Silent thief: Impact of copycat brands on businesses

SHAH ALAM - The saying goes "imitation is the sincerest form of flattery" which suggests that when someone imitates or copies another person's actions, work, or style, it can be seen as a compliment.

But things seem to be going otherwise amid the controversial of popular influencer Khairul Aming's Sambal Nyet Berapi copycat controversy as 'Sambal Nyet Khairi', with some still unaware of trademark rights when it comes to designs and branding.

Similar activities have also affected popular TV presenter and entrepreneur Noor Naelofa Mohd Noor who become a victim by unscrupulous traders who made fake reproductions of her brand, Naelofar Hijab back in 2016.

Neelofa then lodged a report with the Selangor Domestic Trade, Cooperatives and Consumerism branch which led to a raid confiscating 79 pieces of fake Naelefor Hijab headscarves worth RM7,000 from two premises in Gombak and Kajang.

The Ripple Effect on Businesses:

This insidious practice not only undermines the integrity of businesses but also poses severe financial and reputational risks.

Copycats and imitations can have far-reaching consequences, adversely affecting various facets of a business. One of the most immediate impacts is on a company's reputation.

If unsuspecting customers get hold of the copied products without realising it, it could lead to an erosion of trust as well as a decline in customer loyalty.

Original ideas and innovations are often the lifeblood of a business, providing a competitive edge. When these are copied, the incentive for investing in research and development diminishes. This not only stifles innovation but can also lead to a loss of revenue as the copied product or service competes in the market.

Moreover, businesses can find themselves entangled in legal battles, spending considerable resources to protect their intellectual property rights. Legal proceedings are not only time-consuming but can also result in hefty financial penalties for the infringing party.

How to Safeguard Your Business:

Imitation implies that the act of replicating something is a way of expressing admiration or appreciation for the original. This is why it is important to trademark your intellectual property with MyIPO.

Intellectual Proprietary privileges about a trademark may be established through actual use in the marketplace and registration provides for:

1. Exclusive Rights – Registered trademark owners have exclusive right to use their marks in trading. They also have the right to take legal action for infringement under the Trade Marks Act 1976 against others who use their marks without consent.

They can either take civil action or lodge complaints to the Enforcement Division for appropriate actions under the Trade Description Act 1972.

2. Legal Evidence – The registration certificate issued by the Registrar's Office is prima facie evidence of trademark ownership. A certificate of registration serves as an important document to establish the ownership of goods exported to other countries.

Here are some strategies to safeguard your intellectual property following the Trademarks Acts 2019 procedure:

1. Filing trademark application

This step involves submitting a trademark application using Form TMA2, along with the required fee ranging from RM950 to RM1100, depending on the type of applicant (individual or entity).

2. Filing trademark expedited application

Businesses looking for a faster processing time can opt for an expedited application using Form TMA4, with an associated fee of RM1000.

3. Formality Examination (Comply)

The formal examination ensures that the application meets all the necessary legal requirements and includes the required documentation. The process takes from one month two weeks from TMA4 filing date

4. Substantive Examination (Accepted)

This examination assesses the distinctiveness and eligibility of the trademark for registration. If the trademark application is accepted after substantive examination, it moves to the next stage in the registration process. This process takes from two months two weeks from formality examination date.

5. Publication in IP online Jurnal

Once the substantive examination is successful, the trademark is published in an Intellectual Property (IP) online journal. This publication serves as notice to the public, allowing interested parties to file opposition within a two-month period.

6. Notice of Registration

After the completion of the opposition period without any disputes, the trademark office issues a Notice of Registration. This notice confirms that the trademark has successfully navigated the application process and is now registered. This process takes around three weeks after due of opposition period

7. Apply for Certificate of registration

Following the Notice of Registration, the trademark owner can apply for the Certificate of Registration using Form TMJ4, along with the required fee of RM50.

The certificate provides official documentation of the registered trademark and its associated rights.

The entire process, from filing the trademark application to obtaining the Certificate of Registration, typically takes six months and three weeks for clear-cut cases.

Yesterday, Khairul Aming said he would file a lawsuit against the owner of Sambal Nyet Khairi.

In a video posted on his social media account, he said that his lawyer had sent a letter demanding they stop infringing on Intellectual Property Rights and engaging in Passing Off.

He also explained that they have outlined eight specific demands, where if the copycat brand did not comply with the requirements, they intend to escalate the matter further.

Sambal Nyet has been officially trademarked at MYIPO and received approval on Nov 2, 2021.