E4'PU4M4FrM-1 h%t-%MAWT.NW4 11.2. in an attempt to circumvent the restrictions lieposed on direct advertising and to create or strengthen brand Image@. the tobacco Indt4stry his tarned to Indirect advertising, for exampie, ohowing gm West, Marlboro elothes, Canal boats. Barclay matches Me. It Is certainly riot by oftnap that the budget for the advertising of these products Is disproportionate In relation with the Importance of the relative market. $tUdles of ildvartlelng have shown that the groat majority of young poop(& too "brand-strotchingg advertising of this type go advertising for the associated tobacoo products. YOUP4 consUsers do not See %he difference. Looking at thinds from a normal point of view, pt Is clults obvious that. given the very high level of recognition of the tobacco brands, this kind of advertising, ostensibly for somethina else entirely, Is In fact perceived to being for the tobacco products, and by Its noture constItutes pressure to owisume the tobacco. and not the other, products.0) ?hle proposal Dam see lately Indirect advertising. Such it ban of Indirect Is a necessary condition In order to ensure the effective loplemantatIon of the general ban rule. As t . -attar of fact. the ban of .Indirect advertlslr4 In a oml~tary requirement to Curantoo the diatorsion-fres Irs.ismentrAtIon of any miss do not provide for I total ban. In this rasp* ct. It should be rnlnded that the previous proposals an the advertising of tobacco products adopted by the Commission in spits of the fact *that they were not based an a ban. provided also for - the ban of any fors of Indirect advertising. More recently. the tobacco Industry has started to develop a different typs of advertising camaign to attract y94N people. This tak" the form of uIP4 a product which to alre&cW vol I establ lobed an the suket- wid wh I ch to we I t known twng yumv poop I a to I aunch la new tobacoo product an"r the some brand none. Recently. the else of utf I lostion of some very popular slathos vwC youngsters In om. Ilefter State has been largely reported In the ore". This has the effect of Implanting the existing pr;'40t~s Positive image and advertising onstage on the now product 'to achieve maximugi Derefloical"I affect on Young 0"010- This now approach too must be banned If It to not to circumvent the ban an advertising f9r tobacco products. What Is more. by exploiting a positive Imago created with a different product, this practice could distort aMotition conditions between tobacco products or prompt a M sting brands to resort to similar practlese In a bid to circumvent Vis ban. Those provision* do not prevent the div#ralflostion of the Industry. Indeed, usually the diversification of the Industry towardil other sectors of activity Is made using other brand naiae* and It rarely occurs that the brand whose reputation Is PAInly associated with a tobacco Droduct. to also used In other fields of activity. so. title ban concerns only advertising wh(cA to sad* through other products but which also at promoting a tobacco product. because the brand and the other distinctive signs are primarily associated with tobacco. Kowever, the ban does not cvncern the cases of brtnds associated with different products (naluding tobacco. products but.whoss reputation Is not mainly duo or amcliltsd with tobacto products. Besides. when in Industry abandons trio proctuction of tobacco. It can freely use Its brands for C> ths karan brand was N) N.) CrN C) BAT Industries document for Province of British Columbia 25 October 1999 Finally, it should &Igo be reminded that limitations brovIded for by the prOP0391 Of VIr$CtIV4 OWPIY With the Part* Convention (StOtiftla- 14 July lor ,Zi)tho council Directive relating to trade Barks Ca/104/91c) as well as the Precedent* of the above mentioned Directive so/552/910 concerning television broadcasting. All those legal instrutonts Jay dmm restrictions an the exercise of trade marks such as unfair constition, civil liability and oanowaor protAction. Directive 94/144/19C In Its article 3 paragraph I provides that Member States can oven refuse registration or cancel validity of an existing trade Sark an the basis of a loolsistlon other than the an* on trade Sark. On the eantrary. and without prejudlao of tho provisions of the Directive 80/662/UC an the tolsvielon broad-639t. particularly the provisions of Art 13 and 17 par I thereof. the present vroiceal does not affect the right for the Industry to. swear -sportive, stitaral or other events. The Incustry say not however take advantage of thate events to advertise tobacco products throggh advartleir4 means and