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ipr- unit 4

Geographical Indications (GIs) are signs used on products with specific geographical origins that confer unique qualities or reputation linked to that region. In India, the Geographical Indications of Goods (Registration and Protection) Act, 1999 provides legal protection for GIs, ensuring that only authorized producers can use the GI tag, which helps preserve cultural heritage, boosts local economies, and prevents misuse. The registration process involves eligibility criteria, application procedures, and rights conferred to registered holders, promoting the authenticity and marketability of indigenous products.

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0% found this document useful (0 votes)
25 views22 pages

ipr- unit 4

Geographical Indications (GIs) are signs used on products with specific geographical origins that confer unique qualities or reputation linked to that region. In India, the Geographical Indications of Goods (Registration and Protection) Act, 1999 provides legal protection for GIs, ensuring that only authorized producers can use the GI tag, which helps preserve cultural heritage, boosts local economies, and prevents misuse. The registration process involves eligibility criteria, application procedures, and rights conferred to registered holders, promoting the authenticity and marketability of indigenous products.

Uploaded by

Medha Hegde
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Geographical Indications

A Geographical Indication (GI) refers to a sign used on products that have a specific geographical
origin and possess qualities, reputation, or characteristics that are essentially attributable to that
place of origin. The concept of GI is based on the principle that certain products are intrinsically
linked to the geographical region where they are produced due to unique environmental factors or
traditional know-how.

Under the Geographical Indications of Goods (Registration and Protection) Act, 1999 in India, a GI
tag ensures that only authorized users or producers from the specified region can use the indication
for the product. Examples of Indian GI-tagged products include Darjeeling Tea, Mysore Silk, and
Kolhapuri Chappals.

Scope of Geographical Indications

The scope of geographical indications extends to a wide range of goods, including agricultural
products, foodstuffs, handicrafts, industrial products, and natural goods. For agricultural goods, the
geographical location often directly influences the product's specific qualities due to factors such as
soil, climate, and traditional farming methods. In the case of handicrafts, traditional skills, materials,
and processes linked to the region contribute to the uniqueness of the product.

Globally, GI protection is governed by the TRIPS Agreement (Trade-Related Aspects of Intellectual


Property Rights), which mandates that member countries of the World Trade Organization (WTO)
provide legal means to protect geographical indications. This gives producers exclusive rights to use
the GI label, thereby preventing misuse or unfair competition.

Importance of Geographical Indications

1. Protection of Regional Heritage: GIs help in preserving the cultural identity and traditional
knowledge associated with a specific region. For example, Pochampally Ikat and Banarasi
Sarees are known for their rich heritage and craftsmanship.

2. Economic Benefits: GI-tagged products often command premium prices in national and
international markets due to their authenticity, thereby boosting the local economy and
improving the livelihoods of producers.

3. Prevention of Misuse: A registered GI ensures that only legitimate producers from the
designated region can use the GI tag. This prevents counterfeit products from diluting the
brand value and reputation of the authentic goods.

4. Encouragement of Sustainable Production: Many GI products are produced using eco-


friendly and sustainable methods that have been practiced traditionally. By promoting such
products, GIs encourage environmental conservation.

5. Export Promotion: Products with GI tags have a better reputation in foreign markets, helping
increase export potential. For instance, Darjeeling Tea has a strong demand globally because
of its recognized quality and GI certification.

6. Consumer Awareness: A GI tag assures consumers of the product’s authenticity, origin, and
quality, enhancing trust and willingness to pay a premium.
In conclusion, geographical indications play a crucial role in safeguarding the unique identity of
regional products while contributing to economic development and cultural preservation. By
fostering innovation and sustainability, GIs not only protect traditional knowledge but also enhance
the global recognition of indigenous products.

Essentials of Geographical Indications

1. Link with a Specific Geographical Region


The product must have a specific geographical origin, and its uniqueness must be directly
attributable to the natural or human factors associated with that region. For instance, the
distinct flavor of Darjeeling Tea is a result of the unique climatic conditions of the Darjeeling
region.

2. Unique Characteristics or Quality


The product must possess distinct characteristics, reputation, or qualities that differentiate it
from similar products produced elsewhere. These characteristics may include specific raw
materials, traditional methods of production, or environmental factors such as soil, water,
and climate.

3. Reputation and Consumer Recognition


The product must have gained a reputation among consumers due to its origin and specific
qualities. This reputation is often developed over time and is associated with a region’s
heritage or expertise. For example, Mysore Silk is known for its fine quality and
craftsmanship, which have been recognized for centuries.

4. Traditional Know-How or Production Methods


The production of GI-tagged products typically involves traditional knowledge, skills, or
techniques passed down through generations. This aspect ensures that the product retains
its authenticity and uniqueness. For instance, Pochampally Ikat requires specific weaving
techniques unique to the Pochampally region.

5. Registration and Protection


For a product to be legally recognized as a GI, it must be registered under the applicable law.
In India, the Geographical Indications of Goods (Registration and Protection) Act, 1999
governs the registration and protection of GIs. Once registered, the GI tag ensures that only
authorized producers from the specified region can use the GI label.

6. Exclusivity of Origin
Only producers from the defined geographical region are entitled to use the GI tag. This
exclusivity prevents misuse by producers outside the region and ensures that the product
remains authentic. For example, only farmers from the designated regions in Karnataka,
Kerala, and Tamil Nadu can use the "Malabar Pepper" GI.

