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Marketers have no claim on ideas presented during a pitch says Malaysia’s 4As

The Association of Accredited Ad Agencies of Malaysia aka the 4As has expressed its disappointment in advertisers staking a claim to ideas that are revealed during the course of a pitch.

In a statement, 4A’s CEO Khairudin Rahim said:Following our statement on July 3, 2018 where the 4As took a stand against advertisers’ push to own pitch ideas, many marketing experts and related industry bodies strongly supported and applauded our position, sparking positive conversations on the issue.

“Since then, despite our concerted efforts in alliance with the Malaysian Advertisers Association (MAA) to seek cooperation and understanding within the industry, we have continued to receive disturbing reports that certain advertisers – though they are not MAA members – are still persisting in the inclusion of unethical demand clauses in their request-for-proposals (RFP) documents.”

Two of these demands were “All materials submitted in response to this RFP become the sole property of the advertiser” and “All submissions for the RFP are not returnable and shall become the property of the client.

Rahim added: “Beyond reiterating our previous statement that such clauses are unethical and unfair, we have also legally been advised that these clauses are impotent and ineffective from a legal standpoint.

“They do not provide a binding relationship between the agency and the advertiser in a situation of a service being provided where a formal contract or letter of appointment has yet to be signed.

“A pitch for all intents and purposes is an offer to provide a service to the advertiser or client. Unless the advertiser is acceptable to this offer with an agreed consideration to be passed, ownership of the intellectual property (IP) remains with the advertising agency.

“The 4As has therefore reminded agencies not to participate in any RFPs containing these conditions. Our stand has always been – and will continue to be that agencies should learn when to say “no” to such unfair demands.

“We further urge CEOs of Advertiser companies to be aware of the details of their RFPs, and place an immediate stop to this unethical practice.

We at the 4As ask for mutual respect between advertisers and agencies. The growth and development of our industry depends on advertisers and agencies health and mutual co-existence. We can and we must work together to ensure each other’s success.”

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