The article was written by Gungun Roy, a Sister Nivedita University, 4th Year BBA, LLB(Hons) student, during an internship at Le Droit India.
KEYWORDS
- Geographical Indication (GI)
- Intellectual property
- Traditional knowledge
- Cultural heritage
- World Trade Organization (WTO)
- TRIPS Agreement
- European Union
- Economic benefits
- Legal protection
- Territorial identity
- Counterfeiting and Consumer trust
- International recognition
- Cultural preservation
INTRODUCTION
The concept of Geographical Indication (GI) plays a crucial role in the modern marketplace by preserving cultural identity and fostering economic growth in local communities. A GI is a form of intellectual property that identifies goods as originating from a specific place, where a particular quality, reputation, or characteristic of the product is essentially attributable to its geographical origin. It is used for a wide range of products such as agricultural produce, wines, spirits, handicrafts, and industrial items. The notion of Geographical Indication gained prominence after the World Trade Organization (WTO) established the TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights), providing an international legal framework for GI protection. In a globalized world, GIs serve as vital tools for promoting rural development, safeguarding traditional knowledge, and combating counterfeiting. This article aims to explore the importance, benefits, and challenges of GISs and their prospects.
GEOGRAPHICAL INDICATION: A UNIQUE FORM OF INTELLECTUAL PROPERTY
- Defining Geographical Indications: Geographical Indication (GI) is a sign used on products with a specific geographical origin and possess qualities, a reputation, or characteristics inherent to that location. Unlike trademarks, which individuals or companies own, GIs are often a collective right belonging to a community or region. They highlight the unique link between the product and its place of origin, integrating factors like soil, climate, and traditional know-how.
- Historical Context and Legal Framework: The concept of Geographical Indication has deep historical roots, with origins traced back to the first rules governing regional designations for wines in the 19th century. However, it was only with the 1994 WTO’s TRIPS Agreement that GIs became formally recognized as a form of intellectual property on a global scale. Article 22 of the TRIPS Agreement establishes minimum standards for GI protection, while Article 23 provides additional protection for GIs relating to wines and spirits. This agreement obligates member countries to implement national laws that enforce the protection of GIs and prevent misuse of protected names.
- European Union: The European Union has been a strong advocate for Geographical Indications, developing a comprehensive sui generis system of protection. In this system, products like Champagne (France), Roquefort (France), Parmigiano-Reggiano (Italy), and Darjeeling tea (India) enjoy robust protection, providing producers with exclusive rights to the name and preventing unauthorized use.
ECONOMIC AND SOCIAL IMPACTS OF GEOGRAPHICAL INDICATIONS
- Promoting Economic Growth and Regional Development: GIs can have a significant economic impact by providing rural and often economically disadvantaged regions with a means to leverage their unique products for financial gain. By enhancing the market value of products, GIs serve as an effective marketing tool that can distinguish products in competitive markets. For instance, studies show that products with GI protection can often command higher prices due to the added value of authenticity, tradition, and origin.
In the case of agricultural products, GIs can help maintain farming practices that are environmentally sustainable and promote biodiversity. For example, the GI for Kona coffee from Hawaii helps preserve local farming techniques that contribute to the island’s economy while sustaining ecological diversity.
- Protecting Traditional Knowledge and Cultural Heritage: Geographical Indications also play a vital role in preserving traditional knowledge and cultural heritage. Many GIs are linked to ancient methods of production that have been passed down through generations. This transfer of knowledge is not only a way to maintain quality standards but also acts as a cultural identifier. Artisanal products such as Mexican Talavera pottery or India’s Pashmina wool represent centuries-old craftsmanship, with the GI providing legal backing to protect these traditions from imitation.
- Preventing Counterfeiting and Consumer Trust: One of the central purposes of GIs is to prevent counterfeiting and misleading information regarding the origin of products. In a globalized economy, counterfeit products are a significant problem, causing harm to legitimate producers and undermining consumer confidence. With GI protection, consumers are assured that the product they are purchasing is authentic, created in the specified geographical region, and produced following traditional methods. This builds consumer trust, which is crucial for the long-term sustainability of the brand.
CHALLENGES AND CONTROVERSIES SURROUNDING GEOGRAPHICAL INDICATIONS
- International Recognition and Disputes: While GIs are widely recognized in many regions, including the European Union, India, and China, challenges remain in achieving consistent international recognition. One major issue is that some countries, particularly in the New World (like the United States, Canada, and Australia), have historically favored trademark protection over GIs. This difference in intellectual property philosophy has led to disputes, particularly regarding terms that are considered generic in some countries but protected as GIs in others. For instance, the term Feta is protected as a GI in the European Union, but in other countries, it is used as a generic term for white-brined cheese.
- Legal and Administrative Barriers: Another significant challenge for producers seeking GI protection is the often lengthy and costly legal process required to obtain and enforce protection. Especially in developing countries, the administrative and financial resources needed to protect a GI can be prohibitive. For smaller producers, navigating international GI laws can also be complex, as different countries have varying levels of protection and enforcement mechanisms.
