MONEY
Nepal awash with trademark, patent infringement plaints
Industry insiders say it takes years for infringement settlement because the Department of Industry, which handles the cases, is not a fully judicial body.
- KRISHANA PRASAIN
KATHMANDU,
Nepal’s Department of Industry has been awash with trademark, patent and design infringement complaints, government officials admitted as the country marked World Intellectual Property Day on Friday.
Weak policy enforcement and unstable government for a long time have promoted unlawful use, selling, or copying of patented inventions.
“We have so far received 1,500 complaints regarding trademarks, patents and designs,” said Yagyaraj Koirala, director general of the Department of Industry. “The number shows people are becoming aware of protecting their rights.”
However, industry insiders say settling infringement-related cases in Nepal can take years or even decades. That’s because the Department of Industry which handles infringement cases is not a fully judicial body, and instead depends on the country’s judicial system, which is notorious for delays. Koirala said that they have prepared a draft law to supersede the existing Patent, Design and Trademark Act of 1965.
“The draft is in the final stage.”
He said that around 113,000 old files of intellectual property rights in the department related to trademarks, patents and design have been digitised. The department said it is in the final stage of developing an intellectual property management information system.
“The department is also working to establish a technology innovation centre with the support of the World Intellectual Property Organization (WIPO) to check patents online,” Koirala said.
Every year, World Intellectual Property Day is observed to spread awareness about the importance of safeguarding intellectual property rights. Nepal became a member of WIPO in February 1997. WIPO is the global forum for intellectual property policy, services, information and cooperation.
Intellectual property rights are the rights given to persons over the creations of their minds. Intellectual property rights include patents, copyrights, industrial design rights, trademarks, plant variety rights, trade dress, geographical indications, and in some jurisdictions trade secrets.
The Constitution of Nepal has also guaranteed intellectual property rights as a fundamental right.
According to the Global Innovation Index 2023 report by the World Intellectual Property Organization (WIPO), Nepal ranked 108th out of 132 countries surveyed. Nepal ranked 24th among 37 lower middle-income groups of economies.
“Nepal’s position on the Global Innovation Index is disappointing, indicating that the country has a lot more to do improve in the intellectual property rights fronts,” said Dik Bahadur Karki, director at the Department of Industry, addressing a function titled ‘IP and SDGs: Building our Common Future with Innovation and Creativity’. The event was organised jointly by the Intellectual Property Protection Society Nepal and the Department of Industry.
The participants said that inadequate fines provisioned by the law also prompted trademark and patent infringement in Nepal.
For example, under the existing Patent, Design and Trade Mark law, offenders can be fined Rs100,000 and have their property seized for misusing a registered trademark.
During the function, a government official too admitted that anyone can pay the fine and misuse the trademarks and patents. Experts say that the weak implementation of the law has discouraged foreign investors from investing in Nepal.
While there have been increasing complaints, applications for trademark registration have also been increasing. However, patent and design registration has been low.
According to the Department of Industry, it received 876 applications for patents till mid-April.
The department, however, has issued only 88 patents--52 for domestic and 36 for foreign companies.
Similarly, the department received 785 applications for designs. The department, however, has issued designs for only 310 companies during the review period. Out of them, 114 were issued for domestic and 196 for foreign firms.
The department received 113,607 applications for trademarks but was able to issue only 63,204.
Out of the total issuance, 34,363 were for the domestic and 28,841 for the foreign companies.
“The registration of patent and design is very disappointing. The lower number of registrations of patents and designs do not encourage industrialisation,” said Karki, the chief of the Industrial Property Section at the Industry Department. “But trademark registrations have been increasing during the last four years,” he said.
“Almost 99 percent of intellectual property rights in Nepal involves trademarks. The share of patent and design is only 1 percent,” said Karki.
Trademark protections include the word, sign, picture, or combination thereof to differentiate the product from others in the market.
The laws governing trademarks never expire. This means the holder has the right to the trademark for the life of the product or service.
“But in Nepal, there is no provision for assigning validity dates to trademarks,” said Karki.
