WIPO/NIFT national seminar on The Importance of IP for the Handicrafts Sector

Hyderabad, India, April 5-7, 2005

Role of Geographical Indications, Collective Marks and Certification Marks in Marketing Handicrafts:

Case Studies

Lien Verbauwhede Consultant, SMEs Division, WIPO

1.

Introduction

The challenge of marketing handicrafts

• Craft products have to face other products on the market that are often similar or almost identical.

competition

of • Artisans need to find a mechanism that creates and maintains a

loyal clientele

.

• Only way to do so: creating and maintaining an

identity, image or reputation

that differentiates you from other artisans, so that you can maintain credibility, confidence and loyalty in your works.

Choosing a carpet

•

Materials and texture

: – quality silk, pure wool – vegetable colors •

Quality:

– colorfastness – easy to clean – density of the knots •

Design:

– traditional designs – fashion trends – unique •

Manufacturing technique:

– w eaving/knitting technique – hand woven – woven by women

Role of IP in Marketing

• Trademarks, collective marks, certifications and geographical indications (GIs) refer to the

reputation

and to certain

qualities

of the products.

• Acting

individually

, it is difficult for artisans to gain recognition for their products in the marketplace.

“If you can’t beat them, join them”

• In many countries, artisans have grouped in federations or associations (clusters) organized either geographically or per industrial sector.

• Working

collectively

, artisans can benefit from the advantages of a joint undertaking.

How can the system of IPR help ?

IP and Marketing

Trademarks Individual marketing

• • •

Collective marks Certification marks GIs

Joint marketing

2.

Collective Marks

What is a collective mark?

• Sign that serves to distinguish the origin, material, mode of manufacture or other

common characteristics different enterprises

of the products of (artisans) using the mark.

• Typically, the owner of the collective mark is an

association

of which those artisans are members.

• Registered in the trademarks registry.

How does a collective mark work?

•

Regulation of use

– conditions of use – other matters • control

(art 63 TM Act)

– persons authorized to use – conditions of membership – sanctions against misuse • particular features/qualities of the products •

Autorization to use

– membership – application or authomatic – comply with the rules (regulation of use) •

Control

•

Thus, the function of a collective mark is to INFORM the customers :

–

about the origin of the products (artisan, member of a specific association)

–

about a level of quality or accuracy, geographical origin, or other features set by the association

Benefits for artisans

•

Economies of scale

(registration cost, advertising campaign, enforcement, etc.).

•

Reputation

acquired on the basis of common origin or other characteristics of the products made by different artisans.

• May facilitate

cooperation

artisans.

amongst local

• Creation of a collective mark must go hand in hand with the development of certain standards and criteria (regulations) and a common strategy   collective marks can become powerful tools for

local development

harmonization of products, enhancement of

quality

 no licenses

CASE STUDY: “La Chamba”

Project “La Chamba, Tolima” The project • 3 municipalities: El Guamo, Flandes, El Espinal • Population: 12.100 inhabitants • 1.300 ceramic artisans (10%) • 284 workshops • 70% women • 12% without formal eduction • 21% without public services • Mapa del Tolima

Project “La Chamba, Tolima” The product

Added value:

• traditional know-how transferred from generation to generation • principal role of women • 89%: handwork or with simple tools

Project “La Chamba, Tolima” Organization

Problems:

• • • • little enterprise management capacity paternalism individual leaders lack of organizational structure • • •

Solution:

cooperation development of enterprise management capacity common strategy

Project “La Chamba, Tolima” E.g. mines :

Problems:

• • • individual exploitation, without sustainable management no calculation of reserves no physical/chemical analysis of clay

Solution:

• • • • cooperative: microenterprise for mining exploitation sustainable management of the mines supply of homogeneous ceramic pastry planification of production.

Project “La Chamba, Tolima” E.g. Product design and development • • •

Problems:

supply not merged with demand little product variety some products out of production (stewpans) • • •

Solution:

design as a differentiated value of ceramics tradition and innovation (new products for new demands) merging supply and demand

Project “La Chamba, Tolima” E.g. Marketing

Problem :

• • •

Added value (handmade, tradition, quality) of the product not advertised No stimulation for export Need to find new clients, enter new markets Solution:

• • • •

Certification “Hecho a Mano” (handmade) Zero custom duties for exportation Creation of culture of CONSISTENT QUALITY Collective Mark (joint project WIPO)

Project “La Chamba, Tolima” COLLECTIVE MARK • • •

Association: members allowed to use the collective mark exchange of experiences joint advertising and promotion

•

Regulation of use:

•

production process (mine extraction, preparation of clay, moulding, heating, glazing) quality control and inspection



homogeneous products

• • • • •

Objectives: strenghten image of Chamba ceramics reputation of consistent quality and tradition differentiate on the market Chamba ceramics from other ceramics preserve cultural heritage foster commercialization

3.

Certification Marks

What is a certification mark?

• Sign indicating that the products have been

certified

an independent body in relation to one or more by characteristics – origin, material, mode of manufacture, quality, accuracy, etc.

• The owner is usually an

independent

enterprise, institution, governmental entity, etc that is

competent

certify the products concerned.

to • Registered in the trademarks registry.

How does a certification mark work?

