Tholu Bommalu (Leather Puppetry) from Andhra Pradesh

Geographical Indicators Are A Boon For Many

Advantages Of GIs Are Manifold. But, They Have To Be Leveraged.

The notion of a causal relationship between a region’s geography and the distinctive influences that it leaves upon a product that originates from its bosom is not only something that is legalese but also admittedly romantic. No, Bordeaux wine wouldn’t taste so sweet were it come from across the border, would it? And that is the essence of a geographical indication (GI) that found formal expression in Article 22.1 of the Agreement on TRIPS (Trade-Related Aspects of Intellectual Property Rights).

What Is A Geographical Indication (GI)?

“Darjeeling” tea is not the same if it is not in fact grown in Darjeeling’s tea gardens or is not produced according to certain standards. Certain geographical areas (whether a whole area or even a whole country) create an expectation regarding a product’s source, characteristics and reputation.

But how does one go about ensuring the authenticity of such a product? A system of codification helps and that is exactly what a GI aims to do. A GI is a name or sign (a visual means) used on products that identifies it as originating from a certain geographic territory and that possess certain qualities, characteristics or reputation that are essentially attributable to its place of origin.

GIs are typically used for agricultural products, foods and drinks, handicrafts, and industrial products. In India, for instance, these products fall into the categories of agricultural (e.g., Darjeeling Tea), food stuffs (e.g., Dharwad Pedha or Feni), handicrafts (e.g., Machilipatnam Kalamkari), manufactured (e.g., Coimbatore Wet Grinder), and natural goods (e.g., Makrana Marble). As of March 2019, 317 products (originating from India) were conferred GIs and the list is growing considering the vast diversity and depth of cultural artifacts and practices in India.

Benefits of GIs

GIs play an important commercial role, socio-cultural role, environmental, and consumer advocacy role.

For Retailers And Manufacturers/Producers:

1. Competitive differentiator for GI-tagged products vis-a-vis competing goods.
2. Product branding is made possible as a marketing tool.
3. Higher wholesale pricing earned by raw material producers due to greater bargaining power.
4. Premium retail pricing command by such products, generally speaking.
5. Raises profits for manufacturers by cutting out intermediaries.
6. Export opportunities are boosted.
7. New business creation as a spillover effect.
8. Tourism is encouraged.

For The Society And Culture:

1. Traditional artistic traditions and knowledge of different localities are protected.
2. Raises living standards of genuine manufacturers.

For Consumers:

1. Consumers are increasingly paying attention to the geographical origin of products since they care about specific characteristics that they value in such products due to their “place of origin”.
2. A certain type of consumer values the fact that a product is genuine, provides fair compensation to its maker/artisan, and preserves cultural traditions all of which a GI product ensures.

For The Environment:

1. Sustainable local food production and supply is strengthened.
2. A motivation for the preservation of the natural resources on which the product is based.

What It Is And Isn’t

What rights does a geographical indication provide? It enables those who have the right to use the GI to prevent its use by a third party whose product does not conform to the applicable standards (set out in the code of practice for the GI).

However, a protected GI does not enable the right holder to prevent someone from making a product using the same technique and/or originating from the same place as those set out in the GI standards.

Putting It All In Perspective

While the potential benefits of GIs are apparent, one must recognize that it is not the be-all and end-all. At least two things need to happen:

1. The government and legal machinery has to do its work. Action needs to be taken against manufacturers and sellers of fake products.
2. The government and private players should take initiatives to help local manufacturers explore and grow in the export market using the marketing tool of GIs. India’s share of the global market for handicrafts is currently 0.006% and surely a lot more can be done in raising this number.
3. Customer education with regards to GIs will achieve two complementary outcomes — help spur the growth of genuine products while also weeding out or banishing fake products from the market. But without such education of the benefits of GIs (both for customers and artisans), consumers are either unable or are unwilling to check if the sarees are genuine.

Clearly, GIs are a good thing in more ways than one. But, their true benefits will take some concerted effort on the “ground”.

Note: Trademarks Vs GIs:

While trademarks distinguish the goods/services of one enterprise from those of another, GIs identify a product/service as originating from a particular geographical area, independently from the company which produces or offers it.

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