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APRIL - JUNE 2012 • KDN NO.: PP 16744/03/2012 Vol: ten | 10
Peoplenews
Trademark &
Copyright
Patent &
Industrial Design
Franchising &
Licensing
Branding &
Management
Kuala Lumpur | T 603-2161 7001 | F 603-2166 9001
Penang | T 604-229 1100 | F 604-227 1100
Singapore | T 65 9298 0100 | F 65 6225 9890
Website | www.intellect-worldwide.com
Note: This newsletter is for internal circulation only. All graphics or photos used are for illustration purposes.
Intellect Group of
IP Companies
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© 2012 Intellect Group of IP Companies. IPeople All News rights • Vol: reserved 10
1

patent & industrial design
Motivators
and Conditions
for Innovation
The wheel, airplane and light bulb are among some of the major inventions of all time.
The wheel brought to the existence of automobiles, bicycles and conveyor; airplane
led to the subsequent existence of the helicopters, gliders and jet planes; and light
bulb gave birth to the existence of the fluorescent light, vehicle headlamps and vision
inspection machines providing us everlasting light source.
Innovation is the key to the survival and success of today’s business environment.
One of the innovations implemented by Walmart (the world’s largest company by
revenue) is a satellite network which links all operating units to its headquarters in
Arkansas in the 1980s for inventory tracking and sales tracking for them to ease
expansion.
Looking at the scenario in Malaysia, some of the most innovative companies are Air
Asia, DiGi Telecommunications, Tune Money and many others. Air Asia was listed
#43 in the World’s 50 Most Innovative Companies. Meanwhile, DiGi was voted as
the most innovative company in the Malaysia by the Wall Street Journal’s Asia Most
Admired Companies survey. Tune Money has also made insurance affordable in this
country as well.
If we compare the ranking of the companies in terms of revenue versus the amount
of patents filed, we have the following:
Company Ranking in Global Fortune 500
(revenue)
Ranking in patent ownership
(amount in 2010)
IBM 52 (USD100B) 1 (5866)
Samsung Electronics 22(USD130B) 2 (4518)
Microsoft Corp 120 (USD60B) 3 (3121)
Hitachi 40 (USD100B) 4 (2852)
Canon 204 (USD40B) 5 (2656)
Panasonic 50 (USD100B) 6 (2536)
Toshiba 89 (USD75B) 7 (2212)
Sony 73 (USD85B) 8 (2130)
Source from Fortune Global 500 & Intellectual Property Owners Association
2 IPeople News • Vol: 10

patent & industrial design
at red lights, without anyone behind the
wheels! This invention was inspired by
Thrun’s personal quest to save lives and
reduce road accidents.
Basic Motivator #2
Recognition
Although the revenue of a company is
not directly dependent on the amount
of patents filed, there is a pattern which
shows the correlation between the two
traits.
In July 2011, Nortel Networks Corp
managed to sell their patent portfolio
through auction to the likes of Apple Inc,
Microsoft Corp, Sony Corp, Ericsson AB,
and EMC Corp, generating a staggering
USD 4.5B, way above the initial bid of
USD900M . In July 2011, Google bought
over 1000 patents from IBM to increase
its ‘armoury’ against other technology
companies. IBM generates a staggering
USD1 billion yearly from direct IP
licensing, sales and development.
Have you ever wondered how all
these companies are able to create an
environment for innovation to kick in and
stay? Before setting the conditions in the
company to promote innovation, we need
to understand the main motivators of
inventors such as scientists, engineers,
researchers and similar creativity
enthusiasts to keep them inventing,
innovating and creating.
Basic Motivator #1
Passion to solve existing problems
This group of people is observant on the
problems of their daily life and will keep
on thinking of ways to create solutions
to these problems. These solutions will
directly and sometimes indirectly evolve
into inventions!
For example, Google, through Sebastian
Thrun has invented the driverless car,
whereby the car can steer past busy city
traffic, avoiding pedestrians, stopping
Besides being able to solve problems,
some inventors will need to be recognized
in some ways. There are many ways
to obtain recognition. One of them is to
participate in innovation competitions,
exhibitions, publications and others.
In Malaysia, you can participate in the
patent competition that is organised by
the Intellectual Property Corporation of
Malaysia (MyIPO) whereby the winners
will receive a certificate of excellence,
financing for patent application and
others.
Basic Motivator #3
Noble cause for mankind
This applies to some of the selfless
inventors, who work hard thinking of
ways to solve problems by inventing, in
order to give back to the society. This
type of inventors publishes his works
without applying for any patent rights, so
that the society is able to utilize and refer
to his work
*This article is a snippet of the two articles
by Bryan Wong (Executive Director of
Intellect Patent & Innovation Sdn Bhd),
that were featured in LiBra – Living with
Brands (Volume 3 & 4) magazine.
IPeople News • Vol: 10
3

franchising & licensing
Franchising & Licensing
– Know the Differences
Business owners often get confused
about Franchising and Licensing. Both
of them are considered as a means of
business expansion method undoubtedly
but their differences should be taken into
deep consideration before selecting an
expansion method. While all franchisees
are in effect licensees, not all licensees
are franchisees.
Franchising and Licensing come from
two distinct areas of laws. In Malaysia,
Franchising is regulated by the Franchise
Act 1998 while Licensing is a form of
Contract Law. In other words, if one takes
up Franchising as a means of expanding
a business, then compliance with the
aforementioned Act is necessary and it
also requires registration with the Ministry
of Domestic Trade, Co-operatives and
Consumerism. On the other hand,
Franchising
Licensing is a merely a contract between
two independent parties.
Business owners have often gotten
Franchising and Licensing mixed up
as both share the similarity of lending
a brand name to another party to run
the business. The brand name is an
essential part of both methods because
the brand which is being franchised or
licensed should already be a recognised
brand name and it should come with an
existing customer base.
What makes Franchising different from
Licensing is the extent of control to the
business operation. In every franchise
arrangements, the franchisor will grant
the rights to the franchisee to use the
trademark and business model that
have been successfully tested and
Franchising vs. Licensing
refined. Once the franchisee pay a sum
of fees on top of the rights granted, the
franchisee will enter into a franchise
agreement that outlines the rights and
obligations of both parties. A degree of
various controls will be exerted to the
franchisee as the franchisor will need
to make sure the business is run in
accordance to the business model. Any
changes are subjected to the approval of
the franchisor.
One must understand the nature of a
franchise business before entering into
one as franchisor will exercise significant
control to his franchisee to ensure
uniformity and consistency. But of
course, the franchisee will also be
equipped with initial training and
ongoing assistance from the franchisor
aside. Franchisee will be benefited
Licensing
Complete business package (including technical know-how)
will be shared with the franchisee.
Continued assistance and guidance must be provided by the
franchisor to the franchisee.
Bounded by the Franchise Act 1998.
A franchise agreement has to be at least five years long.
Compulsory to register a franchise.
Only available to business that have been operating as a Sdn
Bhd for at least three years.
A stringent franchisee selection process is usually done.
Must have a registered trademark ®
Only brand name will be shared with the licensor.
Only the technical/product knowledge training will be given at
the beginning by the licensor and then it is up to the licensee
to run the business on his own.
Governed by the Contract Law.
A licensing agreement generally lasts less than five years.
No legal requirements for registration.
Sole proprietors can also opt for licensing.
The licensee selection process is usually less stringent than
the one done for franchisee.
Not necessary to secure a registered trademark
4 IPeople News • Vol: 10

from the marketing and advertising
support provided by the franchisor.
Generally in a franchise relationship,
there are two elements that go hand in
hand – significant control and ongoing
assistance from the franchisor.
Meanwhile, for some business owners,
they tend to think that their business
expansion method is in the form of a
franchise but their operating methods do
not imply the franchise system. These
business owners actually resemble
licensors, when they grant the right (for
a fee) to an external party to use their
trademark and run their business, not
necessarily following the licensor’s
business format exactly.
Licensing appears to be more affordable
than Franchising because the license
is all that is purchased, not the entire
business model so there are no marketing
or training fees involved. A licensor does
not exert significant control and does
not require the licensee to pass off all
decisions to the licensor.
Nevertheless, all parties involved in
Licensing should be cautious as it can
easily be disguised as a Franchising
method by the poor draftsmanship of the
agreement or in the inappropriate use of
a business format. It does not matter if
you recognise your business method as
Licensing. But if the licensed business
slips into the franchise ground, it should
immediately comply with the Franchise
Act 1998 or be readjusted to maintain
it as a licensed business. It is not the
semantic that counts but it is what
constitutes the business method.
Conclusion
• Whichever option that you may
choose, you have to understand that
business expansions require hard
work, dedication and often sacrifice.
• It will be a long-term commitment
with your franchisee/licensee so
every effort put in will ensure that
the relationship is successful and
profitable; making it worthwhile at
the end of the day.
• Most importantly, get an experienced
franchise lawyer to draft the
appropriate agreements for you.
Apple iPads are being removed from
a number of retail stores in China
following a court’s ruling that a local
company owns the right to the name,
Hebei Youth Daily reports.
