Espacios. Vol. 36 (Nº 08) Año 2015. Pág. 7
Valdinho PELLIN 1; Adriana Carvalho Pinto VIEIRA 2
Recibido: 09/12/14 • Aprobado: 18/02/2015
2. Treoretical background
3. Presentation and analysis of goethe grape valleys experience
4. Final considerations
In the last years, geographical indications (GIs) have been considered as possible strategies for development and/or economical strengthening of a region, with the valuing of territorial resources and encouragement of new emerging market niches. These strategies can be thought as a tool for a harmonious occupation of productive cultural spaces, allying the valuing of a typical product and its historical and cultural characteristics to the conservation of biodiversity and rural development.
This is an important instrument for the induction of rural and territorial development, as well as an encouragement to social actors to promote "qualification processes". These processes give rise to a new production and food consumption model, revaluation of traditions, customs, savoir faire and other immaterial assets associated to a territorial identity and specific geographical origin (Niederle, 2013).
As stated by Cerdan (2013), the protection and promotion of GIs are justified by their impact on territorial development. In her study, the author states that many countries highlight and qualify their main benefits, as observed in Europe. These benefits are: satisfaction among producers, due to the commercialization of their products in the Market, valuing the territory and local knowledge; facilitates the presence of typical products in the Market; contributes to preserve the diversification of agricultural production and product's particularities and personality; increases product's added value; encourages quality, since products are submitted to production and elaboration control; allows the consumer to perfectly identify the product in production methods, manufacturing and product elaboration; improves and makes product demand easier; secures confidence to consumers with respect to product authenticity, by means of Regulatory Councils; makes marketing easier; promote typical products; facilitates the fight against fraud, smuggling, counterfeiting and usurpations; promotes export and protects products against unfair external competition.
In this context, some discussions towards contributions offered by GIs to territorial development emerge in Brazil. In particular, this article intends to analyze how GI institute can promote territorial development, identifying strengths and economical vocations that can turn this region more competitive. The analysis will be done by means of the experience of Indication of Origin of Goethe Grape Valleys, region of Urussanga – state of Santa Catarina.
Methodologically, this study uses a qualitative and descriptive research, since it allows the researcher to get closer to the social coexistence of the studied group, understanding how the construction of this reality is processed and how it works in this context (Shaw, 1999). With respect to investigation means, this study is classified as bibliographical and case study, since it was held using as investigation means the secondary sources such as: national and foreign scientific articles, theses, dissertations, books and websites.
The structure of this article favors, in a first instant, a brief approach on territorial development in rural environments. As following, it addresses the relationship between GIs and the territorial development in rural environments. Afterwards, an intellectual property analysis is done, taking into account the concept of geographical indication. As following, an analysis of Goethe Grape Valleys Indication of Origin experience in the Southern part of the state of Santa Catarina is done and, to conclude, final considerations are presented.
The theoretical-conceptual frame of this work involves, at a first glance, a characterization about rural development in rural environments, intellectual property and the relationship between Geographical Indications and Development.
The concept of territorial development breaks out of an ancient tradition of studies about regional development and does not have yet a doctrinaire framework or established theories. This concept states that its scale does not define the territory, but by the way of organization and by the manner by which the constructive actors coordinate their actions (Jean, 2010).
In Brazil, the discussion over sustainable territorial development in rural environments is intensified not only as a matter of sectorial cutting, but also as a subject of interest to all society. Rural environments are seen as a stage for the creation of innovating development dynamics. This happened, mostly in the last decades, when most of Brazilian population observed a chaotic, excessive urban increase, which becomes more and more problematic due to rural exodus, mainly among young people from the Northern region of Brazil (Andion, 2010).
Furthermore, the process of urbanization will always be present in discussions related to development in rural environments. The truth is that, as stated by Martini (1993), the redistribution of population over this environment follows the evolution of location and restructuring of economic activities. That is, how the spatial concentration of most of the economic activities is located in large urban centers, where most of the population is concentrated.
In order to know better this urbanization context, it is important to understand the path of agriculture in Brazil and, mostly, the main phases of its modernization process. Martini (1991:08) highlights that in Brazil, constant super crops contributed to strengthen the image of modern agriculture, self-sufficient and of beneficial social consequences in the last years. However, by analyzing the main phases of agricultural modernization in Brazil public the author observed that public policies benefited large rural producers by means of allowances or specific policies to determined sectors and neglected small producers to a second plan. The important was to benefit the large-scale production to exports.
