Marketing Crafts and Visual Arts: The Role of Intellectual Property

its authorities, or concerning the delimitation of its frontiers or boundaries. Mention of firm names, commercial products and brand names does not imply the endorsement of ITC and WIPO.<br><br> Digital image on the cover: Front cover photo composition by Laurena Arribat, ITC Multimedia Consultant, using photographscourtesyof:SerigneMorNiang( 8Mara 9),centrebottomleftpicturesof 8Gangunaay 9and 8Pileofshells 9; Moussa Mballo (through Youssou Soumaré), centre bottom right picture of his painting 8Debbo 9; Christian Planchette, ITC, centre top right pictures of Mauritanian bangles; María-Mercedes Sala, ITC, the other craft and art pictures in both the central part and the frame of the composition. © International Trade Centre UNCTAD/WTO and World Intellectual Property Organization 2003 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any formorbyanymeans,electronic,electrostatic,magnetictape,mechanical,photocopyingorotherwise,withoutprior permissioninwritingfromtheInternationalTradeCentreandtheWorldIntellectualPropertyOrganization,except to the extent specified on page 3.<br><br> ITC/P159.E/PMD/MDS/03-XI ISBN 92-9137-264-1 United Nations Sales No. E.03.III.T.8 ii Preface Withthecontinuingliberalizationandderegulationoftheworldtradingsystemfreeingtheflowofgoods and services, the international business environment is becoming increasingly competitive for creators and providers of all kinds of craft and visual arts products. Consumers now have tremendous choice.<br><br> Artisans, craft entrepreneurs, visual artists and all the intermediaries in the supply chain must constantly strivetoimprovethequalityoftheirproductsandservices,theproductionprocesses,theirbrandidentity and the effectiveness of their marketing strategies, if they wish to improve their business performance, productivityandcompetitivenessandwintheheartsandmindsofcustomers.Understandingthemarket, particularly the behaviour of consumers and competitors, is the key to success for any business. Identifying a demand and then working backwards 3 before making a product 3 is a must. This is where marketing comes in.<br><br> Marketing implies a market-driven, customer-centred approach. This is the reality for most categoriesofgoodsandservices.Forthecraftandvisualartssectors,themarketingchallengescomefrom many directions. At first sight, it would seem that machine-made products could easily be substituted for theseessentiallyhand-madeones,especiallyinourknowledge-drivenhigh-techtimes:modernindustryis enabling an increasing degree of mass customization and personalization of product offerings.<br><br> Another challenge may come from the fact that the products of craftspeople and visual artists are not generally basic needs for consumers. As a result, consumption of these products may decline if consumer spending is down, especially during economic downturns. Akeystrengthofartisansandvisualartistsliesintheircreativityandcraftsmanshipinexpressingit.This gives their output a distinct traditional, cultural or symbolic flavour, which arouses the interest and matches the emotional needs and aesthetic tastes of discerning customers in specialized niches of domestic and export markets.<br><br> Even so, attracting and retaining consumers is a daunting task in an overcrowded marketplace, where consumers find ample choice and alternatives and where competitors are constantly searching for successful product trends. Given today 9s instant information and communication facilities, coupled with the ease and speed of copying and imitation, the market can simply get flooded with look-alike products or downright copies, which are also known as 8counterfeits 9 or 8forgeries 9. The real challenge for artisans and visual artists is thus not just to produce and market winning new products that cater to changing consumer tastes, but also to prevent 3 or if unable to prevent then to effectively deal with 3 unfair competition or theft of their creative ideas.<br><br> The intellectual property (IP) system is the best available tool for creating and maintaining exclusivity over creative and innovative output in the marketplace , albeit for a specified maximum period of time. The effective use of IP can also help artisans and visual artists to developnetworksandrelationshipsnotonlywithendconsumers,butalsowithallthelinksinthesupply and demand networks. If artisans and visual artists are to get a fair return from their creativity in the marketplace, it is important for them to follow a planned and systematic marketing strategy which integrates the use of the tools provided by the system of IP rights.<br><br> This must begin with a basic understanding of the principles of marketing and of the IP system, along with a broad recognition of the value of IP assets in marketing and practical guidance in making proper use of them. The highly competitive nature of the marketing process compels each country to protect culture-based goodsasasubstantialpartofitsnationalculturalheritage.Thisisespeciallyrelevantformanydeveloping countries and countries in transition, in which the role of the craft and visual arts sectors can prove to be pivotal for sustainable development and poverty reduction. For policy-makers in government, business and civil society in these countries, defending the interests of artisans, craft entrepreneurs and visual artists against unfair competition is becoming critical in order to underpin their commercial success and their contribution to individual and collective wealth creation, as well as to preserve cultural identity and diversity.<br><br> WIPO and ITC have joined hands to improve information dissemination, awareness creation and capacity building in their client countries, to explain the decisive links between successful marketing and the appropriate use of the tools of the IP system. In this spirit, this Guide attempts to demystify marketing and IP by underlining the practical relevance of both 3 and their interdependence 3 in responding to the economic or business needs of artisans, craft entrepreneurs and visual artists. This understandingshouldallowthemtocreateandretainacompetitiveedgeinthemarketplaceandtomake meaningful profits based on their creativity, expertise, skills and enterprise 3 and by using fair means.<br><br> iv Kamil Idris J. Denis Bélisle Director-General Executive Director World Intellectual Property Organization International Trade Centre Acknowledgements JohnBallyn ,consultanttoITCandmainco-authoroftheGuide,carriedoutresearchandwrotethecore text on marketing issues. Juan David Castro , consultant to WIPO, carried out research and wrote the initial draft text on intellectual property issues.<br><br> Lien Verbauwhede , WIPO Consultant, Small and Medium-Sized Enterprises Division, and main co-author of the Guide, carried out research, wrote the core text on IP issues, coordinated the WIPO input, and consolidated the work of the entire Guide on behalf of WIPO. María-Mercedes Sala , ITC Senior Market Development Officer for artisanal products and cultural industries, provided John Ballyn with technical and overall advice, carried out research, contributed text and case studies, and coordinated the preparation and editing on behalf of ITC. Guriqbal Singh Jaiya , WIPO Director, Small and Medium-Sized Enterprises Division, spearheaded research, provided strategic guidance, contributed text and case studies, and harmonized other contributions on behalf of WIPO.<br><br> Marie-Claude Frauenrath , ITC Associate Expert, provided assistance. The contributions of the following people are much appreciated. For drafting background texts for the case studies : Suman Dhakwa, the proprietor of 8Valhalla Enterprises 9, a Nepalese silversmithing business; Nadim Michel Kalife, the proprietor of 8Le Petit Prince 9, a Togolese wooden craft entrepreneur and exporter; SerigneMorNiang( 8Mara 9),aSenegaleseplasticartistanddesigner;andYoussouSoumaré,aSenegalese jurist and copyright specialist.