Copy Cats & Copyright

"How about a designer Louis Vuitton bag for your wife! Only 10 Euros! It is a top quality fake!" cries one of the dozen shop sellers lining the narrow bazar passage. They are all selling the same array of fake branded designer leather bags,  copies of the latest model that appeared just a couple of months ago on the expensive shelves of Parisian shops. The more discerning fake buyer might add a few euros more for a higher standard fake.

It is amazing to see how many fake goods are being sold in traditional markets in most Middle Eastern and North African countries. Many fake goods are imported from China, while others are even manufactured locally.
In some countries certain business segments have become totally dysfunctional due to copyright infringement. This is especially the case for software industry. For example you probably will not be able find more than half a dozen shops in the big metropolis of Casablanca (with a population of 7.5 Millions) that carries original Microsoft Windows or Office products. Yet you can get hacked versions practically around every street block for a few dirhams. Even many large corporations use hacked versions of software which would cost hundreds of euros in Europe.
Religious values and ethics play an important role as well. Islamic Sharia'h has a comprehensive set of ethical rules and values. Many in the region follow such rules. For example, selling a fake good as an original would be considered cheating the buyer and would be considered committing a sin for the practicing muslim. Of course the more scrupulous  and materialistic seller wouldn't care much for such ethical issues. In my experience, I have rarely found sellers trying to hide the fact that the goods are fake. However, there is a grey zone for many when it comes to copyright infringement. Copyright and intellectual property rights are recent modern concepts. All MENA countries are signatories of most international copyright acts and conventions. Although this debate among Islamic scholars is not new, but only recently have they consolidated their position on this issue. Today Islamic scholars consider most copyright infringements to be equivalent to theft or cheating and therefore sinful.
Although people throughout the region have very strong brand awareness, there is a strong lack of understanding and acceptance of the concepts of copyright and intellectual property rights. Actually this is the case in much of Asia and Africa. Some countries lack strong legal protection in this area, while others lack law enforcement for their laws.
But a few countries such as the UAE have come a long way in the last few years and have introduced strict laws against copyright infringements, which are enforced with harsh punishments (large fines, imprisonment up to 9 months and loss of business licenses).
In many poorer developing countries, the authorities often close their eyes on such matters. They do this for 2 main reasons. Firstly, because they have more urgent priorities. Secondly, because putting too much restrictions at a mass consumer level will only antagonize the regime further from the broader population. This is bad politics, especially for the remaining more autocratic regimes.
However there are a number of steps that your company can take to protect their brands and intellectual property:

1. Determine first if similar products to what you would like to introduce are widely copied and distributed illegally already. For example if you are trying to market an Arabic version of a graphic design software, well you can be sure that it will be widely copied.
2. Secondly be sure that your brand, trade marks and intellectual properties are registered within your target countries. In my experience it is more worthwhile to get international coverage with WIPO (for selected countries), than directly with the local organization. WIPO based registration have more weight in case of dispute.
3. Get a competent local specialized property rights law firm to represent you. You need to spend some time on this to do a proper screening.
4. You need to actively monitor the market.
5. You need to decide on how far you want to pursue any copyright infringements. Not all cases are worth it, especially if you are targeting more vulnerable poorer segments of the market. It could cause a PR backlash on your firm and products.

Despite many challenges faced today by infringement on copyright today, the situation is improving in many MENA countries. It pays to play it safe and get proper protection and be vigilant, and as MENA economic growth perspective remain strong, the rewards you can reap can be great.

Useful references:
Book: Middle East And Arabic Countries Copyright Law Handbook (World Business, Investment and Government Library)

"I heard it through the Grapevine"

Whenever I go through the traditional Souqs in Casablanca, I am amazed on how fast new products and trends get spread. Most often such products are rarely advertised. The popularity of successful products and brands are spread mainly from word of mouth.
This is not just true with mass consumer products. I had a similar experience with my own company in Morocco, when we first introduced new moped models in the market. We initially did just a small market trial. But during this trial period the motorcycles become successful very fast and the word spread of the quality, features-rich and price value that was been offered. The demand quickly grew. Although we had originally made plans to launch a marketing communication campaign using advertisements, we soon found out that this costly effort had become redundant. Instead we concentrated in trying to get a better feel for the word on the street and worked on ways of staying on top of it.
The informal word of mouth marketing communication is far more important in North Africa and Middle East than it is in Europe or the USA. Social networks are much more broader and more widespread in the Arab Culture.
Unfortunately, it is a communication system over which one does not have any control over. However, one can pay closer attention to the word on the street and gather information on what opinions are being built up through this organic network. Often the consequences are that through this network, products and brands, which are perceived to be "good" have their market value and reputation amplified, but the reverse is also true.

Is There Such a Thing as a Coherent MENA Market?

When you travel from country to country throughout the MENA region you don't fail to notice the great diversity and contrast between them. Morocco for example has a quite different cultural, economical and social structure than let's say Saudi Arabia. This is true of most MENA countries.
You might say that they share a common language: Arabic. Yet this is not exactly true. It is true that classical Arabic is common to all these countries as far as a written and as an official communication language is concerned. But the language that people use for dealing with one another orally has strong differentiated dialects from country to country. This is especially audible when comparing Moroccan dialect to that of let's say Oman. So can we really talk of a common MENA market?
In a way I think you can. In fact this common market is actually in the development process, especially within the last 20 or some odd years. The main driving forces for this are political and economical. There has been stronger economic ties between countries of the region. In fact many countries have seen an important shift in trade relationship from country to country. This is today mainly driven by GCC countries potential for investment. Today two-thirds of GCC's investment outside of their common market takes place within the MENA region. Many local companies and brands are now spreading throughout the region.
Furthermore, the current political changes taking place throughout the region due to the "Arab Spring" is a challenge mainly to the old nationalist regimes. The fire of revolution (or evolution) is been inspired across the border within the region, a sign of common aspirations and values. As many countries become more democratic, barriers between them will come down even further and trade exchange will increase as well.
So you can say that a strong common MENA market is in the making.

Welcome to Souketing

Souketing is my way of combining the modern and more "Western" approach to Marketing with the arabic concept of "Souq", which can be translated as a market or a commercial district.
Although I believe that modern marketing concepts and tools provide a universal means to determine what products and services can be offered to a market, they do however need to fit the specific cultural background and in the case of the North African and Middle-eastern (MENA) region: the islamic/arabic culture. Furthermore, this region itself has a rich commercial history and has developed its own business ethics, rules and values, which need to be taken account of. While on the other hand, many cities in the region are becoming more modern and where unadapted western marketing strategies are also been used, but often with mixed results.
Therefore, I think there is a great need for a platform to discuss these issues and develop a proper approach to the MENA market with more appropriate marketing strategies. Moreover, there are lessons to be learned that could be of use in other regions.