The Red Cross is Owned by Johnson & Johnson
by Michael HoffmanThursday, August 9th, 2007
Who knew? The famous Red Cross — that symbol of of safety and rescue — is actually owned by the American company Johnson & Johnson. Before the American Red Cross was officially chartered more than 100 years ago, Johnson & Johnson was selling products using the symbol and had it registered as their corporate trademark. They have been totally fine with it being used by the American Red Cross, until now.
Seeing the headlines, “Johnson & Johnson Sues Red Cross Over Symbol” it is easy to say look at the big bad corporation going after the poor nonprofit. I am not sure that’s the case here.
The Red Cross has made a move in recent years that threaten the business interests of Johnson & Johnson by licensing the symbol to companies that make consumer medical products. The result is that you can go into your local Walgreens or CVS and see a Red Cross endorsed product competing with a similar product from Johnson & Johnson. I don’t know all of the story but it seems the company has tried to work this out without court, but the Red Cross kept moving ahead.
The Red Cross is a huge bureaucratic organization that has had its share of staff turnover and scandal in recent years. I remember them advertising to give blood after 9-11 and I was thinking… blood for who? Their move into licensing reminds me of AARP, an organization with a massive for-profit subsidiary. AARP trades off its access to the nations seniors to make a mint, in partnership with some of corporate America’s biggest companies. Mission driven or profit driven?
I can only imagine that within Johnson & Johnson there was a lot of debate about this move. Would the benefits of a suit outweigh the negative publicity? My guess is that the Red Cross had to be pretty non-responsive for J&J to go this far.
The Red Cross is an example of an organization that needs to get back to their authentic story. The story is not about misleading ads or about consumer product sales or about local chapters run amok. The authentic story is about helping people. It’s about dedicated volunteers and lives shattered and put back together. If they focused as much on getting back to this story as in creating a consumer products division, the donations will flow like never before.
August 10th, 2007 at 9:47 am
Seth Godin agrees with me. I think the folks at J&J had a good read of the reaction.
http://sethgodin.typepad.com/seths_blog/2007/08/what-to-do-when.html
August 10th, 2007 at 3:39 pm
Look at AARP’s paid endorcement of United Health Care for Medicare Part D. AARP did not disclose this was a paid endorcement when AARP signed me up for Part D. United Health Care charges $21.00 for a $11.85 perscription. Now four of my perscriptions I get mail order without insurance because it cheaper then AARP’s United Health Care. And using less insurance this year I am in the gap, when last year I didn’t even come close. Now United Health Care is trying to take over almost 90% of all medical insurance in Nevada with no compition. AARP Sold out
September 24th, 2007 at 6:55 pm
[…] I wrote recently about the Johnson & Johnson lawsuit against the Red Cross. Basically, J&J has rights to use the red cross symbol to sell their medical products. The Red Cross is now using the symbol now to sell third-party products, many of which compete directly with J&J’s products. J&J files a lawsuit. […]