Yordxam: Promoting Lao Rice Through Strategic Use of IP

Yordxam participated in the Intellectual Property Management Clinic (IPMC) for Laotian enterprises helping them bring unique Lao rice like GI-protected Khao Kai Noi to global markets by leveraging intellectual property.

Rice is at the heart of the Laotian way of life. The Southeast Asian state has one of the highest rates of rice consumption per capita in the world, and rice cultivation is the single most common profession in the country. From the single-hectare paddies of the highlands to the large farms along the banks of the Mekong, the people of Laos grow one of the most diverse range of rice breeds in the world.

An ancient tradition, rice cultivation is nevertheless a focus of innovation. One of those innovators is Yordxam Co. Ltd., a Laos-based company specializing in the production and export of organic and geographical indication (GI)-certified rice, such as their renowned "Khao Kai Noi" variety, a glutinous rice esteemed both for its taste and health benefits.

Khao Kai Noi geographical indication: a quality indicator

Yordxam’s rice products, including the GI-certified Khao Kai Noi rice
Yordxam’s rice products, including the
GI-certified Khao Kai Noi rice (right).
(Image: Yordxam Co., Ltd.)

GI certification is not just a guarantee that a product comes from a certain region. It also signals that its qualities or reputation are directly tied to its place of origin. This is true for all products with GI certification, from champagne wine to Swiss watches. GI certification also prevents third parties from falsely using the geographical origin on their own products. Tea grown outside of Darjeeling cannot be called Darjeeling tea, for example, just as Gouda cheese must be made in the city of Gouda.

While GI certification is relatively common in Europe, it is still gaining recognition among customers and businesses in the Global South. An early adopter in Laos, Yordxam has leapfrogged the competition by recognizing that GI certification and organic practices can differentiate their products by offering unique, high-quality and trustworthy brands for both local and international markets. The company continues to monitor market trends and consumer preference to identify other potential gaps before they become mainstream.

However, this pioneering approach has brought with it intellectual property (IP) challenges. One such challenge was the unauthorized use of the company’s GI-certified products by Yordxam’s business partners. This was attributable to the fact that domestic customers in Laos place less importance on GI-certified goods, limiting the potential to fully capitalize on their value. Difficulties such as these encouraged the Yordxam management team to better understand IP, including asset valuation and litigation practices.

Intellectual Property Management Clinic for Laotian Enterprises

It was while researching IP practices in 2024 that Yordxam learned about the Intellectual Property Management Clinic (IPMC) for Laotian enterprises through the Department of Intellectual Property of Laos. The IPMC was organized jointly by the WIPO Singapore Office and WIPO’s IP for Business Division, with the support of FIT/Japan IP Global. It was part of a long-running series of four-month programs supporting innovative small and medium-sized enterprises to develop and leverage their IP strategies that best showcase their goals, business plans and portfolios of intangible assets.

Yordxam’s new packaging for its Khao Kai Noi rice
Yordxam’s new packaging for its Khao Kai Noi rice,
labeled with the registered trademark.
(Image:: Yordxam Co., Ltd.)

Before attending the IPMC, Yordxam already had a general awareness of IP, since they had registered the GI for Khao Kai Noi rice, receiving the certification in November 2023. However, the company had no other registered IP and lacked in-depth knowledge of the strategic use of IP.

Participating in the IPMC was thus a transformative experience for Yordxam, increasing the company’s understanding of IP and offering valuable insights into the strategic role of IP in business development. The IPMC also provided actionable advice on the effective use of IP, encouraging Yordxam’s management team to recognize the importance of protecting it and implement stricter brand guidelines for their business partners.

Thanks to the IPMC, the Yordxam team learned to transform its GI product from a mere commodity into a distinguished brand, and the company has since redesigned its products’ packaging to emphasize this new identity. The company has also registered its name and logo as a trademark, and established an internal system to track and protect their IP. “I am seeing an increase in sales with our wholesale customers after registering our trademark,” says Mr. Somxai Chanthalungsy, Founder and Director of Yordxam. “We are also attracting more loyal retail customers with our new packaging, even with raised prices for our premium products.”

 

Yordxam’s new packaging for its Khao Kai Noi rice, labeled with the registered trademark. Photo: Yordxam Co., Ltd.

Securing international IP protection for Yordxam Khao Kai Noi Rice

Yordxam’s Founder and Director at the 2024 China–ASEAN Expo in Nanning
Mr. Somxai Chanthalungsy, Founder and Director
of Yordxam (right), standing in Yordxam’s booth
along with two Laotian government officials at the
2024 China–ASEAN Expo in Nanning, China.
(Image: Yordxam Co., Ltd.)

With the company’s IP assets now secure, the management team are keen to investigate the global market. Expanding into international markets represents one of the ambitious yet rewarding moves a business can make. Without a carefully crafted international IP strategy, Yordxam would risk exposing its innovations to infringement, facing costly litigation, or failing to capitalize on valuable IP assets across diverse jurisdictions.

Having been alerted to these potential challenges while attending the IPMC, Yordxam is now ready to explore the registration of trademarks and GI protection in the European Union with the aim of expanding into the trading bloc. The company also aims to expand into markets in Vietnam, Singapore and China. Equipped with an effective IP strategy for global expansion and clear internal IP management processes, thanks to the IPMC, Yordxam is hoping to attract investors, secure financing and reach new markets – bringing Laos’ unique Khao Kai Noi rice to a global audience.