Moreover, the expanding use of GIs has sparked controversy over whether such protections may stifle innovation or restrict market access for producers from regions not covered by the GI.
- Balancing Global Trade and Local Identity: Global trade agreements have sought to balance the protection of GIs with the need to foster open markets. The European Union has successfully negotiated with trading partners to recognize its GIs in exchange for market access concessions. However, balancing this with local producers’ rights in countries without similar protection mechanisms is a sensitive issue. While GIs protect regional identity and traditional knowledge, they can sometimes be viewed as barriers to free trade, creating tensions in international negotiations.
ILLUSTRATION AND EXAMPLES
Imagine you buy a bottle of champagne. You would expect it to come from the Champagne region in France, where the climatic conditions, soil, and traditional methods of production are unique. This association with the region gives the product its distinct quality and reputation. Therefore, only sparkling wine produced in this region can legally be called Champagne, while other similar products from outside the region must be labeled differently, like “sparkling wine.”
- Case Study – Champagne (France): Perhaps the most iconic GI, Champagne refers to sparkling wine produced in the Champagne region of France under strict production regulations. The GI status has been pivotal in ensuring that only sparkling wines from this region can use the name “Champagne.” This has protected the reputation and market value of Champagne, allowing it to maintain a global image of luxury and quality. (Taylor)
- Darjeeling Tea (India): One of the most famous GIs in the world, Darjeeling tea has been cultivated in the Darjeeling district of West Bengal since the 19th century. It is renowned for its unique flavor, which is attributed to the region’s specific climatic conditions and traditional methods of processing. In 2004, Darjeeling tea became the first GI-registered product in India. The GI status has helped protect the product from counterfeiting and has contributed to its global brand recognition. (S.C.Srivastav)
- Parmigiano-Reggiano (Italy): Often referred to as the “King of Cheeses,” Parmigiano-Reggiano is a PDO product that must be made in specific provinces in northern Italy using traditional methods. The stringent production process ensures the cheese’s quality, and the GI status allows producers to charge premium prices in international markets. Parmigiano-Reggiano’s GI protection also helps prevent the proliferation of inferior “parmesan” cheeses made outside the designated region.
- Blue Stilton Cheese (UK): Blue Stilton cheese is a British PGI product made in specific counties of England using traditional techniques. The GI status has helped protect the cheese from imitation products, allowing local dairies to maintain control over the production process and ensure that consumers receive authentic Stilton cheese. (B.T.O’Kennedy)
FUTURE PROSPECT FOR GEOGRAPHICAL INDICATION
- Expanding to New Products and Regions: The future of GIs lies in their expanding recognition and application to a broader range of products. In many countries, GI protection is still primarily associated with agricultural products and foodstuffs. However, in recent years, there has been growing interest in extending GI protection to industrial products and crafts, especially in developing countries.
For example, Indian Channapatna toys, a traditional form of wooden toy-making, have been registered as a GI, marking a significant step towards broadening the scope of what can be protected.
- Global Cooperation and Harmonization: As the demand for GIs continues to grow, there is increasing pressure on international bodies such as the World Intellectual Property Organization (WIPO) and WTO to harmonize GI protection rules across jurisdictions. This would ease the administrative burden on producers and create a more transparent system for resolving disputes. The development of international databases and certification systems may help ensure that GIs are better recognized across borders, increasing their effectiveness in the global market.
- Leveraging GIs for Sustainable Development: Finally, GIs can be key components in promoting sustainable development. By tying products to specific geographic regions, GIs can encourage producers to maintain traditional, environmentally sustainable practices that reflect the local environment.
For example, the GI for Tequila in Mexico not only preserves local agave cultivation methods but also promotes responsible land management in the region. With the growing consumer preference for sustainable and ethically produced goods, GIs are likely to become even more important in the future.
CONCLUSION:
Geographical Indications (GIs) represent more than just intellectual property; they embody the fusion of culture, tradition, and economy. As global trade continues to expand, GIs offer an essential tool for ensuring that the value of regional and traditional products is preserved and protected. By promoting economic growth, preserving traditional knowledge, and ensuring consumer trust, GIs are not just about legal protection—they contribute to sustaining rural livelihoods and cultural heritage.
However, challenges such as international recognition and legal barriers must be addressed to fully realize the potential of GIs in global markets. Looking ahead, the expansion of GI protection to more products and regions, as well as greater global cooperation, will be key to their success in fostering a fairer, more sustainable global economy.
REFERENCES
- Rangnekar, D. (2004). The Socio-Economics of Geographical Indications: A Review of Empirical Evidence from Europe. United Nations Conference on Trade and Development.
- Das, K. (2010). Prospects and Challenges of Geographical Indications in India. The Journal of World Intellectual Property, 13(2), 148-165.
- Bramley, C., & Kirsten, J. (2007). Exploring the Economic Rationale for Protecting Geographical Indicators in Agriculture. Agrekon, 46(1), 69-93.
- Tregear, A., & Gorton, M. (2009). Geographical Indications, Agricultural Products, and the WIPO. World Intellectual Property Organization.
- World Trade Organization. (2021). Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