7. Natural and Human Factors


The distinctiveness of the product should be attributable to the interplay of natural and
human factors. Natural factors include soil, climate, and topography, while human factors
involve traditional skills, cultural practices, and methods of production unique to the region.
Salient Features of the Act

1. Purpose and Objectives


 The Act aims to protect GIs in India, ensuring that the unique qualities and reputation of
region-specific goods are preserved.
 It seeks to prevent unauthorized use of GIs, ensuring producers' rights and promoting the
economic prosperity of the regions associated with the GIs.
 It enhances the marketability of indigenous products in domestic and international markets.
2. Key Definitions
 Geographical Indication: Refers to goods originating from a specific territory, region, or
locality where the quality, reputation, or characteristics are essentially linked to their
geographical origin.
 Goods: Includes agricultural, natural, manufactured goods, handicrafts, and industrial
products.
 Producer: Includes individuals or entities engaged in producing, processing, or
manufacturing goods tied to a GI.
3. Structure and Administration
 Registrar and Registry: The Controller-General of Patents, Designs, and Trade Marks is the
Registrar of Geographical Indications, with the Geographical Indications Registry
headquartered at a designated location.
 The registry maintains a two-part register:
o Part A: Details the registered GIs.
o Part B: Contains information about authorized users.
4. Eligibility for Registration
 Associations of persons, producers, organizations, or authorities representing the interests of
producers can apply for registration.
 The application must detail:
o The specific geographical link of the goods.
o Maps of the area associated with the GI.
o Characteristics, reputation, or other unique attributes tied to the location.
5. Conditions for Registration
 GIs that deceive or cause confusion are prohibited.
 Scandalous, obscene, or generic terms (e.g., names that have become common descriptions
for goods) are not eligible.
 The Act prohibits GIs that falsely represent their origin or misuse terms protected
internationally.
6. Registration Procedure
 The application undergoes examination by the Registrar, followed by publication in the GI
Journal for public scrutiny.
 Oppositions to the registration can be filed by interested parties, and decisions are made
after hearings.
 Successful registration grants the applicant the exclusive right to use the GI.
7. Duration and Renewal
 The initial registration is valid for 10 years and can be renewed indefinitely in successive 10-
year increments.
 Non-renewal leads to removal from the register, but there are provisions for restoration
within a specified period.
8. Rights Conferred by Registration
 Registered proprietors and authorized users gain exclusive rights to use the GI in connection
with the specified goods.
 They are entitled to legal remedies in case of infringement.
 Registration serves as prima facie evidence of validity in legal proceedings, strengthening the
enforceability of rights.
9. Infringement and Remedies
 Infringement occurs when a GI is used without authorization, leading to consumer confusion
or unfair competition.
 Legal remedies include:
o Injunctions to prevent further misuse.
o Compensation for damages.
 Criminal penalties for falsification or false application of GIs include imprisonment (six
months to three years) and fines (₹50,000 to ₹2,00,000).
10. Special Provisions
 Homonymous GIs: These are identical or similar GIs from different regions. The Act allows
their registration if practical measures ensure consumer clarity.
 Trade Marks: GIs cannot be registered as trademarks if they are misleading or conflict with
prior GIs.
 Exceptions allow the use of a GI as a trademark in cases where it was registered in good faith
or acquired through prior use.
11. Rectification and Appeals
 Errors in registration or disputes regarding GIs can be addressed through rectification.
 Aggrieved parties can appeal the Registrar’s decisions in the High Court.
12. International Aspects
 The Act aligns with international standards under TRIPS, ensuring reciprocity for the
protection of foreign GIs in India.
 Provisions exist for additional protection of select goods, particularly those with global
recognition, such as Darjeeling Tea or Basmati Rice.

Procedure for Registration of Geographical Indications

1. Eligibility to Apply (Section 11(1))


 Any association of persons, producers, or an organization representing the interests of
producers can apply for registration.
 The applicant must have an interest in the GI and be responsible for safeguarding its
authenticity.
2. Application for Registration (Section 11(2))
The application for registering a GI must include:
 A statement specifying how the GI designates the goods as originating from a specific
geographical region.
 A geographical map of the territory related to the GI.
 Details about the special quality, reputation, or other characteristics attributable to the
region.
 The class of goods to which the GI applies.
 A description of the appearance of the GI, whether in the form of words, figurative
elements, or both.
 Particulars of the producers initially registered with the GI.
 Other information as prescribed under the rules.
3. Filing Location (Section 11(4))
 Applications must be filed at the Geographical Indications Registry, located within the
territorial limits of the geographical area to which the GI relates.
4. Examination of Application (Section 11(5))
 The Registrar of Geographical Indications examines the application to ensure compliance
with the Act and the rules.
 If deficiencies are found, the Registrar may ask for clarifications or modifications from the
applicant.
5. Acceptance or Refusal (Section 11(6) and 12)
 The Registrar may:
o Accept the application outright.
o Accept it with conditions, amendments, or modifications.
o Refuse the application if it does not meet the criteria for registration.
 If the application is refused or conditionally accepted, the Registrar must record the reasons
in writing.
6. Advertisement of Application (Section 13)
 Accepted applications are advertised in the GI Journal to invite public scrutiny and
objections.
 The advertisement must specify any conditions or limitations imposed on the registration.
7. Opposition to Registration (Section 14)
 Any person can file an opposition to the registration within three months from the date of
advertisement (extendable by one month).
 The procedure involves:
o Filing a notice of opposition.
o Providing a counter-statement by the applicant.
o Submission of evidence by both parties and a hearing conducted by the Registrar.
 The Registrar decides whether to grant or deny registration based on the evidence and
arguments presented.
8. Registration of Geographical Indication (Section 16)
 If there is no opposition or the opposition is resolved in favor of the applicant, the Registrar
registers the GI.
 The registration is effective from the date of application.
 The applicant and any authorized users (if applicable) receive a Certificate of Registration
bearing the seal of the Geographical Indications Registry.
9. Validity and Renewal (Section 18)
 The registration of a GI is valid for 10 years from the date of application and can be renewed
indefinitely for successive 10-year periods.
 Non-payment of renewal fees may result in the removal of the GI from the register. However,
restoration is possible within a specified period upon payment of prescribed fees and
surcharges.
10. Rectification and Amendment (Sections 15, 27, and 28)
 The Act allows for the correction of errors or amendment of applications during or after the
registration process.
 Rectifications may include:
o Modifications to the name, address, or details of the registered proprietor or
authorized users.
o Deletion of goods or classes of goods from the registration.
Prohibited GIs (Section 9)
Certain GIs are not eligible for registration if they:
 Are likely to deceive or cause confusion.
 Contain scandalous or obscene matter.
 Hurt the religious susceptibilities of any class or section of Indian citizens.
 Are generic terms that have lost their connection to a specific region.
Registration of Authorized Users (Section 17)
 Producers of goods covered under a registered GI can apply to be recognized as authorized
users.
 The process mirrors that of GI registration, including application, examination,
advertisement, and possible opposition.
11. Rights Conferred by Registration (Section 21)
 Registration grants the proprietor and authorized users:
o Exclusive rights to use the GI in relation to the registered goods.
o Legal protection against infringement and misrepresentation.

