International Conference on

“Innovations in Technology, Business and Management”

07 Feb 2020
“Influence of GI Tag on development of Channapatna Toys”

Authors:
Sowmya.D.N
Research Scholar
Department of Studies in Research and Commerce
Tumkur University and Associate Professor, SABS
sowmyasharath23@gmail.com
9036760688

Dr. P Paramashivaiah
Professor
Department of Studies in Research and Commerce
Tumkur University
Abstract:

Geographical indication tag is a special honor for the community to keep up their tradition
and culture. The Geographical Indications tag, if effectively executed as a magnificent tool
for building value for MSMEs (especially handicraft sector) and are estimated to gain
monetary benefits in terms of increased sales, price level changes, quality enrichment and
profitability. It aids to nurture and strengthen the skills and ethnicities while at the same time
supporting and developing whole society. The insertion of GI with TRIPS and WTO can
inculcate by developing countries for advancement and enhancement of their potential areas
to boost up for holistic development. The focus of the study is on Channapatna toys. This
paper examines the influence of GI tag on development of Channapattana toys and discusses
the current scenario of the Channapattana Toys manufacturers.

Keywords:
Geographical Indication (GI), Intellectual Property Rights (IPR), Channapattana toys

Electronic copy available at: https://ssrn.com/abstract=3652017

“India does not need to become anything else. India must become only India. This is a
country that once upon a time was called the golden bird”-NarendraModi

Introduction: India have been famous since time immemorial for its traditional
knowledge, skills, culture etc., GI are signs used on goods that have a specific geographical
origin and possess qualities or a reputation that are due to that place of origin. Agricultural
products typically have qualities that derive from their place of production and are influenced
by specific local factors, such as climate and soil. Place of origin may be a village or town, a
region or a country. It is an exclusive right given to a particular community hence the benefits
of its registration are shared by the all members of the community. A geographical indication
(GI) is a name or sign used on products which corresponds to a specific geographical location
or origin. It acts as a certification that the product possesses certain qualities, is made
according to traditional methods, or enjoys a certain reputation.
Under Paris Convention for the Protection of Industrial Property, GIs are covered as an
element of IPRs.GI is governed by WTO’s Agreement on Trade-Related Aspects of
Intellectual Property Rights(TRIPS).In India, GI tag is governed by Geographical Indications
of Goods (Registration and Protection Act),1999.This Act is administered by Controller
General of Patents, Designs and Trade Marks, who is also Registrar of Geographical
Indications.
GI tag helps the producers to differentiate their products from competing products in the
market. It enables the producers to build a reputation and goodwill around their products,
which often fetch a premium price. The products help in export earning, promotion of
tourism, cultural heritage and national identity. GIs have great potential to play a major role
in trade between countries. Legal protection to GIs protect livelihoods and encourage
employment generation. GIs command today, there is a possibility of preserving many
traditional skills and benefit to the rural economy by improving the incomes of farmers or
non-farmers.
Channapatna is a small city located 60 km south-west of Bangalore, on Bangalore-Mysore
state highway. The city is famous for its wooden toys and lacquer ware. These toys are
manufactured in traditional or advanced small-scale industries.
Channapatna more often known as the GombegalaOoru “Toy Town” of Karnataka has a
legacy of toys which goes back to more than 200 years. Centuries ago, artisans from Persia
where invited to train the locals of Channapatna. They started by carving toys out of ivory
initially then switched to rubber, cedar and teak. This traditional craft is protected as a

Electronic copy available at: https://ssrn.com/abstract=3652017

geographical indication (GI) under the World Trade Organization, administered by the
Government of Karnataka. Traditionally, the work involved lacquering the wood of the
Wrightiatinctoria tree, colloquially called Aalemara (ivory-wood). For nearly two centuries,
this industry is mainly dependent on Doodi Ki Lakdi (ivory wood) and in rare cases,
rosewood and sandalwood was used. Today, this art and the craftsmen have broadened the
horizon into several varieties of wood - rubber wood, silver wood, fine wood, Nepal wood,
sycamore wood, red cedar, pinewood and teakwood.
GI of goods are defined as the aspect of industrial property which refer to GI referring to a
country or to a place situated therein as being that place of origin of that product.GI ensures
the assurance of quality and distinctiveness which essentially traits the place.