•

Regulation of use

– features of the products that are certified – conditions of use – control – proceedings against unauthorized use •

Autorization to use

– anyone who meets with the prescribed standards – not confined to membership – generally: licence agreement (fee) – owner not allowed to use •

Control

Benefits for artisans

• Guarantee for consumers of certain quality – Art 72 TM Act: certification mark must be to the public advantage • Benefit from the confidence that consumers place in users of certification mark • Strengthen reputation

• For example, certify that: product is handmade certain ecological requirements have been respected in the production procedure no children were employed in the production process products have been produced in specific geographical region products are made 100% of recyclable materials products are made by indigenous group

Case Study: “FEDAC”

-

FEDAC is independent institution in Gran Canaria controls quality of crafts produced in Gran Canaria has registered certification mark label to be affixed to the products

Case Study: “FEDAC”

-

label guarantees that the product is made by an artisan of Gran Canaria FEDAC reserves the right to take legal actions against any violation of misuse that it considers to be damaging to the interests of the handicraft sector and the artisans of Gran Canaria

Case Study: “RUGMARK”

• Global non-profit organization working to end child labor and offer educational opportunities for children in India, Nepal and Pakistan. • The RUGMARK label is your best assurance that no illegal child labor was employed in the manufacture of a carpet or rug.

Case Study: “RUGMARK”

• To be certified by RUGMARK, carpet-manufacturers sign a legally binding contract to: – produce carpets without illegal child labor – register all looms with the RUGMARK Foundation – allow access to looms for unannounced inspections. • Carpet looms are monitored regularly by RUGMARK. • Each labeled carpet is individually numbered enabling its origin to be traced back to the loom on which is was produced. This also protects against counterfeit labels.

Case Study: “WOOLMARK”

– registered by the Woolmark Company – a quality assurance symbol denoting that the products on which it is applied are made from 100% wool and comply with strict performance specification set down by the Woolmark Company – registered in over 140 countries

“Through ownership and licensing of the Woolmark, we provide unique worldwide quality endorsement. Our brands and symbols are protected by rigorous and extensive control checks and recognized globally as unrivalled signs of quality and performance.

If a wool product carries our brands, it carries our

guarantee of product quality.”

Case Study: “TOI IHO”

• Exciting initiative for Maori artisans, artists and businesses • Denotes that products are authentic quality indigenous Maori arts and crafts.

• The creation of the mark was facilitated by Te Waka Toi, the Maori arts board of Creative New Zealand, in consultation with Maori artists.

Collective Mark Certification

•Only members that comply •Anyone who complies •Control by association •Control by independent entity •Simple authorization •Authorization through license agreement •Free use •Fee •Owner allowed to use •Owner not allowed to use

4.

Geographical Indications

What is a GI?

• A sign used on goods that have a specific geographical origin and possess qualities or a reputation that are due to that place of origin • Most commonly, consists of the name of the place of origin of the goods • country, region, city • E.g. Champagne • In some countries : can also be figurative element • E.g. Eiffel tower, Egyptian pyramid • E.g. birds, animals associated with a place

How does a GI work?

•

Authorization to use

– Each enterprise located in the area has the right to use • for products originating from that area →

LINK

• possibly subject to certain

quality requirements

•

Link between product and place

• place where the product is produced (industrial products, crafts) • place where the product is extracted (clay, salt) • place where the product is elaborated (liquor,cheese)

•

Protection on national level

– Private initiative: certifications, collective marks – General principles • jurisprudence (e.g. false and deceptive use) • laws against unfair competition • consumer protection laws – Decision made by government authority • registration with IP office (Russia) • decree (France) • special laws for the protection of GIs • Once protected in a country one must proceed to have it

internationally accepted

so that it is globally recognized as a GI – Bilateral agreements – International treaties

• Unauthorized persons may not use GIs if such use is likely to

mislead

the true origin of the product. the public as to • – – – –

Sanctions

: court injunctions preventing unauthorized use payment of damages fines imprisonment.

•

Typical examples: Agricultural products

that have qualities that derive from their place of production and are influenced by specific local factors, such as climate, type of soil, altitude, etc – E.g. wine, champagne, cognac, port, sherry, whiskey – E.g. cheese, yoghurt, – E.g. olive oil, ham, potatoes

Can GIs be used for handicrafts?

• Many artisanal products have special added value because of their link with their geographical environment • They may, for example, have qualities that are a specific consequence of human factors that are unique for that place, such as : – some specific know-how – traditions or – indigenous manufacturing skills

Examples Toledo steel Delft ceramic ware Turkish kilims Korean celadon ware

Case Study: “Talavera de Puebla”

- Considered to be one of the finest ceramics in Mexico - Handmade and painted by hand - Historical linked with Arabic culture - Typical are the geometric designs in blue color painted on a white background - The design and colours of the artwork are created following traditional rules and know-how

Case Study: “Egyptian cotton”

- Logo: figurative elements and words - 100% Barbadense cotton - developed to promote and increase export of cotton products from Egypt - 2001: Agreement - Egyptian Ministry of Ec and Foreign Trade + Alexandria Cotton Exporters’ Association + 2 American textile companies - US companies authorized to use logo on their products made of Egyptian cotton in USA and Canada - Export increased

CONCLUSIONS

• A trademark is without doubt a powerful instrument to differentiate your handicraft products from those of your competitors.

• However, in order to be effective (strong reputation), the artisan in question must have a high level of organization and production. • Sometimes, collective marks, certification marks and GIs may be more useful tools to help artisans overcome the disadvantages associated with their small size and isolation in the marketplace.

Lien Verbauwhede WIPO, SMEs Division: www.wipo.int/sme/