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 competition of 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.

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 cant 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 Collective marks Certification marks GIs Trademarks Individual marketing 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 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.

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

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 amongst local artisans.

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 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

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

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 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. E.g. mines :

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

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 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.

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 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

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

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) How does a GI work?

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 public as to the true origin of the product. 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

Toledo steel Delft ceramic ware Korean celadon ware Turkish kilims Examples

-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

-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

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: