What are Collective & Certification Marks?

As an attempt to replicate the success of foreign GI systems, the Philippines is crafting new rules to accommodate the use of collective marks and certification marks as GIs. Without creating a new law or a sui generis system, we intend to include the use of GIs into the mainstream trademarks system. 

Collective Marks

A Collective Mark is defined as any visible sign designated as such in the application for registration and capable of distinguishing the origin or any other common characteristic, including the quality of goods or services of different enterprises which use the sign under the control of the registered owner of the collective mark. 

Said marks are owned and used in common by a group or organization. Members of the group who comply with its rules are free to use the mark to show their affiliation. Through this mark, the members of the group or association are able to use its reputation and goodwill on their products or services.

The Triple A logo is used by the members of the American Automobile Association and serves as a mark of quality service.

U.S. Reg No. 1066462

Like trademarks, collective marks  can be powerful marketing tools that strengthen the identity of goods and guarantees of quality that protect the consumers from substandard counterfeit items. In addition, they may also be used to protect the territorial origins of the product and the people carrying out the industries in those territories.

Collective Marks may indicate geographic origin.

Example: Thai Jasmine Rice.

When used as a GI, a collective mark protects local industries from outside competition by giving the members of the group the exclusive right to use the mark to show genuineness of origin. 

Certification Marks

Certification marks are badges of approval managed by certifying agents that license their use to producers and merchants who are able to comply with specific standards. 

These marks may be used as GIs and are usually managed by local government units or local offices of the trade department in the territory indicated. 

However, private entities are free to register and manage these marks if they can demonstrate their capacity to set and test specific standards fairly. To ensure this, certification mark owners are prohibited from using the mark in business. They only act as certifying agents who test standards and license the mark for others to use. Consequently, they may charge fees for the use of the mark and other incidental services they provide, like marketing.

GIs are usually registered as certification marks in the U.S. because they are flexible enough to be used on a wider range of goods and services, compared to a collective mark, which is necessarily limited to the group’s collective business interest.

Certification Marks guarantee standards.

Example: ISO 9002 mark managed by the International Organization for Standardization.

One particular success story in the use of certification marks is Cotton USA. Since its launching in 1989 with a multi-million dollar advertising campaign, demand for garment, furniture and other products bearing the Cotton USA mark have spiked worldwide. Cotton USA imposes strict standards upon producers who apply for licenses to use the mark, requiring their products to be 100% cotton products with at least 50% U.S. cotton. 

Cotton USA requires licensees’ products to be made of 100% cotton with at least 50% U.S. cotton.

Today, the Cotton USA mark is a symbol of quality and value. Consumer awareness of the mark has grown from an average of 12% in 1989 to 40% in 2006. Studies made in countries like Korea, The Philippines and Taiwan, show that awareness of the mark is reported to be almost 90%. 

A good example of a certification mark used as a regional geographical indication is the famous Idaho Potato mark. It is managed by the Idaho Potato Commission and licensed to growers, packers-shippers and processors to certify the genuineness and quality of their Idaho potato products.  

The Idaho Potato Commission certifies the genuineness and quality of the Idaho Potato products of its licensees with the Grown in Idaho certification mark.

U.S. Reg No. 2914308

Certification marks may also be used to show that the goods were produced by the members of a certain group. For example, a mark can indicate that a labor union or guild created the product, thereby telling the consumer that the workers were given fair wages or that coffee farmers were paid a fair price for their harvest. With the use of the mark, value is added to the product, which can justify higher prices in the market.

The Fairtrade mark managed by the Fairtrade Labelling Organizations International (FLO) certifies products that comply with certain environmental, labor and developmental standards.

Another possible use for certification marks is to prompt consumer behavior by adding social value to a product. A mark can, for example, certify a product as “100% Produced with Green Technology”. It can provide critical information to health-aware individuals as in the case of marks certifying that toys are “Lead-free” or that food products have “Zero Sugar”. 

Example: Halal mark certifying that a product is permissible under Sharia law.

Finally, certification marks may be used to emphasize the quality, history and the cultural relevance of these products. A mark can, for example, suggest that the product was prepared exclusively by members of lumad groups in Mindanao, using traditional methods. The mark provides a back-story that can lead to greater consumer understanding and allow producers to fetch better prices for their wares.

Potential of GI use in the Philippines

The Philippine islands are teeming with local goods and produce that are world-class in quality, but not yet in reputation. IP Philippines seeks to promote the use of trademarks, collective marks and certification marks by these target producers to enhance the market. 

Examples of these target products are Cebu Mangoes & Chicharon, Iloilo Butterscotch & Piaya, Bicol Pili Nuts, Iligan Peanuts, Cagayan de Oro Cashews, Davao Durian, Batangas Barako Coffee, Vigan Longganiza, Ilocos Norte Bagnet, Bukidnon Coffee, Camiguin Lanzones and hundreds of other products open to GI registration.

When blended together strategically, trademarks, collective marks and certification marks create a formidable marketing device that can raise the competitiveness of locally produced goods in the world market. Managed wisely, these marks will not only promote Philippine products, but the Philippines herself. This is a massive opportunity for business, tourism and national publicity.

This is possible for the Philippines. In fact, it is a close certainty. All we need is to give our producers a little education and encouragement. IP Philippines is ready to take the lead in this endeavor.