Rights of Registered Geographical Indications Holders

1. Exclusive Rights to Use the GI (Section 21(1))


 Registered Proprietors:
o The registered proprietor of a GI (e.g., an association of producers or an
organization) has the exclusive right to use the GI in relation to the goods for which it
is registered.
 Authorized Users:
o Individuals or entities registered as authorized users also have the exclusive right to
use the GI for the specified goods.
o This ensures that only legitimate producers can benefit from the reputation and
economic value of the GI.
2. Right to Prevent Unauthorized Use (Section 22)
 Registered holders have the right to prevent third parties from using the GI without
authorization.
 Unauthorized use includes:
o Application of the GI to goods not originating from the registered geographical area.
o Misleading or deceptive use of the GI that suggests false geographical origin.
o Use of the GI in a manner that constitutes unfair competition or passing off.
3. Right to Seek Legal Remedies Against Infringement (Sections 67 and 22)
 Civil Remedies:
o The registered proprietor and authorized users can file suits for:
 Injunctions to stop further unauthorized use.
 Compensation for damages caused by infringement.
 Accounts of profits earned by infringers from the misuse of the GI.
o The court may also order the destruction or confiscation of goods with falsely
applied GIs.
 Criminal Remedies:
o Proprietors have the right to initiate criminal proceedings against infringers, leading
to penalties such as imprisonment and fines.
4. Right to Assign Rights to Authorized Users (Section 17)
 The registered proprietor can authorize specific producers within the geographical area to
register as authorized users.
 Authorized users gain the same exclusive rights to use the GI on their goods, ensuring fair
participation among genuine producers.
5. Right to Renewal (Section 18)
 The GI registration is valid for 10 years from the date of application and can be renewed
indefinitely in successive 10-year periods.
 The proprietor has the right to renew the GI and ensure its continued protection.
 Authorized users must renew their registration to maintain their rights.
6. Prima Facie Evidence of Validity (Section 23)
 Registration of a GI serves as prima facie evidence of its validity in legal proceedings.
 This shifts the burden of proof to the alleged infringer, simplifying legal enforcement for
registered proprietors and authorized users.
7. Right to Additional Protection for Certain Goods (Section 22(3))
 For specific goods (e.g., wines and spirits), proprietors have the right to seek additional
protection under the Act.
 This includes preventing the use of expressions like "kind," "type," or "style" to describe non-
originating goods that mimic the registered GI.
8. Right to Prevent GI Dilution
 Registered holders can prevent the use of the GI in a way that dilutes its distinctiveness, such
as by becoming generic or losing its association with the specific region.
9. Rights Against Passing Off
 Even if a GI is not registered, the proprietor can rely on common law rights to prevent
passing off, where goods are misrepresented as originating from the registered geographical
area.
10. Rights in International Markets
 Through international agreements like the TRIPS Agreement, registered GIs can be protected
in other member countries, allowing proprietors to enforce their rights abroad.
11. Rights to Rectification (Section 27)
 Registered proprietors can apply for rectification of the GI Register if:
o Errors or omissions exist in the registration details.
o Unauthorized entries or modifications are made.
 This ensures the accuracy and integrity of the registration.
12. Rights Over Collective Use
 The GI cannot be assigned, transmitted, or licensed, ensuring collective ownership and
benefits for the community or region associated with the GI (Section 24).
 On the death of an authorized user, their rights can pass to their successor under the law.

Role and Functions of the Registrar of Geographical Indications

1. Appointment and Authority (Section 3)


 The Controller-General of Patents, Designs, and Trade Marks acts as the Registrar of
Geographical Indications under the Act.
 The Registrar operates under the superintendence and direction of the Central Government
and may delegate specific functions to other officers as deemed necessary.
2. Establishing and Managing the GI Registry (Section 5)
 The Registrar oversees the establishment of the Geographical Indications Registry, which
serves as the primary body for handling GI registrations.
 The central office is located at a designated place, and branch offices may be established to
facilitate access to GI registration services.
 The Registrar ensures the Registry is equipped with proper infrastructure, including
maintaining records electronically, to enhance efficiency.
3. Maintenance of the GI Register (Section 6)
 The Registrar is responsible for maintaining the Register of Geographical Indications, which
is divided into:
o Part A: Records details of registered GIs.
o Part B: Contains particulars of authorized users.
 The Register includes comprehensive information such as the GI name, details of proprietors
and authorized users, and other prescribed particulars.
 The Registrar ensures the Register is accurate, updated, and protected from unauthorized
alterations.
4. Examination of Applications (Section 11(5))
 The Registrar examines GI registration applications to ensure compliance with the Act's
requirements.
 During the examination, the Registrar may seek additional information, clarifications, or
amendments from applicants.
5. Acceptance or Refusal of Applications (Sections 11(6) and 12)
 The Registrar can:
o Accept the application outright.
o Accept it conditionally, subject to modifications or limitations.
o Refuse the application if it fails to meet the eligibility criteria.
 In cases of refusal or conditional acceptance, the Registrar must record the reasons in
writing.
6. Publication in the GI Journal (Section 13)
 Upon accepting an application (conditionally or unconditionally), the Registrar ensures it is
advertised in the Geographical Indications Journal.
 This allows public scrutiny and provides an opportunity for objections or opposition.
7. Addressing Opposition to Registration (Section 14)
 The Registrar handles notices of opposition to GI registration filed by third parties.
 The Registrar facilitates the resolution process, which includes:
o Serving the notice of opposition to the applicant.
o Receiving counter-statements and evidence from both parties.
o Conducting hearings and deciding the matter based on the evidence presented.
8. Registration and Issuance of Certificates (Section 16)
 Upon successful completion of the process, the Registrar registers the GI and, if applicable,
authorized users.
 The Registrar issues a Certificate of Registration to the applicant and authorized users,
sealed with the Registry's official seal.
9. Renewal and Restoration of GIs (Section 18)
 The Registrar oversees the renewal process for registered GIs, ensuring their protection is
extended beyond the initial 10-year validity period.
 If a GI registration is removed for non-payment of fees, the Registrar facilitates its restoration
upon receipt of prescribed fees within the allowable timeframe.
10. Rectification and Correction of the Register (Sections 27 and 28)
 The Registrar has the power to:
o Rectify errors in the Register, such as incorrect names or addresses.
o Cancel or vary a GI registration if conditions of the registration are not adhered to.
o Strike out goods or classes of goods from the Register if necessary.
 The Registrar may initiate rectification proceedings suo motu or upon receiving an
application from an aggrieved party.
11. Protection of Registered GIs (Sections 20-24)
 The Registrar ensures that only registered GIs enjoy protection under the Act.
 The Registrar facilitates legal action against infringement, falsification, or misuse of
registered GIs.
12. Role in Legal Proceedings (Section 35)
 The Registrar can appear in legal proceedings relating to GIs, especially when the relief
sought involves rectification or alteration of the Register.
 The Registrar may submit statements or evidence to the courts regarding GI-related disputes.
13. Adjudication of Penalties (Section 37A)
 The Registrar may appoint an adjudicating officer to impose penalties for contraventions of
the Act.
 The Registrar ensures offenders are given a reasonable opportunity to be heard before
penalties are imposed.
14. Publication and Public Access (Section 78)
 The Registrar ensures that the GI Register and other documents are open to public
inspection.
 The Registrar publishes reports and maintains transparency in the Registry's functioning.
15. Special Functions
 Issuance of Notifications: The Registrar can publish classifications of goods under
international classification systems to guide applicants (Section 8(2)).
 Handling Homonymous GIs: The Registrar evaluates and differentiates homonymous GIs to
ensure no consumer confusion arises (Section 10).
 Promoting Awareness: The Registrar contributes to promoting awareness about GIs and
their protection among producers and the public.
16. Discretionary Powers (Section 61)
 The Registrar exercises discretionary powers judiciously while making decisions, such as
determining the eligibility of applications or imposing conditions for registration.