The tablets have been confiscated
from shelves in many retail shops and
electronic stores due to a Chinese
company’s lawsuit against the Apple
Inc over the trademark infringement,
in Shijiazhuang city, capital of North
China’s Hebei province.
Some retailers have removed the iPad
tablets to back storerooms, fearing that
local Administration of Industry and
Commerce will confiscate them.
An inspection squad of the Xinhua
District’s Administration of Industry
and Commerce in Shijiazhuang
city, launched a campaign to crack
down the sale of the tablets on Feb 9
after receiving Proview Technology
(Shenzhen)’s complaint. A total of 45
iPad tablets were confiscated by the
authority in the district over two days.
Proview Technology (Shenzhen)
claimed in early 2011 that Apple Inc had
been infringing on its iPad trademark
and launched court proceedings, said
Xie Xianghui, a lawyer for Proview
Shenzhen.
The company has extended its
complaint to the Beijing Administration
for Industry and Commerce and
appealed to three courts in other places:
Shenzhen Futian District People’s
Court, Huizhou Municipal Intermediate
People’s Court and Shanghai Pudong
New Area People’s Court.
Proview Taipei registered the iPad
trademark in a number of countries and
trademark & copyright
iPads removed
from shelves after
trademark ruling
regions as early as 2000, and Proview
Shenzhen registered the trademark on
the Chinese mainland in 2001.
Apple bought the rights to use the
trademark from Proview Taipei in
February 2010 via IP Application
Development Limited, a company
registered in Britain. However, Proview
Shenzhen claims it still reserves the right
to use the trademark on the Chinese
mainland. The two sides have been
entangled in a legal battle ever since.
The Municipal Intermediate People’s
Court in Shenzhen rejected a lawsuit by
Apple and IP accusing Proview Shenzhen
of infringing on the iPad trademark in
December 2011.
Source: bit.ly/AoGpm3
IPEOPLE’S COMMENT
From this piece of article, the lessons
to be learnt by business owners are:
• Always conduct a trademark search
in the country that they are interested
in registering their trademarks; and
• Engage a local trademark agent
from every individual country to
manage their intellectual property
rights because these locals
would understand their rules and
regulations better.
IPeople News • Vol: 10
5

trademark & copyright
was a similar case in Singapore. A company tried to copyright
kopitiam as its own, but the government there rejected the
request. “It is shocking that we have a contradictory situation
here,” he remarked.
Mulyadi felt that the government should support the restaurant
industry instead of providing special treatment to certain parties.
“The local industry deserves support from the government.
We hire many people, we use local products, including coffee
beans,” he added.
Indonesian Restaurateur Wins
“Kopitiam” Trademark
JAKARTA: The Indonesian courts have ruled in favour of a local
restaurateur who claimed intellectual property rights over the
word “kopitiam” - a Chinese word which means coffee shop.
The Jakarta Post ran a story today that in 2010, Abdul Alek
Soelystio, the owner of Jakarta-based “Kopitiam”, had sued
“Kok Tong Kopitiam” in the Medan Administrative Court for using
the word and won the case. Abdul claimed he had registered
intellectual property rights to “kopitiam” in 1996.
Unhappy with the outcome, “Kok Tong Kopitiam” owner Paimin
Halim appealed to the Supreme Court, but the lower court’s
decision was merely upheld. The report said, Abdul took out
an advertisement in a national newspaper on Feb 6 this year
warning other restaurateurs to immediately drop “kopitiam” from
their brand identities. Abdul’s lawyers said that whoever used
kopitiam could be charged with piracy.
The Intellectual Property Law provides for up to seven years’
imprisonment for those convicted of intellectual piracy, although
in practice violators are seldom sentenced to more than several
months.
Indonesia Kopitiam Association chairman Mulyadi Praminta
described the rulings in favour of Abdul as ridiculous. “There
Meanwhile Bondan Winarno, Indonesia’s most famous
gastronome and owner of the “Kopitiam Oey” chain, asserted
over the weekend that no one should be allowed to copyright
the word. Bondan, the association’s spokesman, asserted that
kopitiam offered a local option that could rival international
coffee shops in Indonesia. “Kopitiam is not our creation. The
name does not belong to us, but to generations before us. It is
not a brand but a signature of culinary culture as well as social
assimilation,” he emphasised. BERNAMA
Source: http://bit.ly/AlzTav
IPEOPLE’S COMMENTS
Generic or descriptive words are usually harder to receive
protection and in the event when the word is very common
in the eyes of the public, the word should not be acceptable
for registration. We are in the opinion that it is illogical for
the Supreme Court to uphold the earlier decision because
‘kopitiam’ is just as common as ‘restaurant’. Would that mean
‘restaurant’ is registrable as well?
