Marketing Crafts and Visual Arts: The Role of Intellectual Property

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Definitionofvisualarts7 Characteristicsofvisualartistsandtheirwork7 Intellectualproperty7 Definitionofintellectualproperty7 Somekeycharacteristicsofintellectualproperty8 Overviewofthetypesofintellectualproperty9 Howtoconvertintellectualoutputintointellectualproperty11 CHAPTER3 Understandingthevalueofintellectualproperty 12 Challengingbusinessandmarketenvironment12 Basicingredientsofbusinesssuccess13 Whatisaqualityproduct?13 Whatisadistinctivebrand?13 Whatiseffectivemarketing?14 Accesstoknowledgeasaddedvalue14 Knowledgeanditsrelevancetobusiness15 Whatistheproblemwithknowledge?15 WhatisspecialaboutIP?16 Preventingothersfromfree-ridingonone 9sownknowledge17 Whyisintellectualpropertycrucial incraftsandvisualartsmarketing? 17 BasicrequirementsforenjoyingthebenefitsofIPassets18 CHAPTER4 Linkingintellectualpropertytobusinessdevelopment andmarketingthroughoutthebusinesscycle 19 Marketingdefined 3anoutline19 Marketingfundamentals20 Marketingfundamentalsforartisansandcraftenterprises22 Marketingfundamentalsforvisualartists22 Usinganartist 9sagent22 Marketingalone23 Exhibitions23 Applyingforcommissionsorenteringcompetitions23 Relevanceofintellectualpropertyatthevariousstagesofthebusinesscycle24 Marketresearch24 Marketresearchforartisansandcraftenterprises25 Identifyingnewmarkets26 Locations27 Consumertypes28 Seekingoutmarketnichesandproductideas28 Identifyingpromotionalmaterialsandmethods29 Marketresearchforvisualartists29 Deskresearch29 Researchintargetcountries30 Marketingstrategy30 Marketingstrategiesforartisansandcraftenterprises30 Marketingstrategiesforvisualartists31 Intellectualpropertyinmarketingstrategiesforartisans,craftenterprisesandvisualartists32 Business,marketingandproductdevelopmentplanning34 Businessplan34 Planningadistinctiveimageoridentity38 Creatinglabelling,packagingandpromotionalmaterials39 Labels39 Packaging39 Promotionalmaterial40 Productdevelopmentandadaptation42 Productdesignprocess43 Samplemakingstage45 Productcostingandpricing45 Costing45 Pricing46 Testmarketing48 Productpromotionandproductlaunch49 Orderprocessing,customerrelationsandquality51 Analysisofproductsalesandnewmarketresearch53 CHAPTER5 Howtoprotectcraftsandvisualarts 56 Copyright56 Whatiscopyright?56 Whatrightsdoescopyrightgrant?Whyiscopyrightrelevantforartisansandvisualartists?56 Whataretherequirementsforobtainingcopyrightprotection?57 Arecraftsandvisualartsworkscoveredbycopyright?58 viii Whenisaworkconsideredtobe 8derivedfrom 9theworkofsomeoneelse?58 Howiscopyrightprotectionacquired?59 Doartisansandvisualartistsneedtoplaceacopyrightnoticeontheirworks?59 Howlongdoescopyrightlast?59 Whoownsthecopyrightinawork?60 Whatisnotprotectedbycopyright?60 Whatis 8fairuse 9orfairdealing 9?61 Whatismeantby 8inthepublicdomain 9?62 Howcanartisansandvisualartistsknowifsomethingisinthepublicdomain?62 Canavisualartistmakeapaintingorsculpturebasedonaphotograph?62 Ifartisansorvisualartistsselltheirwork,dotheylosetheircopyrightoverit?63 Istheresuchathingasinternationalcopyrightprotection?63 Howcanartisansandvisualartistsusetheircopyrighttoearnincome?64 Whatiscollectivemanagementofcopyright?64 Whatareresalerights?65 Arethereanycopyrightissuestopayattentiontobeforelendingworksforpublicdisplay?65 Wheniscopyrightinfringed?65 Whattodoincaseofcopyrightinfringement?65 Industrialdesigns66 Whatisanindustrialdesign?66 Candesignembodiedincraftsandvisualartsproductsbeprotectedasanindustrialdesign?66 Whatrightsdoesanindustrialdesigngrant?66 Whyareindustrialdesignsrelevanttocraftsandvisualarts?66 Howcandesignprotectionbeobtained?67 Aretheredesignswhichcannotberegistered?67 Arethereanyspecificconditionsorcriteriaforregistrationofanindustrialdesign?68 Whatistheregistrationprocess?68 Aretherealternativewaystoprotectanindustrialdesign?68 Cantherebedualprotectionbyindustrialdesignrightsandcopyright?68 Cantherebedualprotectionbyindustrialdesignrightsandtrademarkrights?69 Howlongdoesindustrialdesignprotectionlast?69 Howlongandwhereshouldanindustrialdesignregistrationbemaintained?69 Whenshouldartisansandvisualartistsapplyforregistrationofanindustrialdesign?70 Howimportantisittokeepthedesignconfidentialbeforeregistration?70 Whatisa 8graceperiod 9?70 Canadesignbedisplayedatanexhibitionorfairpriortoprotectingit?71 Howmuchdoesitcosttoprotectandmanageanindustrialdesign?71 Whoownstherightsoveranindustrialdesign?71 Isitusefultouseadesignnotice?72 Howcaninfringementofdesignrightsorcopyrightofothersbeavoided?72 Howcanartisansandvisualartistsenforcetheirdesignrights?72 Trademarks73 Whatisatrademark?73 Whyaretrademarksrelevantforcraftsandvisualarts?73 Whyshouldartisansandvisualartistsprotecttheirtrademarks?74 Howisatrademarkprotected?74 Isitcompulsorytoregisteratrademark?74 Canartisansandvisualartistsregistertheirnameasatrademark?75 Istheregistrationofthetradenameofabusinesssufficientforgettingtrademarkprotectionaswell?75 Whatarethemainreasonsforrejectinganapplicationfortrademarkregistration?75 Whatmakesagoodtrademark?76 Howlongdoesittaketoregisteratrademark?77 Howlongisaregisteredtrademarkprotected?77 Howmuchdoesitcosttoprotectandmanageatrademark?77 ix Howtofindoutifaproposedtrademarkislikelytoconflictwithregisteredtrademarks? Whatisatrademarksearch?78 Istrademarkregistrationvalidinternationally?78 Shouldartisansandvisualartistsregistertheirtrademarksabroad?78 Howcanatrademarkberegisteredabroad?79 Ifanartisanorvisualartistasksorcommissionsanotherpersonoracompanytocreate atrademark,whoownsit?79 Whyisitimportanttouseatrademark?Whatismeantby 8using 9atrademark?79 Howshouldartisansandvisualartistsusetheirtrademark?80 WhatshouldartisansandvisualartistskeepinmindwhileusingtheirtrademarksontheInternet?80 Whatisadomainnameandhowdoesitrelatetotrademarks?81 Canartisansandvisualartistslicensetheirtrademarks?81 Canartisansandvisualartistssellorassigntheirtrademark?81 Whatshouldartisansandvisualartistsdoifsomeoneinfringestheirtrademarkrights?82 Collectivemarks82 Whatisacollectivemark?82 Whatisthedifferencebetweencollectivemarksandindividualmarks?82 Whyarecollectivemarksrelevantforartisansandvisualartists?82 Whocanapplyforacollectivemark?Howcanitbeprotected?83 Whocanuseacollectivemark?83 Canacollectivemarkbeusedtogetherwithanindividualtrademark?83 Canacollectivemarkbelicensed?83 Certificationmarks84 Whatisacertificationmark?84 Whatisthedifferencebetweencertificationmarksandcollectivemarks?84 Whatisthedifferencebetweencertificationmarksandindividualmarks?84 Whyarecertificationmarksrelevantforartisansandvisualartists?84 Whocanapplyforacertificationmark?85 Whocanuseacertificationmark?85 Canacertificationmarkbeusedtogetherwithanindividualtrademark?85 Geographicalindications85 Whatisageographicalindication?85 Cangeographicalindicationsbeusedforcraftandvisualartsproducts?86 Whyaregeographicalindicationsrelevantforartisansandvisualartists?86 Whydogeographicalindicationsneedprotection?86 Howisageographicalindicationprotected?86 