Let me
start by wishing one of the British Brands Group's members (A.G. Barr) happy
birthday! "Irn-Bru" - 'Scotland's other national drink' - is
celebrating its hundredth birthday this year. Congratulations and many happy
returns!
British brands certainly have
a long history. The use of trade marks to distinguish goods and to offer
consumers a guarantee of their origin and the skills and reputation of their
makers can be traced back to the mediaeval craft guilds. The importance of
brands to the economy and to consumers was also recognised a long while ago. We
established the world's first Trade Mark Registry. The UK Registry opened for
business on 1st January 1876.
I am very pleased to have the
opportunity to deliver this keynote address to the brands conference. As
Minister for Competition, Consumers and Markets, my title does not make any
explicit reference to intellectual property. However, I think it is entirely
appropriate that competition, consumers and intellectual property are one
ministerial portfolio. I regard these as mutual and complimentary interests.
With the developing knowledge
economy, we must make sure that intellectual property protection continues to
play its essential role in encouraging and rewarding creativity and innovation.
It must work with emerging and changing markets to assist brand owners to
deliver choice, quality and value to consumers.
I believe our intellectual
property system is well placed to meet current challenges. The Trade Marks Act
of 1994 brought a harmonised European system to our national law. We have a
very successful Community trade marks system offering brand owners EU-wide
registration at one stroke. These changes also expanded the scope of trade
marks so that industry can now protect sounds and shapes and trade dress.
But we cannot stand still. The
internet revolution has presented both new opportunities and challenges to
brands. Again, the confidence and trust that consumers need to make use of this
technology can come from familiar brands. The question of cybersquatting and
other loutish behaviour is a new problem. I think it is manageable. For
example, the Joint Recommendations approved by the World Intellectual Property
Assemblies last month on the use of trade marks on Internet are firmly based on
existing law. They add to the law by providing up-to-date definitions and
guidelines for the use of trade marks in cyberspace. The international
credentials of these guidelines and the increasingly secure international
disputes resolution procedures which are being developed alongside do, I
believe, make a significant and valuable contribution.
The Government recognises the
role brands play in guaranteeing consumers choice and value. Strong competition
is also needed to ensure consumers get a good deal. It is the best way of
promoting the business innovation and productivity we need in the modern
economy. We need strong, effective, competitive markets; not price fixing or
abuse of market power. We need confident, demanding consumers - they promote
innovation and stimulate better value and in return they get better products at
lower prices.
We are determined to make sure
that the legislation and institutions which safeguard competition are fully
equipped for the new demands of the 21st century.
This is the key to increasing
productivity and competitiveness. And this is why we are undertaking further
reform of the competition regime - proposals for which are set out in July in
the White Paper Productivity and Enterprise - A World Class Competition
Regime. This sets out a blueprint to build a world-class competition regime
for the UK, building on the achievements of the Competition Act 1998.
We are proposing major reforms
to the competition regime including stronger; more pro-active, better resourced
competition authorities; new duties for OFT to promote competition; reform of
the Fair Trading Act provisions dealing with monopolies and mergers and
introduction of strong deterrents to anti-competitive behaviour by introducing
a new criminal offence for those engaged in cartels.
We are putting consumers at
the heart of competition policy through measures such as the introduction of
the super-complaint, where named consumer bodies can raise important market
issues with the Office of Fair Trading. In response to super-complaints, the
OFT will provide a clear, public statement, announcing what action they intend
to take, within 90 days. As you may know, the Consumers Association made the
first super-complaint yesterday.
This builds on our work to
protect businesses, especially small firms, as well as consumers against
anti-competitive behaviour.
I believe that brands
encourage competition and competition drives innovation. As consumers' needs
evolve then both brands and the competition regime need to respond to these
changes. I believe together we can build a more competitive economy by
recognising these evolving needs.
Using trade marks on the
internet integrates markets that were previously separate, giving consumers the
opportunity to compare prices across the world. More travel and better informed
consumers encourage global price comparisons. I see liberalisation of the trade
mark exhaustion regime as a natural development arising from the knowledge
economy and market integration. Brands have an important role both in
stimulating innovation and in the developing knowledge economy. However brands
may also need to evolve to meet changing markets and consumer expectations.
I would like to wish you an
enjoyable and thought provoking conference.
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