“In other countries, a trademark can be registered for one to 45 years.”
“The Patent, Design and Trade Mark Act is outdated, which does not cover geographical indication, utility model, and traditional knowledge among others,” said Karki.
The other problem, according to Karki, is the manual registration process of intellectual property rights, which is full of hassles and discourages service seekers.
“Cases of trademark infringement and counterfeiting are rising in Nepal alarmingly,” said Karki.
In Nepal, trademark infringement and counterfeit products of multinational companies are sharply increasing. For instance, products like Coca-Cola, Mountain Dew, and KFC are available in the name of Club-Cola, Maintain Dew or Monsoon Dew and KKFC.
Experts said that foreign direct investment from the US in Nepal has been declining due to the lack of a compensation law, which is the number one priority for American investors. As duplicate products are easily available in the market, US investors fear putting money in the country.
Even if a well-known trademark is being stolen, there is no provision in Nepal’s law to differentiate between well-known and lesser-known trademarks. The well-known trademark is generally published in the Nepal Gazette, but till now, there is no such example of a trademark being published in the Nepal Gazette, according to the participants.
MONEY
Nestle sales slump on weak North America demand for frozen food
- AGENCE FRANCE-PRESSE
ZURICH,
Swiss food giant Nestle reported slimmer sales than expected in the first quarter on Thursday, weighed down by weak demand for frozen pizza and snacks in North America.
Shares in the group fell following the publication of its earnings, which come as Nestle has recently faced scrutiny over the quality of its Perrier water and sugar levels in baby food sold in poorer countries.
Total sales fell 5.9 percent to 22.1 billion francs ($24.2 billion) in the first three months of the year at the group, whose brands range from Purina pet food to Nespresso coffee, KitKat chocolate bars and Gerber baby products.
Analysts surveyed by Swiss news agency AWP had expected sales totalling 22.3 billion francs.
Its organic sales growth—which excludes currency fluctuations and acquisitions—reached 1.4 percent.
The group’s real internal growth (RIG), which takes into account both sales volume and product value, slumped two percent—deeper than the 0.7 percent fall expected by analysts.
The company said in a statement that sales performance was “impacted by soft consumer demand, particularly in North America, and the temporary supply constraints for vitamins, minerals and supplements.”
Europe and emerging markets “more than offset” the decline in North America, it added.
“We had expected a slow start and see a strong rebound in RIG in the second quarter with reliable delivery for the remainder of the year,” Nestle chief executive Mark Schneider said.
“A wide range of growth initiatives across the group are now starting to deliver,” he said, noting that Nestle has “stepped up” commercial activity in North America, primarily in frozen food, which “lost ground” in the first quarter. Nestle’s RIG in North America was down 5.8 percent, said chief financial officer Anna Manz.
“Weakness in the US centered around frozen pizza and snacks, where we saw a combination of soft consumer demand, intense price competition and a reduction in retailer inventories in the quarter,” Manz said.
Nestle confirmed its annual forecast, aiming for organic growth of around four percent. Shares in the group ended 2.0 percent down on the Swiss stock exchange in afternoon deals. “We will reach a turning point in the second quarter,” Schneider said in a conference call.
“We are taking the right steps to accelerate growth and expect a much stronger performance starting from the second quarter,” he added.
Nestle’s first-quarter performance stands in contrast to those of rivals such as French group Danone, which reported rising sales volume last week. British consumer goods giant Unilever reported an uptick in first-quarter sales on Thursday.
Nestle has also scrambled to ease any concerns over its Perrier brand after France’s food safety watchdog recommended stricter monitoring of sites where Nestle extracts mineral water following the discovery of traces of “faecal” contamination.
The company has since said it has stepped up monitoring of the sites, and Schneider reiterated on Thursday that the group’s water was safe to drink.
He said Nestle was “working diligently with regulators in several countries where we operate” to
“continue to assure absolute food safety and full conformity with local mineral water standards”.
On the baby food issue, Nestle denied accusations by NGO Public Eye that it was applying a “double standard” by selling products with high levels of added sugar in low-income countries but not in wealthier nations.