In the name of progress, agroecosystems were transformed, traditional cultures were distorted and social structures had their bases changed. Farmers with little access to land and other production resources did not fit to ecological and social environmental conditions of traditional agriculture and stayed out of rural development (Moreira and Carmo, 2004).
However, small productions use all factors around them more intensely, take advantage of a larger part of their land, employ more people and have a much larger production per hectare than conglomerates and landed-estates. Besides, devising arrangements of productive structures that take advantage of family property by job offers is possible, to increase productivity (Martini, 1991).
Therefore, small rural producers also have significant importance in agriculture. Their stay in rural areas is necessary, which avoid rural exodus that causes uncontrolled urbanization processes in large cities. Besides, due to comparative advantages of small producers in given cultures and regions, as well as unexplored potentialities (associative ways), it makes sense that the government invests their resources in exploring these alternatives and strengthening family agriculture.
In this scenario, the importance of Geographical Indications emerges as a strategy for the development or strengthening of rural environments, mainly in economic vulnerable regions. Although it is yet in their first steps in Brazil, these experiences have offered important contributions to exploiting local potentials, promoting an improvement in life quality among autochthonous populations.
As stated by Vieira and Buainain (2011), intellectual property has been achieving a relevant role in many sectors of economy. Nowadays, the value and the importance of immaterial and immovable assets are considered superior to the value of material and movable assets, which constituted the main component of natural and legal persons' patrimony until very recently.
The authors highlight that many distinctive signals came from a common goal: distinguish the origin (geographical or personal) of a product. In 1883, due to some bilateral agreements made to protect Geographical Indications were extremely weak, the producer countries, especially wine producers, decided to organize an international treaty to protect intellectual property rights, not only Geographical Indication rights. From this scenario, Paris Convention for intellectual property protection (CUP) was created. The treaty had the objective of restraining false Indications of Origin (Vieira and Buainain, 2011).
New Market niches emerged, acquired strategies of product valuing. The notion of Geographical Indications (GI) was gradually emerging, when producers and consumers realize flavors or distinguishing in products from given places. These characteristics were not found in equivalent products, made in other places. Thus, the denomination of different products, with the geographical name of their origin, was introduced (Fávero et al, 2010).
In Brazil, the regulatory framework over intellectual property was almost completely renewed in the 1990s. Among many laws approved regarding this subject, the Law number 9.279/96, called Industrial Property Law (LPI) can be quoted. With respect to Geographical Indications, the standard does not define it, but establishes their kinds: the Indication of Origin (IO) and Denomination of Origin (DO), which does not have legal hierarchy between them, and are parallel possibilities to choose producers or service providers that plan to seek this kind of protection, after attending the law requisites and their regulations.
Indication of Origin (IO) is characterized by being the geographical name known by production, extraction or manufacturing of certain product, or by providing a service, facilitating the adding of value when the origin of the service is indicated, independently of other categories. It will protect the relationship between the product or service and its reputation, due to its specific geographical origin, which is a condition necessarily preexisting to register requests.
Denomination of Origin (DO) is the geographical name that "names products or services whose qualities or characteristics are exclusively or essentially due to geographical environment, including natural and human factors". In summary, the geographical origin must affect product's or service's final result, in an identifiable and measurable way, which will be an object of proof when framing a register request with INPI, by means of technical and scientific studies that constitute a proof more complex than the proof demanded for Indications of Origin.
Thus, DO is about an intellectual property right, associated to a region, likely to be used by people exploring every production branch, being constituted by location, region of country name. DO is intended to designate a product or originating good, whose quality and characteristics are exclusive and essentially due to geographical environment, even including human factors.
Barbosa (2013) states that IO is the expression or signal that identifies the geographical origins of specific products or services. However, DO is also an expression or signal that identifies the specific geographical origin of a product or service, such as IO. The author also states that the product or service has such particular characteristics due to the geographical environment in which are inserted, such as the different kinds of soil that give different flavors, such as a wine grape. In the present study, the example of Vale dos Vinhedos can be mentioned. In this protection, singular human factors such as specific production conditions can be included. For example, a unique way of manipulating milk to turn it into cheese.
According to Barbosa (2013), the provisions made in TRIPs Agreement describe GIs as indications that identify a good as originating or territorial or from a region or location, not a geographical name as in LPI can be perceived. Thus, Brazil is more restrictive when condition their registrations to geographical names.
Therefore, differentiating IO from DO, the first one can be marked in any product from a given area, while DO marks a product from a certain region and, besides, it is produced in this location following to particular methods due to geographical environment and is specific according to the region of origin.
