The Protection of Geographical Indications - EU …eeas.europa.eu/archives/delegations/taiwan/documents/eu...The Protection of Geographical Indications - EU system and policy-EU –

21.11.06 GIs – EU system and policy – Taiwan Slide 1 of 27

The Protection of The Protection of GeographicalGeographical Indications Indications -- EU system and EU system and policypolicy --

EU – Taiwan Seminar on Intellectual Property RightsTaiwan, 21 November 2006

[email protected] TRADE, European Commission


……What are GIs?What are GIs?• Names of products that are special because they come

from a special place…• A couple of more precise definitions:

The geographical name of a country, region or locality which serves to designate a product originating therein, the quality and characteristics of which are due exclusively or essentially to the geographical environment, including natural and human factors." (Article 2.1, Lisbon Agreement)

Indications which identify a good as originating in the territory of a Member, or a region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin (Article 22.1, TRIPS Agreement)


TheThe EU EU approachapproach: : settingsetting thethe scenescene

• GIs perfectly fit into EU policies: • CAP• Consumer policy• Trade policy aspects

• GIs, an IPR tool that is useful and therefore appreciated by producers, consumers and governments. Positive effects on…

• Prices• Production and sales• Income distribution• Jobs• Environment• Rural development in general (including tourism, etc)


EffectsEffects ofof GI GI protectionprotection: : ComtéComté (PDO)(PDO) -- Emmental

20.000

25.000

30.000

35.000

40.000

45.000

50.000

55.000

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

5

6

7

8

9

10

1990 1992 1994 1996 1998 2000 2002 2004

20,00

25,00

30,00

35,00

40,00

1980 1985 1990 1995 2000 2005

4

4,5

5

5,5

6

1990 1992 1994 1996 1998 2000 2002

Production (tons) Milk price (€/Kg)

Gross price (€/Kg) Retail price (€/Kg)


EffectsEffects ofof GI GI protectionprotection: : ComtéComté (PDO)(PDO) -- Emmental

Product specification limits intensification, with good results for the environment...

40

60

80

100

120

140

160

1989 1994 199960

100

140

180

220

260

1989 1994 1999

Herbicide utilization per ha – base 100 in 1990 Fertilizer utilization per ha – base 100 in 1990

• The use of fertilizers and herbicide increased much less in the GI area.• The number of animals is 0,95/ha in the Comté area versus 1,11 in other areas.• 30 to 65 botanic species have been identified per field in the GI area vsonly 10 species in artificial grasslands.


EffectsEffects ofof GI GI protectionprotection: : thethe PimentPiment d´Espeletted´Espelette

In April 1993, as a reaction to cases of fraud,an association to protect the « Piment d'Espelette » is established.AOC was obtained in 2000, PDO in 2002

Effects of protection:

• Increase in prices: 10€ (94) 20€ (04)• Increase in number of producers (30 to 58)• Increase in number of Plants (195.000 to 530.000)• Increase in surface (8 to 28 ha)• In a context of ageing rural population, « young » average age (between 25 and 45)• Effect on tourism: 600.000 visitors per year (600 inhab.),Fête du Piment, Confrérie du Piment d'Espelette…


EffectsEffects of GI protection: of GI protection: pruneau d’ Agenpruneau d’ Agen

Domestic Sales

Total Sales

0

10000

20000

30000

40000

50000

60000

1950

1954

1958

1962

1966

1970

1974

1978

1982

1986

1990

1994

1998

2002

Domestic Sales Total Sales

• Production cost: 2 times the cost in California, 3 times the cost in Chile, 4 times Argentinean cost

• Increase in production and exports: 50.000 tonsper year

• 1.800 family farms with average of 40 ha.


EffectsEffects ofof GI GI protectionprotection: : a a fewfew more more examplesexamples

• West Country Farmhouse Cheddar sells at an average of £ 10.40, compared to £7.80 of comparable « industrial » cheddars. Conserves traditional landscape, knowledge and methods, positive impact on local culture and tourism…

• Schwäbisch-Hällisches Qualitäts-schweinefleischenjoy a 20-30% price premium (12% higherproduction costs); saved a local pig breed fromextinction; limited livestock density, etc.

• Diepholz Moorsheep meat helps conservation ofmoorlands; maintains soil balance; has re-established breed; 50% price premium; synergieswith tourism and educational activities.


EffectsEffects ofof GI GI protectionprotection: : a a fewfew more more examplesexamples

• In the EU…Idiazábal cheese has increased price 66% in 1995-2003, extensive production lessens environmental impact and helpspreserve local sheep breeds; impact on tourism (gastronomicroutes) Arroz de Valencia helps preserve wetland habitats, essential for migrating/water birds, limited use of insecticides and herbicides; up to 60% price premium; synergies with local culture and tourism

• And beyond…Boseong Green Tea from KoreaDarjeeling Tea, Kancheepuram silk from IndiaJamao Coffee from Dominican RepublicCafé de Colombia


WhatWhat do do consumersconsumersthink…think…??