“There is no double standard,” the company said in a statement. “We apply the same nutrition, health and wellness principles everywhere.”
“The negative news flow in recent weeks ... is raising concerns among investors,” said Jean-Philippe Bertschy, analyst at investment firm Vontobel.
MONEY
US Chamber of Commerce for South Asia senior vice president Keshap arrives for investment summit
- Post Report
KATHMANDU,
Atul Keshap, senior vice president for South Asia at the US Chamber of Commerce, has arrived in Kathmandu to participate in the third Nepal Investment Summit scheduled for April 28 and 29.
Keshap, a former US ambassador to Sri Lanka and the Maldives and the deputy head of the US Mission to India, is currently active through the US Chamber of Commerce.
Having worked extensively in South Asia, Keshap has closely observed the region’s economy and business landscape. He played a pivotal role in establishing the American Chamber of Commerce in Nepal (AmCham Nepal) and has been an advocate for attracting American investment to Nepal on numerous occasions.
According to Amir Raj Thapa, general manager of AmCham Nepal, Keshap played a significant role in establishing AmCham Nepal in 2021 and gaining recognition from the American Chamber of Commerce in November 2022.
“After the establishment of AmCham Nepal, his contributions were instrumental in securing
recognition from the American Chamber of Commerce,” said Thapa. He emphasised that this recognition holds great significance for AmCham Nepal, facilitating easier networking with the American Chamber of Commerce’s global network and fostering trust.
Thapa highlighted Keshap’s positive impact in lobbying for American investment in Nepal through various networks, expressing delight at his participation in the investment conference. “He has been supportive since the inception of AmCham. We believe his participation in the investment conference will send a positive message to American investors,” said Thapa.
As a diplomat, Keshap has been instrumental in strengthening US-India relations, advancing Civilian Nuclear Energy Cooperation, and expanding trilateral relations between America, India, and Japan. His expertise extends to multilateral engagements with organisations such as the European Union, the United Nations, ASEAN, APEC, and regions like the Indo-Pacific, Middle East, Africa, North, and South America.
MONEY
China’s EV execs bullish on Western pressure at Beijing car show
- AGENCE FRANCE-PRESSE
BEIJING,
Electric vehicle executives at a top car show in China were bullish on prospects for growth, despite a gruelling price war and mounting Western pressure on the industry.
Thousands of car lovers and company representatives descended on Beijing this week for the Auto China show—a chance for industry giants to show off new designs and cutting edge technologies aimed at getting ahead in the fiercely competitive sector.
And even as firms face down a cut-throat price war at home and mounting regulatory pressure overseas, executives and attendees were upbeat.
“I’ve never seen anything like this before,” one company representative who declined to be named told AFP.
“There’s a lot of expectation about what new models, new technologies Chinese carmakers will unveil.”
One of the stars of the show was Lei Jun, CEO of consumer electronics giant Xiaomi, fresh from declaring he had staked his “reputation” on the success of his firm’s first-ever EV, the SU7.
Lei was mobbed by scores of people, some shouting his memetic slogan “are you OK?”—a joke referring to the CEO’s broken English which fans have reclaimed as proof of his likeability. All were keen to get a snap of the latest player in the hotly contested EV sector.
Lei has said his SU7 is the most “Apple-friendly” EV on the market—tapping into a prominent theme at the Auto Show: the emphasis on smart technology.
With everything from high-tech navigation systems to built-in karaoke machines, Chinese EVs can sometimes feel equipped with more gadgets than James Bond.
“Chinese customers are now more attuned to fast-evolving digitalization, internet-stage and smart technology inside their vehicles,” Brian Gu, President and Vice Chairman of EV giant XPeng, told AFP.
“Using voice, using large screens and relying on more smart-driving technologies—that’s also already becoming a hallmark of Chinese products,” he said.
European customers, he said, aren’t yet ready for that technology. “It will take time, but I think ultimately, technology will converge,” Gu explained.
“We’re very confident about that.”
But before that can happen, Chinese carmakers will have to get past European regulators.