Howaregeographicalindicationsprotectedattheinternationallevel?87 Tradesecrets87 Whataretradesecrets?87 Whyaretradesecretsrelevantforartisansandvisualartists?87 Whatqualifiesasatradesecret?88 Howcantradesecretsbeprotected?88 Howcanartisansandvisualartistsprotecttheirtradesecrets?88 Whatrightsdoestheownerofatradesecrethave?89 Whatcanartisansandvisualartistsdoifsomeonestealsorimproperlydisclosestheirtradesecrets?89 Whatarethedisadvantagesoftradesecretprotection?90 Whenshouldartisansandvisualartistsopttoprotectinformationasatradesecret andnotseekapatent?90 Patentsandutilitymodels90 Whatisapatent?90 Whatkindofprotectiondoesapatentoffer?91 Whatrightsdoesapatentownerhave?91 Whatinventionscanbeprotected?91 Howisapatentgranted?92 Whograntspatents?92 x Howlongdoesittaketoobtainapatent?92 Arepatentapplicationsdisclosedtothepublic?92 Howmuchdopatentscost?93 Whatisautilitymodel?93 Whyarepatentsandutilitymodelsrelevantforcraftsandvisualarts?93 Traditionalknowledgeandculturalexpressions94 Protectingintellectualpropertyabroad95 Whyshouldartisansandvisualartistsprotecttheirintellectualpropertyabroad?95 InwhichcountriesshouldartisansandvisualartistsprotecttheirIP?95 Whentoapplyforprotectionabroad?96 Howtoobtainprotectionabroad?96 Whatisparallelimportation?Whatisexhaustionofintellectualpropertyrights?98 Commercializingintellectualproperty99 Whatislicensingandhowdoesitwork?99 Whyshouldartisansandvisualartistsconsiderlicensing?99 IfartisansorvisualartistsgrantalicencefortheirIP,thencantheystillusetheIPthemselves?100 Canlicencesbelimitedordivided?100 Whyisitimportanttokeepcontrol?101 Howtonegotiatethetermsofthelicenceagreement?101 Howdoesanartisanorvisualartistbeginlicensing?102 Whatischaractermerchandising,andwhyisitusefulforartisansandvisualartists?103 Whatisfranchising?104 Whyisfranchisingrelevantforartisansandvisualartists?105 Enforcingintellectualpropertyrights105 Whyshouldartisansandvisualartistsenforceintellectualpropertyrights?105 Whatisinfringementofintellectualpropertyrights?106 WhatshouldartisansorvisualartistsdowhentheynoticeaninfringementoftheirIPRs?107 Whatspecificactioncanbetakenagainstinfringement?108 CHAPTER6 Casestudies 110 IPperceptionanduseforcraftsandvisualartsinSenegal110 Mara110 TheSoumbédiounecraftvillage112 CheikhGueye112 PapaOumarFallandMoussaMballo113 PapeDembaDiop114 Legalmeasurestoprotectthe mola inPanama114 Context114 IPlegislation115 Copyrightlegislation115 Patents115 Industrialdesigns115 Trademarks116 Constitutionalprotection116 Legislationrelatedtonationalcrafts116 Legislationspecificallyrelatedtomolas117 Anewlawonculturalidentityandtraditionalknowledge117 Conclusions118 Maquí 3Atrademarkstory118 HarrisTweed 3Acertificationmarkforcloths119 ToiIho 3AcertificationmarkforMaoriartsandcrafts120 Modranskámajolika 3Ageographicalindicationforceramics121 xi MaryEngelbreit:Artistandentrepreneur 3Alicensingstory122 Aboutmakingapaintingfromapicture124 TheexperiencesofaNepalesesilversmith125 CasestudyfromLePetitPrince,aTogolesecraftenterprise126 GarrisonGuitars127 Mglass 3Acollectivemark129 CHAPTER7 Selectedreferencesandinformationsources 130 AgenciesjointlypublishingthisGuide130 Referenceandinformationwebsites130 CHAPTER8 Selectedreading 134 xii Note Unlessotherwisespecified,allreferencestodollars($)aretoUnitedStatesdollars. Thefollowingabbreviationsareused: ACIDAnti-copyinginDesign(UnitedKingdom) BSDABureausénégalaisdudroitd 9auteur(SenegaleseCopyrightOffice) CDCompactdisc CVCurriculumvitae(résumé) DVDDigitalvideo(orversatile)disc EUEuropeanUnion GDPGrossdomesticproduct IPIntellectualproperty IPRsIntellectualpropertyrights ITCInternationalTradeCentre NGONon-governmentalorganization OAPIAfricanIntellectualPropertyOrganization PCTPatentCooperationTreaty SMESmallandmedium-sizedenterprise TCEsTraditionalculturalexpressions TRIPS(Agreementon)Trade-RelatedAspectsofIntellectualPropertyRights TSIsTradesupportinstitutions UNCTADUnitedNationsConferenceonTradeandDevelopment UNESCOUnitedNationsEducational,ScientificandCulturalOrganization WIPOWorldIntellectualPropertyOrganization WTOWorldTradeOrganization Chapter1 Introduction AboutthisGuide ThepurposeofthisGuideistoprovideabasicknowledgeandunderstandingof marketingtechniquesandofintellectualproperty(IP)toartisans,craft entrepreneursandvisualartists,toenhancethechancesoftheirbusiness success.Itseekstoindicatewhy,which,what,where,when,whetherandhow considerationoughttobegiventotheeffectivemanagementofIPassetsby usingIPtoolsforsuccessfulmarketingofcraftandvisualartproducts.In particular,itseekstohelpartisansandvisualartiststoestablish: q WhichIPissuesarerelevanttothem; q WhytheyshouldconsiderprotectingtheircreativeoutputwithIPrights (IPRs); q HowtoidentifythecreativeoutputthatmaybeprotectedwithIPRs; q WhattypeofIPRsandprotectivemeasuresarebestsuitedtotheirparticular needsandbusiness; q Whatthecostsandpracticalbusinessbenefitsareofsuchprotection; q HowtoaccessrelevantinformationonIPandlocaterelevantintellectual propertyoffices; q Whethertojoincopyrightcollectivemanagementinstitutionsor associations; q WheretogoforassistanceonIPmatters,andinparticularwhethertouse theservicesofIPagents,IPattorneysand/orIPconsultants;and q Whetherallnecessarybasicmeasuresandprocedureshavebeenputinplace tostartimplementinganIPpolicyandstrategyasanintegralpartoftheir businessandmarketingstrategy. Wherepossible,theGuidepointstosituationsinbusinesswhereconsideration oughttobegiventoobtainingformalIPprotectionanddecisionsshouldbe made.ToexplaineachIPissueanditslinkwithbusinessandmarketing managementprocesses,anoutlinehasbeenprovidedofabasicbusinesscycle andmarketingplanthatmaybeusedbyartisans,craftentrepreneursandvisual artists. However,thisremainsgeneralguidanceonly.Inaparticularbusinesssituation anartisanorvisualartistwouldbewelladvisedtotakeadvicefromacompetent IPconsultantaboutIPtools.TherearesignificantvariationsinnationalIPlaws andpractice,andthesemayhavehugepracticalbusinessimplications. ThebasicpurposeofthisGuidewillbefulfilledifitenablesanartisan,craft entrepreneurorvisualartisttodevelopameaningfulframeworkandbusiness perspectiveonmarketingandontheroleofIPinmarketing,andtoposethe rightquestions.TheGuidemaybeconsideredtrulyasuccessifitalsohelpsto createausefulframeworkwithinwhichtocarefullyweightheadvicefromanIP specialist,fortheultimateresponsibilityforanybusinessdecisioncannotbe shiftedtotheIPspecialist. Theintendedaudience ThisGuideassumesthereaderhaslimitedknowledgeorexpertise,ifany,about principlesofmarketingorIP.Anefforthasbeenmadetowriteinclear,and,to theextentpossible,jargon-freelanguage,andfromapracticalandcommon senseperspective.ItishopedthattheGuidewillbeasrelevantforaperson belongingtoanindigenousgrouportribeasforatraditionalartistor craftsperson,orforamodern,city-basedenterpriseinafast-pacedbusiness environment. TheGuideisessentiallyaimedatreadersindevelopingcountriesandcountries intransition,butwillalsobeapplicableforthoseindevelopedcountries.The followingindividuals,groups,enterprisesorinstitutionsmayfindituseful: