the power of geographical indications: considerations...
TRANSCRIPT
The Power of Geographical Indications:
Considerations for Africa
Cerkia Bramley Institute for Food, Nutrition and Wellbeing University of Pretoria [email protected]
Indications which identify a good:
What are Geographical Indications?
(GIs)
Specific
geographical
origin
• Qualities
• Reputation
• Other characteristics
Examples of GIs Basmati rice,Champagne, Roquefort cheese, Parma ham, Cafe de Columbia, Tequila, etc.
Rooibos tea, Karoo Lamb, Gari Missé,Moshuwe Pineapples, Argan oil
Could include handicrafts, textiles, etc.
Food products
Other traditional products
International legal obligation to
protect GIs
1994: TRIPS requires that all WTO Member
countries provide the “legal means” to protect
GIs within their territories.
Effectively internationalised the GI concept.
Beyond international legal obligation to do,
strong reasons exist for African countries to
consider GIs at national level.
UNIVERSALITY OF THE GI CONCEPT
GIs as a business tool
Consumers increasingly placing value on products
they can associate with place and/or special
means of production:
Distinctive sign which signals a product-origin-
quality nexus.
Form of branding – Communicate and
differentiate
Opportunity to move away from commodity
markets into more lucrative niche markets.
Intellectual Property Right
FEATURES
products with a strong image
“quality” products
Seek to high prices to consumers (but not always)
Value added is kept in the region
GIs as a business tool
Builds a collective reputation - “collective
process of value creation”.
VALUABLE MARKETING TOOL
-Improved market access
-Potential price premiums
Intellectual Property Right
FEATURES
products with a strong image
“quality” products
Seek to high prices to consumers (but not always)
Value added is kept in the region
Concern over Misappropriation
• Misappropriation and usurpation of origin based
names increased significantly in recent years.
• Internationally trade mark registrations by
entities with no link to the region
• Honeybush in Japan
• Rooibos in France
• Take unfair advantage of and threaten collective
reputation of the GI.
Need for Official recognition and
Protection
• Historically, many examples of origin based
products sustained without official recognition
and protection.
• Many regional products survived for long period
through undocumented practices of producers,
merchants and consumers.
Need for Official recognition and
Protection
• But, marketing potential and income effect of GIs
together with increased presence of origin based
products in different markets (taking the local
global)
= NEED FOR OFFICIAL RECOGNITION AND
PROTECTION
Changing positions of GIs in the
Developing world
Defensive role of GIs (name reservation)
important motivator for countries such as
India, Columbia and Thailand:
• stronger positions on GI protection
internationally
• implement domestic legal measures for GI
protection that exceeds their obligations under
TRIPS.
GIs as a Policy Tool Promoting sustainable rural development
– Market access and raising incomes
– Broader rural development impacts – agro-tourism,
job creation etc.
Preservation of Traditional knowledge
– Do not protect per se
– But places in public domain
Environmental impacts
– biodiversity preservation
MULTIFUNCTIONAL NATURE OF GIS
Considerations for GIs in
Africa
However- legal protection only first
step to unlock the value of a GI
1. Marketing and Market
Development
GIs do not lead to automatic value creation
• “Piling up of laws” should not be confused with
“accumulation of reputational capital”.
• As for any other brands, unlocking marketing
value in GI requires significant investment to
build, promote, maintain a GI.
1. Marketing and Market Development
• Lack of market knowledge and financial
resources significant constraints:
• Will need to provide support to resource poor
communities.
• Product positioning - Local versus international
markets?
• Does the product enjoy existing reputation on this
market?
2. NEED FOR CONTROLS
Long term value of GIs will depend on trust of
consumer in the product:
• Requires effective quality controls
• Weak institutional framework?
• Lack of certification bodies?
• Beyond credibility on local markets - access to
EU market?-
• does not prescribe controls in 3rd country markets to
qualify for EU registration, however, when want to
place the product on EU market must qualify with EU
Official Controls.
3. MONITORING AND
ENFORCEMENT
• Once protected, will need to monitor and enforce
the IP rights.
• Whose responsibility?
• GI Right holder - private process?
• poor rural producers?
• dependant on financial means?
• Role of State?
• Capacity?
• Implementation?
GI success factors – Guideline for
choosing GI products Product specificity
– How unique is the product? - Basis for differentiation
– The stronger the origin/product nexus, more robust is
competitive advantage
– Drafting product specification.
Reputation:
– Does product have existing reputation?
– On which markets? (local, national, international)
– Influences cost of establishing product on market
GI success factors – Guideline for
choosing GI products
Collective action and coordination
– In defining the GI (borders and code of practices)
– How to ensure that benefit is fairly distributed?
– Participation in control of the GI
– Need for representative industry organisation
Rooibos versus Honeybush experience
GI success factors – Guideline for
choosing GI products
Institutional support – role of the public sector
– Defined as private right - State intervention
justified by public policy objectives
– Defining the GI product – exclusionary
dynamics
Importance of substantial examination (state
oversight in defining the GI)
Dangers of top down approach to defining a GI –
Case of India
GI success factors – Guideline for
choosing GI products
The collective nature and public dimensions of
GIs should form a key consideration in the
design of an institutional framework.
Conclusion
Significant potential benefits associated with
GIs:
– Business tool
– Public policy instrument
But complex process and developing country
GIs face particular challenges that arise from
their environment.
Conclusion
Case of Tequila in Mexico:
GIs are legally defined in an almost identical
manner under Mexican law as it is in France.
However despite this, and although sales
volumes have increased significantly, the
introduction of the Tequila GI has largely failed
to benefit the local community and environment.
Also observed in India for majority of GI
registrations.
Conclusion
Legal protection is an essential first step –
but stricter laws alone do not give rise to
the GI benefits.
Countries committing scare resources to
GI strategies need to consider additional
factors beyond legal protection to ensure
benefits.