RUGMARK FOUNDATION
 

  RugMark is working to end illegal child labor in the carpet industry and to offer educational opportunities to children in South Asia.
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How to Become Licensed by RugMark
 

Overview

When U.S. importers become licensed by RugMark, they enter into an agreement with RugMark USA. While the impact of becoming certified by RugMark is profound, the process of becoming certified is straightforward. To become certified, carpet and rug manufacturers sign a legally binding contract to:

  • produce carpets without illegal child labor;
  • register all looms in India and Nepal through supplier licensing with local RugMark offices;
  • allow access to looms for unannounced inspections; and 
  • pay associated license fees.

Licensing Process

For an importer to become licensed, exporters/suppliers in India and Nepal must first be licensed with RugMark’s local offices in New Delhi and Kathmandu. If exporters are already licensed and in good standing, an importer may immediately licensed. If the exporter(s) are not licensed, the importer should notify their exporter about their intent to become licensed and request that the exporter contact the appropriate RugMark office to initiate licensing.

At the same time, the RugMark USA office will notify its local office and request permission to facilitate an initial inspection with the exporter(s). Once all exporters are licensed, the importer may then sign the agreement and become licensed to import RugMark certified carpets that bear the RugMark label. 

Exporter License Fee

The Exporter License Agreement stipulates that suppliers register all looms with RugMark, pass an initial inspection, agree to ongoing inspections, and pay license fees of .25% of the export or FOB value of all shipments to help finance monitoring and inspection.

Importer License Fee

The Importer License Agreement outlines that RugMark importers pay a 1.75% royalty on the net import value (FOB price) of carpet shipments on a quarterly basis. RugMark USA returns 60% of this amount to its overseas offices to educate and rehabilitate former child laborers. The additional amount covers the licensing and marketing expenses of RugMark USA to continue to build market share of Rug Mark certified, child-labor-free rugs.

Compliance

To ensure compliance, carpet looms are monitored regularly by inspectors trained and supervised by RugMark. To protect against counterfeiting, each labeled carpet is individually numbered, enabling its origin to be traced back to the production site. As an extra assurance that children will not be employed, nonprofit child welfare organizations not affiliated with RugMark are given access to looms and factories inspected by RugMark. In the U.S., only licensed RugMark importers are legally permitted to sell carpets carrying the RugMark label.

License Agreement Overview

The RugMark Importer License Agreement governs the relationship between RugMark and an importer that sells Rug Mark certified carpets. It outlines a variety of issues regarding the relationship, balancing clear guidelines with a mutual commitment to ending the use of illegal child labor in carpet production and improving the lives of former child laborers.

The contract preamble describes RugMark’s objectives and the RugMark trademark ownership terms. In addition, the License Agreement covers the following:

  • Subject of the License and License product
  • Reservation of Rights; Ownership
  • Sources of Supply
  • Royalties
  • Restrictions on Use of Licensed Products and Licensed Marks
  • Intellectual Property Rights
  • Monitoring and Information Rights
  • Confidential Information
  • Governing Law and Jurisdiction
  • Term of the Agreement

To receive a complete, customized RugMark License Agreement,  call Scott Welker at .