2.3 Geographical Indications as a strategy for rural territorial development
Geographical Indications (GIs), common in Europe  and little-known in South America and Brazil, can be understood, by an economical point of view, as a strategy to add value to products or services with unique characteristics, related to the territory where they belong. This adding of value can represent an increase in income for producers involved, by means of an increase in the price of products offered, increase in sales or conquering of new markets. It can also value local traditions, strengthening the cultural identity of the region.
GIs have been highly used in agrifood markets to protect and value products of different kinds. In this sense, initiatives are being promoted for products considered local to create strategies to be distinguished in the market from denominations of origin, for example of product quality, added value to products, etc. (Vieira and Buainain, 2011).
Differently from trademarks and patents, Geographical Indications are likely to have many kinds of protection. They can be protected by a sui generis legislation or decrees; this is the system adopted by France and Portugal, for instance. Another possibility is the registration of Geographical Indications adopted by Brazil. Yet, there is the possibility that consists in relying on the law against unfair competition, or on the idea of "passing off", which basically anticipates unfair commercial practices that should not be done. The use of Geographical Indication for a product which does not come from an indicated region would be a good example of unfair competition. If the protection against illicit acts is sought in Law, there is no formalities to be accomplished, such as registering administrative decisions; that is, the injured party goes to the court (Vieira and Buainain, 2011; Vieira et. al. 2012).
Geographical Indications can be protected by collective mark registrations or certification marks. Collective marks, differently to trademarks, they belong to a group of tradesmen or producers. Certification marks, on the other hand, does not belong to anyone: it is registered on the assumption that any person that meets prescribed conditions can use them. For example, the use of certification marks for Stilton cheese is reserved to certain producers that fulfill the conditions demanded by use regulations of this trademark (Vieira and Buainain, 2011).
GIs represent, then, an instrument to value traditions, customs, knowledge, practices and other immaterial goods associated to territorial identity. Used by other producers as an instrument to add value and access to markets and considered by consumers as a mechanism of quality assurance, Geographical Indications are also considered as potential instruments of territorial development, as they allow to exploit difficult to transpose intangible assets to other territories, constituting a competitive advantage in markets even more marked by product differentiation (Niederle, 2009; Dullius, 2009).
Caldas, Cerqueira and Perin (2005), which approximates the ideas of Geographical Indication and of Local Production Arrangements, state that both can be considered as local development strategies and highlight that GIs can be understood as a qualification for developing a production arrangement, by including essential physical, social and subjective characteristics in their ways of seeing territories.
When analyzing the main GI experiences worldwide it is possible to observe that, to most of GIs, the main benefits are economic and refer to products' added value and increase in sales. Some examples can be highlighted: "Toscano", an Italian olive oil, is 20% more expensive since the registration of this GI in 1998. "Nuoc Mam de Phu Quoc", a GI sauce from Vietnam, had its sale price multiplied by three after getting its GI registration. In China, the acknowledgement of Shaoxing, a yellow rice alcohol, as a GI allowed the reduction of smuggling from Taiwan and Japan. Prices increased 20%, internal Market has developed and exports to Japan increased 14%. In general, the sale price of products with European GI (AOP and IGP) ranging between 10 and 15% (Cerdan et al, 2010) can be observed.
Moreover, other benefits should be considered. According to Cerdan et al. (2010), GIs can provide social and cultural benefits represented by the insertion of producers or disadvantaged regions in Market, as well as environmental benefits related to the conservation of biodiversity and local genetic resources.
Besides, complementary activities can emerge after the certification of traditional products. In the vast majority of cases Geographical Indications and protected denominations of origin can establish relationships with other segments that are not directly linked to certified products. Such consequence can strengthen important activities, generating jobs and local income. It is what Pecquer (2001) calls "basket of territory goods and services". Activities towards tourism  can be mentioned as an example.
Locatelli (2007) agrees with Pecquer's statements when states that it is possible to observe the development and strengthening of activities towards tourism and gastronomy in many regions which were acknowledged of GIs to their products. According to the author, GIs attract tourists and allow exploiting indirect profitable activities when encourage a region's culture and tradition.
The state of Santa Catarina is national and internationally acknowledged by the quality of wines produced in the state. According to EPAGRI – Agribusiness Research and Rural Extension Company of Santa Catarina, the boost given by researches and pioneer investments in wine industry, built a promising economic segment to the state.
