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THE IMPORTANCE OF TRADEMARK REGISTRATION IN THE EXPANSION AND INTERNATIONALIZATION OF COMPANIES

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DETAILS, CONTEXT AND HISTORICAL VIEW

EXPERIENCE OF TWO DIFFERENT MARKS IN TWO DIFFERENT MOMENTS:

creation and protection of the trademark

VS

creation and protection of the trademark

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INDITEX NOW

3.384 stores

69 countries

72.377 employees

62 % International Sales

8.196 M € TURNOVER 2004

Manufacturing and distribution of fashion clothing, footwear and accessories

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COMMERCIAL FORMATS (brands)

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ZARA HOME

COMMERCIAL FORMATS (brands)

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1963 First ZARA workshop

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• ZARA is born (Confecciones GOA) in Coruña in 1964

• Manufacturing of women’s clothing

• Distribution through sales agents

• Sales Volume of approx. 2,000 MM

• 300 employees

STARTING POINT: YEARS 60 / 70

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1975 – 1st ZARA store in A Coruña

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Years 1975 – 1980

Creation of the retail company GOASAM, S.L. and the ZARA brand.

Opening of own stores

Expansion limited to Galicia with openings in the main Galician cities

Continuation of manufacturing and distribution through agents

Limited sale of own products (15% of total sales only)

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EXPANSION IN SPAIN + CONSOLIDATION OF BASIC BUSINESS PRINCIPLES

Increase of own manufacturing

Flexibility of production lines: Manufacturing in light of consumers' demand

Productive System of vertical integration

Reinvestment of almost all the profits

Strengthening of design and window dressing Departments

Reduced periods of product rotation

END 1988: 71 stores; 2,330 employees; turnover 21,000 m ptas

1st INTERNACIONAL TRADEMARK application: 1984

Years 1980 – 1988

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- 1st INTERNATIONAL OPENING: OPORTO 12/12/1988

- 1st OPENING OUTSIDE SPAIN AND PORTUGAL: PARIS 2/10/1989

- 1st OPENING OUTSIDE EUROPE: NEW YORK 21/09/1989

•own stores •franchises•joint ventures

90’s INTERNATIONAL EXPANSION

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90’s DIVERSIFICATION / BRANDS

ZARA HOME 2003

1991

Creation 1985 – Purchase 1991

1993

1998

Creation 1993 – Purchase 1999

2001

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CHARACTERISTICS :Vertical Integration

MANUFACTURING

STORE

DISTRIBUTION

DESIGN

quick answer to market demands!!!!

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CHARACTERISTICS : attractive points of sale

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CHARACTERISTICS: model of store management

CustomerService

Easypayment

EasyProduct refund

Excitementfor clients

Price

Quality

Attention to details

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IP (trademarks) MANAGEMENT MODELS

EXPERIENCE OF TWO DIFFERENT MARKS IN TWO DIFFERENT MOMENTS:

creation and protection of the trademark

VS

creation and protection of the trademark

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IP (trademarks) MANAGEMENT MODELS:CREATION

Internal creative process in accordance with commercial project

Legal viability verifications

Vocation to stay

Inalterability

Random choice without a clear vocation

Unknown legal viability

Acceptance of possiblechanges

•Starting point•Beginning 90’s

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IP(trademarks) MANAGEMENT: LEGAL PROTECTION

Professional management only afterwards

First application only 3 years after use (1975/1978)

Fist international application (WIPO)1984

Professional management from the start

Planned protection prior to use

Optimization of international mechanisms of protection

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IP (trademarks) MANAGEMENT: LEGAL PROTECTION

Protection in stages with various legal obstacles

(decisions in light of circumstances; pressure; need of litigation and negotiation)

Uniform, quick and peaceful protection

(almost no incidences, if any solved in advance or without strain)

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IP (trademarks) MANAGEMENT:CONSEQUENCES

Legal Expansion in accordance with and

prior to the commercial one:

rhythm and advantages

Commercial Expansion discordant with legal

expansion and protection:

rhythm and risks

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The value of:

Being conscious of trademarks importance

Knowledge/Learning

Planning

International mechanisms

IP (trademarks) MANAGEMENT: FINAL THOUGHTS

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THANK YOU VERY MUCH

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