The European Union launched an investigation last year into Chinese state EV subsidies, which it said had given companies from the country an “unfair” leg up in the local market.
And Brussels—along with allies in Washington—has raised fears that Chinese industrial “overcapacity” created by excessive state subsidies could see global markets flooded with cheap Chinese EVs.
“We certainly hope that there won’t be an introduction of tariffs. I think it is not good for consumers,” said William Li, CEO of Nio, another EV giant. “Every place, region, and country has some consideration for protecting employment in their own industries,” he said.
“This is a reasonable demand, but we still hope to return to common sense.” XPeng, Gu said, is also determined to make headway into the European market.
He compared the obstacles Chinese firms are now facing to the similar hurdles European giants such as Volkswagen faced when entering the Chinese market in the 90s and 2000s.
“We may have to think about creative strategies, we may have to form relationships and partnerships. Maybe Chinese players have to do the same in order to compete, and I think there’s no shortcut,” he said.
“We may have to do all of that to remain a player, a leading player, in Europe. So we’re prepared to do that, for the long term-market and long term opportunity there.”
Executives are also sanguine about an intensifying price war between EV companies, made all the more competitive as consumer spending slows in China. On Monday, Beijing-based Li Auto slashed the prices of its models by up to 30,000 yuan ($4,100).
That followed a decision by Elon Musk’s Tesla—which notably did not attend this week’s Auto China—to lower its prices by 14,000 yuan.
MONEY
Thai Food Festival at Radisson Hotel
Bizline
KATHMANDU: Radisson Hotel Kathmandu on Thursday launched a 9-day-long Thai Food Festival in collaboration with the Royal Thai Embassy on the occasion of the Maha Songkran, a vibrant celebration of the Thai New Year. This food festival promises to bring the best flavours from Thailand. During the showcasing of the Thai culinary heritage from April 25 to May 3, Master Chef Yao from Thailand presented tantalising Thai delicacies at The Fun Café. The event was inaugurated by the Thai Ambassador to Nepal Suwapong Sirisorn, along with the general manager of Radisson Hotel Kathmandu Subrata Banerjee. “We are thrilled to start the culinary calendar with our inaugural food festival of the year. Collaborating with the Royal Thai Embassy has been a privilege, and we are delighted to present an event that celebrates Thailand’s rich heritage and flavours.”
MONEY
Dim Sum Festival at The Soaltee Kathmandu
Bizline
Kathmandu: Bao Xaun, the renowned Chinese speciality restaurant located in The Soaltee Kathmandu, on Friday announced the Dim Sum Festival. It will run until May 5. The hotel said that the festival promises an unparalleled culinary journey through the art of Dim Sum, showcasing a delectable array of Steamed, Bao, Boiled, and Pan-fried delicacies prepared in different styles and flavours. During dinner hours from 7:00 PM to 10:30 PM, guests are allowed to relish the flavours of Dim Sum while enjoying the elegant ambience of Bao Xaun.
MONEY
Yen falls further as Bank of Japan stands pat on rates
Bizline
TOKYO: The Bank of Japan kept its ultra-low interest rates unchanged Friday and stopped short of signalling another hike, pushing the yen to a fresh 34-year low against the dollar. The slide, due in part to the differential between BoJ rates and others worldwide, stoked speculation that Japan might intervene in the market, possibly as soon as Friday if US inflation data is strong. The BoJ called time on negative rates last month with its first rise in borrowing costs in 17 years as inflation finally settled around two percent after the “lost decades” of deflation and stagnation. (AFP)
MONEY
Copper price tops $10,000 for first time in two years
Bizline
LONDON: Copper prices rallied on Friday above $10,000 per tonne for the first time in two years, propelled by soaring global demand and tight supplies. In early morning trade on the London Metal Exchange, the price of copper breaching the key level for the first time since April 2022 to peak at just over $10,028. It later stood at $9,992.50 per tonne. The base metal is in the spotlight after mining giant BHP launched Thursday a $38.8-billion takeover bid for British rival Anglo American. (AFP)