<br><br> For providing technical written comments : Philippe Baechtold, WIPO Head, Patent Policy Department, Patent Law Section; SusannaChung,WIPOConsultant,TraditionalCreativityandCulturalExpressionsSection,Traditional Knowledge Division; Denis Croze, WIPO Head, International Law Development Section; CandraN.Darusman,WIPOConsultant,CooperationforDevelopmentBureauforAsiaandthePacific; Martha Parra Friedli, WIPO Senior Legal Officer, Trademarks, Industrial Designs and Geographical Indications Department; Rosina Piñeyro, WIPO Programme Officer, Copyright Collective Management Division; Wolfgang Starein, WIPO Director, Enforcement and Special Projects Division; Wend Wendland, WIPO Head, Traditional Knowledge Division; and Heike Wollgast, WIPO Associate Officer, Administrative Support Services and External Relations. Alison Southby edited the Guide. Isabel Droste was responsible for copy preparation and final copy editing.<br><br> Both are ITC staff members. Contents Preface iii Acknowledgements v Note xiii CHAPTER 1 Introduction 1 About this Guide 1 The intended audience 2 Using the Guide 2 CHAPTER 2 Definitions and outline 4 Crafts and visual arts 4 Definition of craft products 5 Characteristics of an artisan and a craft enterprise 6 Definition of visual arts 7 Characteristics of visual artists and their work 7 Intellectual property 7 Definition of intellectual property 7 Some key characteristics of intellectual property 8 Overview of the types of intellectual property 9 How to convert intellectual output into intellectual property 11 CHAPTER 3 Understanding the value of intellectual property 12 Challenging business and market environment 12 Basic ingredients of business success 13 What is a quality product? 13 What is a distinctive brand?<br><br> 13 What is effective marketing? 14 Access to knowledge as added value 14 Knowledge and its relevance to business 15 What is the problem with knowledge? 15 What is special about IP?<br><br> 16 Preventing others from free-riding on one 9s own knowledge 17 Why is intellectual property crucial in crafts and visual arts marketing? 17 Basic requirements for enjoying the benefits of IP assets 18 CHAPTER 4 Linking intellectual property to business development and marketing throughout the business cycle 19 Marketing defined 3 an outline 19 Marketing fundamentals 20 Marketing fundamentals for artisans and craft enterprises 22 Marketing fundamentals for visual artists 22 Using an artist 9s agent 22 Marketing alone 23 Exhibitions 23 Applying for commissions or entering competitions 23 Relevance of intellectual property at the various stages of the business cycle 24 Market research 24 Market research for artisans and craft enterprises 25 Identifying new markets 26 Locations 27 Consumer types 28 Seeking out market niches and product ideas 28 Identifying promotional materials and methods 29 Market research for visual artists 29 Desk research 29 Research in target countries 30 Marketing strategy 30 Marketing strategies for artisans and craft enterprises 30 Marketing strategies for visual artists 31 Intellectual property in marketing strategies for artisans, craft enterprises and visual artists 32 Business, marketing and product development planning 34 Business plan 34 Planning a distinctive image or identity 38 Creating labelling, packaging and promotional materials 39 Labels 39 Packaging 39 Promotional material 40 Product development and adaptation 42 Product design process 43 Sample making stage 45 Product costing and pricing 45 Costing 45 Pricing 46 Test marketing 48 Product promotion and product launch 49 Order processing, customer relations and quality 51 Analysis of product sales and new market research 53 CHAPTER 5 How to protect crafts and visual arts 56 Copyright 56 What is copyright? 56 What rights does copyright grant?<br><br> Why is copyright relevant for artisans and visual artists? 56 What are the requirements for obtaining copyright protection? 57 Are crafts and visual arts works covered by copyright?<br><br> 58 viii When is a work considered to be 8derived from 9 the work of someone else? 58 How is copyright protection acquired? 59 Do artisans and visual artists need to place a copyright notice on their works?<br><br> 59 How long does copyright last? 59 Who owns the copyright in a work? 60 What is not protected by copyright?<br><br> 60 What is 8fair use 9 or fair dealing 9? 61 What is meant by 8in the public domain 9? 62 How can artisans and visual artists know if something is in the public domain?<br><br> 62 Can a visual artist make a painting or sculpture based on a photograph? 62 If artisans or visual artists sell their work, do they lose their copyright over it? 63 Is there such a thing as international copyright protection?<br><br> 63 How can artisans and visual artists use their copyright to earn income? 64 What is collective management of copyright? 64 What are resale rights?<br><br> 65 Are there any copyright issues to pay attention to before lending works for public display? 65 When is copyright infringed? 65 What to do in case of copyright infringement?<br><br> 65 Industrial designs 66 What is an industrial design? 66 Can design embodied in crafts and visual arts products be protected as an industrial design? 66 What rights does an industrial design grant?<br><br> 66 Why are industrial designs relevant to crafts and visual arts? 66 How can design protection be obtained? 67 Are there designs which cannot be registered?<br><br> 67 Are there any specific conditions or criteria for registration of an industrial design? 68 What is the registration process? 68 Are there alternative ways to protect an industrial design?<br><br> 68 Can there be dual protection by industrial design rights and copyright? 68 Can there be dual protection by industrial design rights and trademark rights? 69 How long does industrial design protection last?<br><br> 69 How long and where should an industrial design registration be maintained? 69 When should artisans and visual artists apply for registration of an industrial design? 70 How important is it to keep the design confidential before registration?<br><br> 70 What is a 8grace period 9? 70 Can a design be displayed at an exhibition or fair prior to protecting it? 71 How much does it cost to protect and manage an industrial design?<br><br> 71 Who owns the rights over an industrial design? 71 Is it useful to use a design notice? 72 How can infringement of design rights or copyright of others be avoided?<br><br> 72 How can artisans and visual artists enforce their design rights? 72 Trademarks 73 What is a trademark? 73 Why are trademarks relevant for crafts and visual arts?<br><br> 73 Why should artisans and visual artists protect their trademarks? 74 How is a trademark protected? 74 Is it compulsory to register a trademark?<br><br> 74 Can artisans and visual artists register their name as a trademark? 75 Is the registration of the trade name of a business sufficient for getting trademark protection as well? 75 What are the main reasons for rejecting an application for trademark registration?<br><br> 75 What makes a good trademark? 76 How long does it take to register a trademark? 77 How long is a registered trademark protected?<br><br> 77 How much does it cost to protect and manage a trademark? 77 ix How to find out if a proposed trademark is likely to conflict with registered trademarks? What is a trademark search?<br><br> 78 Is trademark registration valid internationally? 78 Should artisans and visual artists register their trademarks abroad? 78 How can a trademark be registered abroad?<br><br> 79 If an artisan or visual artist asks or commissions another person or a company to create a trademark, who owns it? 79 Why is it important to use a trademark? What is meant by 8using 9 a trademark?<br><br> 79 How should artisans and visual artists use their trademark? 80 What should artisans and visual artists keep in mind while using their trademarks on the Internet? 80 What is a domain name and how does it relate to trademarks?<br><br> 81 Can artisans and visual artists license their trademarks? 81 Can artisans and visual artists sell or assign their trademark? 