WIPO-NIFT

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WIPO-NIFT TRAINING THE TRAINERS WORKSHOP ON
INTELLECTUAL PROPERTY RIGHTSNew Delhi, June
20 to 24, 2005
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Marketing and the Role of Geographical
Indications, Collective Marks and Certification
Marks in the Textile, Apparels and Lifestyle
SectorCase Studies

• Lien Verbauwhede
• Consultant, SMEs Division
• World Intellectual Property Organization (WIPO)

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1.Introduction
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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.

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• 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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(No Transcript)
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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

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Role of IP in Marketing

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

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• Acting individually, it is often difficult to
  gain recognition for your products in the
  marketplace
• If you cant 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 ?

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IP and Marketing
Trademarks

• Collective marks
• Certification marks
• GIs

Individual marketing
Joint marketing
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2.Collective Marks
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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

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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

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• 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

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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

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• 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

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CASE STUDY La Chamba
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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

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Project La Chamba, Tolima
The product

• Added value
• traditional know-how transferred from generation
  to generation
• 89 handwork or with simple tools

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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

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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)

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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

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3.Certification Marks
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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

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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

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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

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• 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

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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

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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

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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

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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

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• 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

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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.
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• 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.

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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
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4.Geographical Indications
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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

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How does a GI work?

• 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)

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• 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

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• 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

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• 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)

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• 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

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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

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Examples

• Toledo steel

Delft ceramic ware
Turkish kilims
Korean celadon ware
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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

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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

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Case Study Darjeeling Tea
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Case Study Indian Banarasi Sari
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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 

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