MSMEs in India is often and often facing the problems. Their small scale of business worth
or network suppress the potential to achieve greater success. It may happen due to various
external and internal reason. Registration and implementation of GI in potential places can
standardize the economies scale.

Objectives: This paper is prepared with the objectives of

• To know the awareness level about IPR among toy manufacturer.

• To know the influence of GI on Channapattana Toys over sales and price level.
• To provide some suggestions.

Methodology: The paper is basically a descriptive one. The paper tries to review, influence
or impact of GI tag on Channapattana toys. While preparing the paper both primary and
secondary data were collected. Primary data was collected through questionnaire and
observation from Toys manufacture company who are in Channapattana. Secondary data was
collected from annual administrative report, annual report and websites. Data collected from
both primary and secondary sources are summarized and conclusions are drawn and
depending upon the conclusion some suggestions are made.

Hypothesis:

• H1: There is a significance relationship between proper awareness about GI tag for its
effective output.
• H0: There is a no significance relationship between proper awareness about GI tag for
its effective output.

Electronic copy available at: https://ssrn.com/abstract=3652017

 • H1: GI tag have positive impact on sales
• H0: GI tag will not have positive impact on sales

Review of Literature:

• Kundan Kishore (2018) in the sight of author Most of the GI are associated with
rural areas so we have built the brand image, make more popular by effective
propaganda and advertisement strategies for profitability. In many cases benefits of
GI are been gained mainly by the intermediaries. For such activities strong regulations
should be implemented.
• Manjunatha, N. K (2016). Here author has a view that the Karnataka state has a
dynamic and erratic weather that changes from place to place within its territory. As
Karnataka experiences variable geographic and physio-graphic conditions,
encouraged Karnataka state for growing variety of flowers, fruits and vegetables in
different parts of Karnataka.
• Avin Thaliath and Anson K.J Anson K.J(2014): Here author mentions that most of
the respondents do identify handicrafts as an important aspect of a region’s culture
and are willing to improve the conditions of dying handicrafts such as Channapatna, if
they are made more aware about it and can easily avail it.
• Soumya Vinayan (2012) Here author states that the collective monopoly of GI
renders its greater potential and contributes to reduce the poverty and boost-up the
financial conditions of the people who involved in this type of business. Nevertheless,
GI faces the series of hurdles in implementation of effective marketing and sales of
the GI products and services.
Data analysis with Graphical representation:
Independent Samples Test

Levene's Test for Equality of t-test for

Variances Equality of
Means

F Sig. T

Equal variances assumed 3.891 .106 3.514

Do you consider GI tag will
help you for more export
Equal variances not
business 5.880
assumed

Electronic copy available at: https://ssrn.com/abstract=3652017

 Independent Samples Test

t-test for Equality of Means

Df Sig. (2-tailed) Mean Difference

Do you consider GI tag will Equal variances assumed 5 .017 2.200

help you for more export
business Equal variances not assumed 4.000 .004 2.200

Independent Samples Test

t-test for Equality of Means

Std. Error 95% Confidence Interval of the

Difference Difference

Lower Upper

Equal variances assumed .626 .591 3.809

Do you consider GI tag will
help you for more export
Equal variances not
business .374 1.161 3.239
assumed

Findings:

Is this business came through

from which sources?
Ancestors

50% 50%
Friends

0%
Other

Electronic copy available at: https://ssrn.com/abstract=3652017

 Do you know what is GI tag - Toy?
3, 30%
4, 40% Yes
No
Interested to know
3, 30%

Are you aware of Intellectual Property

Right?
20% 20% Yes

No

60%
Know only something

Do you consider GI tag will help you

for more export business ?
1, 10% Strongly Disagree
2, 20%

Disagree
4, 40% 2, 20%
Niether agree or disagree
1, 10%
Agree

Have you taken any financial

assistance from Government?
3, 30% Yes

5, 50%
No

2, 20%
May be need in future

Electronic copy available at: https://ssrn.com/abstract=3652017

 Do you accept the level of sales after
GI – Toys is increased?
Strongly Disagree
0, 0%
2, 20%
Disagree
4, 40%

