GEOGRAPHICAL INDICATIONS [GI] IN INDIA & SOCIAL

FUNDING

Presented By:Charvi PuriGayathri M

Jaya KhemaniPavithra Narasimhan

Payal Agrawal

AGENDA Definition and scope of geographical indications Historical development Why do GIs matter to us? Essentials of GI application Before GI Act Provisions under National Legislation Socio Economic Impact of GI The Protection of Geographical Indications in India Impacts of GI registration in India- Example Challenges and problems of GIs in India Social Funding oriGIn Conclusion

Definition and scope of Geographical Indications

A geographical indication (GI) acts as a mechanism that helps producers differentiate their products from competing products in the market and enables producers to build a reputation and goodwill around their products that will fetch a premium price.

Under Article 22, the scope of protection is composed of three aspects.

Protection against the use of indications that mislead the public or are deceptive

Protection against the use of indications in a manner that are acts of unfair competition and

Refusal or invalidation of trademarks that contain or consist of indications, where it may mislead the public.

Historical developmentRelatively new concept introduced by

the TRIPS Agreement (WTO1994)Previously, closely related concepts like

'appellations of origin', 'indications of source' 'designations of origin‘ were in use.

But these offered limited scope as they were ratified only by few countries.

Finally, signing of the TRIPS Agreement brought GI to the fore in multilateral negotiations (more than 150 countries)

However, only minimum standards of protection for GIs were given.

There was the problem of hierarchy in the levels of protection based on arbitrary and specious categorization of goods under TRIPs agreement.

Finally, with the support from EU countries, TRIPS provides a basic standard of protection to all other goods and higher standards of protection to wines and spirits.

Why do GIs matter to us?GIs are important to our

producers and to our exportsGIs play an important role in the

future of our agricultural policyThe consumers benefit because

of the existence of GIsGIs help in the economic

development of many developing countries

GIs promote free trade

Essentials of GI applicationApplicant- represent the interest of the

producersApplication- in writing( prescribed format)Addressed to-the Registrar of Geographical

Indications along with prescribed fee.

Problems in giving GI – India Diversity which makes 1000s of products

eligible for the tagging Difficulty to organize small household units

into associations

Before GI ActConsumer protection lawsPassing-off actions in courtCTM

History of legislationSocio-economic perspective

EmploymentRegulation of the market Diversification of production

To curb unfair practices by competitorsTo tap the potential economic and socio-economic

benefits emanating

Judicial perspectiveBasmati rice patent case

Rice tech patented (saying Basmati is a generic name)

Had to approach all countries where Rice tech trademarked “Texasmati”

India had no law protecting GI then; passing off by court, which cannot be done frequently

To protect globally, start with national legislation

Provisions under the National Legislation

GI Act-Sep-2003GI Indications Registry( where

right holders can register) Central govt has the discretion to

decide the level of protectionOnce GI in India, easier to seek

protection in other countries

Socio Economic ImpactIndia home to many GI productsPrice premium in the

international marketDepends on sizeable marketCosts incurred(Marketing and

production costs) subtracted from premium, profitable?

Does the benefits reach the bottom end of the value chain ( i.e. producers)

Does the developing countries have enough incentives ?

Contribution to the poor producers Empirical research to address the

above problems

Protection of GIs in IndiaFirst Indian GI was registered in

2004Maximum number of products

were registered in 2008 – 09Handicrafts hold the top most

position followed by agricultural and manufactured products

Food products are a recent addition, started when Dharwad Pedha from Karnataka granted the status.

Most GIs have been registered from the Southern States.

Only 3 GIs from all of North East India.

Phulkari is the only GI in India which covers more than 1 state – Punjab, Haryana and Rajasthan.

Example- Banaras Brocades and Saris

Secured registration under the GI Act in September 2009

Industry is impacted by host of variables in terms of raw materials and labor issues, the socio-economic aspects of the region, etc.

Changing market situation leads to reduced income which results in increase in poverty and malnutrition

Because of this, farmers commit suicide or go for employment shifts

Unavailability of skilled weavers and quality raw material

Chinese imitation saris, giant increase in the number of operating power looms, complex market dynamics, etc.–presence of all these cannot give any guarantee of authenticity and quality

Challenges and Problems of GIs in India

It does not protect knowledge or technology as such. It only protects the name or indication.

This essentially means that the famous Banarasi sari can be produced anywhere in the world but it cannot be named ‘Banarasi sari’.