products using brands, emblems or other dlstlnotlVe sips &8*0411ted with tobacto pfoftcto. To this offeCt. It le appropriate to mgks the distinction between presentation of InforsAtIon And a4vertlelng. Aavertlaing mado In order to Rubl IoI:o the Sponsoring of an event which uses such dlatinatlve signs falls within the 6OW of the ban. ftwever. the prosentat Ion to the pot Ic on behalf of th# Industry of an Information of an event. sponsored by It. pan. When It I* totally deprived of any *MIMS or distinctive sign* associating Such S presentation to a 'tobacco brand. not to 116 Concerned by the ban. According to the tobacco Industry. the Vs Of Sdvortising Is *Imply to persuade makers to obangs brands. and as such enhance* the Competition between the varlaus prdducts on the sarkst(2). Any fare of advertising by d6fl6itIon seeks to Increase the Urpttsd proftelis share of the Market. ftwover. different studies ohm that makers are very ltygl to their tobacco brand and that al arettes are among the products which have the highest brand loyaltyf;). - U*"9~1yrAR%f am n-V4C-- INKMVIDUAL AKr%c-t a-< brttel& 23 - Paragraph Is Establishes the general rule bannIng.all advertising far %Qbscw products In the ColnunItY outolds tobacco $9106 Outlets. Paragraph 2; points out that the ban In paragraph I also Covers such cases where advertising for tobacco products does not specifically Mention the product. but uses a brand or trade Mark whose replAtatlon is primarily associated with a tobacco orodu:t. *Ivan the high ISY41 of public recognition of brands. emblems and other distinctive Signs for tobacco products. any advertising for other products using such devices is perceived go being for the tobacco products. Cones4tientlY. this type of advertising also encourages the consumption of tobacco products. The public w1 I I recognize the distinctive signs for the tobacco products oven where they art used to advertise something also entirely. C:) r1 j BAT Industries document for Province of British Columbia 26 October 1999 Article I For the purpose of tAls Directive. the following definitions "sit &poly t Advertising v any form of oommunic4tion. written, radio and television broadcast and vinme. with the Vie or direat or Indirect effect$ of promoting a tobacco product. IncludlAil advertising which while It not specifically sontionIng the product. tries to air cus vent the advertising ban by using brand nafte, trade marks. emblems or other distinctive features of - tobacco froducts. ' - Tobacco proftate s At I products Intended to be smoked. sniffed. suaked or showed. In as mucit as they are. even Partly. Made Of tobacco I . ToMom sales outlets a establishment* Specializing In the oafs of tobacco and with trielosed Indoor promises for.serving euxtowers. Shop* witn a range of dIfforant gocae on sale are excluded frm this defintion. Article I 1. without prejudice to the Directive 99/522/EEC of the CAmnall eoncerning the pursuit of television broadcasting activities, all forts of advertising for tobacco products 0&1l be banned In the torrito" of the camunity. a. no womosr Itates sha I I ensure that brands or trademarks whose reputation is vainly associated with a tobacco product, are not used for Advertising In other areas. If this brand or trademark Is still being used for advertising at a tobacco produat. 3. The Member States shal I also ensure that now tobacco Products are unabre to uke Use of the reputation acquired by certain brands or tradsmarka already used In association with products other then tobacco products. 4. Ar4 free distribution of tobacco products $11ill be banned. *'r"t-a6L*,T%o" aF CFF4C_%ArL Shwrs"EMT F*zvj ,'Me. CC*%MW10W a) A tabat" trademrk. logo or other characteristic sign uy not be US,d to advertise a oro&ct other than tobacco, since people perceive thIS is tobacco adyert(sing. Indeed. If the tobacco OOmP&nY spends a small f6rtuno an 606rtialp, for a Proguet -like mstches- for which there Is hardly any ppofit, the real PufPOx* Of the 42&F0100 must be to proir4te the tobacco product. Any 61n4froot, tobacco promotion of this or Similar kind will tahrorore not be allowed. N) C=) N) rli N) -11 0 \ BAT Industries document for Province of British Columbia 25 October 1999 Tobacco companies may sponsor at I kinds of events In culture, sports atc. and they S&Y Inform the Public that they do so. They only have to respect one Condition I they Rust not use a tobacco trademark, logo or characteristic signs associated with tobacco. since this 19 perceived as tobacco advsrtl#lng. N) C) r1 j I"Q Nj BAT Industries document for Province of British Columbia 25 October 1999