The Protection of Geographical Indications - The EU system -

26.04.06

Protection of GIs in the EU -

WarsawSlide 1 of 18

The Protection of The Protection of Geographical Indications Geographical Indications

- The EU system- The EU system - -TAIEX Seminar on the protection of Geographical

Indications (GIs) – Challenges in Poland after accession to the EU

Warsaw, 26 April 2006

[email protected] TRADE, European Commission

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WarsawSlide 2 of 18

The EU approach: The EU approach: setting the scenesetting the scene

• Starting point: EU policies and GIs: CAP, consumer policy, trade policy aspects Geographical environment + « Savoir-faire » = Products with

special qualities linked to the area whose name (in principle) they carry protection of diversity and traditions in Europe…and abroad

• 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

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

misleading advertising, and on unfair competition

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WarsawSlide 3 of 18

Community system: Community system: basic legislationbasic legislation

• Council Regulation (EC) No 510/06 of 20 March 2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs

• Regulation 510/06 covers… Agricultural products intended for human consumption Foodstuffs (Beers, beverages from plant extracts, pastry, pasta…) Non-food agricultural products (essential oils, cork, flowers and

ornamental plants, wool…)• May not be registered…

Generic names• Rules of conflict on…

Names of plant varieties and animal breeds, homonymous names, and trademarks Recent Panel brought by US & Australia

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WarsawSlide 4 of 18

Community system: basic Community system: basic legislation & WTO Panellegislation & WTO Panel

• Council Regulation (EC) No 510/06 replaced Council Regulation 2081/92 following a WTO Panel brought by the US & Australia against it. Panel report was adopted on 20 April 2005.

• Main claims of US and Australia against Regulation 2081/92: Registration of foreign GIs, including issue of inspection structures « Coexistence » between GIs and certain prior trademarks

• Results of the WTO Panel: largely satisfactory for the EU Need to clarify that system is open to foreign GIs Need to remove compulsory participation of foreign governments in

registration procedure of GIs Confirmation that « coexistence » is consistent with WTO rules Confirmation that requirement of inspection structures is consistent

with WTO rules

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WarsawSlide 5 of 18

PDO and PGI: two PDO and PGI: two concepts, same protectionconcepts, same protection

• Both consist of the name of a region, a specific place or, in exceptional cases, a country, used to describe an agricultural product or foodstuff…

• AOP …originating in that region, specific place or country, and the quality or characteristics of which are essentially or exclusively due to a particular geographical environment with its inherent natural or human factors, and the production, processing and preparation of which take place in the defined geographical area

- IGP ...originating in that region, specific place or country, and which possesses a specific quality, reputation or other characteristics attributable to that geograhical origin, and the production and/or processing and/or preparation of which take place in the defined geographical area

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WarsawSlide 6 of 18

PDO and PGI: two PDO and PGI: two concepts, two logos…concepts, two logos…same same protectionprotection

AOP

IGP

IMPORTANT QUESTION: What do GIs

protect?

The registered names (and not the products or

methods of production

themselves)

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WarsawSlide 7 of 18

PDO / PGI: Differences?PDO / PGI: Differences?

COMMON FEATURES• Existence of link with

the « territory »• Geographical names

(but not always)• Types of product• Originating in the area

whose name they carry• Procedure• Level of protection

KEY DIFFERENCE• « Intensity » of link with territory• number of steps that have to take place in the relevant “geographical area”

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WarsawSlide 8 of 18

Registration procedure (I)Registration procedure (I)

The products must comply with a «product specification », which shall include at least: the name of the product the description of the product the definition of the geographical area proof of geographical origin: traceability must be ensured description of the method of obtaining the product justification of the link with the geographical environment inspection and control structures the specific labelling details relating to the indication PDO or

PGI

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WarsawSlide 9 of 18

Registration procedure (II)Registration procedure (II)• An association of producers/processors applies for registration• Application must include the product specification + single document • Application shall be sent to the Member State / third country government

where geographical area is located, or, for GIs outside the EU, directly to the European Commission

• If application satisfies requirements of Regulation and is justified, and after national objection procedure, Member State/third country shall forward single document and specification reference to the Commission

• Within a period of twelve months the European Commission verifies whether the application for registration is justified and meets the conditions laid down in the Regulation.

• If the Commission concludes that the name qualifies for protection, it publishes the single document and specification reference in the OJ

• A six months period for opposition is opened

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WarsawSlide 10 of 18

Registration procedure (III)Registration procedure (III)

• Who can object to registration? Any Member State or third country, as well as any legitimately

concerned natural or legal person outside Member State of origin, Within a six month period after publication in the OJ, by sending a

duly substantiated statement • On which grounds is an objection justified? Has to show:

a) non-compliance with the conditions linked to the concept PDO or PGI, notably the absence of a link between « product » and « territory»; or,

b) registration would impair the existence of a homonym or of a trademark or of products which have been on the market for at least 5 years; or,

c) name is generic in nature

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ProtectionProtection granted granted• Subject the names registered (and not the products /

methods de production themselves)• Scope PDO/PGI are protected against any…

Direct or indirect commercial use for comparable products / exploits the reputation

Misuse, imitation or evocation, even if the true origin is indicated, or the protected name is translated or accompanied with « style », « type », « method »…

Other false or misleading indication regarding provenance, origin, nature, qualities…or practice liable to mislead the public as to the true origin of the product

• Trademarks and GIs: peaceful co-existence. “Geographical” trademarks are not registered (in principle). Conflicts are unusual, but rules are necessary: “conflicting” trademarks have to be refused / invalidated; a GI liable to mislead the public with regard to a prior trademark has to be refused; plus “coexistence”

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Effects of GI protection: Effects of GI protection: 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)

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Effects of GI protection: Effects of GI protection: the the Piment d´EspelettePiment d´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…

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

Domestic Sales

Total Sales

0

10000

20000

30000

40000

50000

60000

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 tons per year

• 1.800 family farms with average of 40 ha.

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

treatment of applications by Member States and “single document”

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

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

• Finalise and implement results of DDA negotiations: GI extension and GI multilateral register

• A single Community system for GIs for all goods…?

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Protection in the WTO…Protection in the WTO…• TRIPS Agreement (WTO): essential for the international protection of GIs…

but level still insufficient Solutions: “multilateral GI register” and “extension” of GI protection in the WTO

• The “multilateral GI register”: the EU proposed model in the DDAEU notifies “Bordeaux”Other Members of the WTO oppose registration: USA, China, New Zealand, Chile, Morroco

Effects: GI “Bordeaux” will be presumedGI, it will no longer be possible torefuse registration at the national level based on the generic nature of the name or the non-respect of the conditions of the GI definition, except for the Members having challenged registration within theestablished deadline.

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……and its “extension”: TRIPS – EU, and its “extension”: TRIPS – 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)

TR

IPS

Eur

opea

n U

nion

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The Protection of The Protection of Geographical Indications Geographical Indications - The EU system- The EU system - -

Thank you for your attention

[email protected] TRADE, European Commission

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The Protection of Geographical Indications - The EU system -