q Individualoremployedartisansandtheirassociations; q Self-employedcraftentrepreneurs,producersandexporters; q Associationsofcraftindustriesandtrade; q Visualartists(individuallyorcollectively); q Tradeandothersupportinstitutionsforthecraftandvisualartssectors; q Teachers,trainersandteachingandtraininginstitutionsinvolvedwith businessdevelopmentandmanagement,marketing,tradeandexport promotionforthecraftandvisualartssectors; q Governmentalandnon-governmentalorganizations(NGOs)workingfor developmentofthecraftandvisualartssectors; q Professionalsorbusinessconsultantsinthecraftandvisualartssectors. UsingtheGuide ThefollowinginformationmaybeusefulinnavigatingtheGuide: q Marketingissuesareshowninblacktypeinchapters2to4; q IPissuesareshowninbluetypeinchapters2to5; q Allheadingsandsubheadingsinthebookarelistedinthetableofcontents; q Theabbreviationsandacronymsusedarelistedonpagexiii; q ThroughouttheGuideexamplesaregiventoclarifythetext,andcase studiesofartisansandvisualartistsaregivenseparatelyinchapter6; q Referenceinformation 3includingalistofwebsites 3andabibliography formthetwolastchapters,7and8. ItoughttobeeasytograspthebasicsofmarketingandIP,sincethesearebased onplaincommonsense,linkedtopracticalbusinessneeds.Butbusiness situationsvaryconsiderablyandalsochangewithtimeandplace,sothedetails ofmarketingandIPstrategiesmayvarysignificantly,dependingonthe businessenvironmentofacountryandthebusinessneedsofaparticularperson orenterprise.Thismakeseverythingverycomplex.Thecomplexityiseven greaterinthecaseoftheIPsystem,asthereareanumberofdifferenttypesofIP lawsineachcountry,andthedetailsofaparticularIPlawandrelatedpractices varyconsiderablyfromonecountrytoanother. AcomprehensiveaccountofIPissuesisneitherpossiblenordesirableina Guidesuchasthisone.Instead,thisGuideseekstopaintabroadbutsystematic pictureoftheimportanceofmarketingandIP,intherightamountofdetailfor areaderwhohaslimitedtimetosparefortheseimportantbutcomplexissues. 2 Chapter1 3Introduction Todriveacaroruseacomputer,youdonotneedtoknowthedetailsofthe technologybehindthem.Allyouneedtoknowis how todrivethecaroroperate thecomputer,andwhentogotoaspecialistforrepairsormaintenance.The sameappliestomarketingandIP.SothisGuidepresentsenoughinformation aboutthefundamentalsofmarketingandIPtopermitartisans,craft entrepreneursandvisualartiststomakebasicdecisionsaboutimplementinga marketingandIPstrategywithinabusinessframework.Theinformation sourceslistedinchapter7mayprovideusefuladditionalinputsinthe decision-makingprocess. However,thefollowingreservationsshouldbekeptinmindwhileusingthe Guide: DISCLAIMERS q ThisGuideisnotasubstituteforspecialistmarketingorlegaladvice.Inparticular,if individualsorenterprisesbelievethattheirIPrightsarelikelytobeorarealready beingadverselyaffected,thentheyshouldtakeprofessionaladvicebeforerushinginto action,inordertofullyunderstandthecostsandbenefitsoftheavailableoptions. q ThepaceofchangeintheinternationalmarketenvironmentandinIPlegislationand practicesisveryrapid.Readersarestronglyrecommendedtocheckwithlocal,regional andinternationaltrade-supportingandIPinstitutionsonthelatestsituation. q AnyartisanorvisualartistwhointendstousethetoolsoftheIPsysteminbusiness andexportactivitieswouldbewisetopreparealistofpossibleissuesandquestions, anddiscussalltheIP-relatedaspectswithacompetentIPprofessional. q ViewsexpressedintheGuidearethoseofthecontributors 9anddonotnecessarily reflectthoseofITCorWIPO. ITCandWIPOencouragethewideuseofthematerialcontainedinthisGuide, subjecttothefollowingconditions: q PartsorextractsoftheGuidemaybecopied,reprinted,distributed, displayedortranslatedforuseinarticleswithoutpriorpermission.However, theuseoftexts,photosand/orartworkoftheGuidewhichareprotectedby copyrightortakenfromanotherpublicationmustcarryareferencetothe Guideinthefollowingmanner: cTaken/reprinted/translatedfrom Marketing CraftsandVisualArts:TheRoleofIntellectualProperty 3Apracticalguide , publishedjointlybytheInternationalTradeCentre(ITC)andtheWorld IntellectualPropertyOrganization(WIPO).Copiesofthearticlesmustbe senttoITCandWIPO(seecontactinformationinchapter7). q PriorpermissionofITCandWIPOisrequiredforanycopyortranslationof theGuideforcommercialuse;aswellasforanyadaptationoftheGuideto thespecificneedsofacountry. q Nochangesareallowedtothecontent,graphicdesign,format,typefacesand coloursoftheGuidewhenitisreprintedortranslated. Chapter1 3Introduction 3 Chapter2 Definitionsandoutline Craftsandvisualarts Thedistinctionbetweencraftsandvisualartshasalwaysbeenblurred.Some expertstalkof 8theusefularts 9(ofthecraftspeople)asobjectsproducedfor everydayuse,andthe 8decorativearts 9(ofthevisualartists)asthosecreatedfor theirownsake.Someotherexpertsrefertothe 8plasticarts 9,inwhichthey includepainting,sculpture,photography,architecture,andsometimeseven fineglassware,jewelleryandfurniture.Theuseofartisticworksinartisanal productsiscommon.Theuseofcrafttechniquesandskillsbyvisualartistsis alsoeasilyseen.Aphotographofacraftproductisconsideredtobea manifestationofvisualart. Therecanbenosharpdividinglinebetween craftsandvisualarts. Someobserversconsidercraftstobeabridgebetweenvisualartandindustrial design,andindustrialdesign,inturn,tobeabridgebetweencraftandindustrial manufacturing.Thismaybecalledthetraditionalmassproductionperspective. However,modernmanufacturingtools,techniquesandmethods,coupledwith increasingrelianceoncomputer-aideddesignandcomputer-aided manufacturing,haveheraldedaneweraofpersonalizationandmass customization.Itisnotpossibletoconsidervisualartsasmerelycontributingto crafts.Eachsectorhasitsownindependentstandingandmarket,buttheyalso haveamutuallysupportiveandinterdependentrelationship,includingtheir linkageswiththeindustrialdesignandformalfactory-orientedmassproduction sectors. FromanIPperspectiveaswellasfromamarketingandconsumerperspective, craftsandvisualartsoverlapinthattheybothproduceessentially hand-made products,oftenculturallyrooted,whosedistinctivequalityorinherent characterhas primarilyanaestheticappeal whichisjudgedlargelybytheeye, althoughelementsoftouchandsmellmayalsobeimportant.Craftitemsmay alsohavefunctionalorusefulfeatures,whereastheproductsofvisualartsdo not. Notonlydoesthedefinitionofartisanandvisualartistdifferfromcountryto country,sodoestheirstatus.Artisansindevelopedcountriesareoften respectedforpursuingacareerinvolvinghighlevelsofcreativity.Visualartists arehighlyregardedinmanycountries.Insomeothercountries,however, artisansandvisualartistsarenotnecessarilyconsideredworthyofanyspecial statusorrespect.Infact,somecraftproducersdonotwishtheirchildrento becomeartisansorvisualartists.ButinJapan,forexample,bothartisansand visualartistscanbeawardedthetitle 8NationalLivingTreasure 9asamarkof respectfortheirtalent.Customersmayalsobeconfusedabouttheprofessional identityofartisans.Someartisansindevelopingcountriesregardthemselvesas visualartists,whiletheircustomersinexportmarketsregardthemasartisans. Itisclearthatidentifyinganddefiningcraftsandvisualartsandtheirmakers