81 What should artisans and visual artists do if someone infringes their trademark rights?<br><br> 82 Collective marks 82 What is a collective mark? 82 What is the difference between collective marks and individual marks? 82 Why are collective marks relevant for artisans and visual artists?<br><br> 82 Who can apply for a collective mark? How can it be protected? 83 Who can use a collective mark?<br><br> 83 Can a collective mark be used together with an individual trademark? 83 Can a collective mark be licensed? 83 Certification marks 84 What is a certification mark?<br><br> 84 What is the difference between certification marks and collective marks? 84 What is the difference between certification marks and individual marks? 84 Why are certification marks relevant for artisans and visual artists?<br><br> 84 Who can apply for a certification mark? 85 Who can use a certification mark? 85 Can a certification mark be used together with an individual trademark?<br><br> 85 Geographical indications 85 What is a geographical indication? 85 Can geographical indications be used for craft and visual arts products? 86 Why are geographical indications relevant for artisans and visual artists?<br><br> 86 Why do geographical indications need protection? 86 How is a geographical indication protected? 86 How are geographical indications protected at the international level?<br><br> 87 Trade secrets 87 What are trade secrets? 87 Why are trade secrets relevant for artisans and visual artists? 87 What qualifies as a trade secret?<br><br> 88 How can trade secrets be protected? 88 How can artisans and visual artists protect their trade secrets? 88 What rights does the owner of a trade secret have?<br><br> 89 What can artisans and visual artists do if someone steals or improperly discloses their trade secrets? 89 What are the disadvantages of trade secret protection? 90 When should artisans and visual artists opt to protect information as a trade secret and not seek a patent?<br><br> 90 Patents and utility models 90 What is a patent? 90 What kind of protection does a patent offer? 91 What rights does a patent owner have?<br><br> 91 What inventions can be protected? 91 How is a patent granted? 92 Who grants patents?<br><br> 92 x How long does it take to obtain a patent? 92 Are patent applications disclosed to the public? 92 How much do patents cost?<br><br> 93 What is a utility model? 93 Why are patents and utility models relevant for crafts and visual arts? 93 Traditional knowledge and cultural expressions 94 Protecting intellectual property abroad 95 Why should artisans and visual artists protect their intellectual property abroad?<br><br> 95 In which countries should artisans and visual artists protect their IP? 95 When to apply for protection abroad? 96 How to obtain protection abroad?<br><br> 96 What is parallel importation? What is exhaustion of intellectual property rights? 98 Commercializing intellectual property 99 What is licensing and how does it work?<br><br> 99 Why should artisans and visual artists consider licensing? 99 If artisans or visual artists grant a licence for their IP, then can they still use the IP themselves? 100 Can licences be limited or divided?<br><br> 100 Why is it important to keep control? 101 How to negotiate the terms of the licence agreement? 101 How does an artisan or visual artist begin licensing?<br><br> 102 What is character merchandising, and why is it useful for artisans and visual artists? 103 What is franchising? 104 Why is franchising relevant for artisans and visual artists?<br><br> 105 Enforcing intellectual property rights 105 Why should artisans and visual artists enforce intellectual property rights? 105 What is infringement of intellectual property rights? 106 What should artisans or visual artists do when they notice an infringement of their IPRs?<br><br> 107 What specific action can be taken against infringement? 108 CHAPTER 6 Case studies 110 IP perception and use for crafts and visual arts in Senegal 110 Mara 110 The Soumbédioune craft village 112 Cheikh Gueye 112 Papa Oumar Fall and Moussa Mballo 113 Pape Demba Diop 114 Legal measures to protect the mola in Panama 114 Context 114 IP legislation 115 Copyright legislation 115 Patents 115 Industrial designs 115 Trademarks 116 Constitutional protection 116 Legislation related to national crafts 116 Legislation specifically related to molas 117 A new law on cultural identity and traditional knowledge 117 Conclusions 118 Maquí 3 A trademark story 118 Harris Tweed 3 A certification mark for cloths 119 Toi Iho 3 A certification mark for Maori arts and crafts 120 Modranská majolika 3 A geographical indication for ceramics 121 xi Mary Engelbreit: Artist and entrepreneur 3 A licensing story 122 About making a painting from a picture 124 The experiences of a Nepalese silversmith 125 Case study from Le Petit Prince, a Togolese craft enterprise 126 Garrison Guitars 127 Mglass 3 A collective mark 129 CHAPTER 7 Selected references and information sources 130 Agencies jointly publishing this Guide 130 Reference and information websites 130 CHAPTER 8 Selected reading 134 xii Note Unless otherwise specified, all references to dollars ($) are to United States dollars. The following abbreviations are used: ACID Anti-copying in Design (United Kingdom) BSDA Bureau sénégalais du droit d 9auteur (Senegalese Copyright Office) CD Compact disc CV Curriculum vitae (résumé) DVD Digital video (or versatile) disc EU European Union GDP Gross domestic product IP Intellectual property IPRs Intellectual property rights ITC International Trade Centre NGO Non-governmental organization OAPI African Intellectual Property Organization PCT Patent Cooperation Treaty SME Small and medium-sized enterprise TCEs Traditional cultural expressions TRIPS (Agreement on) Trade-Related Aspects of Intellectual Property Rights TSIs Trade support institutions UNCTAD United Nations Conference on Trade and Development UNESCO United Nations Educational, Scientific and Cultural Organization WIPO World Intellectual Property Organization WTO World Trade Organization Chapter 1 Introduction About this Guide ThepurposeofthisGuideistoprovideabasicknowledgeandunderstandingof marketing techniques and of intellectual property (IP) to artisans, craft entrepreneurs and visual artists, to enhance the chances of their business success.<br><br> It seeks to indicate why, which, what, where, when, whether and how consideration ought to be given to the effective management of IP assets by using IP tools for successful marketing of craft and visual art products. In particular, it seeks to help artisans and visual artists to establish: q Which IP issues are relevant to them; q Why they should consider protecting their creative output with IP rights (IPRs); q How to identify the creative output that may be protected with IPRs; q WhattypeofIPRsandprotectivemeasuresarebestsuitedtotheirparticular needs and business; q What the costs and practical business benefits are of such protection; q How to access relevant information on IP and locate relevant intellectual property offices; q Whether to join copyright collective management institutions or associations; q Where to go for assistance on IP matters, and in particular whether to use the services of IP agents, IP attorneys and/or IP consultants; and q Whetherallnecessarybasicmeasuresandprocedureshavebeenputinplace to start implementing an IP policy and strategy as an integral part of their business and marketing strategy. Where possible, the Guide points to situations in business where consideration ought to be given to obtaining formal IP protection and decisions should be made.<br><br> To explain each IP issue and its link with business and marketing management processes, an outline has been provided of a basic business cycle andmarketingplanthatmaybeusedbyartisans,craftentrepreneursandvisual artists. However, this remains general guidance only. In a particular business situation anartisanorvisualartistwouldbewelladvisedtotakeadvicefromacompetent IPconsultantaboutIPtools.TherearesignificantvariationsinnationalIPlaws and practice, and these may have huge practical business implications.