P.O. BOX 1022
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STELLENBOSCH
7600
SOUTH AFRICA
TEL: +27 (0) 21 883-3189
FAX: +27 (0) 21 883-8910
E-MAIL: chenstel@chennellsalbertyn.co.za

Report on: RICHTERSVELD COMMUNITY CRAFT PROJECT

LEGAL REPORT SUMMARY. RICHTERSVELD COMMUNITY CRAFT PROJECT

1. BACKGROUND

I was requested by the project leaders of the Richtersveld Community Craft Project to assist them assess their work thus far, and in particular to support selected artists from the community of Koeboes regarding the commercialisation of their intellectual property in the form of artistic designs. After examination of reports and discussions I was satisfied that the approach used over the series of workshops satisfied established criteria of good practice in respect of the communication with, collaboration and interaction with the artists. It was however agreed that it would be essential to meet with the artists in order to ensure that they fully understood all aspects of the relationship with the project team, and in particular their contractual (intellectual property) rights and obligations going forward.

2. THE PROCESS

On 14 October 2009 I travelled to Koeboes, and first met with the project team, including Felix Holm (EXE products), Mischa Fritch ( Sitali Jewellers) and Tessa Graaf (Montebello design centre) The discussions centred around the primary thrust of the project, namely forming a joint venture with a commercial partner (Sitali Jewellers) and ensuring that the community artists and others benefitted from the design and launch of a viable range of commercial products. On 15 October 2009 I met with eleven community members, including the six originally selected artists and the five new recruits to the program. In a process of open discussion and exchange I established that they had a good grasp of the approach of the project team, namely facilitating and eliciting artistic products from them, so that viable products could be elicited which would become part of a commercial joint venture with Sitali Jewellers. They were also clear that the ultimate success of the entire project would depend upon the response of the market, and that their benefits or future income would depend upon that successful outcome.

3. IMAGES SELECTED FOLLOWING DESIGN WORKSHOPS

During the most recent intervention of the project,  a number of images were selected from the six participants, which would be used by Sitali Jewellers in its proposed creation and marketing of a Richtersveld range of jewellery products.

The artists were clear with regarding the fact that they would sign over the rights to these images to Sitali Jewellers, which would be recorded and set out in due course by a simple IPR agreement. They had previously fully discussed the issue of their intellectual property rights (IPR) relating to the selected images, and in the discussion the overall vision and envisaged process of the joint venture with Sitali Jewellers was again clarified.

The following key concepts were elicited from the conversation, in order to ensure that the artists fully understood the proposed agreement and process.

They, (each individual artist) would sign over the selected images to Sitali

No further exchange of money would take place at this stage

Sitali had the complete discretion to utilise the images, singly or jointly in combination, in any product lines that it felt might succeed in the market. (eg necklaces, rings, earrings, bracelets, etc made out of gold, silver, or other, and with or without precious stones.)

Sitali would pay a royalty to the artists in respect of each product containing their image, that is sold.  This royalty would be calculated and paid out to the artists at least every three months, but if possible monthly, depending on volume of sales.

Sitali would undertake to provide complete transparency with regard to both sales and costing of products, as well as the method of calculating royalty for different products.

The method of calculation of the royalty amount would inevitably vary depending on the type of product designed by Sitali. It was thus not possible to record one simple formula in the agreement to be signed, but Sitali undertook to explain and motivate the formula in terms of which a royalty would be calculated for each type of product.

If the artists were not satisfied by the royalty paid, or by the method of calculation of royalty advised, they would be at liberty to withdraw one or all of their images from the IPR agreement. This (as was well understood by all) would maintain an effective balance of power between the parties.

Sitali would be entitled to utilise the images provided for a range of other purposes, such as website, promotional brochures, Tee shirts and the like, in order to market and promote the products.

If any use of the images was found to be for a use NOT primarily designed to promote the product range, ie commercial by nature, a further royalty payment would be negotiated with the individual artist.

Public benefit (to Koeboes and the region) would take place by virtue of the success of the product range, plus by virture of all of the byproducts such as T Shirts and other promotional materials that would be provided for sale. These would develop the further “branding” of the region.

4. OTHER RELATED ACTIVITIES AND PRODUCTS.   

Various other initiatives were being explored by the project with the aim of designing new and allied products, thereby simultaneously creating viable livelihoods, and “branding” the Koeboes village and Richtersveld region. These initiatives included the sewing and value-adding of T-Shirts for sale to tourists, the design and burning of images onto wooden containers for Jewellery products, (and other components for other commercial enterprises) and other tasks in which the skills developed in the workshops would be sought and negotiated with selected artists.

The fundamental point was repeated and made clear that each artist/ participant had the right to exploit his or her talents and skills, in order to advance themselves.  Individuals would be rewarded for talent and hard work, and they were not obliged to take part in any of the follow-up initiatives.

It was suggested that each such transaction should take place on the basis of a simple contract, signed between the parties, in order to avoid misunderstandings.  Sitali Jewellers will design such simple contracts, which will be approved by the Project.

5. IPR CONTRACT

I undertook to draft the basic IPR agreement that had been discussed, and also to remain available to the project in the event that any misunderstandings arose, or any simple agreements are required to be drafted.

6. CONCLUSION

It was clear that the primary group of artists are trusting of the project as a whole, and are invigorated by the prospects of their talents and work leading to further work and income in the future. A strong foundation has been created in the initial group of individuals who seem willing and capable to utilise the skills learned to catalyse and benefit themselves as well as those around them.  It is a privilege to be involved with a project of this creative energy and integrity

 
Roger Chennells

19 October 2009

 

 

 
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