haslongbeenamatterofdebate.Forthisreason,thisGuidedealswithboththe craftandvisualartssectorstogether. Definitionofcraftproducts ThefollowingtermsareusedinterchangeablythroughoutthisGuide:artisanalproducts, craftproducts,craftitems,crafts. Craftproductsencompassavastvarietyofgoodsmadeofdiversematerials. Thisdiversitymakesitincrediblydifficulttogiveasatisfactorydefinitionofthe materialcontent,techniqueofproductionand/orfunctionaluseofcraft products.Yet,foravarietyofreasons,aworkingdefinitionofsuchproductsis soughtbyimporters,exporters,customsandexcisedepartments,ortrade developmentagencies.Althoughthereisnouniversallyagreeddefinitionof artisanalproducts,thefollowingcharacteristicsbroadlyapplytoawiderangeof theworld 9scrafts: 1 q Theyareproducedbyartisans,eithercompletelybyhandorwiththehelpof hand-toolsandevenmechanicalmeans,aslongasthedirectmanual contributionoftheartisanremainsthemostsubstantialcomponentofthe finishedproduct; q Thereisnoparticularrestrictionintermsofproductionquantity; q Evenwhenartisansmakequantitiesofthesamedesign,notwopiecesare everexactlyalike; q Theyaremadefromsustainablyproducedrawmaterials; q Theirspecialnaturederivesfromtheirdistinctivefeatures,whichcanbe utilitarian,aesthetic,artistic,creative,culturallyattached,decorative, functional,traditional,andreligiouslyandsociallysymbolicandsignificant. Craftsconcernedwithservicing,installation,maintenanceandrepair(of transportequipment,householdgoodsorelectricappliances,forinstance),fall outsidetheabovedefinitionand,therefore,arebeyondthescopeofthisGuide. Servicesprovidedbyartisans,whetherworkingoncommissionedprojectsoras designconsultants,are,however,verymuchwithinthescopeofthisGuide, eventhoughitsprimaryfocusisonthebusinesscycleofcraftproducts. Artisanalproductscanbeclassifiedunderbroaddivisions.Thesedivisionsare primarilybasedonthematerialsused,oracombinationofthematerialsandthe technique.Thesixmaincategories 2 are: q Basket/wicker/vegetablefibre-works; q Leather; q Metal; q Pottery; q Textiles; q Wood. Furthercategoriescouldcorrespondto variousadditionalanimal,mineralor vegetablematerials coveringthoseothermaterialsusedincraftproductionthat arespecifictoagivencountryorregion,arerare,oraredifficulttowork,such as: stone,glass,ivory,bone,horn,shell,seashells, or mother-of-pearl. Finally,extra categoriescouldbeconsideredwhendifferentmaterialsandtechniquesare appliedatthesametime.Thismightbethecase,forinstance,for armsfor ceremonialordecorativepurposesorastheatricalproperties,decorativeitemsandfashion accessories,jewellery,musicalinstruments,toys, or worksofart . Chapter2 3Definitionsandoutline 5 1 Basedonthedefinitionadoptedbythe44countriesparticipatinginthe UNESCO/ITC SymposiumonCraftsandtheInternationalMarket:TradeandCustomsCodification heldinManila, thePhilippines,October1997. 2 Crafts:MethodologicalGuidetotheCollectionofData,UNESCO. Characteristicsofanartisanandacraftenterprise Artisansmaybedefinedaspeoplewhomakeproductsmanually.Theyusually workindividually,butcanoftenbehelpedbyfamilymembers,friends, apprenticesorevenalimitednumberofworkers,withwhomtheyare constantlyinclosepersonalcontact.Thiscontactgeneratesasenseof communityandattachmenttothecraft. However,inordertoincludeallbusinessinitiativeswhichcontributetothe developmentofthesector,theuseoftheterm 8artisan 9willalsocoverthose craftentrepreneurswho: q Althoughnotactivelyparticipatinginproduction,specializeinresearch, marketnegotiationsorproductdesignandconception; q Usemachinetoolsorevenmachinery,withoutaffectingtheessentially hand-madenatureoftheworkandtheproductionprocess; q Beyondtheusualcottageorartisanunit,haveassociatedincooperativesor anyotherformoforganization,formalorinformal;and q Manageorbelongtomicro-,smallormedium-sizedenterprisesconcerned withartisanalproduction. Artisansandcraftenterprisessharemanycharacteristics: q Artisansgenerallyperceivethemselvesasbusinesspeople. q Artisansaremainlysuccessfulineconomicterms,althoughfewachieve fame. q Theyeitherlearntheirskillsinthefamilyorcommunityinwhichtheylive, orreceiveskilltrainingundergovernmentcraftdevelopmentinitiatives.In developedcommunities,artisansmakecareerchoices,studyingdegree coursesinthecraftandvisualartsareasinuniversitiesandcolleges. q Artisanalproductsarenormallycommercial,utilitarianobjectsusedinmany differentways. q Artisans 9pricesareusuallybasedonmaterialandlabourcosts,althougha smallnumberofartisansmaycommandpremiumprices,linkedtogood reputation. q Artisanalproductssellinexhibitions,retailoutlets,streetmarkets,fairs, touristvenuesandexportmarkets.Theyarefrequentlysoldthrough entrepreneursandmiddlemen,NGOs,andproducers 9andexporters 9 associations.Internetfacilitiesandwebsitesarealsobeingincreasinglyused formarketingartisanalproducts. q Mostartisanalproductionismarket-led:thatis,productionisgearedto observedmarketneedsandniches. q Localcommunitiesindevelopingcountriesandcountriesintransitionoften regardartisansaslower-statussocialgroups. q Exportconsumersmayhavelittleunderstandingoftradition,aestheticand productionskillsandprocessesinartisanmanufacture. q Exportmarketenterprisesoftenseeartisansaslow-costproductionsources. q Promotionisdonethroughadvertisingandcatalogues.Anartisan 9s reputationforreliabilityandqualitymaytravelbywordofmouth. q Relationshipswithmiddlemenandcustomersmayrangefromnurturingto exploitative. 6 Chapter2 3Definitionsandoutline Definitionofvisualarts Invisualarts,theindividual(theartist)usesvariouselementsormaterialto expresshisorherfeelings,emotionsanddifferingperceptionsoftheworldthat surroundshimorher.Theresultofthisworkisjudgedmainlybythesenseof sight. Painting,drawing,sculptureinvariousmaterials,printmaking,photography, plans,maps,performanceart,installationart,mailart,assemblageart,bodyart, textilearts,fashiondesign,multimedia,videoart,webdesign,webart,digital art,graphicandproductdesignaresomeexpressionsofvisualarts. Characteristicsofvisualartistsandtheirwork Thegeneralcharacteristicsofvisualartistsincludethefollowing: q Visualartistsgenerallyperceivethemselvesascreativeindividuals,andnot asbusinesspeople.Theirfocusismuchlessonskillorcraftsmanship,and moreonartistictalent,creativityandaestheticbeauty. q Theymayhaveaformaleducationinthearts,ormaybecompletely self-taught. q Artistscanbesuccessfulintermsofbothartworkandpersonality. q Artworksarenon-functional,emotional,social,political,traditionaland culturalstatements.Theyarenotgreatlyaffectedbycommercialsector constraints. q Artsellsingalleriesandexhibitions,artfairs,andthroughcommissions. q Artpriceshavetheirbasisinaestheticvaluesandartisticsuccess,notin materialorlabourcosts. q Localcommunitiesregardartistsasspecial,andashavinghighsocialstatus. q Exportmarketsdonoteasilydistinguishbetweenartistandartisan. q Exportmarketscategorizemuchartworkfromdevelopingcountriesas décor. q Visualartistspromotetheirworkbyreputation,throughmediacritics,press releases,websites,culturepublications,filmandtelevision. q Enterprisesponsorshipofexhibitionsiscommonplaceindeveloped countries. Intellectualproperty