<br><br> The basic purpose of this Guide will be fulfilled if it enables an artisan, craft entrepreneur or visual artist to develop a meaningful framework and business perspective on marketing and on the role of IP in marketing, and to pose the right questions. The Guide may be considered truly a success if it also helps to createausefulframeworkwithinwhichtocarefullyweightheadvicefromanIP specialist, for the ultimate responsibility for any business decision cannot be shifted to the IP specialist. The intended audience ThisGuideassumesthereaderhaslimitedknowledgeorexpertise,ifany,about principles of marketing or IP.<br><br> An effort has been made to write in clear, and, to the extent possible, jargon-free language, and from a practical and common sense perspective. It is hoped that the Guide will be as relevant for a person belonging to an indigenous group or tribe as for a traditional artist or craftsperson, or for a modern, city-based enterprise in a fast-paced business environment. The Guide is essentially aimed at readers in developing countries and countries in transition, but will also be applicable for those in developed countries.<br><br> The following individuals, groups, enterprises or institutions may find it useful: q Individual or employed artisans and their associations; q Self-employed craft entrepreneurs, producers and exporters; q Associations of craft industries and trade; q Visual artists (individually or collectively); q Trade and other support institutions for the craft and visual arts sectors; q Teachers, trainers and teaching and training institutions involved with business development and management, marketing, trade and export promotion for the craft and visual arts sectors; q Governmental and non-governmental organizations (NGOs) working for development of the craft and visual arts sectors; q Professionals or business consultants in the craft and visual arts sectors. Using the Guide The following information may be useful in navigating the Guide: q Marketing issues are shown in black type in chapters 2 to 4; q IP issues are shown in blue type in chapters 2 to 5; q Allheadingsandsubheadingsinthebookarelistedinthetableofcontents; q The abbreviations and acronyms used are listed on page xiii; q Throughout the Guide examples are given to clarify the text, and case studies of artisans and visual artists are given separately in chapter 6; q Reference information 3 including a list of websites 3 and a bibliography form the two last chapters, 7 and 8. ItoughttobeeasytograspthebasicsofmarketingandIP,sincethesearebased on plain common sense, linked to practical business needs.<br><br> But business situations vary considerably and also change with time and place, so the details of marketing and IP strategies may vary significantly, depending on the businessenvironmentofacountryandthebusinessneedsofaparticularperson or enterprise. This makes everything very complex. The complexity is even greaterinthecaseoftheIPsystem,asthereareanumberofdifferenttypesofIP laws in each country, and the details of a particular IP law and related practices vary considerably from one country to another.<br><br> A comprehensive account of IP issues is neither possible nor desirable in a Guidesuchasthisone.Instead,thisGuideseekstopaintabroadbutsystematic picture of the importance of marketing and IP, in the right amount of detail for a reader who has limited time to spare for these important but complex issues. 2 Chapter 1 3 Introduction To drive a car or use a computer, you do not need to know the details of the technologybehindthem.Allyouneedtoknowis how todrivethecaroroperate the computer, and when to go to a specialist for repairs or maintenance. The same applies to marketing and IP.<br><br> So this Guide presents enough information about the fundamentals of marketing and IP to permit artisans, craft entrepreneurs and visual artists to make basic decisions about implementing a marketing and IP strategy within a business framework. The information sources listed in chapter 7 may provide useful additional inputs in the decision-making process. However, the following reservations should be kept in mind while using the Guide: DISCLAIMERS q This Guide is not a substitute for specialist marketing or legal advice.<br><br> In particular, if individuals or enterprises believe that their IP rights are likely to be or are already being adversely affected, then they should take professional advice before rushing into action, in order to fully understand the costs and benefits of the available options. q The pace of change in the international market environment and in IP legislation and practices is very rapid. Readers are strongly recommended to check with local, regional and international trade-supporting and IP institutions on the latest situation.<br><br> q Any artisan or visual artist who intends to use the tools of the IP system in business and export activities would be wise to prepare a list of possible issues and questions, and discuss all the IP-related aspects with a competent IP professional. q Views expressed in the Guide are those of the contributors 9 and do not necessarily reflect those of ITC or WIPO. ITCandWIPOencouragethewideuseofthematerialcontainedinthisGuide, subject to the following conditions: q Parts or extracts of the Guide may be copied, reprinted, distributed, displayedortranslatedforuseinarticleswithoutpriorpermission.However, the use of texts, photos and/or artwork of the Guide which are protected by copyright or taken from another publication must carry a reference to the Guide in the following manner: cTaken/reprinted/translated from Marketing Crafts and Visual Arts: The Role of Intellectual Property 3 A practical guide , published jointly by the International Trade Centre (ITC) and the World Intellectual Property Organization (WIPO).<br><br> Copies of the articles must be sent to ITC and WIPO (see contact information in chapter 7). q PriorpermissionofITCandWIPOisrequiredforanycopyortranslationof the Guide for commercial use; as well as for any adaptation of the Guide to the specific needs of a country. q Nochangesareallowedtothecontent,graphicdesign,format,typefacesand colours of the Guide when it is reprinted or translated.<br><br> Chapter 1 3 Introduction 3 Chapter 2 Definitions and outline Crafts and visual arts The distinction between crafts and visual arts has always been blurred. Some experts talk of 8the useful arts 9 (of the craftspeople) as objects produced for everyday use, and the 8decorative arts 9 (of the visual artists) as those created for their own sake. Some other experts refer to the 8plastic arts 9, in which they include painting, sculpture, photography, architecture, and sometimes even fine glassware, jewellery and furniture.<br><br> The use of artistic works in artisanal products is common. The use of craft techniques and skills by visual artists is also easily seen. A photograph of a craft product is considered to be a manifestation of visual art.<br><br> There can be no sharp dividing line between crafts and visual arts. Some observers consider crafts to be a bridge between visual art and industrial design,andindustrialdesign,inturn,tobeabridgebetweencraftandindustrial manufacturing.Thismaybecalledthetraditionalmassproductionperspective. However, modern manufacturing tools, techniques and methods, coupled with increasing reliance on computer-aided design and computer-aided manufacturing, have heralded a new era of personalization and mass customization.Itisnotpossibletoconsidervisualartsasmerelycontributingto crafts.<br><br> Each sector has its own independent standing and market, but they also have a mutually supportive and interdependent relationship, including their linkageswiththeindustrialdesignandformalfactory-orientedmassproduction sectors. From an IP perspective as well as from a marketing and consumer perspective, crafts and visual arts overlap in that they both produce essentially hand-made products, often culturally rooted, whose distinctive quality or inherent characterhas primarilyanaestheticappeal whichisjudgedlargelybytheeye, although elements of touch and smell may also be important. Craft items may also have functional or useful features, whereas the products of visual arts do not.