Niether agree or disagree

4, 40% 0, 0% Agree

Strongly agree

Do you think sale promotion process

will become easy after GI – Toys?
Strongly Disagree
2, 20% 2, 20%
Disagree

1, 10%
Niether agree or disagree
2, 20%

Agree
3, 30%
Strongly agree

Electronic copy available at: https://ssrn.com/abstract=3652017

 Do you accept your product is much
competitive is the market customer?
Strongly Disagree
10%
30% Disagree

Niether agree or disagree

40%
10%
Agree
10%

Strongly agree

Do agree your products are more

innovative than other similar
products presently which is their in
10% the market?
30% Strongly Disagree

40%
Disagree
20%
0%

Niether agree or disagree

Analysis and Interpretations:

• 50% of the manufacturers has taken this business from their ancestors because it is
treated as a family business too and sources of income.
• More than 50% are not aware of GI tag or IPR due to lack of awareness,
8

Electronic copy available at: https://ssrn.com/abstract=3652017

 • After explaining things about IPR and GI 40% of the manufacturer accept that GI tag
will help the export sales because GI-tag product will be recognized in international
market.
• Only 20% of the manufacturer are agreed that the level of sales after GI – Toys is
increased due to brand image and affection on desi products,
• Manufacturers mentioned that price level after GI tag may or may not be increased
due to may be increase in demand.
• 30% of the manufacturers says that government policies are not much helpful for this
business due lack of effective communication from the authorities.
• From the above study we know that product is much competitive is the market
customer because of its eco-friendly in nature, Make in India product etc.,
• At the same time Channapattana toys are more innovative than other similar products
in the market by accumulation various designs and etc.,

Suggestions:
• Public bodies, private organization and educational institutions should give the
awareness about IPR and GI too.
• Stoppage of geographical indications by unauthorized parties is damaging to
consumers and legitimate producers.
• Avoid of unfair business practices result in loss of revenue for the manufacturers of
the GI and also misleads consumers.
• Authorized bodies should conduct workshops and other hands-on activities about
promotion of GI-tag products.
• Government and other recognized institutions should start practice of giving GI-tag
products as a gift or token of appreciation in events and programmes.
• Apart from Channapattana area Channapattana toys outlet should start or set-up in all
district headquarters.
• Organized students-oriented programs on Channapttana toys and GI-tag.

Conclusion:
The advantages of GI tag are realised only when these products are effectively marketed and
protected against illegal copying. Effective marketing and protection require quality
assurance, brand creation, and other customer relationship management process. Authorized

Electronic copy available at: https://ssrn.com/abstract=3652017

GIs also encompasses to protection of traditional knowledge and traditional cultural which
associates with products. Henceforth Intellectual Property is a supremacy means for holistic
development for country like India. GIs have the potential of growth. Policy-makers must
stretch an attention in this regard and adore Indian GI products with honour.

References:
• Avin Thaliath and Anson K.J Anson K.J, (Proceedings of the Second International
Conference on Global Business, Economics, Finance and Social Sciences
(GB14Chennai Conference) ISBN: 978-1-941505-14-4 Chennai, India 11-13 July
2014 Paper ID: C4104)
• Kundan Kishore (2018) Journal for Intellectual property rights, Vol.23,July-
September 2018, pp159-166
• Manjunatha, N. K. (2016). Status of Geographical Indications in India, Especially
Karnataka. Third Concept, 30, 32-39.https://nbn-resolving.org/urn:nbn:de:0168-
ssoar-53235-4 Nutzungsbedingungen:Dieser
• Soumya Vinayan (2012) Journal for Intellectual property rights, Vol.17, January
2012, pp55-63
• www.insightsonindia.com
• Reports from MSMEs Karnataka

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Electronic copy available at: https://ssrn.com/abstract=3652017