Cerkia Bramley

Exploring the Economic Rationale for Protecting Geographical Indicators in Agriculture

“The enduring competitive advantages in a global economy lie increasingly in local things—knowledge, relationships, motivation—that distant rivals cannot match” (Porter, 1998) Abstract The misappropriation of the names of geographical regions such as Parma, Roquefort and Champagne is protected in the European Union by a system of Geographical Indications, and is acknowledged by the World Trade Organization as an important intellectual property right. This article addresses whether there is a case for similar protection in South Africa. The article explores the economic rationale for implementing a system of Geographical Indications by addressing issues such as information asymmetry and the role of reputation; formation of niche markets; monopoly formation, value added and rural development. The economic rationale for protecting Geographical Indications derives mainly from the fact that place of origin may be used as a quality signal, or alternatively, that the resources of the region may be captured as quality attributes. In the first instance the meaning of the geographical name is emphasized in order to reduce information asymmetries. Where place of origin is used as an attribute, resources of the region are used to increase the value of the product. This includes specific resources such as production techniques, varieties and species, but also resources that are general to the region such as landscape, environment and culture. Economic arguments present a strong justification for the introduction of geographical indications in South Africa. At the same time it will afford greater protection to indigenous resources and geographical names which could, through the collective and inclusive nature of the system, directly contribute to rural development.

Developing geographical indications in the south : the Southern African experience

Preface 1. Why the need to consider GIs in the South? Cerkia Bramley and Estelle Bienabe 2. Designing an appropriate legal framework and governance system for GI development in Southern countries Cerkia Bramley, Delphine Marie-Vivien and Estelle Bienabe 3. Collective action dynamics and product reputation Estelle Bienabe, Johann Kirsten and Cerkia Bramley 4. Private versus public quality schemes for origin-labelled products: Insights from the Karakul pelts and Camdeboo mohair industries Estelle Bienabe,Danie Jordaan and Cerkia Bramley 5. Institution building and local industry dynamics: Lessons from the Rooibos GI initiative Dirk Troskie and Estelle Bienabe 6. Guidelines for selecting successful GI products Cerkia Bramley and Estelle Bienabe

Considerations in Designing an Appropriate Legal Framework for GIs in Southern Countries

In the context of the international debate on geographical indication protection, this chapter reflects on considerations in the design of an appropriate institutional framework for the protection of GIs in Southern countries. The discussion provides an analytical review of two divergent institutional frameworks, comparing in particular the EU sui generis framework with GI protection under US trade mark laws. Drawing on the comparison, the discussion explores some key considerations in designing an appropriate institutional framework for GI protection. The theoretical discussion is empirically grounded primarily on the case of South Africa, as a country with no formal recognition of GIs but which has in recent years seen strong industry initiative in obtaining GI protection within the existing legal framework. The discussion explores the current South African legal framework and through the experience of the Karoo Lamb and Rooibos cases, the particular challenges the existing legal framework presents. The case studies are used to contextualise the theoretical insights into key considerations for the development of an appropriate institutional framework for GIs in Southern countries. The discussion is enriched with insights from institutional developments in India.

Why the Need to Consider GIs in the South

In thinking of geographical indications (GIs) in the South, this chapter reflects on why GIs are of relevance to Southern countries. The discussion traces the contours of the international GI debate and how the TRIPS agreement has introduced the GI concept in Southern countries, by requiring that all WTO Members provide minimum standards of protection for GIs within their territories. Introducing GIs as a universal concept, the discussion proceeds to reflect on how the dynamics associated with GIs hold significant potential for Southern countries with their rich heritage of traditional products rooted in localised production. By exploring the potential role of GIs for enhancing market access while promoting rural and sustainable development and aiding the preservation of biodiversity and traditional knowledge, the chapter shows how the relevance of GIs for Southern countries extend beyond compliance with international legal obligations to include significant potential for unleashing beneficial local dynamics in Southern territories.

Collective action dynamics and product reputation

This chapter aims to analyse how the quality and reputation dimension is built and sustained through collective action dynamics. It explores the key features of collective action that underlie origin based product development and their protection through GIs. The chapter which departs from a literature review which identified the key dimensions of GI related collective action and structure the analysis. It then builds on the analysis of two highly contrasted cases, Karoo lamb and Karakul pelts, to deepen the understanding of the diversity of ways in which collective reputation can develop at industry level and of the different situations that this creates for implementing GI schemes. The discussion empirically confirms the importance of collective action to successfully exploit the benefits of collective reputation and shows that the capacity of industries to establish successful GIs critically depends on the collective basis on which product reputation has been built, as this determines an industry’s ability to act collectively in protecting the collective reputation. It is argued that distinguishing between collective action features attached to the building of the collective reputation and those linked to maintaining and protecting this reputation, creates an interesting direction for a more robust approach to collective action analysis oriented towards supporting GI implementation.

Private Versus Public Quality Schemes for Origin-Labelled Products: Insights from the Karakul Pelts and Camdeboo Mohair Industries

This chapter explores aspects around the public nature of GIs and the associated debate on the need for public intervention in supporting GI development and implementation. The discussion draws on the commonalities and differences between the Camdeboo mohair and Karakul pelts cases, both of which are Southern African luxury clothing products with sophisticated quality management systems. The cases are both endemic industries with a strong link to the region but which are not linked to national GI protection schemes. They differ significantly however with respect to their approach to investment in the common resources underlying the reputation of the origin based product as well as with respect to the management of the collective reputation. The chapter provides insights into the implications of public versus privately driven origin based quality schemes, particularly with respect to potential exclusionary dynamics.

Quality-driven market innovations: social and equity considerations

What we identify as market-based innovations in agrifood systems, based in particular on contributions presented during the ISDA conference, are mainly organizational or institutional innovations involving different actors, which are linked through their direct or indirect interventions in value chains (i.e. producers, agribusiness processors, retailers, consumers, NGOs and public bodies). These links reflect increasingly sophisticated forms of intermediation and coordination in the chains (contract mechanisms and procurement schemes, certification, labelling and branding strategies, etc.) which, in many instances, represent major innovations in the chains with significant implications for sustainability. These innovations may be linked to a wide range of sustainability concerns, particularly environmentally related issues (such as resource degradation and exploitation) or unequal trade relations, and involve an increasing variety of stakeholders.

Guidelines for selecting successful GI products

This chapter seeks to provide criteria for selecting successful GI products. The discussion makes the point that not all origin based products have the potential to benefit equally from GI development and protection. The authors’ experience in selecting products for inclusion in the research project on which this book is based, but also in the subsequent process of designing industry specific GI strategies for two South African GIs (Rooibos and Karoo lamb), has shown that it is possible to identify certain factors which are predictive of an origin product and/or industry’s ability to benefit from GI protection. Drawing on this experience as well as the international literature this chapter seeks to develop guidelines which can be used in Southern countries for evaluating whether a product has the potential to develop into a successful GI and to harness the potential associated with GI protection.