<br><br> Not only does the definition of artisan and visual artist differ from country to country, so does their status. Artisans in developed countries are often respected for pursuing a career involving high levels of creativity. Visual artists are highly regarded in many countries.<br><br> In some other countries, however, artisans and visual artists are not necessarily considered worthy of any special status or respect. In fact, some craft producers do not wish their children to become artisans or visual artists. But in Japan, for example, both artisans and visual artists can be awarded the title 8National Living Treasure 9 as a mark of respect for their talent.<br><br> Customers may also be confused about the professional identity of artisans. Some artisans in developing countries regard themselves as visual artists, while their customers in export markets regard them as artisans. It is clear that identifying and defining crafts and visual arts and their makers haslongbeenamatterofdebate.Forthisreason,thisGuidedealswithboththe craft and visual arts sectors together.<br><br> Definition of craft products The following terms are used interchangeably throughout this Guide: artisanal products, craft products, craft items, crafts. Craft products encompass a vast variety of goods made of diverse materials. Thisdiversitymakesitincrediblydifficulttogiveasatisfactorydefinitionofthe material content, technique of production and/or functional use of craft products.<br><br> Yet, for a variety of reasons, a working definition of such products is sought by importers, exporters, customs and excise departments, or trade development agencies. Although there is no universally agreed definition of artisanalproducts,thefollowingcharacteristicsbroadlyapplytoawiderangeof the world 9s crafts: 1 q Theyareproducedbyartisans,eithercompletelybyhandorwiththehelpof hand-tools and even mechanical means, as long as the direct manual contribution of the artisan remains the most substantial component of the finished product; q There is no particular restriction in terms of production quantity; q Even when artisans make quantities of the same design, no two pieces are ever exactly alike; q They are made from sustainably produced raw materials; q Their special nature derives from their distinctive features, which can be utilitarian, aesthetic, artistic, creative, culturally attached, decorative, functional,traditional,andreligiouslyandsociallysymbolicandsignificant. Crafts concerned with servicing, installation, maintenance and repair (of transport equipment, household goods or electric appliances, for instance), fall outside the above definition and, therefore, are beyond the scope of this Guide.<br><br> Services provided by artisans, whether working on commissioned projects or as design consultants, are, however, very much within the scope of this Guide, even though its primary focus is on the business cycle of craft products. Artisanal products can be classified under broad divisions. These divisions are primarilybasedonthematerialsused,oracombinationofthematerialsandthe technique.<br><br> The six main categories 2 are: q Basket/wicker/vegetable fibre-works; q Leather; q Metal; q Pottery; q Textiles; q Wood. Further categories could correspond to various additional animal, mineral or vegetable materials covering those other materials used in craft production that are specific to a given country or region, are rare, or are difficult to work, such as: stone, glass, ivory, bone, horn, shell, sea shells, or mother-of-pearl. Finally, extra categories could be considered when different materials and techniques are applied at the same time.<br><br> This might be the case, for instance, for arms for ceremonial or decorative purposes or as theatrical properties, decorative items and fashion accessories, jewellery, musical instruments, toys, or works of art . Chapter 2 3 Definitions and outline 5 1 Based on the definition adopted by the 44 countries participating in the UNESCO/ITC Symposium on Crafts and the International Market: Trade and Customs Codification held in Manila, the Philippines, October 1997. 2 Crafts: Methodological Guide to the Collection of Data, UNESCO.<br><br> Characteristics of an artisan and a craft enterprise Artisans may be defined as people who make products manually. They usually work individually, but can often be helped by family members, friends, apprentices or even a limited number of workers, with whom they are constantly in close personal contact. This contact generates a sense of community and attachment to the craft.<br><br> However, in order to include all business initiatives which contribute to the development of the sector, the use of the term 8artisan 9 will also cover those craft entrepreneurs who: q Although not actively participating in production, specialize in research, market negotiations or product design and conception; q Use machine tools or even machinery, without affecting the essentially hand-made nature of the work and the production process; q Beyond the usual cottage or artisan unit, have associated in cooperatives or any other form of organization, formal or informal; and q Manage or belong to micro-, small or medium-sized enterprises concerned with artisanal production. Artisans and craft enterprises share many characteristics: q Artisans generally perceive themselves as business people. q Artisans are mainly successful in economic terms, although few achieve fame.<br><br> q They either learn their skills in the family or community in which they live, or receive skill training under government craft development initiatives. In developed communities, artisans make career choices, studying degree courses in the craft and visual arts areas in universities and colleges. q Artisanalproductsarenormallycommercial,utilitarianobjectsusedinmany different ways.<br><br> q Artisans 9 prices are usually based on material and labour costs, although a small number of artisans may command premium prices, linked to good reputation. q Artisanal products sell in exhibitions, retail outlets, street markets, fairs, tourist venues and export markets. They are frequently sold through entrepreneurs and middlemen, NGOs, and producers 9 and exporters 9 associations.<br><br> Internet facilities and websites are also being increasingly used for marketing artisanal products. q Most artisanal production is market-led: that is, production is geared to observed market needs and niches. q Local communities in developing countries and countries in transition often regard artisans as lower-status social groups.<br><br> q Export consumers may have little understanding of tradition, aesthetic and production skills and processes in artisan manufacture. q Exportmarketenterprisesoftenseeartisansaslow-costproductionsources. q Promotion is done through advertising and catalogues.<br><br> An artisan 9s reputation for reliability and quality may travel by word of mouth. q Relationships with middlemen and customers may range from nurturing to exploitative. 6 Chapter 2 3 Definitions and outline Definition of visual arts In visual arts, the individual (the artist) uses various elements or material to express his or her feelings, emotions and differing perceptions of the world that surrounds him or her.<br><br> The result of this work is judged mainly by the sense of sight. Painting, drawing, sculpture in various materials, printmaking, photography, plans,maps,performanceart,installationart,mailart,assemblageart,bodyart, textile arts, fashion design, multimedia, video art, web design, web art, digital art, graphic and product design are some expressions of visual arts. Characteristics of visual artists and their work The general characteristics of visual artists include the following: q Visual artists generally perceive themselves as creative individuals, and not as business people.