Definitionofintellectualproperty Intellectualproperty(IP)isthenamegivento propertyarisingoutofhuman intellectualeffort .Theoutputofhumanintellectualeffortoftenmanifests itselfasnewororiginalknowledgeorcreativeexpressionwhichaddsadesirable qualitytoamarketableproductorservice.Variouselementsprovide intellectualoutputwithattributesthat,inonewayoranother,enhancethe qualityoflife.Theseelementsmaybecalledhumanendeavour,ingenuity, creativity,inventiveness,flashofinspiration,suddeninsight,ornewinsight intoobservedfacts.Theymayormaynotinvolveexperimentation,trialand error,skill,teamwork,craftsmanship,aestheticsensibility,andsoon.They mayinvolvesolvingatechnicalprobleminmakingsomethingwithmore desirablefunctionalqualities,orresultincreatingsomethingaesthetically Chapter2 3Definitionsandoutline 7 pleasing,tosatisfyahumanneedorwant,beitutilitarian,sensory,social, cultural,mental,spiritualorreligious.Thesevalue-addingor 8qualityoflife 9 enhancingelementsarethebasisofIP. Intellectualpropertyrefersto creationsofthemind :inventions,literary andartisticworks,andsymbols,names,images,anddesignsusedin commerce. Intellectualpropertyisdividedintotwocategories :industrialproperty , whichincludesinventions(patents),trademarks,industrialdesigns,and geographicindicationsofsource;and copyright ,whichincludesliterary workssuchasnovels,poemsandplays,films,musicalcompositions;artistic works,suchasdrawings,paintings,photographsandsculptures,and architecturaldesigns.Rightsrelatedtocopyrightincludethoseof performingartistsintheirperformances,producersofphonogramsintheir recordings,andthoseofbroadcastersintheirradioandtelevision programmes. 3 Somekeycharacteristicsofintellectualproperty Akeycharacteristicofanyproperty,asitisgenerallyunderstoodnowadays,is thattheownerofpropertyhasthe exclusiveauthoritytodeterminehow thatpropertyisused . However,IPhasmanycharacteristicsthataredifferentfrom thoseofphysicalortangibleproperty. 4 Unlikephysicalproperty,whichcanbeusedorenjoyedbyoneoralimited numberofpeopleatanymoment, intellectualoutputcanpotentiallybe usedorenjoyedbyanunlimitednumberofpeople ,andwithoutdepriving itsownerofitsuseorenjoyment. OnekeywayofusingIPassetsistopermit theirsimultaneoususebyanumberofusers, inexchangeforpayment.InIP jargonthisiscalled licensing ofIPRs.Suchlicensingcanbedonefordifferent purposes,indifferentcountries,fordifferentlengthsoftime,bydifferentusers (calledlicensees)whomaypayverydifferentsumsofmoney. Physicalpropertyhasvalueeitheraslongasitisindemandorwhileitexists. IP hasvalueonlyforthedurationforwhichlawsallow theintellectualoutput tobetreatedaspropertyandprovideditisstillindemandinthemarketplace. Theownerofphysicalpropertyhasmuchgreatercontroloveritthantheowner ofintellectualoutputcouldeverhaveintheabsenceofthelegalsystemofIP. DependingonthetypeofIP,differentrulesgovernitscreation,thenatureand scopeofrightsoverit,andthedurationandcircumstancesinwhichthoserights canbeputintopracticaluse. Thereisa greaterpossibilityoftheftanddisputesconcerningownership anduse ofIPthanisthecasewithphysicalproperty.Aphysicalobjectisstolen onlyifitspossessionchangeshands,whereasIPisdeemedbylawtobe 8stolen 9 ifwithoutpermissionofitscreatororowner,itiscopied,imitated,adapted, translated,displayedorusedasaninputorstartingpointforfurtherinventive orcreativeendeavour.ItisevenpossibleforIPtobeconsideredstolenwhenit isindependentlydiscoveredorcreated!Aforgery,counterfeitorpirated version,evenifbetterthantheoriginal,istheft,asitisbasedonstolenideas, expressions,concepts,ortechnologies.Understandingthisiscrucialto 8 Chapter2 3Definitionsandoutline 3 AbroadintroductiontoIPisavailableintheWIPOpublication WIPOIntellectualProperty Handbook:Policy,LawandUse (see www.wipo.int/about-ip/en/iprm/index.htm ). 4 Tangiblepropertyreferstopropertythathasphysicalsubstanceandcanbetouched(e.g. furniture,buildings,cars,jewellery). understandingtheimportanceofthelegalsystemofIPrightsandtheirpractical applicationinbusinessstrategy. Justlikephysicalproperty, IPhascommercialvalue .Expenditureonor incomefromIPmaybesubjecttotaxation.AcquiredIPassetsmaybeshownon accountbooksandbalancesheets.IPassetsmaybeinsured.Incomestreams linkedtoIPassetsmaybesecuritized 5 andusedascollateralforborrowing moneyfrombanksandotherfinancialinstitutions.Moreandmoreventure capitalistsareinterestedinsupportingonlybusinessesthathavetaken adequatestepstoprotecttheirIPassets. Propertyrightscannotbeclaimeduntilownershiphasbeenestablished. Throughoutmostoftheworld,asetoflawsprovidesexclusivityandownership ofIP.Thisallowspeopletoowntheircreativityandinnovationinthesameway thattheycanownphysicalproperty.TheownerofIPcancontrolandbe rewardedforitsuse.Thisencouragesfurtherinnovationandcreativitytothe benefitofeveryone. Thefollowingtablesummarizesthemainsimilaritiesanddifferencesbetween physicalpropertyandIP. PhysicalProperty (tangibleormaterial) IntellectualProperty (intangibleorimmaterial) Isproperty ! theownerhasexclusiveright todeterminehowitisused. Isproperty ! theownerhasexclusiveright todeterminehowitisused. Canonlybeusedbyoneoralimitednumber ofpeopleatagiventime. Canbeusedbyvariouspeopleatthesame time(includingtheownerorcreator). Haseconomicvalueaslongasitexistsoras longasthereisdemandforit. Haseconomicvalueonlyfortheduration specifiedinthelawsandaslongasthereis demandforit. Possibilityoftheftanddisputesconcerning ownershipisratherlimited. Greaterpossibilityoftheftanddisputes concerningownership. Theftoccursonlyifthepossessionofthe propertychangeshands. Theftoccursifthepropertyiscopied, imitated,adapted,translated,used, displayed,etc.withoutpermissionofthe ownerorcreator. Expenditureorincomefromthepropertymay besubjecttotaxation. Expenditureorincomefromthepropertymay besubjecttotaxation. Maybevaluedandreflectedonaccount booksandbalancesheets. Maybevaluedandreflectedonaccount booksandbalancesheets. Maybeinsured.Maybeinsured. Maybesecuritizedandusedascollateralfor borrowingmoney. Maybesecuritizedandusedascollateralfor borrowingmoney. Overviewofthetypesofintellectualproperty ThedifferenttypesofIParebrieflyintroducedbelow,inalphabeticalorder. Chapter5willprovideadetailedaccountofthedifferenttypesofIPandtheir respectiveprotectionsystems.Attheoutset,itmustbenotedthatthe definitionofaparticulartypeofIPvariesfromcountrytocountry,asdoesthe scopeofrightsattachedtoit,andtheconditionsunderwhichtherightscanbe enjoyed. Chapter2 3Definitionsandoutline 9 5 Securitizationnormallyreferstothepoolingofdifferentfinancialassetsandtheissuanceof newsecuritiesbackedbythoseassets. q Brandortrademark. 