Brand owners and agencies planning on-pack offers in 2015 need to be aware that their campaigns may be in breach of a European patent which could cost them thousands.
The patent, originally issued to the now extinct online reward scheme Beenz.com, covers the use of codes printed on promotional packs and till receipts or vouchers that is then linked to the ward of a prize or reward.
If the consumer enters the codes onto a website or via text or post, and once validated, they then have the chance to win a prize or reward this is likely to be a breach of the patent regardless of whether it is an instant win, prize draw or competition mechanic.
Contact abi@promoveritas.com for more details.
Many brands are currently being approached by the patent owner –a German based sports marketing company – with a view to gaining compensation for past activities and a licence for future promotions. Global companies such as Unilever, Mars, Coca-Cola and PepsiCo are believed to have already obtained licences in order to use codes for on-pack promotions across the 14 EU countries, including the UK, covered by the patent.
The definition of ‘code’ is interpreted very broadly and does not just cover unique codes. Even the use of the ‘last four digits of the pack barcode’ or the use of an image or a photo printed on winning packs is deemed to be covered by the patent.
International promotions experts PromoVeritas work on hundreds of promotions every year for major brands and came across the patent situation via one of their clients. Their legal consultant Philip Circus, formerly of the IPM, commented “This whole situation will come as a major surprise to most brand managers and their agencies, but it is a real threat to our industry. Our patent lawyers assessed the validity of the patent and found that it is legal and, unpopular as it may appear, totally enforceable.
With the threat of legal action against brands being so high, we took the view that the best option was to make it easy for brands to comply with the patent and to find an easy and low cost way to obtain a licence, hence taking the threat away’. @PromoVeritas PromoVeritas are now the patent holder’s preferred licence holders for the UK and Ireland and able to obtain both the licence and ensure the integrity of the promotion itself from generation of the unique codes to winner verification and management.
Contact abi@promoveritas.com for more details.