<br><br> Their focus is much less on skill or craftsmanship, and more on artistic talent, creativity and aesthetic beauty. q They may have a formal education in the arts, or may be completely self-taught. q Artists can be successful in terms of both artwork and personality.<br><br> q Art works are non-functional, emotional, social, political, traditional and cultural statements. They are not greatly affected by commercial sector constraints. q Art sells in galleries and exhibitions, art fairs, and through commissions.<br><br> q Art prices have their basis in aesthetic values and artistic success, not in material or labour costs. q Localcommunitiesregardartistsasspecial,andashavinghighsocialstatus. q Export markets do not easily distinguish between artist and artisan.<br><br> q Export markets categorize much artwork from developing countries as décor. q Visual artists promote their work by reputation, through media critics, press releases, websites, culture publications, film and television. q Enterprise sponsorship of exhibitions is commonplace in developed countries.<br><br> Intellectual property Definition of intellectual property Intellectual property (IP) is the name given to property arising out of human intellectual effort . The output of human intellectual effort often manifests itselfasnewororiginalknowledgeorcreativeexpressionwhichaddsadesirable quality to a marketable product or service. Various elements provide intellectual output with attributes that, in one way or another, enhance the quality of life.<br><br> These elements may be called human endeavour, ingenuity, creativity, inventiveness, flash of inspiration, sudden insight, or new insight into observed facts. They may or may not involve experimentation, trial and error, skill, team work, craftsmanship, aesthetic sensibility, and so on. They may involve solving a technical problem in making something with more desirable functional qualities, or result in creating something aesthetically Chapter 2 3 Definitions and outline 7 pleasing, to satisfy a human need or want, be it utilitarian, sensory, social, cultural, mental, spiritual or religious.<br><br> These value-adding or 8quality of life 9 enhancing elements are the basis of IP. Intellectual property refers to creations of the mind : inventions, literary and artistic works, and symbols, names, images, and designs used in commerce. Intellectual property is divided into two categories : industrial property , which includes inventions (patents), trademarks, industrial designs, and geographic indications of source; and copyright , which includes literary works such as novels, poems and plays, films, musical compositions; artistic works, such as drawings, paintings, photographs and sculptures, and architectural designs.<br><br> Rights related to copyright include those of performing artists in their performances, producers of phonograms in their recordings, and those of broadcasters in their radio and television programmes. 3 Some key characteristics of intellectual property A key characteristic of any property, as it is generally understood nowadays, is that the owner of property has the exclusive authority to determine how that property is used . However, IP has many characteristics that are different from those of physical or tangible property.<br><br> 4 Unlike physical property, which can be used or enjoyed by one or a limited number of people at any moment, intellectual output can potentially be used or enjoyed by an unlimited number of people , and without depriving itsownerofitsuseorenjoyment. OnekeywayofusingIPassetsistopermit theirsimultaneoususebyanumberofusers, inexchangeforpayment.InIP jargon this is called licensing of IPRs. Such licensing can be done for different purposes, in different countries, for different lengths of time, by different users (called licensees) who may pay very different sums of money.<br><br> Physicalpropertyhasvalueeitheraslongasitisindemandorwhileitexists. IP has value only for the duration for which laws allow the intellectual output to be treated as property and provided it is still in demand in the marketplace. Theownerofphysicalpropertyhasmuchgreatercontroloveritthantheowner of intellectual output could ever have in the absence of the legal system of IP.<br><br> Depending on the type of IP, different rules govern its creation, the nature and scopeofrightsoverit,andthedurationandcircumstancesinwhichthoserights can be put into practical use. There is a greater possibility of theft and disputes concerning ownership anduse ofIPthanisthecasewithphysicalproperty.Aphysicalobjectisstolen only if its possession changes hands, whereas IP is deemed by law to be 8stolen 9 if without permission of its creator or owner, it is copied, imitated, adapted, translated, displayed or used as an input or starting point for further inventive or creative endeavour. It is even possible for IP to be considered stolen when it is independently discovered or created!<br><br> A forgery, counterfeit or pirated version, even if better than the original, is theft, as it is based on stolen ideas, expressions, concepts, or technologies. Understanding this is crucial to 8 Chapter 2 3 Definitions and outline 3 A broad introduction to IP is available in the WIPO publication WIPO Intellectual Property Handbook: Policy, Law and Use (see www.wipo.int/about-ip/en/iprm/index.htm ). 4 Tangible property refers to property that has physical substance and can be touched (e.g.<br><br> furniture, buildings, cars, jewellery). understandingtheimportanceofthelegalsystemofIPrightsandtheirpractical application in business strategy. Just like physical property, IP has commercial value .<br><br> Expenditure on or incomefromIPmaybesubjecttotaxation.AcquiredIPassetsmaybeshownon account books and balance sheets. IP assets may be insured. Income streams linked to IP assets may be securitized 5 and used as collateral for borrowing money from banks and other financial institutions.<br><br> More and more venture capitalists are interested in supporting only businesses that have taken adequate steps to protect their IP assets. Property rights cannot be claimed until ownership has been established. Throughout most of the world, a set of laws provides exclusivity and ownership ofIP.Thisallowspeopletoowntheircreativityandinnovationinthesameway that they can own physical property.<br><br> The owner of IP can control and be rewarded for its use. This encourages further innovation and creativity to the benefit of everyone. The following table summarizes the main similarities and differences between physical property and IP.<br><br> Physical Property (tangible or material) Intellectual Property (intangible or immaterial) Is property ! the owner has exclusive right to determine how it is used. Is property !<br><br> the owner has exclusive right to determine how it is used. Can only be used by one or a limited number of people at a given time. Can be used by various people at the same time (including the owner or creator).<br><br> Has economic value as long as it exists or as long as there is demand for it. Has economic value only for the duration specified in the laws and as long as there is demand for it. Possibility of theft and disputes concerning ownership is rather limited.<br><br> Greater possibility of theft and disputes concerning ownership. Theft occurs only if the possession of the property changes hands. Theft occurs if the property is copied, imitated, adapted, translated, used, displayed, etc.<br><br> without permission of the owner or creator. Expenditure or income from the property may be subject to taxation. Expenditure or income from the property may be subject to taxation.<br><br> May be valued and reflected on account books and balance sheets. May be valued and reflected on account books and balance sheets. May be insured.<br><br> May be insured. May be securitized and used as collateral for borrowing money. May be securitized and used as collateral for borrowing money.