Geographical Indication (GI) options for Ethiopian Coffee and Ghanaian Cocoa

A Consideration of Communal Trademarks
communal trademarks does not appear to raise extra costs or externalities. The
law will likely be amended regardless of whether communal trademarks are contemplated.
Short-term cost issues have the potential to present a challenge to producers,
in the form of fees for registration procedures and professional services.
However, there is reason to believe that these costs could be offset by long-term
growth and development of the affected sectors. The introduction of a common
trademarks system within the existing Economic Community of West African
States (ECOWAS) trading bloc (of which Nigeria is a member) would also be
helpful, by establishing a common West African system for IP protection of textile
and leather products. Such an initiative, as seen in other regions, could offer
valuable legal and institutional platforms for the establishment and West African
enforcement of communal trademark models.
In addition, a detailed cost-benefit analysis (which was beyond the scope of
this exploratory study) is required before any producer group embarks on the
process of establishing a communal trademark.
A successful mark depends on public confidence and a positive reputation.
SON is not at present enforcing standards in the market, and while this may in the
short term seem to benefit the producers, in the long term it will be detrimental
to the growth and development of the sectors. Collaborative efforts are needed
between SON and cluster leaders to determine the best approach to establish and
implement standards. If standards enforcement is implemented in a uniform, fair
and transparent manner, cluster operators can be expected to bear the initial financial
strain based on the promise of quality standardisation and market growth.
Beyond IP and standardisation matters, there is a need to address factors leading
to the high cost of production. Policies are needed to minimise the manufacturing
costs of local manufacturers, so that they can compete with imported
products in terms of quality and price. For example, the leather tanneries in Kano
need to be positioned for greater competitiveness, and promoting local production
of cotton would help to lower textile input costs and generate additional
employment.
In addition, the product producers and manufacturers need to become better
informed, e.g. about existing financial support facilities and schemes, such as those
provided by the Bank of Industry (BoI) and SON. SON provides Duty Drawback
Schemes in collaboration with other government agencies (namely, the Nigerian
Export Promotion Council, the Nigerian Customs Service and the Central Bank)
through which importers may claim repayment of import duty paid for material
used in the production of local goods that are exported. The scheme is established
to provide relief for producers of various export goods (including leather and
textile goods).There is a need for the relevant bodies to assist the manufacturers
in benefiting from such schemes.
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