6 Abrandortrademarkisasignoranycombinationof signs,capableofdistinguishingaproductorservicefromotherproductsor servicesonthemarket.Themaintaskofatrademarkistoindividuatea productoraservice 3consumersareabletodistinguishbetweendifferent goodswithdifferentmarkspreciselyonthebasisofthemarks.Unlikeother typesofIP,thetermofprotectionfortrademarksisnotlimited;theycanbe renewedindefinitelybytheowner. Example: LLADRÓisatrademarkusedforhand-craftedporcelain sculptures.Itderivesfromthesurnameoftheoriginal creators,togetherwithaflowerandanancientchemical symbol. q Copyright .Copyrightdescribesabundleofrightsgiventocreatorsin relationtotheirliteraryandartisticworks.Basically,copyrightgivesthe ownertheexclusiverighttousethework.Itprotectsitemssuchaspaintings, drawings,sculptures,photographs,architecture,instructionmanuals, software,databases,technicaldocumentation,advertisements,maps, literaryworks,music,filmsorsongs.Inmostcountries,acopyrightedwork isprotectedforthelengthoftheauthor 9slifeplusaminimumofanother 50years. q Industrialdesign .Anindustrialdesign(orsimplyadesign)isthe appearanceofthewholeorpartofaproductresultingfromfeaturesof,in particular,thelines,contours,colours,shape,textureand/ormaterialsofthe productitselfand/oritsornamentation.Industrialdesigns,asobjectsofIP, canusuallybeprotectedforuptoamaximumof15or25years. Example: Anewtextilepatternortheuniqueshapeofapieceof jewellerycanbeprotectedasdesigns. q Geographicalindication. Ageographicalindicationisasignusedongoods thathaveaspecificgeographicaloriginandpossessqualitiesorreputation thatareduetotheirplaceoforigin. q Appellationoforigin. Anappellationoforiginisthegeographicalnameof acountry,regionorlocality,usedtodesignateaproductthatoriginates there,andthathasqualityandcharacteristicsthataredueexclusivelyor essentiallytothegeographicalenvironment,includinghumanfactors. Example: Bohemiacrystalindicatesthattheproductismanufactured inBohemia,theCzechRepublic,followingthearttraditions oftheregion. q Patent :Apatentisanexclusiverightgrantedforaninvention,whichisa productoraprocessthatprovidesanewandnon-obviouswayofdoing something,oroffersanewandnon-obvioustechnicalsolutiontoaproblem. Apatentprovidesprotectionfortheinventiontotheownerofthepatentfor alimitedperiod,generally20years. Example: Anewmethodoftatting,usingashuttle,thatenablesthe tattertousemorethantwocoloursortexturesofthreadhas beenpatented. 7 10 Chapter2 3Definitionsandoutline 6 A 8brand 9isreallyamuchlargerconceptthanamere 8trademark 9.Strongbrandsand successfulbrandinggenerallyrefertosuccessesintermsofcontributiontomarketshare,sales, profitmargins,loyaltyandmarketawareness.However,forthesakeofconvenience,theterms brandandtrademarkareusedinterchangeablythroughoutthisGuide. 7 ThisinventionisprotectedbyapatentintheUnitedStates 3see www.cs.arizona.edu/patterns/weaving/patents/05727439.pdf . q Pettypatentorutilitymodel. Apettypatentorutilitymodelissimilartoa patent,buttherequirementsforacquiringprotectionarelessstringentand theprotectionismuchcheapertoobtainandtomaintain.Ontheother hand,thetermofprotectionofferedbyapettypatentorutilitymodelis shorterthanapatent. q Tradesecretsorconfidentialbusinessinformation areanyinformation thatcanbeusedintheoperationofabusinessandthatissufficiently valuableandsecrettoaffordeconomicadvantageoverothers.Tobe protected,theownerofatradesecretmusthavetakenreasonablestepsto keeptheinformationsecret. Examples: Glass-blowingtechniques,ovenprocessingmethodsfor bakingpottery,claymixturepreparationsforceramics, consumerprofiles,advertisingstrategies,listsofsuppliers andclients,andmanufacturingprocessescanallbetrade secrets. Howtoconvertintellectualoutputintointellectualproperty Beforeapersonorenterprisecantakeadvantageofitsintellectualoutputithas toacquireIPrights(IPRs).MostIPRsinthefieldsofindustrialpropertyneed toberegisteredinordertobeprotected.Theproceduresforacquiringand maintainingIPRsmaydifferfromcountrytocountry,butthebasicprinciples andfeaturesoftheseproceduresarecommontomostcountries.Wherecertain conditionsaremet,IPRscanalsobeacquiredataregionalorinternational level.DetailedinformationonhowtoacquireIPprotectionisprovidedin chapter5. Chapter2 3Definitionsandoutline 11 Chapter3 Understanding thevalueofintellectualproperty 8Alittleknowledgethatactsisworthmorethanmuchknowledgethatisidle 9 3KhalilGibran, TheProphet . Artisansorvisualartistshaveverymanydifferentmotivationsforproducing creativeproducts.Thesemotivationscouldbecultural,religious,social, self-expressionorearning-related,andsoon.Whenissuesoflivelihood, recognition,rewardandprofitabilityareprominentmotivators,themodern toolsofmarketingandIPcomeinveryhandyforreapingthefruitsof handwork,andskilfulexpressionofcreativity. Artisansandvisualartists,whetheroperatingindividually,infamilyor micro-enterprises,shouldapplyandenhanceenterprisemanagementskills. Theyneedtounderstandthebasicsofbusiness,marketingandIPinorderto asktherightquestionsandevaluatetheresponsesofthevariousintermediaries inthechainbetweenthemandtheirconsumers. 8 Challengingbusinessandmarketenvironment Businessisdoneinthemarketplace.Amarketmaybe 8free 9or 8regulated 9.Free marketsarethehallmarkofeconomiesindevelopedcountries.Tovarying degrees,mostdevelopingcountriesandcountriesintransitionhaveadopted thefreemarketmodelofeconomicgrowthoraremovingtowardsit. Inafreemarketeconomy,allocationofresourcesforproduction(ofproducts andservices)isessentiallybasedontheinteractionofmarketforcesofsupply anddemand.Ifaproductorserviceisinshortsupply,itspricewillrise,and producersandsellerswillmakehigherprofitsasproductionrisestomeetexcess demand.Ifavailablesupplyexceedsdemand,thepricewilltendtofall,thereby attractingmorebuyersanddiscouragingotherproducersandsellersfrom enteringthemarket.Inafreemarket,producersandbuyersinteractvoluntarily andthepriceofaproductisinfluencedbytherelativebalancebetweenits supplyanddemandcomparedwiththatofcompetingproducts.Inotherwords, consumerbehaviourinfluencesthebehaviourofproducers,andtheother wayround . Nowadays,physicalmarketscoexistwithvirtualmarketsbasedononline promotionande-commerce.Producersandconsumersgenerallyinteract throughintermediariesinthesupplyand/ordemandchain.Infact,the existenceofintermediariesbetweenproducersandconsumersisincreasingly therule,ratherthananexception,evenine-commerce.Thecraftandvisualarts Understandingthevalueofintellectualproperty 8 Wedefineconsumersasindividualswhobuyproductsorservicesforpersonaluseandnotfor manufactureorresale. sectorsareequallyaffectedbythistrend,whichisfurtheraccentuatedby globalization.Thisincreasingdistancebetweenproducersandconsumersposes real challengesforbusinesses,especiallyincorrectlymatchingtheneeds ofconsumerstoproductsonoffer . Forproducerstherearenumerousotherchallenges,suchastoomanyproducts chasingtoofewandverydiscerningconsumers.Intoday 9sbusiness environment,thesupplyofproductsseemstofarexceeddemand.Globalization ofmarketsmeansthatconsumersaswellascompetitorsarenolongerin geographicalproximity. Understandingthebehaviourofmarketsand doingmarketresearchisnotaneasytask . Globalizationofmarkets,coupledwiththeuseoftheInternet,hasgiven consumersworldwideunlimitedchoice.Theconsumeristrulyking!Thishas increasedthechallengesfacedevenbyartisansandvisualartistsinsuccessfully producingandmarketingtheirproducts.Therapidlychangingtastesof consumersaddfurtherconstraintsforartisansandvisualartistsandtheir marketingpartners.Inthisrapidlyevolvingbusinessenvironment,successful productshaveshorterandshorterlifecycles.Itisagrowingchallengeformost businessestoprovidenewer,better,ormoreattractiveproductsthatcatchthe eyeandretaintheinterestofconsumers. Therealchallengeistobemore resourceful,creativeandinnovativethanthecompetitorsinallaspectsof business fromconceivingnewideasandtransformingthemintoproducts,to marketingtheminanefficientandcost-effectivemannerandearninga reasonableprofitontheinvestmentmade. So,isthereaformulaormantraforbusinesssuccessintheseturbulentand unpredictabletimes?Thereisnomagicwand,butunderstandingthebasicsof businessiswhereeverybusinessmustbegin.Fundamentalsfirst,andalways. Basicingredientsofbusinesssuccess Asuccessfulbusinessisonethatmakesabiggerprofitafterunderstandingand meetingtheneedsofconsumersbetterthanitscompetitors.Thiscanbe achievedonlyifthereis: q Aqualityproduct; q Adistinctivebrand;and q Effectivemarketing. Inotherwords,thesearetheessentialelementsthatgiveabusinesscompetitive advantageoveritsrivals. 