<br><br> Overview of the types of intellectual property The different types of IP are briefly introduced below, in alphabetical order. Chapter 5 will provide a detailed account of the different types of IP and their respective protection systems. At the outset, it must be noted that the definition of a particular type of IP varies from country to country, as does the scope of rights attached to it, and the conditions under which the rights can be enjoyed.<br><br> Chapter 2 3 Definitions and outline 9 5 Securitization normally refers to the pooling of different financial assets and the issuance of new securities backed by those assets. q Brandortrademark. 6 Abrandortrademarkisasignoranycombinationof signs, capable of distinguishing a product or service from other products or services on the market.<br><br> The main task of a trademark is to individuate a product or a service 3 consumers are able to distinguish between different goods with different marks precisely on the basis of the marks. Unlike other types of IP, the term of protection for trademarks is not limited; they can be renewed indefinitely by the owner. Example: LLADRÓ is a trademark used for hand-crafted porcelain sculptures.<br><br> It derives from the surname of the original creators, together with a flower and an ancient chemical symbol. q Copyright . Copyright describes a bundle of rights given to creators in relation to their literary and artistic works.<br><br> Basically, copyright gives the ownertheexclusiverighttousethework.Itprotectsitemssuchaspaintings, drawings, sculptures, photographs, architecture, instruction manuals, software, databases, technical documentation, advertisements, maps, literary works, music, films or songs. In most countries, a copyrighted work is protected for the length of the author 9s life plus a minimum of another 50 years. q Industrial design .<br><br> An industrial design (or simply a design) is the appearance of the whole or part of a product resulting from features of, in particular,thelines,contours,colours,shape,textureand/ormaterialsofthe product itself and/or its ornamentation. Industrial designs, as objects of IP, can usually be protected for up to a maximum of 15 or 25 years. Example: A new textile pattern or the unique shape of a piece of jewellery can be protected as designs.<br><br> q Geographicalindication. Ageographicalindicationisasignusedongoods that have a specific geographical origin and possess qualities or reputation that are due to their place of origin. q Appellation of origin.<br><br> An appellation of origin is the geographical name of a country, region or locality, used to designate a product that originates there, and that has quality and characteristics that are due exclusively or essentially to the geographical environment, including human factors. Example: Bohemia crystal indicates that the product is manufactured inBohemia,theCzechRepublic,followingthearttraditions of the region. q Patent : A patent is an exclusive right granted for an invention, which is a product or a process that provides a new and non-obvious way of doing something, or offers a new and non-obvious technical solution to a problem.<br><br> Apatentprovidesprotectionfortheinventiontotheownerofthepatentfor a limited period, generally 20 years. Example: A new method of tatting, using a shuttle, that enables the tatter to use more than two colours or textures of thread has been patented. 7 10 Chapter 2 3 Definitions and outline 6 A 8brand 9 is really a much larger concept than a mere 8trademark 9.<br><br> Strong brands and successfulbrandinggenerallyrefertosuccessesintermsofcontributiontomarketshare,sales, profitmargins,loyaltyandmarketawareness.However,forthesakeofconvenience,theterms brand and trademark are used interchangeably throughout this Guide. 7 This invention is protected by a patent in the United States 3 see www.cs.arizona.edu/patterns/weaving/patents/05727439.pdf . q Pettypatentorutilitymodel.<br><br> Apettypatentorutilitymodelissimilartoa patent, but the requirements for acquiring protection are less stringent and the protection is much cheaper to obtain and to maintain. On the other hand, the term of protection offered by a petty patent or utility model is shorter than a patent. q Trade secrets or confidential business information are any information that can be used in the operation of a business and that is sufficiently valuable and secret to afford economic advantage over others.<br><br> To be protected, the owner of a trade secret must have taken reasonable steps to keep the information secret. Examples: Glass-blowing techniques, oven processing methods for baking pottery, clay mixture preparations for ceramics, consumer profiles, advertising strategies, lists of suppliers and clients, and manufacturing processes can all be trade secrets. How to convert intellectual output into intellectual property Before a person or enterprise can take advantage of its intellectual output it has to acquire IP rights (IPRs).<br><br> Most IPRs in the fields of industrial property need to be registered in order to be protected. The procedures for acquiring and maintaining IPRs may differ from country to country, but the basic principles and features of these procedures are common to most countries. Where certain conditions are met, IPRs can also be acquired at a regional or international level.<br><br> Detailed information on how to acquire IP protection is provided in chapter 5. Chapter 2 3 Definitions and outline 11 Chapter 3 Understanding the value of intellectual property 8A little knowledge that acts is worth more than much knowledge that is idle 9 3 Khalil Gibran, The Prophet . Artisans or visual artists have very many different motivations for producing creative products.<br><br> These motivations could be cultural, religious, social, self-expression or earning-related, and so on. When issues of livelihood, recognition, reward and profitability are prominent motivators, the modern tools of marketing and IP come in very handy for reaping the fruits of handwork, and skilful expression of creativity. Artisans and visual artists, whether operating individually, in family or micro-enterprises, should apply and enhance enterprise management skills.<br><br> They need to understand the basics of business, marketing and IP in order to ask the right questions and evaluate the responses of the various intermediaries in the chain between them and their consumers. 8 Challenging business and market environment Business is done in the marketplace. A market may be 8free 9 or 8regulated 9.<br><br> Free markets are the hallmark of economies in developed countries. To varying degrees, most developing countries and countries in transition have adopted the free market model of economic growth or are moving towards it. In a free market economy, allocation of resources for production (of products and services) is essentially based on the interaction of market forces of supply and demand.<br><br> If a product or service is in short supply, its price will rise, and producers and sellers will make higher profits as production rises to meet excess demand. If available supply exceeds demand, the price will tend to fall, thereby attracting more buyers and discouraging other producers and sellers from enteringthemarket.Inafreemarket,producersandbuyersinteractvoluntarily and the price of a product is influenced by the relative balance between its supplyanddemandcomparedwiththatofcompetingproducts.Inotherwords, consumerbehaviourinfluencesthebehaviourofproducers,andtheother way round . Nowadays, physical markets coexist with virtual markets based on online promotion and e-commerce.<br><br> Producers and consumers generally interact through intermediaries in the supply and/or demand chain. In fact, the existence of intermediaries between producers and consumers is increasingly therule,ratherthananexception,evenine-commerce.Thecraftandvisualarts Understanding the value of intellectual property 8 We define consumers as individuals who buy products or services for personal use and not for manufacture or resale. sectors are equally affected by this trend, which is further accentuated by globalization.Thisincreasingdistancebetweenproducersandconsumersposes real challenges for businesses, especially in correctly matching the needs of consumers to products on offer .