• More than 20% of EU consumers in 1999 (from a 11% in 1996) buy GI products “often” whereas only 8% (from a 11% in 1996) do so “never”. 60% of such consumers purchase GI product “sometimes”.

• GIs= guarantee of origin (37%), of quality (37-35%), of place and method of production (56-32%) and tradition (17.7 - 16%).

• GIs represent an opportunity for foreign producers (including Taiwanese) : 43% of EU consumers are ready to pay an extra 10% for GI products; 8% of EU consumers (approximately some 29.6 millions) even an extra 20% and 3% of such EU consumer (approximately 11 millions) up to a 30% for GI products

*[Source: 2 opinion polls of more than 16000 EU consumers made in 1996 y 1999 conducted by an independent consultant ]


WhatWhat do do consumersconsumersthink…think…??

• Turrón Jijona y Alicante GIs compared with a similar turrónprotected via trademarks = consumers consider the GI as a guarantee of quality (73,9%), origin (26,8%), higher price (15,7%) and tradition (17.7 - 16%), better taste and more trustworthy products.

• GIs are more appreciated the more elaborated the product is (sweets, cheeses) in order to satisfy the desire for trustworthyproducts by the consumer

• Despite the fact that Turrón GIs are considered as more expensive, they are also perceived as offering better value for money

• *[Source: 1 opinion poll made in 2002 by the Consejo Regulador del Turrón de Jijona y el Turrón de Alicante ]


GIsGIs andand TrademarksTrademarksTrademarks and GIs are different IP rights. They canperfectly complement each other in producers’ strategies. EU experience shows that a sui generis system of GI protection, different from trademarks, is useful and helpsachieve objectives otherwise unattainable.

• Differences GIs – Trademarks:Consumer perception is different: for the European consumer, GIs are guarantee of origin, quality, method of production, tradition, better quality/price, etc.This is an opportunity: 43% of European consumers are prepared to pay 10% for products with GI… 75 % of Italians prepared to pay 20% more…


GIsGIs andand trademarkstrademarks: : significantsignificant differencesdifferences

Geographical Indications

• Always indicate geographical originlinked to special characteristics

• Examination: key aspect, the « link »• Number of GIs remains low• Cheaper to obtain and maintain, no • fees in the EU• Often indefinite• Does not require usage to maintain it• Collective property• Cannot be transferred or sold, link with

the territory remains always.

Trademarks

• Distinguen productos comopropios de una empresa

• Examen: distintiva o no• Larger numbers of TMs• Costly to obtain and maintain,

1000-1500$ for class and type• Need to renew• Requiere uso para mantenerla• One owner• Can be easily transferred or sold,

owner can change, also origin of the products…


GIsGIs andand trademarkstrademarks: : significantsignificant differencesdifferences (II)(II)

What about certification marks?• CM can indicate geographical origin linked to special characteristics…but many other

things as well: they are therefore different, and the consumer perceives this• The type of examination continues to be different, because it continues to be based

on the principles of trademark law…as a result, GI holders face frequent problems to register as certification marks:

Because their names are considered descriptive…Turrón de Jijona y Alicante in US Because name is considered a generic…Parma in some countriesBecause of prior trademarks…Parma in CanadáBecause of requirement to register separately two parts of name…Parmigiano-reggiano in US

• It is possible to register similar trademarks that contain the same GI name (e.g for Idaho Potatoes, there are both similar trademarks and similar certification marks. E.g. CM Idaho Preferred, Idaho Potatos Grown in Idaho…and TM Idaho´s best, Idaho Naturally…) Protection against the term becoming generic is therefore more limited

• Impossible to protect name against use in translation…unless through another CM!


The EU The EU approachapproach: in : in conclusion…conclusion…

• GI sui generis protection systems should be at the disposal of producersin every country. GIs and TMs are both useful IP tools which cancomplement each other

• Products with GI potential exist across the world, based on local knowledge, culture and traditions. Often, they just await recognition as GIs: this is important for protection in third countries (Art. 24. 9 TRIPS)

Positive economic effects• production, price• profitability, income distribution• tourism

EU experience shows that GIs have…

Positive effects on jobs• direct & indirect jobs• job qualification• rural exodus

Positive effects for tradition• quality• traditional know-how

Positive effects for Environment• Biodiversity• Environment preservation• Landscape


TheThe EU EU systemsystem: : settingsettingthethe scenescene

• Different procedures depending of the product (question of competences between Member States and the Community)

Agricultural and foodstuff products: Community registration system, EU wide protection (Regulation 510/06)Wines and spirits: national registration, EU wide publication, EU wide protection (Regulations 1493/99 and 1576/89).

