speaking, they were still pirating a design that Louboutin felt needed to be protected.”

    Losing the case could be disastrous for Louboutin because it’s already one of the most counterfeited brands in the world, according to Cesareo. A few years ago, a shipment seized at the port in Los Angeles yielded more than 20,000 pairs of knock-off Louboutins, which would have been worth about $18 million if they were real.

    “This could cause a real dilution of the brand,” she said. “Not just knock-offs of the brand itself, but the second that this becomes very widespread and everybody starts wearing red-soled shoes, they lose that scarcity, that status symbol. They’re going to lose their distinctive power. It doesn’t just mean that knock-off sales are going to go up, but sales of the original, authentic brand are going to go down.”

    But Karol said the European court’s decision reflects a mindfulness of countervailing concerns. “You don’t want later designers to be worried about putting red on their shoes. We want red to be free for everybody to use. We want to keep that freedom and not chill these designers into worrying about how they are going to use it exactly.”

    #Marques_déposées #Propriété_intellectuelle

  • Why Consumers Lose in the Big Pharma Wars - Knowledge Wharton
    http://knowledge.wharton.upenn.edu/article/why-consumers-lose-in-the-big-pharma-wars

    Same Drug, Different Packaging

    Drug companies make significant profits as long as their patents hold, preventing generics from entering the market. But they have found a clever way to extend patent expiration by “tweaking” the medications. Feldman cited a 10-year study of prescriptions sold in the U.S. that showed how companies extend the “protection cliff” by adding exclusivities, additional patents and other minor changes.

    “Rather than creating new medicines, pharmaceutical companies are recycling and repurposing old ones,” she said. “Every year, at least 74% of the drugs associated with new patents were not new drugs coming on the market, but they were existing drugs. In other words, we are lavishing these rewards not on exciting new innovations but on tweaks to things that already exist.” She added that extending the protection cliff is particularly pronounced among blockbuster drugs. “Of the roughly 100 best-selling drugs, almost 80% extended their protection cliff at least once, and half extended the protection cliff more. We have lots of examples of what I like to call serial offenders.”

    The Hatch-Waxman Act, enacted in 1984, was designed to allow rapid entry of generic drugs into the market as soon as patents ended. For a long time, the law was successful at bringing competitors into the fold, which brought down prices by up to 80%. The law also allows a drug company to challenge a patent. If the challenger wins, they are rewarded by being the only generic on the market for six months.

    “That’s intended to help clear out weak and inappropriate patents,” Feldman said. “Unfortunately, the drug companies have taken this system and twisted it around.” She said patent holders are settling with challengers in what is known as “pay for delay” agreements. In other words, they pay that first generic to stay off the market.

    “So, the branded drug stays on the market at a very high price. The generic gets paid a little of that monopoly rent to stay off the market. And when the generic comes to market, it still gets its six-month exclusivity,” she said. “It’s a win-win for the branded drug. It’s a win for the generic drug. Consumers and society lose. These things push out the horizon at which a generic drug would enter the market.”

    Feldman believes the best way to fix the broken system is to simplify it. “Complexity breeds opportunity. And the drug industry is adept at exploiting that complexity. A simpler system makes it much more difficult to play games.” She advocates legal changes that would remove incentives and limit companies to one period of exclusivity on a chemical formulation with no allowance for extensions. She also calls for greater transparency in the process.

    #Big_Pharma #Médicaments #Marché #Génériques