Aerial view of lush green farmland representing rural India, overlaid with the text "Power of GI in Rural Employment," highlighting how Geographical Indications empower rural economies.

INTELLECTUAL PROPERTY RIGHTS AND RURAL EMPOWERMENT: THE ADVANTAGE OF GEOGRAPHICAL INDICATIONS IN INDIA

INTRODUCTION:

An individual’s mind and intellect are the source of their intellectual property.  Currently, a variety of intellectual property rights are granted for the protection and advancement of intellectual property, and one such type of IPR protection is “Geographical Indications,” or “GI.”

India is a member of the World Trade Organization (WTO).  The Geographical Indications of Goods (Registration and Protection) Act, 1999, was enacted and came into effect on September 15, 2003. Geographical indications are not entirely legal or commercial tools.  GIs is an essential kind of rural development that provides a lucrative system of geographic indicators. It is a crucial instrument for regional producers to thrive in worldwide marketplaces and add value for rural communities globally by producing GI-protected goods that are firmly anchored in the local way of life.

Geographical Indications, furthermore, may provide a strong tool for rural advancement, which has been recognized by the EU, as reflected in various policies and regulations. This rural development potential could constitute an exceptionally powerful basis for developing countries to grasp and support origin-labeled products within their domain. Protection of GI products supports to tolerance of commercial events in rural regions. Generally, GIs are traditional products, produced by rural communities. 

By emphasizing its use and contribution to the development of rural or poor areas, this paper seeks to increase awareness of the significance of geographical indication in the context of development.  Additionally, it emphasizes the many facets and advantages of GIs in advancing rural development in India.

UNDERSTANDING GEOGRAPHICAL INDICATIONS, A FORM OF INTELLECTUAL PROPERTY: 

“Geographical Indication or GI is a sign used on goods and products which have a particular geographical origin and possess certain qualities as a result of traditional, natural or human factors, because of that origin.”[1]

Depending on the context and intended usage, IPRs can be broadly divided into two groups, namely “Industrial Property Rights and Copyright.”  The exclusive rights over things that are beneficial to businesses and industries economically are known as industrial property rights. Industrial Property Rights covers the “geographical” category.  

Geographical indications, or GIs, are a type of intellectual property protection that, in general, designates products or goods that are located inside a particular geographic area.  It denotes the connection between the traditional product and the location, allowing the product to inherit its characteristics from that specific area.  Customers are informed by this association about a few key features that should be relevant to the product and its origin.  [2]

The concept of “Geographical Indications” has also been defined in TRIPS agreement as “indications which identify a good as originating in the territory of a Member or a region in that territory, where a given quality, reputation or other characteristics of the good is essentially attributable to its geographical origin”[3]

GIs designate a region where one or more businesses that manufacture the type of product for which the geographical indication is used are situated.  Therefore, there is no “single owner” of geographical indications (GIs)[4], or more clearly, there is no true owner of a geographical indicator, in contrast to trademarks, which can be owned by any specific individual[5]. As a result, no individual has the power to bar other individuals or businesses from using a geographical indicator.  Every business situated in the region that the geographical indication refers to is permitted to use the indication for goods made in that region.[6]

GEOGRAPHICAL INDICATIONS AS CATALYSTS FOR RURAL EMPOWERMENT IN INDIA:

Since India is a developing country with a sizable rural population, rural development is crucial to the progress and expansion of the country so it can compete on a worldwide scale.  India has been a popular destination for tourists from all over the world because of its rich traditional knowledge and products, especially among the rural communities, and its dynamic culture.  Many people view these traditional products as precious and fascinating because they reflect certain peculiar qualities that are exclusive to a given locality or region. Therefore, by emphasizing the traditional product’s geographic identity as a key tool to draw in large crowds and promote the growth of rural areas, GI plays a crucial role in protecting and preserving the richness of such traditional products.[7]

Some research indicates that geographic indications play a major role in fostering economic growth and opportunity in rural areas.  For example, local producers typically hold the license to use GIs, and since GI products are sold at a slightly higher price, all of the extra money made as a result of the GI also goes toward the profits of these producers, supporting employment creation and sustainable development.  

Additionally, local producers have the advantage of selling their goods directly to final customers, which guarantees a far larger profit than for those who sell to businesses or middlemen.[8] It is equally crucial to integrate art and human skills, particularly in traditional handmade products.  Popular examples of traditional GI items made by skilled laborers include the Kanchivaram Silk Sarees from Tamil Nadu and the Muga Silk Sarees from Assam.[9]

Hence, the contribution of geographical indication in rural development can be briefly categorized as: 

Social and Economic Aspects: Due to their high quality, distinctiveness, and originality, GI-protected products are becoming more and more in demand worldwide.  As a result of this increased demand, economic activity has been encouraged in rural regions and has grown to be a significant source of income for the vast majority of the population.  Additionally, it has produced a number of work possibilities that have improved the social standing and level of living of the local population while halting mass migration to cities.  