With the objective of making their product more visible to the market, ProGoethe, together with SEBRAE – Brazilian Support Service for Micro and Small Enterprise and UFSC – Federal University of Santa Catarina, requested the acknowledgement of the Indication of Origin (IO) to "Goethe Grape Valleys" wines (see Figure 1 ), in Brazilian National Institute of Industrial Property (INPI). The request was submitted on August 18, 2010, number IG201009, as Indication of Origin.
Figure 1: Goethe Grape Valleys Indication of Origin Logo (IPVUG)
Source: Regulatory Council (IPVUG)
ProGoethe applied to the Indication of Origin, covering the following area: GOETHE GRAPE VALLEYS, located between the slopes of Serra Geral and Santa Catarina coast over the river Urussanga and river Tubarão, whose vineyards should be installed in this delimited area in a region of 458,9 Km². The region is located between the municipalities of Urussanga, Pedras Grandes, Cocal do Sul, Morro da Fumaça, Treze de Maio, Orleans, Nova Veneza and Içara, State of Santa Catarina, Brazil (INPI, 2012), as show in
Figure 2 and according to ProGoethe Statute, for coverage area and inclusion of associates.
Figure 2 – Goethe Grape Valleys Location, state of Santa Catarina, Brazil
Source: Vieira et. al. (2013) based on IBGE (2013a).
This region is closely linked to the culture and tradition of grape and Goethe wine production (savoir faire or human factor), presenting distinct soils and weather conditions (natural factors). Are authorized by IPVUG Goethe wines exclusively ranging between the colors: white, light rose or pale red: Goethe (Roger 1); the clones Goethe clássica (classic) and Goethe primo, "latada" (trellised) system (traditional system used in the territory delimited by IPVUG), in a structure made of stones of granite.
The "Indication of Origin" (IO) acknowledgement happened in 2012, with the granting of trademark registration published in the INPI Industrial Property Magazine, number 2.145, on February 14th. It is the first Indication of Origin in the state of Santa Catarina.
As shown by Vieira, Watanabe and Bruch (2012), with Indication of Origin concession of registry by INPI, created a favorable "atmosphere" to wine tourism  in Urussanga. Yet, Goethe wines from this region are acknowledged as genuine terroirs due to a close relationship with specific climate-soil conditions. As a result of its pioneering in the state of Santa Catarina, it serves as an example to improve wine production and elaboration, as well as to a set of agricultural practices, which are likely to integrate the registration process of Geographical Indications.
Given this scenario, the government of the state of Santa Catarina recognized the importance of "Goethe Grape Valleys", in the region of Urussanga, as a unique territory in the state of Santa Catarina, reinforcing the Indication of Origin request made to INPI.
The vineyards integrating IPVUG that produce Goethe grape-based wines and belong to ProGoethe are: Mazon Winery – Founded in the 1970s by the brothers Genésio and Jayme Mazon, the Winery has as a goal following the tradition of their maternal family line, the Debiasis, filling a gap in the traditional viniculture field in Urussanga; Wine industry Urussanga – From Longarone, region of Veneto, Italy, the Damians settled in Urussanga at the end of 19th Century; Quarezemin Winery – Operating since 2002 in this region; Felippe Winery – This family comes from Toscana, Italy, and came to this region at the end of 19th Century. Besides these families, the associates Rodolfo Della Bruna, Denner Quarezemin, Deivson Baldin, Raul Savio, Rafael Sorato, Márcio Scremin and Antonio de Lorenzi Cancelier also cultivates grapes and produced artisanal wine (ProGoethe, 2014).
After IPVUG's acknowledgement some important economic advantages were observed. Two years after granting the registration, vineyards started to realize a 20% increase in Goethe wine sales and around 30% more sales in sparkling wines, according to ProGoethe president. These products placed on the Market are the first harvest controlled by the Regulatory Council (RC) based on standards implemented by an Internal Control Manual (MCI) and sealed bottles.
ProGoethe recognizes that consumers (tourists) are more curious, due to the promotion of Goethe grape products; once they ask for "Goethe wine" when visit the vineyards, as pointed by ProGoethe president.
An increase of wine consumption can be observed between local and regional consumers, which are purchased in restaurants, at IPVUG vineyards and in some cities around the Southern region of the state of Santa Catarina.
Another important consequence refers to the access to new markets. Goethe wine GI acknowledgement made possible that vineyards sell their products in important regional supermarket chains, as well as outside Santa Catarina (São Paulo, Rio de Janeiro and Federal District). Besides, other important advantages are being strengthened and studied, such as internationalization. To the Regulatory Council, are advantages of belonging to IPVUG: acknowledgement of territory cultural identity as a competitive differential; valuing of regional products; diffusion of products; product qualitative improvement, as well as technological standards; conservation of characteristics and typical features of products that are cultural heritages, among other advantages.