Now that ‘kopitiam’ is registered and protected in Indonesia, it
would be unfair to other proprietors who intend to use such a
word to describe the nature of their business because they are
now unable to use it.
This case is prime example that any applicant who is interested
to protect his trademark in foreign countries would need to
understand the countries’ practice and legislation properly to
avoid any such incidents. It could happen to any one of us.
Strict IP policy mulled
By Gabey Goh and Isabelle Lai
PETALING JAYA: Watching a pirated DVD at your home might
earn you an equal form of punishment received by the DVD
seller who has hundreds of pirated DVDs in his shop.
Under a new multilateral agreement being negotiated with
the United States, Malaysia might adopt a much harsher
intellectual property (IP) policy on offenders. Called the
Trans-Pacific Partnership (TPP) agreement, its IP provisions
reportedly did not distinguish between personal and
commercial use. Malaysia is one of the countries involved
in the TPP negotiations with the US Government, which is
expected to be concluded by this year.
Internet rights and consumer groups said the TPP’s IP section
was a move to subject local copyright laws to those imposed
in the US. Consumers International project coordinator Dr
Jeremy Malcolm cited a case in which an American woman
was fined US$222,000 (RM666,000) for sharing 24 songs
under US copyright laws.
A leaked draft of the TPP’s Intellectual Property Rights Chapter
cited that copyright terms would be extended to 70 years after
the author’s death and either 95 years after publication or 120
years for corporate-owned copyrights. Malaysian copyright law
dictates that copyright terms last for 50 years after the author’s
death.
Dr Malcom said this would mean a number of P. Ramlee films
that were about to come out of copyright, including Labu dan
Labi and Madu Tiga, could be locked up for another 20 years
or more.
Deputy International Trade and Industry Minister Datuk Mukhriz
Mahathir said Malaysia was negotiating a chapter which
provided adequate protection to intellectual property in order to
encourage investments, innovation, research and development.
Source: http://bit.ly/zqiiHY
IPEOPLE’S COMMENTS
This is a great move as it would mean better protection for
the copyright owner. In Malaysia, the public is not very welleducated
about copyright protection. This leads to infringement
or passing off cases very often; yet the copyright owners do
not have a clue about what action should be taken. Tightening
the copyright law would be the first move to overcome piracy
cases but it is recommended that the government should also
look into the pricing of original CDs or DVDs for this move to
be fully accepted.
6 IPeople News • Vol: 10

anding & management
5 Tips for Writing an
Effective Slogan
By Dave Smith
1. Give them a rhythm, rhyme and ring.
A slogan longer than a single word should fulfill at least two of
these three criteria: It should have a rhythm, it should rhyme,
and it should have a ring to it. Slogans, whether read or heard,
should be pleasing to the ear; rhythmic and fluid-sounding
slogans are much more recognizable and memorable for later
recall. Bonus points for making the slogan into a jingle or song;
studies consistently show that words presented in a song are
remembered significantly better than words presented in normal
speech. Example: “The quilted quicker picker upper.” (Bounty)
4. Stay honest.
When writing a slogan, it’s extremely easy to get carried
away; however, it’s imperative that the slogan accurately
reflects the business. In other words, hyperbole is extremely
discouraged. Language like “The No. 1 ___,” or “The best
___ in the business,” is not only untrue, but also extremely
generic, and a big turn-off to consumers. Instead, be realistic,
and find a clever but real way to emphasize your company’s
perks. Example: “It’s everywhere you want to be.” (Visa)
2. Highlight a key benefit.
The point of a slogan is to differentiate your product or brand
from that of your competitors, while also underscoring the
company’s general mission. If you have an advantage over
your competitors, or if your product or service has a unique
benefit, you need to use it. Slogans are the first impressions for
many potential consumers, so it absolutely needs to stress the
company’s worth. Isolate one key area of your business, and
find a way to integrate it into the slogan. Example: “Great taste,
less filling.” (Miller Lite)
5. Keep it short.
Slogans should never be longer than a sentence and ideally
should hit the sweet spot between six to eight words. Any longer
than a sentence and your slogan will become jumbled and
ultimately forgettable, unless it rhymes or has an accompanying
jingle. Brevity lends itself to memorability, which is the primary
goal with slogan writing, so limit any and all slogans to a sentence
or less. Example: “Think different.” (Apple)
3. Explain the company’s commitment.
Maybe your company doesn’t sell a ‘unique’ product or service;
nevertheless, the slogan still needs to differentiate the company
from other competitors. Often times, winning slogans will explain
a company’s dedication to its customers. Slogans devoted to
customer service, especially ones that guarantee quality and
satisfaction even if it’s at the company’s expense, play extremely
well with the public. So if other companies sell the same products
as your company does, let them; instead, sell the public on trust
and customer care. Example: “We’re number two, so we try
harder.” (Avis)
SOURCE: http://bit.ly/qYyq9z
IPEOPLE’S COMMENT
If you are thinking of repositioning or strengthening your brand,
you might want to properly think about the slogan that you will be
using. Slogan is one of your best bets to let people identify what
your brand is doing. It also allows you to demonstrate that your
brand is different and would lead to an increased brand recall
amongst your customers.
The problem with a number of local brands in Asia is that they
tend to use generic slogans like “The best…”, “No.1….”, etc (Refer
to Tip 4). So stay away from that and try to be more creative but
don’t forget to keep it simple and fun!
IPeople News • Vol: 10
7

news & updates
Franchise Consultant
Is In The House!
Our IPeople family has just
gotten bigger. The newest
individual to join us is Ray Low
who has a vast experience
in the food and beverage
franchise industry. He has
held various management
roles in OldTown White
Coffee and PappaRich. From
hiring to training, setting
up inventory systems to
maintaining highest standard
of controls and others, Ray
is well-equipped with all the
know-how’s and is the right kind of person whom you should be
looking for if you are planning to set up a franchise business.
Welcome to the Intellect Group, Ray!
Please contact us if you are interested to know more about how a
Franchise Consultant could assist in your franchise business.
New Amendment to Comply
With Industrial Designs
(Amendment) Regulations 2012
In regards to the Registrar’s Notice No.1/2012, the official
fees for filing of industrial designs were increased since
February 15. From the single application to multiple
applications, publication and amendment of application
and appointment of agent to request for an extension of
time, the fees have escalated – the minimum increase is
25% while the maximum increase is a whopping 300%.
The previous Regulations still apply for the applications
made before February 15 and pending applications
but those applications that were made after the
aforementioned date would have to abide by the new
Regulations.
Although the official fees are increased, the Industrial
Designs Act 1996 is in the process of amendment to
further comply with the international practice and to
enable protection for a wider scope of products and
designs.
New Trade Description Act 2011
The Trade Description Act 2011 (2011 Act), which was passed
in August 2011, came into force on November 1, 2011. The
2011 Act repealed the Trade Descriptions Act 1972 (1972 Act).
The 2011 Act is enacted to reform the law on trade description.
The purpose of the 2011 Act is to promote good trade practices
by prohibiting false trade descriptions and false or misleading
statements, conduct and practices in relation to supply of goods
and services, thereby protecting the interest of consumers.
There are two main significant differences between the 2011
Act and the 1972 Act which are related to trademark owners
and they are as below:
Trade Description Order (TDO) is now limited to registered
trade marks
Previously, the 1972 Act allowed the common law and
registered trademarks owners to claim infringement and/or
passing off of his trademark by a third party under common
law rights by applying a TDO from the High Court so that
the enforcement officers from the Ministry of Domestic
Trade, Cooperatives and Consumerism would take action
against the infringer.
However, under the new amendments, it is apparent to
note that only proprietor of REGISTERED trade marks are
allowed to do so. Such a movement reflects government’s
intention to encourage owners to register their trademarks
with MyIPO in order to enjoy such benefit under the TDA
2011.
Life span of a TDO is now shortened to one year unless
renewed
Previously, the validity of TDO lasts for five years. However,
with this amendment, the validity period of the TDO has
been reduced from five years to one year, although it may
be renewed upon application to the High Court. This shows
that the government would not wish to provide a blanket
protection but rather to ensure trademark owners remain
more conscious and alert of their rights and developments
in the market.
In view of such new amendments in place, we highly encourage
those trademark proprietors who have yet to register their
trademarks to proceed to secure their registration as soon as
possible in order to enjoy the benefits under TDA 2011.
Sources:
http://bit.ly/Hjzucv
http://bit.ly/HjzMQw
Disclaimer The information provided in this newsletter is to be used only to educate consumers on Intellectual Property and its related areas that may be useful in your daily business operations. Nothing contained in this newsletter
is or should be used as a substitute for any professional advice related to this field. We disclaim any and all responsibility for decisions made or actions taken based on the information contained in this newsletter. The information
contained in this newsletter is provided by the authors of the information and constitutes their opinions and ideas. Intellect does not guarantee any information, products, services or knowledge discussed in this newsletter. All photos,
graphics, icons and pictures contained in the newsletter are for illustration purposes and belong rightfully to its owner.
8 IPeople News • Vol: 10