Furthermore, local producers may more easily improve the standing of their traditional goods and set them apart from comparable products that are sold in the market with the use of GI protection.

Consumer’s Aspect: The ability to give consumers the information they need about the qualities, features, and uniqueness of products with GI protection is one of the most notable aspects of Geographical Indications. This information may help consumers make better purchasing decisions based on their needs and demands.  Customers gain a better understanding of the specific GI product in terms of its uniqueness, safety, features, and quality by being provided with the information they need regarding the resources’ geographic origin as well as the traditional knowledge and process used in the creation of the final product.

Producer’s Aspect: Since local producers or manufacturers typically lose a lot of money when their sales decline or their product’s reputation is tarnished, GI protection is crucial to helping these producers maintain their revenue streams by meeting the demands of picky and conscientious customers.  Furthermore, because GI products may be promoted directly to end users without the use of middlemen or big businesses, they yield significantly higher earnings.

Therefore, it can be said that GIs preserve the rich culture and traditional knowledge simultaneously with promoting sustainable rural development.  

CASE STUDY: POCHAMPALLY WEAVERS VILLAGE

A well-known handloom hub known for its handwoven silk, cotton fibers, Ikat tie, and dye designs is Pochampally Village, a small town in Telangana’s Nalgonda District.  “Ikat is a traditional technique that involves dying and tying a length of yarn before weaving, giving it a streaky appearance.” In 2005, Pochampally Ikat tie and dye silk sarees were granted protection under the category of “Geographical Indications” for intellectual property rights.  This designation actually makes it the “first traditional Indian handicraft.”  Pochampally hamlet has developed into a center for the production of Ikat tie and dye silk sarees throughout time.

In addition to fostering the economic expansion and prosperity of Pochampally village’s manufacturers and producers, this recognition has benefited the entire geographic area by creating economic advantages for other local industries.  For example, people working in various industries, such as hotels and lodging services, transportation, gift shops, restaurants, and many more, have seen a significant increase in income and employment prospects as a result of the GI’s increased tourism operations in the area.[10]

CONCLUSION:

Geographical indications aid in establishing a connection between a particular product and the region in which it originated or belongs.  Better GI production is the outcome of enhanced economic activity in rural regions brought about by well-developed marketing and promotion strategies.  The majority of the geographic regions are encircled by rural regions.  More opportunities for rural development result from this.  The benefits of geographic indications include raising people’s level of living and supporting their economic activity.  The primary consumers of GI products, which increase income and job prospects, are those living in rural regions.

Geographical indication is therefore a very effective instrument for rural population development, helping emerging nations like India understand and promote traditional items in their areas.

Author: Shreya Bhatnagar

REFERENCES

[1] ‘What is Geographical Indication’ (WIPO)

https://www.wipo.int/geo_indications/en/faq_geographicalindications.html

[2] Divya N. D and Dr Anoop K. K, ‘Rural Development through Geographical Indication’ (2018)

119(16)IJPAMhttps://acadpubl.eu/hub/2018-119-16/1/134.pdf

[3] Agreement on Trade-Related Aspects of Intellectual Property Rightsas Amended by the 2005 Protocol, Art

22(1)

[4] Section 16(2), Geographical Indication of Goods (Registration and Protection Act )1999 

[5] http://www.wipo.int/geo_indications/en/about.html

[6]Budi Suranto, “Protection to Geographical Indications” IP Management Review, p.89, 2004  

[7] 0Saif Ali, ‘Role of Geographical Indication in the Realm of Sustainable Rural Development of Indian

Traditional Knowledge Holders’ (StuDocu 2019 2020)https://www.studocu.com/in/document/galgotiasuniversity/intellectual-property-rights/role-of-geographical-indication-in-the-realm-of-sustainable-ruraldevelopment-of/11610489

[8] Ibid 

[9] Naresh Kumar Vats, ‘Geographical Indication-The Factors of Rural Development and Strengthening

Economy’(2016)21 JIPR R <https://nopr.niscpr.res.in/bitstream/123456789/39706/1/JIPR%2021(5-6)%20347-

354.pdf>

[10]  ‘Pochampally Weavers Village’ (Indian Trust for Rural Heritage and Development)

https://www.itrhd.com/projects1.asp?catid=1&subcatid=12

Link to similar articles: https://jpassociates.co.in/geographical-indications/

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