Conditions for Registration of Geographical Indications (GIs)

1. Definition of a Geographical Indication (Section 2(e))


 A GI identifies goods as originating or being manufactured in a specific territory, region, or
locality where:
o The quality, reputation, or other characteristics of the goods are essentially
attributable to their geographical origin.
o In the case of manufactured goods, at least one of the production, processing, or
preparation stages must take place in the specified territory.
2. Eligibility Criteria for Registration
To qualify for registration, a GI must satisfy the following:
a. Connection to a Specific Territory (Section 11(2)(a)):
 The GI must indicate that the goods originate from a specific region, territory, or locality.
 It should link the unique characteristics, quality, or reputation of the goods to their
geographical environment, including natural and human factors.
b. Class of Goods (Section 8(1)):
 The registration must be in respect of particular goods classified under specific categories,
such as:
o Agricultural goods (e.g., Darjeeling Tea).
o Natural goods (e.g., Makrana Marble).
o Handicrafts (e.g., Banarasi Sarees).
o Industrial goods (e.g., Mysore Sandalwood Oil).
 The Registrar classifies goods based on international classifications for consistency.
3. Prohibited Geographical Indications (Section 9)
Certain GIs are explicitly prohibited from registration to maintain fairness and avoid consumer
deception:
a. Deceptive GIs:
 GIs that are likely to deceive or cause confusion regarding the origin, nature, or
characteristics of the goods are not registrable.
b. GIs Contravening the Law:
 Any GI that violates existing laws in force, including those with scandalous or obscene matter,
is barred from registration.
c. Religious Sensitivities:
 GIs that are likely to hurt the religious susceptibilities of any class or section of citizens are
prohibited.
d. Generic Names (Section 9(f)):
 A GI cannot be registered if it has become a generic name in India, meaning it is commonly
used to describe a type or class of goods rather than goods from a specific region.
 For example, terms like "Cheddar Cheese" have become generic in some jurisdictions.
e. False Representation (Section 9(g)):
 A GI that falsely represents the origin of the goods, even if literally true about the region
mentioned, is not eligible.
4. Registration of Homonymous GIs (Section 10)
 Homonymous GIs are identical or similar names used for goods from different geographical
areas (e.g., multiple regions producing "Napa Valley" wines).
 They may be registered if:
o Consumers are not confused or misled.
o Practical conditions differentiate the goods, ensuring equitable treatment for
producers.
5. Application Requirements (Section 11(2))
To ensure eligibility, the GI application must include:
 A detailed description of how the GI designates the goods and the connection to the
geographical area.
 A geographical map of the region.
 The appearance of the GI, whether as words, symbols, or a combination.
 Details of producers initially associated with the GI.
 Particulars about the goods' quality, reputation, or characteristics.
6. Specific Limitations (Section 8(1)):
 A GI can be registered only for specific goods and within a defined geographical area.
 The Registrar determines and classifies the goods and their area of origin, and their decision
is final.
7. Additional Requirements
 The GI must not conflict with a pre-existing trademark registered in good faith (Section 26).
 The applicant must provide evidence of use, reputation, or historical significance of the GI in
association with the goods.
8. Role of the Registrar
 The Registrar examines the application to ensure compliance with all the conditions of
registration.
 If an application fails to meet the conditions, it may be rejected or conditionally accepted
with modifications.

Geographical indications (GIs) and trademarks


Geographical indications (GIs) and trademarks are both forms of intellectual property protection, but
they serve different purposes and operate in distinct ways:
1. Purpose:
o Geographical Indications (GIs): GIs identify products that have a specific
geographical origin and possess qualities, reputation, or characteristics inherent to
that location. For example, "Champagne" refers to sparkling wine from the
Champagne region in France, and the quality of the wine is directly tied to the
region’s specific climate and soil.
o Trademarks: Trademarks are symbols, names, logos, or other identifiers used by
businesses to distinguish their goods or services from those of other businesses. A
trademark serves to identify the source of a product or service and protect the brand
identity of a company, such as the Nike swoosh or the Apple logo.
2. Ownership:
o Geographical Indications (GIs): GIs are typically owned collectively by a community,
association, or group of producers in the region. The right to use a GI is generally tied
to the producers within that region and is not controlled by a single individual or
business.
o Trademarks: Trademarks are owned by individuals or businesses who have
registered them. The owner has exclusive rights to use the trademark in relation to
the goods or services it represents.
3. Scope of Protection:
o Geographical Indications (GIs): The protection is based on the geographical origin of
the product and is specific to certain goods that meet specific criteria. GIs ensure
that only products originating from a specific region can use the indication.
o Trademarks: Trademarks provide protection against the unauthorized use of a
specific sign or symbol by other businesses, regardless of geographical origin. It is
not necessarily tied to a particular location.
4. Examples:
o Geographical Indications (GIs): Darjeeling tea, Roquefort cheese, and Kanchipuram
silk are examples of products protected by GIs.
o Trademarks: Coca-Cola, McDonald’s, and Samsung are examples of companies that
have trademarks for their brands.
5. Legal Framework:
o Geographical Indications (GIs): GIs are generally regulated by laws specific to each
country or international agreements such as the World Trade Organization’s TRIPS
(Trade-Related Aspects of Intellectual Property Rights) Agreement.
o Trademarks: Trademarks are regulated by trademark laws in each country, and
businesses must register their marks with relevant authorities to obtain exclusive
rights.
In summary, while both GIs and trademarks protect intellectual property, GIs are linked to the
geographical origin and qualities of a product, and trademarks protect the brand identity and
distinguish products or services from one another in the marketplace.

