ARTICLE
2 May 2025

Geographical Indications (GIS): A Tool For Protecting Local Products

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S&A Law Offices

Contributor

S&A Law Offices is a full-service law firm comprising experienced, well-recognized and accomplished professionals. S&A Law Offices aims to provide its clients (both domestic and international) with top-quality counsel and legal insights, which combines the Firm's innovative approach with comprehensive expertise across industries and a broad spectrum of modalities. Being a full-service law firm, we take pride in having the capability of providing impeccable legal solutions across various practice areas and industries and makes an endeavor to provide a 360 degree legal solution. With registered office at Gurugram and other strategically located offices in New Delhi, Mumbai, and Bengaluru, along with associate offices across India, S&A is fully equipped to provide legal services on a pan-India basis.
Geographical indications (GIs) are types of IP rights that identify (kind of sign) for goods that originate from a specific geographical area and possess quality, reputation...
India Intellectual Property

Introduction

Geographical indications (GIs) are types of IP rights that identify (kind of sign) for goods that originate from a specific geographical area and possess quality, reputation, or other attributes primarily related to their geographical place of origin.

History

 The first GI systems, known as the Appellate d'Orgine Controloli (AOC), were used in France in the early twentieth century. Goods that comply with the geographic origin and quality criteria may receive government approval, which acts as the official certification of the product's origin and standards for consumers. Examples: Gruyère cheese (from Switzerland) and several French wines.

There were 04 International multilateral agreements which were working on the issue of protection of geographical indication:

  • The Paris Convention defined geographical indicators as indications of source and appellations of origin. The term appellation of origin was first mentioned under this convention but has not been defined.
  • The Madrid Agreement provided better protection for geographical indications, as it prohibited misleading and false indications.
  • The Lisbon Agreement provides a firm insurance policy intercontinental in-role mint arrangement in geographical science. It offers stronger protection for the appellation and ensures an appellation of origin guarantee.
  • TRIPS Agreement: It provides a mechanism for interested parties to prevent untruthful and misleading uses of geographical indications. The main concern of the member states is that literal truth is not a defence if geographical indications mislead the public.

In 1999, the Indian Parliament enacted the Geographical Indication of Goods (Registration and Protection) Act, which identifies and safeguards products that originate or are produced within a specific country, region, or locality. This legislation ensures that these goods' distinctive quality, reputation, or other attributes are fundamentally linked to their geographical origin.

Difference between GI and trademark

GI

Trademark

Definition: Geographical indications (GIs) are intellectual property (IP) rights that serve to identify (kind of sign) for goods that originate from a specific geographical area and possess quality, reputation, or other characteristics that are essentially attributable to their geographical origin.

Definition: A trademark can be any word, phrase, symbol, design, or combination of these things that identifies goods or services. It is a means by which customers recognize a company (or their goods and services) in the marketplace and distinguish it from competitors.

Origin: GI is not created by intellect or creativity but due to its origin in nature or area.

Origin: A trademark is created by a man's intellect or creative genius.

Scope: Protection of goods related to custom, tradition or nature of the production of a particular area.

Scope: Protection of goods related to the reputation or goodwill of the company in the marketplace.

Other Factor: Social recognition is already present before the need for protection arises.

Other Factor: Social recognition may or may not present before the need for protection arises.

Subject matters are not registrable.

Under provisions of section 2(1) and 9 of the Geographical Indication Act, 1999, the following subject matters which are prohibited by law for the registration of a geographical indication are:

  1. the use of which would be likely to mislead or confuse; or
  2. the use of which would be contrary to any enacted or being in-force law or
  3. which contains offensive or scandalous matters or
  4. which contains any matter that could hurt the religious/cultural sentiments of any class or section of India or
  5. which would not otherwise be eligible for legal protection in a court or
  6. which are determined to be generic names or indications of goods and are, therefore, no longer protected in their country of origin or have ceased to be used there or
  7. It cannot be registered as a geographical indication if it is true about the territory, region, or locality where the goods originate but deceives people into believing that the goods originate in another territory, region, or locality, as applicable.

Rights of a GI holder

There are the following rights which a GI holder enjoys:

  • Right to protect
  • Right to get relief
  • Right to grant license
  • Right to use

Benefits:

Given below are the following essential features which make it unique:

  • Develop consumer confidence: They assure consumers about the quality and authenticity of the products, as GIs are often associated with specific standards and production methods.
  • Provides a competitive advantage: GIs help differentiate products in the market, making it easier for consumers to identify and choose products based on their geographical origin and associated qualities.
  • Commitment to social responsibility: They can promote rural development by encouraging the production of traditional products, leading to job creation and economic growth in rural areas.
  • Protects traditions and local cultures: GIs help preserve cultural heritage and traditional knowledge by protecting products that have historical and cultural significance.
  • Support economic development: GIs can enhance the market value of products, allowing producers to charge premium prices due to the unique qualities and reputation associated with the geographical origin.

Disadvantages

In addition to their many advantages, Geographical Indications (GIs) have some drawbacks:

  • Restricted Use: The GI can only be used by producers located within the specified geographic area, which may make it more difficult for other companies to manufacture and sell comparable goods.
  • Monopoly: GIs have the potential to establish a type of monopoly in which only a small number of producers profit from the GI designation, which could result in higher consumer prices.
  • Complex Registration Process: Registering a GI can be time-consuming and complicated, demanding a significant investment of time and money.
  • Enforcement Challenges: Protecting and enforcing GIs can be challenging, particularly in global marketplaces where enforcement and protection standards vary among nations.

Conclusion

Geographical Indications (GIs) are essential for safeguarding the distinctive characteristics and standing of goods in particular areas. They provide substantial social, cultural, and economic advantages, including raising market value, encouraging rural growth, protecting cultural heritage, and fostering customer confidence. However, GIs have challenges, including complex registration processes, enforcement difficulties, and potential market monopolies.

Overall, protecting GIs is essential for preserving cultural traditions, boosting local economies, and preserving the integrity and authenticity of regional goods. The beneficial effects of GIs on producers and consumers can be maximized by weighing the advantages and resolving the drawbacks.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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