Successful vs. Unsuccessful Stories of Indian GIs

IPC-EUI Training and Workshop on GIs for Producers, Attorneys and Advisors. 16-21 January 2017

Prof T C James

President, NIPO and Visiting Fellow, RIS

Introduction

• Geographical Indications – marketing tool

• Objective of GI Protection: Reaping the full commercial potential of the product

• How to Prepare a successful marketing strategy?

• Three Models from Handloom Sector and one from agricultural sector.

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THE CHANDERI STORY

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Chanderi in Madhya Pradesh

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Chanderi Town

• Chanderi is a municipal town in Ashoknagar district of Madhya Pradesh

• Population - 33,081 of which 17,322 are males and 15,759 are females (2011 census)

• Over 6,669 houses

• 60 per cent is estimated to be dependent on handloom weaving.

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Chanderi Fabric Story

• Around 1305 AD, about 20,000 people migrated to Chanderi from Lakhnoti, in present day Bangladesh • They brought with them the art of making fine

muslins • Received royal patronage • Trade grew • In 2009, around 18,000 people depended on

Chanderi manufacture and trade for livelihood.

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Making of Chanderi Fabric

• Image fromChanderiyaan.net

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Problem

• Competition from power loom products made in Surat and Varanasi – Difficult to distinguish genuine Chanderi and non-

Chanderi product

• Decline in demand

• Consequential loss of jobs and income

• Migration of new generation outside a threat to the continuance of the art and trade in Chanderi saree.

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Solution

• Seeking GI Protection

• Initiative by UNIDO; Development Commissioner of Handlooms; state govt.

• Formation of Chanderi Development Foundation

• Application and consequential registration of Chanderi Fabric as a Geographical indication in 2005.

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Post Registration

• Development of a GI logo

• Master weavers were advised and encouraged to use the GI tag for which labels were distributed free to them by the Chanderi Development Foundation

• Letters were issued to major retailers and big wholesale buyers about GI status

• Participation of weavers in national and international exhibitions facilitated.

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Post Registration Marketing

• Conduct of sensitization workshops

• Setting up of a website, viz., www.chanderigi.com

• Launching of an e-commerce portal, viz., chanderiyaan.chanderi.org

• Use of social media such as Facebook and Twitter.

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Chanderiyaan website

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Facebook Page

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Successful Marketing

• Got orders from the Commonwealth Games, 2010 Organising Committee for 1,375 stoles for athelets and another 10,000 as merchandise (total value Rs. 50 lakh)

• Tie ups with big retailer brands like FabIndia

• Used a visit and photo session with actress Kareena Kapoor for promotion of the saree

• Effectively made Chanderi handloom a component of Pranpur rural tourism (located 3 kms from Chanderi)

• Promoting Chanderi handloom through digital tourism of Chanderi and Madhya Pradesh.

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Image from Chanderiyaan

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Image from Chanderiyaan

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Quality Up-gradation

• Up-gradation of looms

• Assistance in product development and innovation

• Technology support

• Design interventions: Training by NIFT, NID, IIT, etc

• Setting up of Common Facility Centre and Dyeing House, the Chanderi Weavers’ ICT Resource Centre and Museum and Digital Library

• Fellowship programme

• Provision of Wi-Fi facility

• Setting up of a Handloom Park

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Distribution and Sale

• Through cooperative societies

• By Master Weavers directly at exhibitions and to wholesalers and retailers

• By traders also through exhibitions and to wholesalers and retailers direct

• Regular customer interaction.

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Impact

• Turnover increased from estimated Rs. 15-20 crore in 2003 to Rs 60 + crore in 2012

• Increase in the number of looms and in weaver wages (between Rs. 12,000 and Rs. 16,000 p.m)

• Standard of living of the families improved

• Pucca houses were built

• School enrolment and retention went up – Source: Study by IIFT WTO Study Centre in 2015

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THE POCHAMPALLI IKAT CASE

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Pochampally Ikat

• Pochampally is a small town in Andhra Pradesh, India

• Known for its handloom fabric having unique traditional designs, Pochampally Ikat, from 1915

• Special technology of tie-and-dye is used for making the designs

• Material is either cotton or silk or a combination of the two only.

