Intellectual property for local supply chains: boost your product value  

5
Estimated Reading Time
< 2 min
Published

In the world of local supply chains, products, relationships with partners, and reputation are key success factors. To safeguard and enhance these elements, intellectual property serves as a significant ally. Whether in the form of trademarks, trade secrets, or quality labels, it offers crucial protection and, more importantly, a means to add value.

Loyal customers and premium pricing

Consumers are often willing to pay more for products whose quality and origin they recognize. The tools of intellectual property that can aid in establishing this recognition are numerous. These include the creation of a trademark (a name, logo, etc.) which helps to distinguish products. There are also quality labels such as Protected Designation of Origin, Protected Geographical Indication, or Traditional Speciality Guaranteed, which bolster consumer trust by ensuring the authenticity of regional products.

A competitive advantage via exclusivity

Being the only one to know one's recipe or manufacturing process and safeguarding that secret provides a competitive edge to the producer. The trade secret allows them to bolster their market position and, as long as the secret is kept, grants them exclusivity. This secret can also potentially become a key element of their marketing strategy, generating sustained interest and all at a reduced cost.

Clear collaborations to progress together

Maintaining good relations with partners and subcontractors is a key success factor. A valuable tool to avoid misunderstandings and conflicts with collaborators is a partnership or subcontracting agreement with clear intellectual property clauses. Indeed, it's often very challenging to agree midway on who can use a jointly developed recipe, who is accountable for releasing a non-compliant product to the market, who can or cannot discuss the manufacturing method used...

A well-drafted contract helps clarify responsibilities, rights, and obligations of all parties, minimizing disputes and thus costs.

Boosting Local Economic Growth

Intellectual property, therefore, is a significant ally for local supply chains. It safeguards innovation, strengthens product reputation, instills trust in consumers, and contributes to the prosperity of producers and local communities.

Stakeholders in local supply chains, view intellectual property as an essential tool to thrive in a world focused on quality, authenticity, and innovation!