Reuters News Service / August 13, 1998
PHNOM PENH, August 13 (Reuters)--Cambodia's new government must make trademark, patent and copyright protection a top priority if it is to attract much-needed foreign investment, business representatives said on Thursday.
"It's a serious issue," Nigel Venning, corporate affairs manager for British American Tobacco (BAT) Cambodia Ltd. (BATS.L) told Reuters.
"International investors need to see some security for their brands, to make it attractive for them to manufacture in the country."
BAT has lodged a protest with the government after a local company introduced cigarettes that copied the trademarks of BAT's international 555 brand and its local market-leading brand, Ara. BAT is running advertisements in local newspapers to warn consumers about the two rival brands: "Elephant," which mirrors the red, white and gold package of Ara; and the "Mercedes" brand, which not only copies the packaging of 555 cigarettes, but also uses the name and distinctive symbol of German car-maker Mercedes-Benz.
Cigarettes are not the only products that bear copycat logos in Cambodia. Phnom Penh residents can eat out at "Pizza Hot," which carefully recreates the logo and menu of the American restaurant chain Pizza Hut. One of the most chic night spots in town is the "Sharaton" Hotel, which trades on the popularity of worldwide Sheraton Hotels.
"There are violations you see around town that nobody does anything about because there is not much chance of enforcement," said David Doran, a Phnom Penh-based legal consultant.
But officials at the Ministry of Commerce's intellectual property division say the lack of enforcement may soon change if the new government emerging from the July 26 election agrees to put a draft trademark law high on the legislative agenda.
If the law were passed, it would bring Cambodia into compliance with World Intellectual Property Organization regulations more than six years ahead of its deadline. It would also bring Cambodia into compliance with the Association of Southeast Asian Nations (ASEAN), to which it is hoping to gain membership.
"If we don't have this law, how can we work in the ASEAN community?" said Ly Phanna, director of the intellectual property division.
More than 10,000 trademarks have been registered since the trademark office was opened in 1991.
But back then, when Cambodia was emerging from nearly two decades of conflict, staff were unfamiliar with international brand names such as sportswear maker NIKE International Ltd. (NKE.N), and Davidoff & Cie S.A, which makes cigarettes.
Both trademarks were registered in Cambodia by people who were not connected with the real company owners.
"Some bad applicants tried to cheat us in 1991, 1992 and 1993, when we didn't know about well-known trademarks," said Var Roth San, deputy director of the division. "Now we are trying to clear up our wrongdoing. Step-by-step we have to solve the problem."
But this will be difficult, they admit, because trademarks, patents and copyrights all currently fall under the jurisdiction of different government ministries.
When BAT complained to the Ministry of Commerce about the copycat cigarettes, it found that the rival company had received the go-ahead to launch the brands from the Ministry of Industry, which governs patents.
Copyrights fall under two ministries: information and culture.
David Carrad, a lawyer who helped the Commerce Ministry write the draft trademark law, says bringing all intellectual property protection under one roof would make it easier for investors. But the draft law makes no provision to unite jurisdiction.
A western diplomat said that the lack of protection is part of the generally difficult business environment in Cambodia, but political stability and security are still bigger worries for investors.
The 122-seat national assembly is due to convene in late September. Government leader Hun Sen, expected to be sworn in as Prime Minister, has said repairing the battered economy and attracting foreign investors is a top priority.
Copyright 1998 Reuters Limited.
