WIPO/NIFT national seminar on The Importance of IP for the Handicrafts Sector Hyderabad, India, April 5-7, 2005

1. WIPO/NIFT national seminar on The Importance of IP for the Handicrafts SectorHyderabad, India, April 5-7, 2005

2. Role of Geographical Indications, Collective Marks and Certification Marks in Marketing Handicrafts:Case StudiesLien VerbauwhedeConsultant, SMEs Division, WIPO

3. 1.Introduction

4. The challenge of marketing handicrafts • Craft products have to face competitionof other products on the market that are often similar or almost identical. • Artisans need to find a mechanism that creates and maintains a loyal clientele.

5. 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.

7. 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: • weaving/knitting technique • hand woven • woven by women

8. Role of IP in Marketing • Trademarks, collective marks, certifications and geographical indications (GIs) refer to the reputation and to certain qualities of the products.

9. 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 ?

10. IP and Marketing • Collective marks • Certification marks • GIs Trademarks Individual marketing Joint marketing

11. 2.Collective Marks

12. What is a collective mark? • Sign that serves to distinguish the origin, material, mode of manufacture or other common characteristics of the products of different enterprises (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.

13. How does a collective mark work? • Regulation of use (art 63 TM Act) • persons authorized to use • conditions of membership • conditions of use • sanctions against misuse • other matters • particular features/qualities of the products • control • Autorization to use • membership • application or authomatic • comply with the rules (regulation of use) • Control

14. 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

15. 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 amongst local artisans.

16. 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

17. CASE STUDY: “LaChamba”

18. 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

19. Added value: traditional know-how transferred from generation to generation principal role of women 89%: handwork or with simple tools Project “La Chamba, Tolima” The product

20. 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

21. 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.

22. Project “La Chamba, Tolima” Problems: • supply not merged with demand • little product variety • some products out of production (stewpans) E.g. Product design and development Solution: • design as a differentiated value of ceramics • tradition and innovation (new products for new demands) • merging supply and demand

23. 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)

24. 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

25. 3.Certification Marks

26. What is a certification mark? • Sign indicating that the products have been certified by an independent body in relation to one or more characteristics • origin, material, mode of manufacture, quality, accuracy, etc. • The owner is usually an independent enterprise, institution, governmental entity, etc that is competent to certify the products concerned. • Registered in the trademarks registry.

27. 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

28. 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

29. 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

30. Case Study: “FEDAC” - FEDAC is independent institution in Gran Canaria - controls quality of crafts produced in Gra n Canaria - has registered certification mark - label to be affixed to the products

31. 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

32. 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.

33. 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.

34. 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

35. “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.”

36. 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.

38. 4.Geographical Indications

39. 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

40. 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)

41. 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

42. Unauthorized persons may not use GIs if such use is likely to mislead the public as to the true origin of the product. • Sanctions: • court injunctions preventing unauthorized use • payment of damages • fines • imprisonment.

43. 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

44. 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

45. Examples Toledo steel Delft ceramic ware Turkish kilims Korean celadon ware

46. 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

47. 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

48. 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.

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