I believe it's called damask. There are cutters, but there are also stencils that can be used to make this design. You put the stencil around the cake and use royal icing or an airbrush on it to get the design.
Stencils or you can also get onlays..both are about the same price so its what you'd be most comfortable with.
It is called damask, as Annie said. You can use a stencil and just use buttercream for the whole thing. Here is a youtube video showing it being done: