The Barbie Case - The Arthur Page Society

Abstract
WINNING ENTRIES – COMMUNICATIONS/JOURNALISM SCHOOLS
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Yuliya Melnyk, Moushumi Anand
Faculty Adviser: María Len-Ríos
University of Missouri-Columbia
How the Russian Company Pallet Trucks Used
Public Relations Strategies to Protect its Business
and the German Brand Pfaff-silberblau in Russia in 2001
This case shows how crises can occur in a global economy. It
describes how two companies, a German manufacturer and
Russian retailer, partnered to combat a crisis when
competitors started selling fake copies of the manufacturer’s
“brand” equipment. Pfaff-silberblau is an established
international company, headquartered in Germany, that
manufactures lifting and handling equipment. Pallet Trucks,
at the time, was its exclusive Russian vendor.
While it is thought that smaller products such as make-up
and electronic goods are easier to reproduce as fakes, it is
assumed that heavy equipment like Jeeps or industrial goods
cannot be easily duplicated. This case proves otherwise. Fake
lifting and handling equipment was produced in a Chinese
factory and sold in Russia under the Pfaff-silberblau brand
name. As the counterfeit equipment began to cause profit
losses and decreased consumer confidence in their brands,
the companies worked together proactively, learned from the
experience of their predecessors in new markets, and
protected their brands. Specifically, this case highlights how
public relations techniques can be used to address brand
piracy in developing economies and New Independent
Countries, when legal avenues are not feasible.
A Short History of Branding
It is an ancient practice to put markings on products to
indicate who owned or made an item. For instance, the
paintings on the walls of the Lascaux Caves in southern
France contain marks that scholars say indicate ownership.
These paintings were made 5,000 years ago. Artisans used
stone seals to indicate the manufacturer, and some found in
the Middle East date back to 3500 B.C. (Infoplease Web site,
2005). Not only did the marks indicate quality, but they also
arthur w. page society
let people know whom to blame if there was a problem with
the product. A trademark can be found on the bottom of a
sandal dated from 200 BC (Barlow & Stewart, 2004, p. 24).
During the Middle Ages, trade guilds also began using marks
to indicate who made a specific product. Bell makers were
among the first to adopt the practice, followed by other
manufacturers including paper makers. They added
watermarks so people would know who made a particular
sheet.
In 1266, the Bakers Marking Law, which governed the use of
stamps or pinpricks on loaves of bread, was passed on. It is
one of the earliest known laws on trademarks. Silversmiths
were required to mark their products in 1363. Bottle makers
and manufacturers followed suit, possibly influenced by
Chinese porcelain, which bore markings indicating origin.
One of the earliest court cases involving the improper use of
a trademark occurred in England in 1618. The manufacturer
of high-quality cloth sued a competitor who produced lowerquality
cloth, but used the marking reserved for top-quality
cloth. The case Southern v. How is considered the first case of
actual trademark infringement. In 1876 England, the Bass
Red Triangle was the first trademark to be registered
(Feldwick, 1991, p. 19).
Trademark Laws in the U.S.
In the U.S., Thomas Jefferson urged the adoption of laws
governing trademarks because of a 1791 dispute over sail
cloth marks. While federal legislation was not forthcoming,
some states passed their own laws. For instance, in 1842,
Michigan required marks to indicate the origin of timber.
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