Geographical indication


A geographical indication is a name or sign used on products which corresponds to a specific geographical location or origin. The use of a geographical indication, as an indication of the product's source, is intended as a certification that the product possesses certain qualities, is made according to traditional methods, or enjoys a good reputation due to its geographical origin.
Article 22.1 of the TRIPS Agreement defines geographical indications as "...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."
Appellation d'origine contrôlée is a sub-type of geographical indication where quality, method, and reputation of a product originate from a strictly defined area specified in its intellectual property right registration.

History

Governments have protected trade names and trademarks of food products identified with a particular region since at least the end of the 19th century, using laws against false trade descriptions or passing off, which generally protects against suggestions that a product has a certain protection benefits.
One of the first GI systems is the one used in France from the early part of the 20th century known as appellation d'origine contrôlée. Items that meet geographical origin and quality standards may be endorsed with a government-issued stamp which acts as official certification of the origins and standards of the product. Examples of products that have such "appellations of origin" include Gruyère cheese and many French wines.
Under "" of the 1919 Treaty of Versailles, Germany was forbidden from using allied geographical indications on products, which in particular affected the German "cognac" and "champagne" industries, as the French considered the terms misleading references to places in France. Since then, the terms "Weinbrand" and "Sekt" have been used instead.
Geographical indications have long been associated with the concept of terroir and with Europe as an entity, where there is a tradition of associating certain food products with particular regions. Under European Union Law, the protected designation of origin framework which came into effect in 1992 regulates the following systems of geographical indications: "Protected designation of origin", "protected geographical indication", and Traditional Specialities Guaranteed".
Since 2006, the European Union has required provisions in geographical indications in free trade agreements.

Areas covered

The primary examples of geographical indications include agricultural products and wines and spirits, such as Champagne, Colombian coffee, Feta cheese, or Longjing tea.
The use of geographical indications is not limited to agricultural products. A geographical indication may also highlight specific qualities of a product that are due to human factors found in the product's place of origin, such as specific manufacturing skills and traditions. For example handicrafts, which are generally handmade using local natural resources and usually embedded in the traditions of local communities.
An EU Regulation on geographical indication protection for craft and industrial products entered into force on 16 November 2023, introducing a new EU-wide GI protection scheme for these products. Following its entry into force, the EUIPO gained the authority to handle GIs for craft and industrial products. It showcased its continuous adaptation to new challenges and responsibilities in the IP realm. Leveraging its extensive experience in administering agricultural GIs, the EUIPO is well-prepared to assume competency over geographical indications for craft and industrial products.
From 1 December 2025, the EUIPO will be responsible for the registration of Geographical Indications for craft and industrial products. It will be possible to file applications for the registration of names of craft and industrial products meeting the necessary requirements in the EU. The European Union Intellectual Property Office is the body responsible for the management of this EU GI scheme.

Differences between geographical indications and other protections

Trademarks

Geographical indications and trademarks are distinctive signs used to distinguish goods or services in the marketplace. Both convey information about the origin of a good or service, and enable consumers to associate a particular quality with a good or service. Trademarks inform consumers about the source of a good or service. They identify a good or service as originating from a particular company. Trademarks help consumers associate a good or service with a specific quality or reputation, based on information about the company responsible for producing or offering it.
Geographical indications identify a good as originating from a particular place. Based on its place of origin, consumers may associate a good with a particular quality, characteristic or reputation. A trademark often consists of an arbitrary sign that may be used by its owner or another person authorized to do so. A trademark can be assigned or licensed to anyone, anywhere in the world, because it is linked to a specific company and not to a particular place. In contrast, the sign used to denote a geographical indication usually corresponds to the name of the place of origin of the good, or to the name by which the good is known in that place. A geographical indication may be used by all persons who, in the area of origin, produce the good according to specified standards. However, because of its link with the place of origin, a geographical indication cannot be assigned or licensed to someone outside that place or not belonging to the group of authorized producers.