9 Whatisaqualityproduct? Callingsomethingaqualityproductusuallyimpliesthattheconsumer perceivesittobebetterthancompetingproductsbecauseofitsfunctionalor technicalattributesand/orbecauseofitsoutwardappearanceandstyle.Sucha perceptioncouldbereinforcedbyalowerpriceforthecustomer,orbygreater success(andprofit)fortheproducerorprovideroftheproduct. Whatisadistinctivebrand? Itisnotalwayspossibletoascertainthequalityofaproductbymerelylooking atitorevenbyexaminingitclosely.Someofthequalitiesoftheproductmaybe Chapter3 3Understandingthevalueofintellectualproperty 13 9 ThisGuidedoesnotdealwithotherbasicaspectsofbusinessmanagement,suchas maintainingaccountsandsmoothcashflows. ascertainedonlybyusingorconsumingitandstillothersonlybyexperiencing it.Aconsumermaynotbeabletomakearationalchoicebetweencompeting craftproductswithoutusing,consuming,orexperiencingallofthem.Thisis generallynotapracticaloption.Itispossibletoovercomethisproblemifthe consumerhasreasontotrusttheclaimsofaparticularproducerorprovider. Howthendoesaconsumeridentifytheproducerorproviderofaparticular productthatheorshewantstobuy?Tocompeteeffectively,anartisan,craft enterpriseorvisualartistmustachievemarketrecognitionandrespectforitself anditsproducts.Thisisdonebycreatingandnurturinganenterpriseimage linkedprimarilytothenameoftheproprietor,ofthebusinessorofitsproducts. Theprocessofdoingthisiscalled branding . Brandinginturndependson creatingandusingadistinctivetrademark.Itmayalsorelysecondarilyonother typesofIPsuchasindustrialdesignsorpatents. Basically,trademarkshavethreefunctions: 10 q Anoriginfunction 3theyindicatewhoistheproduceroftheproductor service; q Aqualityfunction 3theyareaguaranteeofconsistentquality;and q Anadvertisingfunction 3theyhelpinmarketingproductsandbringingnew productstothemarket. Inmarketingjargon,trademarksbecomebrandswhentheyareabletoconvey somethingpositiveabouttheproducttotheconsumer. Theessenceofagreat brandliesinitscapacitytofosterthesalesofaproductbycreatingan emotionallinkwithitscustomers. Whatiseffectivemarketing? Marketingcanbeseenasabusinessphilosophythatmakesthecustomerthe centreoftheuniverseofthebusinessorthepivotaroundwhichthebusiness resolves.Effectivemarketingcreatesademandforaproduct. Tobeeffective, themarketingplanandstrategyofabusinessmustbebasedonsound andcontinuousmarketresearchsothattheneedsofconsumersarefully understood. Onlythenshouldtime,skillandotherresourcesbeinvestedin creating,testing,replicatingandmarketingnewproducts,basedonacoherent planandstrategy,foreasyaccessatapricethatisaffordabletotheconsumers. Thiswillensurethatwhiletheconsumers 9needsandexpectationsarefullymet (orevenexceeded),atthesametimetheproducerorprovideroftheproductis abletoreapareasonableprofitonthenetinvestmentmade. Accesstoknowledgeasaddedvalue Thethreeessentialbusinesssuccessingredientsweredescribedearlier(quality product,distinctivebrand,andefficientmarketing).Evenwhencoupledwith otherimportantfactorssuchasaccesstorawmaterials,financialcapital,good distributionnetworks,specialskills,appropriateproductionprocessesand technology,theyarenolongernecessarilysufficienttoenablebusinessesto sustaintheircompetitiveedge. Knowledgeismoreandmorebecomingthekey resourceforbuildingdurablecompetitiveadvantageinthecontinuously evolvingbusinessenvironment.Knowledgeisacriticalinputforcreatingvalue. 14 Chapter3 3Understandingthevalueofintellectualproperty 10 W.R.Cornish IntellectualProperty:Patents,Copyrights,TradeMarksandAlliedRights .London: Sweet&Maxwell,4 th edition,1999,p.612. Knowledge anditsrelevancetobusiness Strictlyspeaking,knowledgeresidesonlyinourbrains.Thehumanbrain creativelycombinesoldideas,frameworks,concepts,skills,memories,andso on,anddevelopsnewideas,concepts,principles,models,frameworks,guiding principlesandskills.Expressionoftheseideas,throughverbalandnon-verbal means,isawayofsharingwithotherhumanbeingsthesenewinsightsandthe practicalproductsbasedonthem.Althoughsuchskillsoriginateandresidein thehumanbrain,theycanbemanifestedbyusingthehands.Hand 3eye 3brain coordinationiscritical. Mostartisansandvisualartists,includingthosewhoarerunningabusinessor anenterprise,considerthemselvestobemerelycreativeandskilled,andbelieve thattheydonotcreateanyintellectualproperty.Thisisfarfromthetruth.All ofthemcreateandthereforecan 3andshould 3ownvaluableIP. Understanding,identifying,managingandexploitingknowledgeorIPassets hasbecomeadefiningcharacteristicofbusinesssuccessintoday 9smarketplace. Therearemanyelementsthatcontributetobusinesssuccess,butthe importanceof 8intellectualproperty 9isbecomingoverwhelmingasa determinantofgoodbusinessmodels,businessplansandmarketingsuccess. Fromabusinessperspective, knowledgeaddsvaluetoaproduct .Relevant knowledgecangiveitsowner(whetheranartisanorvisualartist)anunbeatable advantage.Italsopotentiallyleadstoachangeintheperceptionoftheartisan orvisualartist 3atransformationfromamereskilledcraftspersonorcreator intoa 8knowledgeworkerorprofessional 9(suchasadesigner),ora 8creatorofa knowledge-basedenterprise 9(suchasadesignagency).Thisisamajorchange thattheIPsystemseekstopromote,toenableartisansandvisualartiststo maximizetheirincomeswhileatthesametimeprotectingtheirworks. IP createsanewkindoftrustandstabilityincommercialrelationshipsand isarisk-reductionandempoweringtoolforbusinesssuccess. Whatistheproblemwithknowledge? Unliketheuseofphysicalortangibleproperty,theuseofknowledgebyothers cannotbeexcludedonceitisrevealedtothem. Thereisarealpractical problemincontrollingknowledge, andthereforeinusingittogainor maintaincompetitiveadvantageinthemarketplace.Thisisespeciallysoifthe knowledgeispresentedinsuchamannerthatitcanbecapturedandusedby competitorswhogetaccesstoit. But,soonerorlater,knowledgeneedstobeshared,inordertouseittoaddvalue tovariousfacetsofabusiness.Forexample,acraftspersonwhohiresanemployee willneedtosharethetechniquesandskillsformanufacturingthecraftproducts. Inmanysituations,ifthereisarelationshipoftrustbetweentheowneranduserof theknowledge,thenthatmaysuffice.Inothersituations,acontractual relationshipmaybeallthatisneededtoreasonablysafeguardthelossorleakage ofknowledgetocompetitors.Butitisnoteasytodeveloptrustorenterintoa contract.Andtherearestillothersituationsinwhichpartieswhoareunrelatedto theownerofthevaluablebusinessinformationaretobepreventedfromusing knowledgethattheymayhaveobtainedaccidentally,inadvertentlyorbyfoul means.Inallthesesituations,adifferentsolutionisneeded.Thisiswhere the systemofIP comesin.It providesthelegalframeworkofethicalconductto enableorderlyusingorsharingofknowledge . Ashasbeenoutlinedearlier,IPisthecollectivenamegiventoawidevarietyof knowledgecreatedbyhumanintellect.IPisgenerallyprotectedbyspecificlaws, foraspecifiedmaximumperiodoftime,andundercertainconditions. Chapter3 3Understandingthevalueofintellectualproperty 15 So, knowledgeresultingfromhumaningenuity,creativityandinventiveness isprotectedbylawsas 8intellectualproperty 9 .