GI and TRIPs Agreement

The TRIPS (Trade-Related Aspects of Intellectual Property Rights) Agreement, which is administered
by the World Trade Organization (WTO), provides a comprehensive legal framework for the
protection of intellectual property rights (IPRs) globally. Within this framework, Geographical
Indications (GIs) occupy an important position as they relate to the protection of products whose
qualities or reputation are linked to their geographical origin. The protection of GIs under the TRIPS
Agreement is a critical issue for international trade, as it strikes a balance between encouraging the
protection of traditional knowledge and practices and addressing global trade concerns.
1. TRIPS and Geographical Indications

The TRIPS Agreement contains specific provisions regarding the protection of geographical
indications, primarily under Section 3 of Part II (Protection of Industrial Property) of the agreement.
Articles 22 to 24 of the TRIPS Agreement govern the protection of GIs:

 Article 22 (Protection of Geographical Indications): This article is the cornerstone of GI


protection under TRIPS. It establishes the minimum standard for GI protection, focusing on
the protection against the use of misleading GIs that could deceive the public about the true
origin of a product. Specifically, Article 22.1 states that GIs shall be protected against any use
that misleads the public as to the geographical origin of the product, or that could harm the
reputation of the GI.

 Article 23 (Additional Protection for Wines and Spirits): This provision grants additional
protection for GIs used on wines and spirits. It recognizes that wines and spirits may have a
unique connection to a specific geographical area, and that unauthorized use of the GI on
non-origin products could cause economic harm to producers from the region. This special
treatment is largely due to the traditional value and uniqueness of wine and spirit GIs (e.g.,
"Champagne," "Port," or "Scotch Whisky"). The protection under Article 23 ensures that such
terms cannot be used even if there is no likelihood of confusion, thus providing a higher level
of protection.

 Article 24 (Exceptions): This article addresses exceptions to the protection of GIs, allowing
for certain circumstances in which countries may not be required to provide full protection.
One key exception is that the agreement does not require countries to recognize GIs that are
not used or recognized within their domestic market. Article 24 also provides for exceptions
for terms that have become generic over time, which would prevent them from being
exclusively associated with a specific region (e.g., "Parmesan" in the European Union versus
the use of "Parmesan" by other countries).

2. International Registration and Recognition of GIs

While the TRIPS Agreement sets minimum standards for GI protection, it does not establish a
universal registration system for GIs, nor does it mandate that countries adopt the same registration
mechanisms. However, TRIPS encourages multilateral cooperation in this regard. The WTO member
states are allowed to create their own domestic systems for registering GIs. As a result, various
regional and bilateral agreements have emerged to establish GI registration systems, such as the
European Union’s GI system, which protects over 3,000 products.

There are also international efforts aimed at enhancing GI protection through other treaties, such as
the Lisbon Agreement for the Protection of Appellations of Origin and their International
Registration, administered by the World Intellectual Property Organization (WIPO). This agreement
enables the international registration of GIs, though participation in the Lisbon system is not
mandatory under TRIPS.

3. TRIPS and Developing Countries

TRIPS provides flexibility for developing countries in implementing the provisions on GIs. In
particular, developing countries are allowed to tailor GI protection mechanisms to suit their legal,
economic, and cultural contexts. This flexibility allows for the protection of GIs of products that may
have social and cultural significance to local communities. Additionally, the TRIPS Agreement has
been the subject of much debate in relation to the rights of indigenous and local communities,
especially concerning the protection of traditional knowledge and expressions of culture through GIs.

Developing countries have been increasingly active in seeking better protection for their GIs,
particularly agricultural products like Darjeeling tea or Basmati rice, which have long-standing
connections to their regions. Many developing countries argue that GIs are important tools for
promoting their cultural heritage and boosting rural economies, as GIs offer a mechanism for
preserving traditional knowledge and increasing the market value of local products.

4. The Role of TRIPS in Balancing Trade Interests and Traditional Knowledge

One of the central challenges of the TRIPS framework regarding GIs is balancing trade interests with
the protection of traditional knowledge. The agreement recognizes the need for international trade
facilitation while ensuring that indigenous knowledge, especially in relation to agricultural products,
is not exploited without due recognition or compensation. This tension between the interests of
developed countries, which often hold the trademarks for global brands, and developing countries,
which may rely on GIs to protect traditional practices, is an ongoing point of negotiation in the WTO.

The debate continues on whether GIs should receive a higher level of protection across all sectors or
whether they should be treated differently depending on the product type. For example, while wines
and spirits receive additional protection under Article 23, other products may not receive the same
level of recognition. Countries with agricultural or cultural traditions connected to specific GIs argue
for stronger protection for all GIs, as this could help prevent misuse or appropriation of their local
products.

Basmati rice case

The Basmati Rice case refers to a legal dispute concerning the protection of Basmati rice as a
Geographical Indication (GI). The issue revolves around the use of the name "Basmati" for rice
produced outside the regions of India and Pakistan, particularly the attempts by American and
European companies to label rice as "Basmati," which was not grown in the traditional regions of
origin. The case had significant implications for the protection of GIs in India and the role of
international law in preserving traditional products.
Background of the Basmati Rice Case
Basmati rice is a traditional aromatic rice variety that is primarily grown in specific regions of India
and Pakistan, particularly in the foothills of the Himalayas. The name "Basmati," which means
"fragrant" in Hindi, has been associated with high-quality, aromatic rice for centuries. Over time, the
unique qualities of Basmati rice — including its distinct aroma, long grain, and texture — have
become globally recognized, and its production has become a symbol of agricultural heritage in the
region.
In the late 1990s and early 2000s, companies in the United States and Europe began marketing rice
under the name "Basmati," even though it was grown in countries like California or Texas, far from
its traditional growing regions. This raised concerns in India and Pakistan about the misappropriation
of the name and the potential dilution of the rice's distinctive identity.
The Legal Dispute: India vs. U.S. Producers
India, along with Pakistan, took steps to protect Basmati rice by seeking a Geographical Indication
(GI) status for the term "Basmati." This was to ensure that only rice grown in the traditional
geographical areas of India and Pakistan could be sold under the name "Basmati," preventing
companies outside of these regions from capitalizing on the term.
Indian Efforts to Protect Basmati
 Application for GI Registration: In 2000, India filed an application with the Geographical
Indications of Goods (Registration and Protection) Act, 1999, to register Basmati rice as a
GI. This was part of a broader effort to preserve the traditional agricultural products of India
and ensure that their unique qualities were not exploited by foreign producers.
 International Registration: India also sought international protection for the name Basmati
through various international forums, such as the World Trade Organization (WTO) and the
World Intellectual Property Organization (WIPO). The aim was to establish that Basmati rice
was a product of a specific geographical origin, much like other globally recognized GIs such
as Champagne or Parmigiano Reggiano.
Opposition from U.S. Producers
In response to India's efforts, U.S. producers of aromatic rice, particularly from California, opposed
India's claim. They argued that the term "Basmati" was generic and not geographically restricted.
They had already been marketing aromatic rice as "Basmati," and feared that the GI registration
would hinder their ability to use the name. Some U.S. producers even claimed that they were
growing "Basmati" rice in areas outside of the traditional Basmati-growing regions, asserting that the
term had become a generic label for a type of rice rather than one tied to a specific geographic
origin.
Legal Actions and Settlement
 WTO Dispute Settlement: India raised the issue in WTO forums, arguing that the U.S.
practices violated international trade rules and the principles of intellectual property
protection under the TRIPS Agreement. The WTO was called upon to decide whether the
term "Basmati" should be protected as a geographical indication under international law.
 Compromise and Settlement: While the issue was complex and involved multiple legal and
trade-related negotiations, India and the U.S. eventually reached a settlement. The U.S.
agreed to stop using the term "Basmati" on rice produced outside the defined regions of
India and Pakistan, effectively recognizing that the name should be reserved for rice from the
traditional geographic areas. However, the agreement was not without limitations, and there
were still concerns about how the GI would be enforced globally.
 European Union: In parallel with the dispute with the U.S., India also sought protection for
Basmati rice in the European Union (EU). The EU granted GI protection for Basmati rice,
ensuring that only rice produced in India and Pakistan could be marketed as "Basmati" within
the EU. This was a significant victory for India in preserving the authenticity and economic
value of Basmati rice.

Misleading use of geographical indications


The misleading use of geographical indications (GIs) refers to the practice of using a GI term in a way
that misrepresents the true geographical origin, characteristics, or quality of a product, leading to
consumer deception. The primary concern with the misleading use of GIs is that it undermines the
authenticity of the product, causes confusion among consumers, and harms the reputation of the
region associated with the GI. Misleading use can also result in unfair competition, where producers
who are genuinely linked to the geographical area lose out to those falsely claiming association.
Under the Geographical Indications of Goods (Registration and Protection) Act, 1999, and the
international TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights), such practices
are prohibited and subject to legal action.
Types of Misleading Use of GIs
1. False Representation of Origin
This is one of the most common forms of misleading use. It occurs when a product is labeled with a
GI term, suggesting it originates from a particular region, when, in fact, it comes from another area.
For instance:
 Example: If rice labeled as "Basmati" is produced in a region outside of India or Pakistan,
where the term traditionally applies, it would be a misleading use of the GI. The term
"Basmati" is specifically linked to the aromatic rice varieties grown in certain regions of India
and Pakistan, and using it on rice from outside these regions misleads consumers into
believing the product is authentic.
2. Misrepresentation of Quality, Reputation, or Characteristics
A GI indicates that a product has certain qualities, characteristics, or a reputation due to its
geographical origin. Misleading use occurs when a product claims to have these attributes but does
not possess them. This can harm the reputation of both the GI and the region associated with it.
 Example: A producer in a different country may label a low-quality, non-aromatic rice as
"Basmati," which misleads consumers into believing they are purchasing high-quality,
aromatic rice traditionally linked to the Basmati-growing regions.
3. Imitation of GI Names or Symbols
This involves the unauthorized use of names or symbols associated with a GI to give the false
impression that a product is linked to a specific geographical region. Producers may use a name that
is phonetically similar to the GI or use visual cues such as logos or labels that mimic the GI symbol,
without any legitimate connection to the region.
 Example: A product branded as "Parmigiano" or "Parmesan" produced outside the
traditional Parmigiano Reggiano region in Italy, without adhering to the specific production
methods or quality standards, would constitute a misleading use of the GI.
4. Exaggerated Claims About the Product
Sometimes, the misleading use involves exaggerating the connection between a product and its
geographical origin. Producers may suggest that their product has a specific regional link or history
when it does not, to make it more appealing to consumers.
 Example: A company producing wine in a region outside of France might label it as
"Champagne-style" or "Champagne-like" to suggest it is of the same high quality as
Champagne, when it is not produced in the Champagne region of France.
Legal Provisions Against Misleading Use of GIs
1. Under the Geographical Indications of Goods (Registration and Protection) Act, 1999
The Act provides specific provisions to combat the misleading use of GIs. Section 22 of the Act
criminalizes the unauthorized use of a GI in a manner that misleads or deceives consumers about the
geographical origin, quality, or other characteristics of the product.
 Penalty: A person found guilty of misleading use can face imprisonment for up to 6 months
and a fine up to ₹2 lakh. Repeat offenders may face more severe penalties.
2. Under the TRIPS Agreement
The TRIPS Agreement (Article 22) recognizes the importance of preventing the misleading use of GIs
and establishes global standards for protecting GIs. It mandates that member countries provide legal
means to prevent:
 The use of GIs that mislead consumers about the origin of the product.
 The use of GIs in a way that harms the reputation of the product or the region it originates
from.
Countries that are signatories to TRIPS must ensure that there are legal remedies to prevent such
deceptive practices.
3. International GI Protection
Countries with established GIs, such as India, Italy, and France, work through international forums
like WIPO (World Intellectual Property Organization) and WTO to ensure that their GIs are protected
from misleading use globally. These protections may involve:
 Trade agreements that prevent the use of a GI term in countries outside its region of origin.
 Bilateral or multilateral agreements to ensure that GIs are only used by producers in the
geographically defined regions.

Prohibitions on registration

Section 9 of the Geographical Indications of Goods (Registration and Protection) Act, 1999
establishes clear restrictions on the registration of geographical indications (GIs) to prevent misuse,
deception, and conflicts with public interest. A geographical indication is a name or sign used on
products that have a specific geographical origin and possess qualities, reputation, or characteristics
inherent to that location. The purpose of restricting certain GIs from registration is to maintain the
authenticity, integrity, and credibility of the system.
1. Prohibition of Deceptive or Confusing GIs (Clause a)
A GI cannot be registered if its use is likely to deceive or cause confusion among consumers. This
ensures that misleading names that falsely suggest a product originates from a well-known location
are not granted protection. For example, if a manufacturer outside Darjeeling attempts to register
"Darjeeling Tea" for their own tea, it would deceive consumers into believing they are purchasing
authentic Darjeeling Tea when they are not. This clause protects both consumers and genuine
producers from misrepresentation.
2. GIs Contrary to Existing Laws (Clause b)
If the use of a GI would be contrary to any law currently in force, it is ineligible for registration. This
includes laws related to intellectual property rights, food safety regulations, trademarks, and
misleading advertisements. For instance, if a GI infringes upon an existing trademark or violates
health and safety standards, it cannot be registered.
3. Scandalous or Obscene GIs (Clause c)
A GI containing scandalous or obscene words, phrases, or symbols cannot be registered. This
provision ensures that GIs maintain ethical and moral standards, preventing offensive language or
imagery from receiving legal protection. For example, a GI that includes derogatory or sexually
explicit language would be rejected.
4. GIs That Hurt Religious Sentiments (Clause d)
A GI cannot be registered if it contains elements that hurt the religious susceptibilities of any class
or section of Indian citizens. Given India's religious diversity, this provision prevents the use of
sacred names or religious symbols in a way that could offend specific communities.
5. GIs Disentitled to Protection by Courts (Clause e)
If a GI is considered ineligible for protection under Indian law due to reasons such as public policy
violations, fraud, or immorality, it cannot be registered. This broad provision acts as a safeguard
against GIs that may be inherently misleading, exploitative, or against the greater public interest.
6. Generic Names or Indications (Clause f)
A GI cannot be registered if it has become a generic term in its country of origin or has fallen into
disuse. A generic name refers to a term that was once associated with a specific location but has now
become widely used to refer to a general type of product rather than a place of origin.
For example:
 "Basmati" rice has been debated as a GI because some argue it has become generic outside
of India.
This clause prevents generic terms from gaining GI protection, ensuring that only truly distinctive
and region-specific names are protected.
7. GIs That Falsely Represent Their Origin (Clause g)
This clause prohibits the registration of GIs that, while literally true about the region they refer to,
create a false impression about the actual place of origin. This prevents deceptive marketing
strategies that could lead consumers to believe they are buying a product from a more reputed
region.
For example:
 If a product is labeled "Swiss Coffee", but the coffee beans are grown in India and only
processed in Switzerland, it could mislead consumers into thinking the coffee is of Swiss
origin.
Explanations Provided in Section 9
The law provides two explanations to clarify the concept of generic names and how their status is
determined.
Explanation 1: Definition of Generic Names
A generic name or indication refers to a term that originally described goods from a particular place
but has become a common name used to describe a type of product rather than its origin. This
happens when the name loses its geographical significance and instead refers to a category or style
of product.
Explanation 2: Determining Whether a Name Has Become Generic
When deciding whether a name has become generic, authorities must consider several factors,
including:
 The situation in the place of origin: If the name is no longer protected or used in its original
region, it may be considered generic.
 The area of consumption of the goods: If consumers widely use the name to describe a
general product rather than a specific geographical origin, it may be deemed generic.
Infringement of Geographical Indications (GI) Under Section 22
The Geographical Indications of Goods (Registration and Protection) Act, 1999 (GI Act) provides a
legal framework for protecting registered GIs from unauthorized use.
Section 22 of the GI Act specifically deals with infringement, outlining circumstances under which a
GI is considered to have been wrongfully used and defining unfair competition practices that harm
legitimate producers.
What Constitutes an Infringement Under Section 22?
Infringement of a registered GI occurs when an unauthorized user engages in any activities that
mislead consumers, unfair competition, falsely suggest a connection with the designated
geographical region.
1. Use of a GI in a Manner That Misleads Consumers (Section 22(1)(a))
A GI is considered to be infringed if a person who is not an authorized user applies the GI to goods
that do not originate from the designated geographical region. If the usage of the GI creates
confusion or misleads consumers about the true geographical origin of the goods, it constitutes an
infringement.
Examples:
 Selling tea from another region under the name "Darjeeling Tea," despite the tea not being
grown in Darjeeling, misleads consumers into believing they are purchasing authentic
Darjeeling tea.
This provision protects consumers from deceptive trade practices and ensures that GI-tagged
products maintain their authenticity and market value.
2. Unfair Competition and Passing Off (Section 22(1)(b))
The Act also prohibits any act of unfair competition that involves wrongful use of a GI, particularly in
ways that mislead consumers, damage the reputation of the authentic GI, or allow a competitor to
wrongfully benefit from an established GI’s reputation.
Understanding Unfair Competition:
The Act defines "unfair competition" as any act contrary to honest business practices. This includes:
1. Creating Confusion: Engaging in practices that create confusion in the minds of consumers
regarding the origin, nature, or quality of goods.
2. False Allegations to Discredit Competitors: Making false statements about a GI product to
harm a competitor’s reputation.
3. Misleading Representation of Characteristics: If the use of a GI misleads people regarding
the manufacturing process, composition, or suitability of the goods.
This provision protects authentic GI holders from market dilution and economic loss caused by
counterfeit or misleading practices.
4. Use of a Different GI That Falsely Suggests a Connection (Section 22(1)(c))
uses another geographical indication to the goods which, although literally true as to the territory,
region or locality in which the goods originate, falsely represents to the persons that the goods
originate in the territory, region or locality in respect of which such registered geographical indication
relates.
Additional Protection for Certain Goods (Section 22(2) and (3))
The Central Government can notify specific goods or classes of goods for extra protection under the
law. This protection applies even when:
 A non-authorized user uses another GI for goods that do not originate from the designated
place.
 The true origin of goods is disclosed, but a misleading GI name is still used.
 The term "kind," "style," "imitation," or similar expressions are added to a GI.
These provisions are intended to strictly regulate GIs with global recognition and high commercial
value, ensuring that only authentic producers benefit from the prestige of their GI.
Permissible Use That Does Not Constitute Infringement (Section 22(4))
While the law provides strong protection for registered GIs, it also recognizes certain legitimate uses
of GI-tagged goods. Section 22(4) clarifies that a lawfully acquired product bearing a GI can be
further processed, repackaged, and sold without infringement, as long as the product’s quality
remains intact.
However, if a reseller modifies the condition or quality of the goods in a way that affects their
original characteristics, it may constitute infringement.
Legal Remedies Against GI Infringement
The GI Act provides both civil and criminal remedies to combat infringement and ensure the
protection of legitimate GI holders.
I. Civil Remedies (Enforced Through Civil Courts)
A registered proprietor or an authorized user of a GI can initiate a civil lawsuit against an infringer.
The following remedies are available:
1. Injunction (Restraining Order)
The court can issue an injunction to immediately stop the infringer from using the GI. This prevents
further unauthorized use of the GI and protects the reputation of genuine producers.
2. Damages or Account of Profits
The court may order the infringer to pay damages for the losses suffered by the rightful GI holders.
Alternatively, the infringer may be ordered to surrender the profits earned from unauthorized GI
use.
3. Delivery-Up of Infringing Goods
The court can order the seizure and destruction of infringing goods, packaging, and promotional
materials.
II. Criminal Remedies (Punishable Under Law)
The GI Act imposes strict penalties on individuals and businesses that engage in GI infringement.
The objective is to deter counterfeiting and misleading commercial practices.
1. Imprisonment
A person found guilty of GI infringement may be sentenced to imprisonment for a period ranging
from six months to three years.
2. Monetary Fines
The offender may also be fined between ₹50,000 to ₹2,00,000, depending on the severity of the
infringement.
3. Seizure of Goods and Materials
Authorities can confiscate counterfeit goods and materials that bear unauthorized use of a GI.
4. Recurring Offenses
For repeat offenses, harsher penalties may be imposed, including extended imprisonment and
higher fines.
Offences and Penalties
1. Falsifying and Falsely Applying Geographical Indications (Section 38)
Falsification of a Geographical Indication
A person is guilty of falsifying a GI if they:
 Create a GI or a deceptively similar GI without the consent of the authorized user.
 Alter, modify, add to, remove, or tamper with a genuine GI, thereby misleading consumers.
Falsely Applying a Geographical Indication
A person falsely applies a GI if they:
 Affix a GI or a deceptively similar GI to goods or their packaging without authorization.
 Use packaging bearing a GI similar to the registered GI to package goods that are not from
the specified region.
Legal Consequence
Any GI falsified or falsely applied as per the definitions in Section 38 is termed a "false geographical
indication."
In legal proceedings for falsification, the burden of proving authorization rests on the accused. This
means the person using the GI must demonstrate that they had the required consent or
authorization to do so.
2. Penalty for Applying False Geographical Indications (Section 39)
A person commits an offence if they:
 Falsify a GI or falsely apply a GI to goods.
 Manufacture, sell, or possess tools or machinery intended for GI falsification.
 Apply misleading indications about the country of origin, manufacturer, or producer.
 Tamper with, alter, or erase genuine origin indicators on goods.
 Encourage or assist others in committing these acts.
Punishment
 Imprisonment: 6 months to 3 years
 Fine: ₹50,000 to ₹2,00,000
 The court has discretion to impose a lesser penalty (less than six months imprisonment or
₹50,000 fine) for special reasons, which must be recorded in the judgment.
3. Penalty for Selling Goods with False Geographical Indications (Section 40)
A person is liable for prosecution if they:
 Sell, hire, or expose for sale goods with a false GI.
 Possess goods with false GIs for commercial purposes.
 Sell products without the legally required country of origin or manufacturer details.
However, an individual can avoid liability if they prove:
1. They took all reasonable precautions to verify the authenticity of the GI.
2. They had no reason to suspect the GI was false.
3. Upon request from legal authorities, they provided all available information about the
product's supplier.
4. They acted innocently, without fraudulent intent.
Punishment
 Imprisonment: 6 months to 3 years
 Fine: ₹50,000 to ₹2,00,000
 The court may reduce the punishment if there are special circumstances, but it must
provide reasons in writing.
4. Enhanced Penalty for Repeat Offenders (Section 41)
If a person repeats an offence under Section 39 or Section 40, they face stricter penalties to deter
habitual violations.
Punishment for Repeat Offenders
 Imprisonment: 1 year to 3 years
 Fine: ₹1,00,000 to ₹2,00,000
 The court can reduce imprisonment below 1 year or fine below ₹1,00,000 for special
reasons.
5. Penalty for Falsely Representing a Geographical Indication as Registered (Section 42)
A person is guilty of this offence if they:
 Claim that an unregistered GI is registered.
 Claim that a GI is registered for certain goods when it is not.
 Misrepresent that GI registration gives broader rights than legally granted.
Punishment
 Fine: The lower of:
o 0.5% of total sales/turnover
o ₹5,00,000
6. No Offence in Certain Cases (Section 45)
A person is not guilty under Sections 39, 40, or 41 if:
 The act is permitted under the GI Act.
 The act is allowed under another law in force.
This provision prevents unnecessary prosecution of legitimate users who have a lawful right to use
the GI.
7. Forfeiture of Goods (Section 46)
If a person is convicted or acquitted under Sections 39, 40, or 41, the court may order:
 Forfeiture of goods with false GIs to the government.
 Destruction or disposal of such goods as deemed fit.
 Right to appeal against the forfeiture in certain cases.

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