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Uniqueness of Pochampally Ikat

• Having single, combined or double Ikat in several illustrations ranging from :

• The use of diamond or chowka

• Diagonal or square grids in which geometrical,floral figurative motifs are woven

• Striped or shevaron forms

• Other abstract variations

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The Problem and Action Taken

• Reduced market owing to manufacture and marketing of products with Pochampally name and design by large mills using machines

• Reduced Income for about 5000 handloom weavers

• Shrinking Employment Opportunities in the region

The Government, therefore, engaged and agency to study and find solution

Confederation of Indian Industry and other organisations were associated.

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Modus Operandi

• Identifying the Uniqueness

• Financial Support

• Technical & Legal Support

• Draft of the Specifications for IP applications

• Filing & Prosecution

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Solution

• Associations of weavers of Pochampally Ikat from the region were formed

• Association obtained registration of various IP rights such as copyrights, trade marks and geographical indications during 2004-05

• Greater stress on Trade Marks and Geographical Indications.

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Benefits – Post GI Registration

• Media attention on Pochampally Artisans

• Motivation & Morale boost for Weavers

• Networking and social cohesion among the weavers.

• Increase in the Market of Pochampally Sarees about 20%

• Orders through the Internet too.

– Website: www.pochampally.com

• Increased Investment

– Pochampally Handloom Park

• Tie up with Alan Solly

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DARJEELING TEA -- INDIA’S FIRST GI

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Darjeeling Tea

• Tea cultivated, grown or produced in the 87 tea gardens in the defined geographic areas and which have been registered with the Tea Board;

• Has been cultivated, grown or produced in one of the said 87 tea gardens;

• Has been processed and manufactured in a factory located in the defined geographic area; and

• When tested by expert tea tasters, is determined to have the distinctive and naturally occurring organoleptic characteristics of taste, aroma and mouth feel, typical of tea cultivated, grown and produced in the region of Darjeeling, India.

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Steps Taken

• GI registration

• Trademark registration for word and logo

• Copyright registration of the logo

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Quality Control

• Use of the expression “blended Darjeeling tea” only for a blend of Darjeeling teas drawn from more than one tea garden within the definition of Darjeeling tea. No blending with teas of other origin is permitted.

• Labeling requirements for multi-origin tea. Labeling guidelines formulated and issued to govern and regulate use of Darjeeling name and logo marks as part of trademarks and thus prevent any misuse thereof for teas other than Darjeeling tea.

• Detailed inspection procedures put in place to ensure the integrity and purity of the supply chain for grant of the Certificate of Origin by the Tea Board.

• Customs Notification dated June 25, 2001 issued making all exports of Darjeeling Tea subject to mandatory proof of such certificate of origin.

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International Measures

• Registered Darjeeling name and logo as Certification Trade Marks in UK, USA, Australia and India.

• Registered Darjeeling name as a community collective mark in the European Union as well as a Protected Geographical Indication (PGI).

• The Darjeeling logo is registered in Belgium, Netherlands, Luxembourg, Germany, Austria, Spain, France, Portugal, Italy, Switzerland, former Yugoslavia, Egypt and Lebanon as a collective mark, in Canada as an official mark, as a trademark in Japan and Russia.

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Monitoring

• Hired World Wide Watch agency to monitor sale of darjeeling tea all over the world

• Cases filed in many countries. – Tea Board vs. Tea Resource (Paris): Against registration of

TEAPICKER/MANGOJI logo which was deceptively similar . Tea Board won and awarded damages

– Delta Lingerie, S.A. of Cachan vs. tea Board (Taiwan). Dilution of reputation in using Darjeeling for lingerie. TB Won.

– Tea Board Vs.Dusong against registration of trademark Darjeeling for a tea pot. In France. Registration cancelled.

– Tea Board Vs. The Republic of Tea (USA). Registration of trademark opposed and won

– Rajeev Saraf Vs. Tea Board (GIR). Application for removal of Darjeeling rejected and applicant fined.

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NOT SO SUCCESSFUL A MODEL

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Venkatagiri Saree

• Venkatagiri saree is a handloom product of Venkatagiri, a small town in Nellore district of Andhra Pradesh; about 60 kms. away from Nellore.

