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WIPO-NIFT

“TRAINING THE TRAINERS” WORKSHOP


ON INTELLECTUAL PROPERTY RIGHTS

New Delhi, June 20 to 24, 2005


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)

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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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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 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 ?


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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

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Mapa del Tolima
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)
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

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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 25
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 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

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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 42
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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Lien Verbauwhede
WIPO, SMEs Division: www.wipo.int/sme/
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