One Town One Product (OTOP) and the Use of IPR Tools in Local Products

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1 One Town One Product (OTOP) and the Use of IPR Tools in Local Products ATTY. ALLAN B. GEPTY Deputy Director General Intellectual Property Office Seoul, Korea 23 June 2010

2 Islands -7,100 Provinces 82 Cities 135 Municipalities 1,493

3 Executive Order No. 176 dated February 11, 2003 issued by Pres. Gloria Macapagal Arroyo PRIMARY OBJECTIVE To stimulate local economic activity and small and medium enterprise (SME) growth, generating jobs, developing the countryside, and sustaining the anti-poverty thrust of Government through countrywide lending to SMEs. > The Department of Trade and Industry (DTI) shall be the lead agency of the Program.

4 Small and medium enterprises (SMEs) comprise 99.6% of all registered business in the Philippines and employ 70% of the workforce

6 The OTOP Philippines

7 > The One Town One Product (OTOP) Philippines Program is a priority program of the Republic of the Philippines. > It is mandated to provide the stimulus and empowerment to the Small and Medium Enterprise (SME) nationwide as part of the nation's SME agenda. > It is a priority program of the government to promote entrepreneurship and create jobs. Through OTOP, local chief executives of each city and municipality take the lead in identifying, developing, and promoting a specific product or service, which has a competitive advantage.

8 > OTOP-Philippines supports micro, small, and medium enterprises (MSMEs) to manufacture, offer, and market distinctive products or services through the use of indigenous raw materials and local skills and talents. > The OTOP program also served as catalyst to showcase Filipino artistic craftsmanship, inspiring them to develop products of genuine quality for both local and international market.

9 OTOP s s Features Appropriate technologies Skills and entrepreneurial training Business counseling SME Marketing Product designs & development

10 As of year 2009:* > There are 1,497 cities/towns out of 1,518 (98.6%) with OTOP assistance. > At least 2,000 SMEs were enrolled in the program and more than 100 new exporters registered a total export sales of almost $500M which generated roughly 400,000 jobs for Filipinos. *OTOP 2009/OTOPreneur Magazine 2010

11 Partnership Philippine Chamber of Commerce and Industry Small and Medium Enterprise Local Government Units

12 The PCCI is aggressively pursuing its advocacy for business growth with social equity by initiating specific community-based business projects, embarked on the creation of active partnerships and working relationships together with private and public sector and other stakeholders.

13 Increasing awareness on the importance of IP; Increasing the value of the products; Setting the identity of the products; Commercialization of the products; and Protection of their creation and innovation, and enforcement of IPR.

14 MISSION : We are a knowledge-driven driven government organization that works towards economic, technological, and social-cultural cultural development by communicating, enabling, and ensuring the effective use of the Intellectual Property System in all levels of society for the creation, protection, utilization, and enforcement of Intellectual Property. VISION : An Intellectual Property-conscious Philippines in a demystified, development-oriented, oriented, and democratized IP System by 2020 (2020 VISION: 3D IP)

15 IP Philippines Role While DTI focuses on product development and promotion,ip Philippines drums up awareness on the importance of protecting the trademarks of SMEs. IP Philippines assistance is sought in the registration of the entrepreneurs trademarks. Field personnel of IP Philippines assist the entrepreneurs in the completion of the trademark application form. IP Philippines intensified its involvement with SMEs thru the establishment of IP Satellite Offices (IPSO) in strategic locations in the country. The effective use of the IP System by SMEs in the countryside is made possible as IP Philippines has established IPSOs in the regions. These offices are housed in the DTI,the key partner government agency of IP Philippines.

16 OBJECTIVES AND GOALS of the IPSOs Foster a vibrant IP culture in the countryside Promote technological/enterprise development and commercialization of intellectual property Protect creations and innovations in the regions.

17 IPSO Programs: Effective Institutional Partnership: MOU with the Academe, SMEs, LGU, DTI, DOST, Private Sector and other partners

18 IPSO Programs: IP Retooling Seminars for DTI Frontline Staff

19 IPSO Programs: IP Awareness Seminars Patent Claims Drafting Seminars- Workshop for SUCs

20 IP Philippines involvement in product design & development by DTI New Group of SME goes to DTI DTI Design Center assists in brand design Branded products included in DTI promotion programs IP Phils. - one-one consultation on Brand protection Brand design, label, packaging finalized IP Phils. facilitate Trademark registration of SME Brand

21 Collective Mark Registration: Development & Protection of Native Products Pili Nuts Producers of Bicol Region Micro Noodle manufacturers Mango Farmers

22 Provincial Branding Program: Protection of Native Products in a locality

23 AROMA ANAO Local Government leads in the development and protection of a local wonder

24 Municipality of ANAO Taralc Province Land Area: km2 (9.2 sq mi) Population: 10,806 (yr. 2007)

25 Local government leads in production of Ylang-Ylang flower (Cananga Odorata)

26 Anao residents are enjoined to grow ylang-ylang trees in their backyards. (environmentfriendly) The local govternment regularly buys from residents ylang-ylang flowers. (local income) In 1995, Ylang Ylang project was launched as One Barangay One Product (OBOP) later One Town One Product (OTOP) in Tarlac City with the assistance of DTI. Three years later, the product was developed into an essential oil. In 2006, AROMA ANAO passed a series of rigid evaluations conducted by the Center for the Promotion of Imports from Developing Countries, an agency of The Netherlands Ministry of Foreign Affairs.

27 Today, Ylang Ylang essential oil product is marketed locally to industrial and direct buyers. The demand is constantly increasing. Buyers come regularly including inquiries from importers and exporters from Canada, USA, Germany and the local exporter of Citronella Oil. Aroma Anao is the registered trademark of the Ylang Ylang product from Anao, Tarlac.

chips. Under OTOP, DTI has identified the microwavable saba banana as one of its flagship program.

28 GOLDEN SABA The Philippines has been exporting bananas to the United States, Japan, Australia, Canada and Middle East. Most varieties of banana are exported as fresh while the Saba variety reaches the export market in banana chips. Under OTOP, DTI has identified the microwavable saba banana as one of its flagship program. With the adoption of new technologies, new products were introduced in the market such as banana fries, spring roll and microwavable saba packs.

market with at least 12 containers shipped out monthly to the US, Canada,

29 Now with registered trademark Golden Saba, A Natural Healthy Fruit, the new developed products from the Saba variety successfully penetrated the export market with at least 12 containers shipped out monthly to the US, Canada, Middle East, and other Asian countries. Potential market include Australia, Japan and Korea.

30 IPSO s HIGHLIGHTS OF ACTIVITIES

31 IP Filings (2009) Legend: TM = 530 Baguio 55 4 Inv/UMID = 112 Angeles 41 4 NCR & Region IV Legaspi Cebu Davao GenSan 37 14

32 IP Filings (as of April 2010) Baguio Legend: Angeles 71 NCR & Region IV 58 3 TM = Legaspi Inv/UMID = 81 Cebu GenSan Davao

33 Thank You

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