“Learning from Existing Evaluation Practices on the Impacts and Effects of Intellectual Property on Development”

Geneva6th/7th October2011

Evaluation Section Internal Audit and Oversight Division (IAOD)World Intellectual Property Organization (WIPO)

Monitoring and evaluation of the effects of the protection of Geographical

Indications. A Methodological proposal

Giovanni Belletti, Andrea MarescottiDepartment of Economics, University of Firenze (Italy)

IntroductionGeneral aim: provide a methodology for the evaluation of economic, social, and environmental effects of the registration/protection of Geographical Indications (GIs).

Many expectations related to the protection of GIs: not only private interests, but also collective and public ones

TRIPS Agreement: growing consciousness and interest in the world

Framework of the study: broad cooperation project on GIs between the Jamaica Intellectual Property Office and the Swiss Intellectual Property Institute

Main objectives of the proposed methodology:• monitoring and evaluating the effects that registering a single GI may

have on the “GI production system” and on its delimitated territory• monitoring and evaluating the effects of introducing a GI legal and

institutional framework, at national level

The object of the analysis: complexity and consequences

Agrofood products identified by a GI are complex objects, due to:• Multiple links with local specific natural and human resources• History and tradition of the product, and links to local population• Collective dimension (many actors involved) and local shared

knowledge (production and consumption sides).GI legal protection should normally be based on collective rights and on shared rules of production (Code of practice) The legal protection of a GI (especially when there is a Code of Practice):• Impacts on the market performance of the product (prices,

volumes, quality levels, marketing channels, ...)• Modifies the competitive balance inside the GI supply chain

(exclusion effects, inter-firms relationships…)• Affects social and environmental dimensions (links to natural

and human resources, local culture, traditional knowledge…)

Evaluation process and methodological approach

Complexity of the GI product system, exogenous pressures and difficulty to find counterfactual cases (benchmarking) diachronic approach

Building Phase- Define aims- Stakholders

expectations- Chains of causality

- Choosing indicators

- etc.

t0

GI picturet1

GI picture

Evaluation- What happened?

- Why?

- What is GI role?

Specific enquiriesSpecific enquiries

Survey

Many stakeholders involved in the GI product, with different points of views and expectations participatory approach. Evaluation team with local stakeholders, that:• Defines aims of the analysis, areas of impact and pertinent indicators • Shares responsibilities in collecting and organizing data• Participates in data analysis, interpretation and evaluation

... 6

Key evaluation question: What expected effects from GIs?

First order

Effects

Outputs

Second order

Effects

Outcomes

Third order

Effects

Impacts

e.g. number of firms registered in the RGI system or using the RGI

e.g. prices of the RGI product

e.g. impact on biodiversity, preservation of traditional knowledge, on tourism

GI-Framework and policies

Input

A map of GI potential effects has been prepared

Findings - Mapping potential effects of a GI product registration: overview

Findings – Special focus on effects on the GI system economic performance

Findings – Special focus on Third order effects

Findings – Special focus on Third order effects

Findings – Indicators for monitoring GI effects

Example of indicators for GI effects on pricesA critical step is the selection of relevant indicators for monitoring each area of impact. Indicators should be:• Relevant• Scientifically consistent• Measurable

Official statistical sources often do not provide specific, useful data for the GI evaluation

Need for specific inquiries and need to have synergies between data collected within administrative procedures (e.g., GI control and certification activities may generate many relevant data at very low cost)

Findings - Mapping potential effects of a GI legal framework

Key findings, conclusions, recommendations

RequirementsRequirements for the evaluation: - the methodology should be adapted to different GI situations - Use participative methods (information, empowerment and

inclusion of all stakeholders) due to the “collective nature” of GIs

- Use multiple evaluation criteria (weights can vary according to stakeholders motivations and expectations)

- carefully select indicators and data sources, often lacking or incomplete or non-specific

AdvantagesAdvantages of the evaluation: - provides the public sector as well as all GI stakeholders with reliable

information on the economic, social and environmental impacts of GI protection

- At national level: it can help improving the legal framework

- At single GI level it helps:

- Ex ante: to analyse weather to apply or not, how to draw the Code of Practice (Impact Assessment)

- Ex post: to correct rules and (individual and collective) strategies

Evaluation experienceThe methodology has been developed by the Authors in the framework of a cooperation project between the Swiss Federal Institute of Intellectual Property and the Jamaican Intellectual Property Office, and reflects their research experience both in the European Union and in some developing countries.

The methodology has been partly implemented to Jamaica, both at national level (effects of the introduction of a GI legal framework) and at single GI level: Jamaica Rum, Jamaica Blue Mountain coffee, Jamaica Jerk (seasoning and sauce)

The competent Jamaican authorities and Jamaican Producers’ organizations can use this methodology as soon as it will be relevant (i.e. once one or more Jamaican GIs have been registered). Furthermore, this methodology will be available for other cooperation or development projects on GIs.

The methodology is published in:

Belletti G., Marescotti A., Paus M., Reviron S., Deppeler A., Stamm H., Thévenod-Mottet E. (2011), The Effects of Protecting Geographical Indications. Ways and Means of their Evaluation, Publication No 7, Swiss Federal Institute of Intellectual Property, Bern (http://www.ige.ch)