Appellation of origin

Appellations of origin are a special kind of geographical indication. The term is used in the Paris Convention and defined in the Lisbon Agreement. Article 2 of the Lisbon Agreement defines appellations of origin as"... the geographical denomination of a country, region, or locality, which serves to designate a product originating therein, the quality or characteristics of which are due exclusively or essentially to the geographical environment, including natural and human factors." This definition suggests that appellations of origin consist of the name of the product's place of origin. However, a number of traditional indications that are not place names, but refer to a product in connection with a place, are protected as appellations of origin under the Lisbon Agreement and Vinho Verde ).It is sometimes argued that products with a certain reputation, but no other quality due to their place of origin are not considered appellations of origin under the Lisbon Agreement. However, this interpretation is not universally accepted.
Nevertheless, appellations of origin and geographical indications both require a qualitative link between the product to which they refer and its place of origin. Both inform consumers about a product's geographical origin and a quality or characteristic of the product linked to its place of origin. The basic difference between the two terms is that the link with the place of origin must be stronger in the case of an appellation of origin. The quality or characteristics of a product protected as an appellation of origin must result exclusively or essentially from its geographical origin. This generally means that the raw materials should be sourced in the place of origin and that the processing of the product should also happen there. In the case of geographical indications, a single criterion attributable to geographical origin is sufficient, be it a quality or other characteristic of the product, or only its reputation. Moreover, the production of the raw materials and the development or processing of a GI product do not necessarily take place entirely in the defined geographical area. The term appellation of origin is often used in laws that establish a specific right and system of protection for geographical indications, in so-called sui generis systems of protection. Geographical indication is a more general concept that does not determine a specific mode of protection.

Rural development effects

Geographical indications are generally applied to traditional products, produced by rural, marginal or indigenous communities over generations, that have gained a reputation on the local, national or international markets due to their specific unique qualities.
Producers can add value to their products through Geographical Indications by:
  • communicating to consumers the product's characteristics, which derive from the climate, soil and other natural conditions in its particular geographical area;
  • promoting the conservation of local traditional production processes; and
  • protecting and adding value to the cultural identity of local communities.
The recognition and protection on the markets of the names of these products allows the community of producers to invest in maintaining the specific qualities of the product on which the reputation is built. Most importantly, as the reputation spreads beyond borders and demand grows, investment may be directed to the sustainability of the environment where these products originate and are produced. In the International Trade Centre's "Guide to Geographical Indications: Linking Products and their Origins", authors Daniele Giovannucci, Professor Tim Josling, William Kerr, Bernard O'Connor and May T. Yeung clearly assert that geographical indications are by no means a panacea for the difficulties of rural development. They can however offer a comprehensive framework for rural development, since they can positively encompass issues of economic competitiveness, stakeholder equity, environmental stewardship, and socio-cultural value. The application of circular economy will ensure socio-economic returns in the long-run to avoid growth at an environmental cost. This approach for GI development may also allow for investment together with promoting the reputation of the product along the lines of sustainability when and where possible.
Rural development impacts from geographical indications, referring to environmental protection, economic development and social well-being, can be:
  • the strengthening of sustainable local food production and supply ;
  • a structuring of the supply chain around a common product reputation linked to origin;
  • greater bargaining power to raw material producers for better distribution so as for them to receive a higher retail price benefit percentage;
  • capacity of producers to invest economic gains into higher quality to access niche markets, improving circular economy means throughout the value chain, protection against infringements such as free-riding from illegitimate producers, etc.;
  • economic resilience in terms of increased and stabilised prices for the GI product to avoid the commodity trap through de-commodisation, or to prevent/minimise external shocks affecting the premium price percentage gains ;
  • added value throughout the supply chain;
  • spill-over effects such as new business and even other GI registrations;
  • preservation of the natural resources on which the product is based and therefore protect the environment;
  • preservation of traditions and traditional knowledge;
  • identity based prestige;
  • linkages to tourism.
None of these impacts are guaranteed and they depend on numerous factors, including the process of developing the geographical indications, the type and effects of the association of stakeholders, the rules for using the GI, the inclusiveness and quality of the collective dimension decision making of the GI producers association and quality of the marketing efforts undertaken.
In China, the use of GIs have increased farmers' incomes and helped reduce rural poverty.