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Iolkin Y.O.


Med. pravo., 2015; 2(16): 22-30

UDC: 347.1


candidate of legal sciences, leading researcher of the Intellectual Property Research Institure of the National Academy of Legal Sciences of Ukraine, associate profesor of the Department of medical and pharmaceutical law of the Bogomolets National Medical University

Functions of Trade Mark at the Pharmaceutical market

In 2014 five pharmaceutical companies had got the profit in 20% or even more, among them: Pfizer, Hoffmann -La Roche, AbbVie, GlaxoSmithKline (GSK) and Eli Lilly. Pfizer as the biggest supplier of medications in the world attained the stunning margin of profit -42%.

Marketing of XX –ХХІ is foremost psychological marketingthat influences first of all on the emotional necessities of consumers. Statistics of countries ЕС and Ukraine showsthat from the amount of applications on the granting of certificate on a trade mark there are most of all pharmaceutical objects. A trade mark is one of facilities of realization of marketing policy of pharmaceutical company, which put into the consumer the final load to pay for advertisement of medicines.

Belonging to the non-material sphere of intellectual property, a trade mark directs the information for those consumers which are ready to pay. So, the article concerns the aspects of willingness of consumers to carry additional charges that are based on the speculative formed motivation or even press to a consciousness.Intentional nature of trade mark consists in that a value for her proprietor is emotional positive associative connection of consumer with the corresponding form of her expression, and exactly emotional firmness and positive associativeness of such connection form the market value of trade mark.

Intentional nature of trade mark is predetermined by its functions. Concerning the types of functions of trade marks it is possible to determinethe followings: guaranty the origin, advertisement, legal protection, cultural and educationalinfluence, identical (identifies a producer), individualizations (distinguishes a product) andadvertisement.

In the basis of classification of functions of trade marks it is possibleto take the criteria of criterion of “forming of motivationof a consumer”andfrom this point a trade mark has the mentioned belowfunctions at the pharmaceutical market: distinguish, stimulant, monopolistic-dictatorial.Regardingdistinguishfunction, it is causedby the natureof the trade mark, which allows tocustomizethe product andproducers, while the non-proprietary names of medicinesare not able tofulfill.In accordance with international agreements and national legislation stimulant function provides the proper level of quality of goods and services that designated them, for example antibiotics or antiretroviral drugs HIV.The legislation of European Union takes into account the normsof Directive 2001/83/ЕС "On the Community code relating to medicinal products for human use", and the basic requirements and limitations are certain that to the advertisement of medicines, sent to the audience of consumers, and by general rule, advertising of OTC medicinesis settled for general consumers.The percentage ofOTC medicinesin Ukraineis over70%.In Germany, the percentage of OTCmedicinesis only about32% (so, the percentage of prescriptiondrugsis about68%).

The Monopolistic-dictatorialfunction of trade mark is distinguished from advertisement, however the trade mark often fulfill it not only in a frame of advertisement. There are other forms of advancement of medicines at the market, and such advancement is the important index of its competitiveness, indisputably, that most medicinal facilities will be realized through pharm networks, but hospital sale also provides its important role. Numerousseminars and round tables, held by pharmaceutical companies, have not onlypurelyeducationalpurpose.

Analyzingthe abovementioned features,it seemsappropriate todistinguish twomain groupsof functionsof the trade mark, so there are the followings: primary functionof trade marks andderivatives ofbrands.

Under the primary function of the trademark, it isunderstandable thatthe tasks of brand is designed to individualizethe products; under derivative function which is providing by a trade mark is using it in advertising and in increasing of impact on the minds of consumers.

On the basisofthe abovementioned analysis of classificationof the derivativesof functionsarethe following:-seasonalfunction: is thatdrugpurchaseduringcertaintrade markscarriedin the appropriateseason (antivirals –autumn-winter, antidiarrheal -summertime, vacations, travel, etc.);-functionof illusionof successis performing bywell-known brands, generallyin the fieldof andrology, sexual pathology, such as Viagra,Syldenafil, Penimeksorthe treatmentof alimentaryobesity -Xenical, Orsoten;-functiondemonstratesocial successof consumerswhich is usually providing by the trademarksofdietary supplements, which are widely used inappropriatephysical activities-AmitonSportsActive, etc .;-functionof technological advanceswhich is providing by the trade marks, onwhich thecampaignemphasisison specific(unsurpassed reach ofothers)technological developments(anti-cancer andretroviraldrugsGleevecandPfizer);-functionof creationof mythwhich is providing by the trade markswhich "won" the consumer andconsistentlykept inhis mindas a guarantee ofquality,despite the fact thatfrom the beginning ofthe first issue oftheirproducts underthe designationhas not undergoneany changesandnot ofdrugs withproventherapeutic effectsignificantly(No-Spa, Hepabene).Summarizing mentioned above, it is necessary to stress that without reforming the legislation on advertising of medicines and patent reform in the health care, the consumer will continue to pay not for еру therapeutic effectbut for the illusion so professionally formed in our minds.

Keywords: trade mark, pharmaceutical market, medicines, advertisement

 Reference list

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3.     L. de Chernatony (1993) Categorising brands Evolutionary processes underpinned by two key dimensions. Journal of Marketing Management, 9, 2, p. 173.

4.     L. de Chernatony, Riley F. Dall Olmo. (1998) Defining a brand. Beyond the literature with expert interpretation. Journal of Marketing Management, 14, 5. p. 417.

5.     Goodayer M. (1993 ) Reviewing the concept of brands and branding, M. Goodayer. M. Goodayer. Marketing and Research Today, 21, 2, p. 75.

6.      Feyhelson V. (1996) Osnovnye pryntsypy zashchyty y yspolzovanyya intellektualnoy sobstvennosty v sovremennykh uslovyyakh. V. Feyhelson. M. p. 38.

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