• The place is known for its fine cotton sarees

• The history of the saree is more than 3 centuries old

• Venkatagiri saree is a light coloured, light weight and soft to touch sari

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GI Registration

• Venkatagiri Handloom Sarees Apex Society applied for the registration in Class 25

• Uniqueness of the product described as • “The workmanship of Venkatagiri sarees primarily

adopts, a bold ribbon of zari as border, and in the pallu of the sari with traditional peacock, swan, parrot, mango, buttileaf and gold coin designs interspersed all over the saree in zari or thread. It is believed that no other variety of cotton saree incorporates the amount of elaborate zari work as in the Venkatagiri sarees.”

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Post Registration

• Earlier weaving was confined to 5-10 designs; since registration added more than 400 designs to attract younger women

• The Andhra Prades State Handloom Weavers Cooperative Society Ltd (APCO) promoted alongwith other handloom prdoucts

• As per reports, the GI tag has not helped the weavers to increase their income

• Weavers blame lack of proper publicity for the rare distinction

• The designs are being copied and produced by textile companies using power looms in neighbouring Tamil Nadu; but no legal action has been taken.

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Decline of the Market

• Consequent to changes in lifestyle, and low and uncertain wages from merchants, young weavers opted for other means of livelihood

• The number of active looms in the village has dwindled from 2500 to 500 in the last few years (The Hindu, 22.9.2012).

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Why Unsuccessful?

• No strict quality control and monitoring

• No clear marketing strategy

• Not adequate publicity

• No continuous training and up gradation of skills of weavers

• Laxity in taking action against infringers.

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Some pictures from the Internet of Venkatagiri saree

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Some Venkatagiri saree images from the Internet

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COMMERCIALISATION OF GEOGRAPHICAL INDICATIONS

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Developing a Strategy: Pre-Registration

• Assessment of Market Potential: Demand – Target market: Premium ?

• Getting all stake holders on board

• Setting up of strict quality and standard control mechanism – Set quality norms and standards

– Certification and Monitoiring

– Ensure Supply chain integrity.

• Seek GI/TM protection in all potential markets.

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Developing a Strategy: Post-Registration

• Brand building: Need strong brand identity • Establishment of a well structured organistion to manage

the GI brand • Development of impressive logos and catchy slogans • Preparation of brochures, pamphlets, flex boards • Investment in brand building and market expansion

(Tequila, Ethiopean coffee) • Use of all opportunities and different media: Audio-visual,

Print, Seminars, Exhibitions, social media - FB, Twitter • Making the GI a part of Tourism promotionof the region • Strong enforcement through legal action against infringers

with publicity; regular monitoring of the market.

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CASE LAWS

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Tea Board vs. ITC Ltd

• Cal 2011

• Unsuccessful challenge of nomenclature of a lounge as Darjeeling Lounge.

• Ratio:

– Not a ‘good’

– No dilution

– No confusion

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Khoday Distilleries vs. Scotch Whicky Association

• SC 2008

• Case of Peter Scot

• Passing off route

• SC held: “the class of buyer ... supposed to know the value of money, the quality and content of Scotch Whisky. They are supposed to be aware of the difference of the process of manufacture, the place of manufacture and their origin.”

• SWA lost.

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M S Gopalakrishna Naidu vs The State Of Karnataka

• (Kar) 2015

• False and misleading use of boards and stickers by M/s.Karnataka Silk International, Bangalore on their sarees and other fabrics.

• Seizure upheld.

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Payyannoor Pavithra Mothiram Case 2012

• Procedural Issue of non-publicity • The Intellectual Property Appellate Board (IPAB) set aside

the grant of Geographical Indication (GI) registration to the ‘Payyannur Pavithra’ ring in the name of a society. – “The main object of the Geographical Indications of Goods

(Registration & Protection) Act is to protect those persons who are directly engaged in creating or making or manufacturing the goods. When these creators or makers complain that the application has been made behind their back, we cannot allow the registration to remain…A mere claim that the society is called Payyannur Pavithra Ring Artisans and Development Society will not suffice. There should be evidence to show that the producers are desirous of coming together to protect the mark and that is clearly absent.”

– GI Registry advised to re-advertise widely

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Tirupati Laddu

• Tirumala Tirupati Devasam got the registration done on 15 Sept. 2009

• Madras HC in November 2013 a ordered a vendor in Chennai not to use the tag as the GI registration is with TTD only

• Cases filed against registration in the Madras HC were rejected in 2014 since both parties amicably settled.

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