New Spirits Regulation proposal currently under discussion: system will soon become similar to that under Regulation510/06New Wines Regulation proposal in preparation

Other products: protection by Member States• Additional means of protection: legislation on labelling, on

misleading advertising, and on unfair competition


ChallengesChallenges ahead…ahead…• Implement Regulation 510/06: including more homogeneous

treatment of applications by Member States and “single document”

• Adopt new Regulation on spirit drinks: proposal currentlyunder discussion (COM(2005) 125 final) rules similar to agri-food GIs

• New Proposal on wines under consideration: likely to includesimilar rules as well

• Once current DDA suspension is overcome, finalise andimplement results of DDA negotiations: GI extension and GI multilateral register

• Continue to use bilateral agreements to improve the protectionof GIs internationally


Where does this ham Where does this ham come from? come from?

Italian ham? Spanish ham?


TRIPS potential on GIs…TRIPS potential on GIs…• TRIPS: most comprehensive multilateral agreement

on IPR ever, includes section on GIs• Art. 1.1: Members free to determine the appropriate

method of implementing, may implement more extensive protection than required by the TRIPS

• Three TRIPS articles on GIs:Art. 22 defines GIs and establishes general level of

protection (consumer misleading/unfair competition use);Art. 23 provides for additional protection for wines and spirits(objective protection)Art. 24 provides for international negotiations and exceptions to protection


Article 22 of TRIPSArticle 22 of TRIPS• Definition of GI:

Indications which identify a good as originating in the territory of a Member, or a region or locality in that territory, where a given quality, reputation or other characteristic of the good isessentially attributable to its geographical origin

• Level of protection, applicable to all goods: The public shall not be misled as to geographical originUse cannot constitute an act of unfair competition.

• Obligation to refuse or invalidate conflicting trademarks if they mislead public as to place of origin

• Homonymous GIs which falsely represent geographical origin are subject to Art. 22 protection


Article 23 of TRIPSArticle 23 of TRIPS• Additional protection for wines and spirits:

Only goods with the origin indicated by the GI can use the relevant term. Not even with indication of real origin, or with expressions such as “type”, “style” etc, or use in translation, is use allowed on goods not having the origin indicated .

• Obligation to refuse or invalidate conflicting trademarks if they do not have the origin indicated

• Homonymous GIs for wines: protection to be accorded to each indication, subject to Art. 22

• Mandate to negotiate a multilateral system of notification and registration of GIs.


Article 24 of TRIPSArticle 24 of TRIPS• Provision for further negotiations aimed at increasing

the protection of individual GIs, including in respect of exceptions

• Review of application of the provisions on GIs• Standstill provision• Exceptions:

Continued use of GIs for wines or spirits used in good faith before TRIPS or for 10 years before TRIPSTrademarks acquired before TRIPS or protection of the GI in the country of originGenerics, grape varieties

• No need to protect unless protected in country of origin


TRIPS potential…can be TRIPS potential…can be further developedfurther developed

• Members were aware of weaknesses in GI protection: thus provision for further international negotiations (24.1), regular review (24.2), and a mandate to establish a multilateral “register” (23.4)…Weaknesses included:

Right-holders responsible for enforcement registration and/or litigation in every Member protection is expensive, cumbersome and slowUneven legal protection: “confusion test” can deliver divergent results legal uncertaintyImbalance in favour of wines and spirits GIsSins of the past are forgiven…


DevelopingDeveloping TRIPS: a GI TRIPS: a GI multilateralmultilateral registerregister……

• TRIPS Agreement (WTO): essential for the international protection of GIs, but can be further developed Solutions: “multilateral GI register” and “extension” of GI protection in the WTO

• The “multilateral GI register”: the EU proposed model in the DDALet’s imagine that the EU notifies “Bordeaux”Let’s imagine other Members oppose registration: e.g. USA, China,

New Zealand, Chile, Morroco

Effects: no Member will refuse toprotect “Bordeaux” later saying that itdoes not meet GI definition, is genericor is a false homonymous term. Plus a reversal of the burden of the proof in“participating Members”. No effects forMembers having challenged registrationwithin a deadline of 18 months.


……and its and its ““extensionextension””: TRIPS : TRIPS –– EU, EU, a comparison a comparison

Weak Protection (allows “Parmesan from Australia”)

Strong Protection (“type Manchego” , or translations such as “Parmesan”,forbidden)

Total Protection (any abuse is forbidden, even evocations or any other abusive use)

TRIP

S

Euro

pean

U

nion


Bilateral agreements offer Bilateral agreements offer a further route to better a further route to better international GI protectioninternational GI protection

• TRIPS agreement allows Members to establish in their law more extensive protection than the minimum established in the Agreement

• In Article 24 of TRIPS Members agree to enter into negotiations aimed at increasing the protection of individual GIs

• Such negotiations may address the applicability of TRIPS exceptions to protecion…

• The EU negotiates both specific GI agreements, and broader trade agreements which include an intellectual property chapter


The Protection of The Protection of GeographicalGeographical Indications Indications -- EU system and EU system and policypolicy --

Thank you for your attention

[email protected] TRADE, European Commission

Documents

The Protection of Geographical Indications - EU …eeas.europa.eu/archives/delegations/taiwan/documents/eu...The Protection of Geographical Indications - EU system and policy-EU –