In addition, IPVUG approval led region's vineyards and producers to invest in the development of local wine tourism, towards wine, culture and tradition, and developing other related activities, such as hotel management (hotel and hostels), gastronomy (restaurants, typical products handicraft manufacturing), enology and Italian immigration history. In this sense, this region is preparing a development plan for tourism activities in rural environments, integrating with other regional municipalities, contributing to territorial development of these municipalities. UNESC (Universidade do Extremo Sul Catarinense), by the way, researched the potentiality of wine tourism in the city of Urussanga.
IO acknowledgement intends to guarantee a stable demand for products and, if possible, add value to them, seeking an increase in associates' income generation and foster local development (Vieira, Watanabe and Bruch, 2012).
Last but not least, products certified by geographical indication are culturally rich, which is rooted in region's tradition, preserving their local identity and valuing territory.
Since the advent of Industrial Property Law, the institute of geographical indication aimed an alternative to valuing territories and their competitiveness increase in demarcated regions' quality products, by means of regulations established by the Regulatory Council (RC). From this approved regulatory framework, Brazil could be acknowledged of territory's cultural identity as a competitive differential; product and land valuing (their original environment); increase in farmers' participation (specifically Family farmers, in case of IPVUG) product marketing cycles and encouragement of increase and quality in their products, since they are submitted to RC control in wine and sparkling wines' production and elaboration.
Viniculture plays an increasingly important role in agrifood sector, especially in IPVUG territory. In this sense, GIs intend to add value and generate wealth, which is a strong option to a new phase of Brazilian agribusiness development, creating excellent quality typical and traditional products.
To ProGoethe associated wine producers, obtaining GI could expand markets, add value to products, stimulate local economy, as well as preserve savoire faire, allowing producers to remain in the countryside, expecting that their children and grandchildren remain in business. Given this scenario, as a consequence, it is possible to promote a development based on the region delimited by Goethe Grape Valleys Indication of Origin.
From this perspective, associated producers started to notice the difference after IO registry concession, once vineyards are witnessing an increased demand for Goethe grape wines and sparkling wines produced, from tourists and local people. Wine producers already realized that when tourists visit their vineyards, ask directly for Goethe grape wines, due to a curiosity for a different, added-value and high-quality product. They also realized that customers' receptiveness to Goethe wine has changed, with a 20% increase in Goethe wine sales and around 30% more sales in sparkling wines, according to ProGoethe president.
To conclude, from the present study and corroborating with the authors, GIs allow territorial development, taking advantage of a region's natural set, history heritage, savoire faire, creating a "qualification process" that allows a proper placement of their products in dynamics markets, artistic and culinary capacities and folklore traditions of a given population, aiming life quality.
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1. Bachelor in Economics. Master and doctoral candidate in Regional Development Post Graduation Program at Regional University of Blumenau (PPGDR/FURB). Researcher with the Nucleus of Public Policies at PPGDR/FURB. CAPES Scholar for Doctorate Studies - process number 99999.011716/2013-04. E-mail: firstname.lastname@example.org
2. Bachelor in Law, MA in Law from Universidade Metodista de Piracicaba (UNIMEP), Doctoral Program in Economic Development from the Economics Institute of UNICAMP (University of Campinas, State of Sao Paulo), Post-doctoral from Geosciences Institute, Department of UNICAMP's Scientific and Technological Policy Department, Professor Doctor at Post Graduation Program of Social Economic Development (PPGDS) at Universidade do Extremo Sul Catarinense (UNESC), collaborating researcher of INCT/PPED/UFRJ. E-mail: email@example.com
3. In Europe, this differentiation device is known as Protected Denomination of Origin (PDO) or Protected Geographical Indication (PGI) and comprises agrifood products from agro industrial transformation or in natura products (Silva, et al 2012).
4. After acknowledging the geographical indication, Vale dos Vinhedos structures proposals for itineraries through vineyards (oenologic, gastronomic and cultural roadmaps), increasing significantly the number of tourists in this region and contributing to producers' income, mainly little vineyards.
5. Wine tourism happens due to displacements motivated by knowing the wine production process, visiting vineyards and wineries, including the experiences of wine tasting and its derivatives. Besides, visits to wine festivals and/or wine expositions can be characterized as an activity where the main motivation of the trip is wine tasting.