For a price-conscious consumer, it might not make much sense to buy GI certified products at a premium, if the same product is available elsewhere.

The question of beneficiaries Ambiguity in the definition of the term ‘producer’ in the

legislation which does not distinguish between real producer, retailer or dealer.

As of now, traders enjoy more economic benefits than the actual producers of GI.

Appropriate Identification of products Identification of GI based products and their registration is

happening without adequate due thoroughness. Groups filling for GI registration do not assess the commercial

prospect of a GI product in the domestic and international markets

Defining the characteristics GI status could lead to the creation of ‘clubs’ (connoting

exclusion of many others). “Club Asset” for a club membership consisting of the firms that

were granted the legal right to use the GI as a collectively, due to two main features: excludability of benefits and non-rivalry in benefits. 

Benefits to right-holders might decrease due to dilution of the GI

• Defining geographical boundaries Big challenge, particularly in the context of non-agricultural

products. Ex. Banarasi Sari and Baluchar Saris

• Post-registration follow-up – brand building and marketing Need for promotion and continuous awareness building

particularly among the consumers There currently exists no standard procedures for consultation

before registration and it is most probable that pre- application process may end up in inadequate consultations with various stakeholders including retailers.

For most of the Indian GIs that do not have any established  image  in  these  markets,  consumers  in  the  developed  countries  would have to be informed of the existence of a GI as well as its whereabouts and would be required to be convinced of the quality associated with it.

• Registration in Foreign Countries The challenges associated with GI protection also include

technicalities involved in the registration process in various foreign countries, high expenses incurred in appointing a watch-dog agency to get information on misappropriation, and financial resources that are needed for pursuing legal battles,

Social FundingLet’s take example of Kashmiri Pashmina. The

weaving had been badly hit by machine-made look-a-like that used a combination of other wools mixed with Pashmina to earn the premium that the genuine article commands

It got its GI registration some four years ago but it was only in August 2013 that a high-tech, tamperproof label was introduced to protect its IP.

This process is not easy! Such measures cost money from start to scratch…

Social Funding

Return on Investment

Social Investment

Substantial investments for GI are required to boost and protect them in an apt manner.

It is mentioned in the Act as: “Provident, superannuation, welfare and other funds.”

This indicates that social funding or investments for the matter definitely helps, specially for developing countries like India.

Lack of Awareness & Then…

One of the reasons for not having effective and speedy GI implementation is lack of awareness. But…

Even after much persuasion to the people (specially farmers), the registration requires two steps.

For the first stage of registered proprietor, the fee is, say for a place, ₹ 5,000 while for the second stage of authorised user, it is ₹ 500 per individual.

Many of the registrations under the GI Act have been sponsored [for the application fees] by the government and most of them want similar sponsorships for registering for the second stage too.

Legally, without registering for the second stage, the first stage doesn’t hold good.

FundsAlthough India has taken the first step by

enacting a law to protect the interests of local manufacturers of different regions, a lot needs to be done before the GI process can be called a success.

While, enforcement is not guaranteed, such legal battles involve huge expenses. In fact, a major challenge faced relates to legal and registration expenses, costs of hiring an international watch dog agency and fighting infringements in overseas jurisdictions.

Organization for an International Geographical Indications Network

Aware of the risks surrounding the future of GIs, producers from all over the world have come together:for an improved international protection of GIsfor recognition of their essential role in sustainable

development

Hence, oriGIn was started, allowing for exchanges between producers and favoring the transfers of experience and expertise.

Objectives of oriGInThe extension of additional protection of

Article 23 of TRIPs for all GI products, as available to wines and spirits

The establishment of a legally binding multilateral register for all GI products.

The reinforcement of technical assistance in favour of developing countries, to allow them to benefit from the advantages of GIs.

ConclusionEvery country – whether developed,

developing or in transition – has products which are the fruits of its culture and know-how.

Many registered GIs in India face acute shortage of in-house funds for taking up post-registration measures. In such cases, the Government or NGOs could proactively and financially assist to set up separate funds that expedite the post-registration process.

What is at stake is not only the goodwill and reputation attached to the precious GIs of our country, but also the huge commercial and trade implications associated with them

With the legal mechanism in place, the time is now ripe for the legitimate users of each and every GI of Indian origin to come forward in securing the absolute protection for their � �respective GIs at the national level