(Seethesectionon 8Intellectual property 9inchapter2,andchapter5,formoredetailedinformationontheIPlaw issuesrelatedtocraftandvisualartmarketing.)Throughavarietyoflaws,different typesofknowledgearegivensomeofthebasicattributesofphysicalpropertysoas toenablethemtobeownedandcontrolledbytheircreatorsand/orowners. This legalcontroloverknowledgetransformsitinto 8intellectualproperty 9. Likeanyotherbusinesspeople,artisansandvisualartistscannotallow competitorstofree-rideontheirknowledge 3theirsecretsofsuccess.They mustmakereasonableeffortstopreventtheirknowledgefrombeingstolen byusingthetoolsoftheIPsystem . SincemostartisansandvisualartistsalsouseIPcreatedbyothers,they must treatothers 9knowledgewithasmuchrespectandcareastheytreattheirown . Therecanbenodoublestandards. Example: Anartistmakesasculpture.Hehiresaprofessional photographertotakeaphotographofthesculpture.The copyrightoverthephotographwillgenerallybelongtothe photographer,unlessthecopyrightlawpermits,anda writtenagreementbetweentheartistandthephotographer clearlyprovides,thatthecopyrightbelongstotheartist. Withouttransferofthecopyrightoversuchphotographs fromthephotographertotheartist,theartistcannotusethe photographforanycommercialpurpose. Example : Anartisancannotusepatterns,graphics,orpicturescreated byanotherpersontoadornanewitem(ofpottery,for instance)withoutpriorpermissionofthepersonwhoisthe copyrightownerofthepattern,graphics,orpicturesin question. WhatisspecialaboutIP? TherealpowerofthelegalsystemofIPisthat itallowstheknowledgethat addsvaluetoaproducttobedissociatedfrom(andthereforetobedealtwith independentlyof)theproduct towhichitaddsvalue.Infact,oftentheproductis onlythecarrierorcontaineroftheIP. Example : Toillustratethispoint,hereisanexamplefromanother area.Considerthecaseofmusic.Itisobviousthatmusicin itselfisIPwhenitisdissociatedfromaudiotape,CDor DVDandisdistributedonlineindigitalorelectronicform. Thismaynotbeasapparentinrelationtoanornamental designorpatternwhenitis 8lifted 9andappliedtoa completelydifferentproduct,buttherulestillapplies. BecauseIPRscanbedissociatedfromtheproductstowhichtheyapply, theycan beshared fordevelopingbusinessrelationshipsofdiversekindswithpartners, suppliers,contractors,wholesalers,distributors,retailers,artgalleries,museums, fairs,consultants,agents,and,aboveall,customers.Thiscanbedone,forinstance, throughlicensingorfranchising.(See 8Protectingintellectualpropertyabroad 9, pages95 399inchapter5fordetails.) ItisvitalforartisansandvisualartiststolearntohighlighttheirIPassets.Bydoing thistheymayshiftthetaskofmakingcopiesoftheircreativeworkstoothers,and yetbeprotectedwhileearningsubstantialadditionalincomethroughroyalty paymentsforpermittingsuchcopying. 16 Chapter3 3Understandingthevalueofintellectualproperty Preventingothersfromfree-ridingonone 9sownknowledge Theoldmaxim 8arightwithoutaremedyisnorightatall 9isequallyapplicableto theenforcementofIPRs. Oncethecreativityandinnovationofartisansandvisualsartistsistranslatedinto businesstransactions,itbecomesevenmoreimportantthatunscrupulous competitorsnotbeallowedtosteal,imitateorcopytheirideas,concepts,designs, know-how,etc.Worsestill,anartisanorvisualartistmayhimselforherselfbe accusedofknowinglyorunintentionallystealingacompetitor 9sknowledge 3for instance,wheninadvertentlyusingadesign,atechniqueorcopyrightedworkfrom othercreators. Inlegaljargon, 8infringing 9IPRsistheequivalentof 8stealing 9materialobjects.Most artisansandvisualartistsunderstandwhatismeantbytheftofphysicalproperty. Veryfew,ontheotherhand,understandwhatismeantbytheftofIP.WithIP protectioninplace,itispossibletoactagainst,andevenclaimcompensationfor, infringements. Whyisintellectualpropertycrucial incraftsandvisualartsmarketing? AllartisansandvisualartistscreateIPassets.Theirworksmaybeprotectedby copyright.Manyofthempossessconfidentialinformationofcommercialvalue, knownastradesecrets.Someofthemhaveatrademark.Mostdevelopcreativenew ororiginaldesigns.Somemayeveninventorimproveaproductorprocessusedin theircreativeendeavour,whichcanbeprotectedbyapatentorautilitymodel. Thereare,therefore,manypracticalreasonsforartisansandvisualartiststo understandandusevarioustypesofIP.Someofthesereasonsaredescribedbelow. q Earnmore withgreatersecurity Itistruethatnoteveryartisancan 3orwantsto 3becomeanentrepreneuror manageanenterprise.Yetmanyneedtoearnalivingfromtheircreativeoutput. TheIPsystemmakesitpossibleforthemtoearnmoremoneyinasecureway,ina numberofdifferentwaysandforalongerperiodoftime.(Seechapter5fordetails.) q ExerciseownershipofIPassets Craftspeopleandvisualartistsmayworkaloneorinagroup.Theymaybe employed,ormayemployothers,andtheymayuseorimproveuponIPassetsof others.WhetherownershipofIPassetsisindividualorjoint,itneedstobe establishedunambiguously.Thisisaprerequisitebeforeanartisanorvisualartist, astheownerofIPassets,canexercisetherightsthatareassociatedwithowning thoseassets(forexample,tobuyorsellassets,ortotakeactionagainsttheftor unauthorizedcopyingorimitationofthebusiness 9simage,trademarks,original designs,inventions,confidentialbusinessinformationorotherIPassets).Onthe otherhand,anartisanorartistwhowantstouseIPassetsownedbysomeoneelse needsspecificauthorizationtodoso. q Enjoyexclusivity inthemarketplace Artisansorvisualartistswhoowntrademarks,designs,patents,tradesecrets,andso onhaveexclusivityoversuchIPassets.Thismeansthattheyhavetherightto excludeallothersfromusingthoseIPassets .Anyoneelsewhowantstousethe IPassetsneedstohavethepermissionoftheowner.Therearemanytypesofrights associatedwithownershipofdifferenttypesofIPassets.Theownerhastheoption ofpermittingtheuseofIPassets,onpayment,byallowingoneormoretypesof rightstobeusedfordifferentpurposesbymanypeople,oroflimitingthenumberof usersinaspecifiedgeographicalarea. Chapter3 3Understandingthevalueofintellectualproperty 17 q Expand commercialactivitiesandexports TheskilfuluseofIPassetsmayassistartisansandvisualartists inalmostevery aspectoftheirbusinessdevelopmentandcompetitivestrategy:fromproductdesign anddevelopmenttomarketingandproductdelivery,andfromraisingfinancial resourcestoexpandingbusine

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