<br><br> For producers there are numerous other challenges, such as too many products chasing too few and very discerning consumers. In today 9s business environment,thesupplyofproductsseemstofarexceeddemand.Globalization of markets means that consumers as well as competitors are no longer in geographical proximity. Understanding the behaviour of markets and doing market research is not an easy task .<br><br> Globalization of markets, coupled with the use of the Internet, has given consumers worldwide unlimited choice. The consumer is truly king! This has increased the challenges faced even by artisans and visual artists in successfully producing and marketing their products.<br><br> The rapidly changing tastes of consumers add further constraints for artisans and visual artists and their marketing partners. In this rapidly evolving business environment, successful products have shorter and shorter life cycles. It is a growing challenge for most businesses to provide newer, better, or more attractive products that catch the eye and retain the interest of consumers.<br><br> The real challenge is to be more resourceful,creativeandinnovativethanthecompetitorsinallaspectsof business from conceiving new ideas and transforming them into products, to marketing them in an efficient and cost-effective manner and earning a reasonable profit on the investment made. So, is there a formula or mantra for business success in these turbulent and unpredictable times? There is no magic wand, but understanding the basics of business is where every business must begin.<br><br> Fundamentals first, and always. Basic ingredients of business success A successful business is one that makes a bigger profit after understanding and meeting the needs of consumers better than its competitors. This can be achieved only if there is: q A quality product; q A distinctive brand; and q Effective marketing.<br><br> Inotherwords,thesearetheessentialelementsthatgiveabusinesscompetitive advantage over its rivals. 9 What is a quality product? Calling something a quality product usually implies that the consumer perceives it to be better than competing products because of its functional or technical attributes and/or because of its outward appearance and style.<br><br> Such a perception could be reinforced by a lower price for the customer, or by greater success (and profit) for the producer or provider of the product. What is a distinctive brand? It is not always possible to ascertain the quality of a product by merely looking atitorevenbyexaminingitclosely.Someofthequalitiesoftheproductmaybe Chapter 3 3 Understanding the value of intellectual property 13 9 This Guide does not deal with other basic aspects of business management, such as maintaining accounts and smooth cash flows.<br><br> ascertained only by using or consuming it and still others only by experiencing it. A consumer may not be able to make a rational choice between competing craft products without using, consuming, or experiencing all of them. This is generally not a practical option.<br><br> It is possible to overcome this problem if the consumer has reason to trust the claims of a particular producer or provider. How then does a consumer identify the producer or provider of a particular product that he or she wants to buy? To compete effectively, an artisan, craft enterprise or visual artist must achieve market recognition and respect for itself and its products.<br><br> This is done by creating and nurturing an enterprise image linkedprimarilytothenameoftheproprietor,ofthebusinessorofitsproducts. The process of doing this is called branding . Branding in turn depends on creatingandusingadistinctivetrademark.Itmayalsorelysecondarilyonother types of IP such as industrial designs or patents.<br><br> Basically, trademarks have three functions: 10 q An origin function 3 they indicate who is the producer of the product or service; q A quality function 3 they are a guarantee of consistent quality; and q An advertising function 3 they help in marketing products and bringing new products to the market. In marketing jargon, trademarks become brands when they are able to convey something positive about the product to the consumer. The essence of a great brand lies in its capacity to foster the sales of a product by creating an emotional link with its customers.<br><br> What is effective marketing? Marketing can be seen as a business philosophy that makes the customer the centre of the universe of the business or the pivot around which the business resolves. Effective marketing creates a demand for a product.<br><br> To be effective, the marketing plan and strategy of a business must be based on sound and continuous market research so that the needs of consumers are fully understood. Only then should time, skill and other resources be invested in creating, testing, replicating and marketing new products, based on a coherent plan and strategy, for easy access at a price that is affordable to the consumers. This will ensure that while the consumers 9 needs and expectations are fully met (or even exceeded), at the same time the producer or provider of the product is able to reap a reasonable profit on the net investment made.<br><br> Access to knowledge as added value The three essential business success ingredients were described earlier (quality product, distinctive brand, and efficient marketing). Even when coupled with other important factors such as access to raw materials, financial capital, good distribution networks, special skills, appropriate production processes and technology, they are no longer necessarily sufficient to enable businesses to sustain their competitive edge. Knowledge is more and more becoming the key resource for building durable competitive advantage in the continuously evolvingbusinessenvironment.Knowledgeisacriticalinputforcreatingvalue.<br><br> 14 Chapter 3 3 Understanding the value of intellectual property 10 W.R. Cornish Intellectual Property: Patents, Copyrights, Trade Marks and Allied Rights . London: Sweet & Maxwell, 4 th edition, 1999, p.<br><br> 612. Knowledge and its relevance to business Strictly speaking, knowledge resides only in our brains. The human brain creatively combines old ideas, frameworks, concepts, skills, memories, and so on, and develops new ideas, concepts, principles, models, frameworks, guiding principles and skills.<br><br> Expression of these ideas, through verbal and non-verbal means, is a way of sharing with other human beings these new insights and the practical products based on them. Although such skills originate and reside in the human brain, they can be manifested by using the hands. Hand 3eye 3brain coordination is critical.<br><br> Most artisans and visual artists, including those who are running a business or anenterprise,considerthemselvestobemerelycreativeandskilled,andbelieve that they do not create any intellectual property. This is far from the truth. All of them create and therefore can 3 and should 3 own valuable IP.<br><br> Understanding, identifying, managing and exploiting knowledge or IP assets has become a defining characteristic of business success in today 9s marketplace. There are many elements that contribute to business success, but the importance of 8intellectual property 9 is becoming overwhelming as a determinant of good business models, business plans and marketing success. From a business perspective, knowledge adds value to a product .<br><br> Relevant knowledgecangiveitsowner(whetheranartisanorvisualartist)anunbeatable advantage. It also potentially leads to a change in the perception of the artisan or visual artist 3 a transformation from a mere skilled craftsperson or creator into a 8knowledge worker or professional 9 (such as a d

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