WIPO-NIFT “TRAINING THE TRAINERS” WORKSHOP ON INTELLECTUAL PROPERTY RIGHTS New Delhi, June 20 to 24, 2005

2 Marketing and the Role of Geographical Indications, Collective Marks and Certification Marks in the Textile, Apparels and Lifestyle Sector: Case Studies Lien Verbauwhede Consultant, SMEs Division World Intellectual Property Organization (WIPO)

3 1. Introduction

4 The challenge of marketing textile and lifestyle products Such products have to face competition of other products on the market that are often similar or almost identical Need to find mechanism that creates and maintains loyal clientele.

5 Only way to do so: Creating and maintaining an identity, image or reputation that differentiates you from other manufacturers, so that you can maintain credibility, confidence and loyalty in your products

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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: –w eaving/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 often difficult to gain recognition for your products in the marketplace “If you can’t beat them, join them” In many countries, artisans, textile producers, etc. have grouped in federations or associations (clusters) organized either geographically or per industrial sector Working collectively, they 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/textile producers) using the mark Typically, the owner of collective mark is an association of which those producers are members Registered in trademarks registry

13 How does 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 Authorization to use –membership –application or automatic –comply with the rules (regulation of use) Control

14 Thus, function of collective mark is to INFORM the customers : –About the origin of the products e.g. ceramic artisan, member of a specific association in Hyderabad –About a level of quality or accuracy, geographical origin, or other features set by the association

15 Benefits for textile manufacturers or 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/manufacturers May facilitate cooperation amongst local artisans/manufacturers

16 Creation of collective mark hand in hand with development of certain standards and criteria (regulations) and common strategy  collective marks can become powerful tools for local development  harmonization of products, enhancement of quality  no licenses

17 CASE STUDY: “La Chamba”

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

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

20 Project “La Chamba, Tolima” Problems: little enterprise management capacity paternalism individual leaders lack of organizational structure Solution: cooperation development of enterprise management capacity common strategy Organization

Project “La Chamba, Tolima” Marketing Problem : Added value (handmade, tradition, quality) of the product not advertised Need to find new clients, enter new markets Solution: Certification “Hecho a Mano” (handmade) 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

23 3. Certification Marks

24 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. Owner is usually an independent enterprise, institution, governmental entity, etc. that is competent to certify the products concerned Registered in trademarks registry

25 How does certification mark work? Regulation of use –features of the products that are certified –conditions of use –control –proceedings against unauthorized use Authorization to use –anyone who meets with the prescribed standards –not confined to membership –generally: licence agreement (fee) –owner not allowed to use Control

26 Benefits for textile manufacturers or 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

27 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

28 Case Study: “FEDAC” - FEDAC is independent institution in Gran Canaria -Controls quality of crafts produced in Gran Canaria -Registered certification mark -Label to be affixed to the products

29 Case Study: “FEDAC” - Label guarantees that product is made by artisan of Gran Canaria -Takes legal actions against any violation of misuse that t considers to be damaging to interests of handicraft sector and artisans of Gran Canaria

30 Case Study: “RUGMARK” Global non-profit organization working to end child labor and offer educational opportunities for children in India, Nepal and Pakistan RUGMARK label is assurance that no illegal child labor was employed in the manufacture of a carpet or rug

31 Case Study: “RUGMARK” To be certified by RUGMARK, carpet-manufacturers sign 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  enables origin to be traced back to the loom on which is was produced  also protects against counterfeit labels

32 Case Study: “WOOLMARK” –Registered by Woolmark Company –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

33 “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.”

34 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.

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

36 4. Geographical Indications

37 What is a GI? 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

38 Authorization to use –Each enterprise located in the area has right to use For products originating from that area  LINK Possibly subject to certain quality requirements Link between product and place Place where product is produced (industrial products, crafts) Place where product is extracted (clay, salt) Place where product is elaborated (liquor,cheese) How does a GI work?

39 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

40 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

41 Protection on national level –Private initiative: Certification marks (e.g. U.S.A.; Darjeeling in India) Collective marks (e.g. Japan; agricultural label in France) –General principles Passing-off (e.g. Scotch whisky – Peter Scot) Consumer protection laws (e.g. made in Japan; Egyptian cotton) –Decision made by government authority Registration with IP office (Russia) Decree (France) Special laws for the protection of GIs (India)

42 Protection on international level –Ideally: public register –Bilateral agreements –International treaties –Inconsistent protection –Civil law Registration Only similar goods –Common law Repution enough (e.g. Champagne in India) Also dissimular products

43 Can GIs be used for handicrafts and textile? Many artesanal 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 –indigenous manufacturing skills

44 Toledo steel Delft ceramic ware Korean celadon ware Turkish kilims Examples

45 -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: “Talavera de Puebla”

46 -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 Case Study: “Egyptian cotton”

47 Case Study: “Darjeeling Tea”

48 Case Study: “Indian Banarasi Sari”

49 CONCLUSIONS Trademark is powerful instrument to differentiate your artesanal 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

50 Lien Verbauwhede WIPO, SMEs Division: