International Law: and Trade Policy
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M. Geuze
Introduction
However, what has not changed after the conclusion of the WTO Agreement is the
wide diversity in the means of protection for geographical indications available from
country to country. This was another aspect recognized by the Uruguay Round
negotiators when they incorporated a number of built-in agenda items on geographical
indications in the TRIPS Agreement. This diversity not only was confirmed in the peer
group review of national implementing legislation in the WTO’s TRIPS Council, but
also is illustrated by the summary paper4 the WTO Secretariat prepared of information
on national systems for the protection of geographical indications by individual WTO
members in the context of the TRIPS Council’s review of the application of the TRIPS
Agreement’s provisions on geographical indications under the built-in agenda item
stipulated in Article 24.2 of the agreement.
Neither have geographical indications lost their controversial character after the
entry into force of the WTO Agreement. In this regard it should be noted that, in the
Uruguay Round, a link was made by some delegations between the negotiation of
obligations with respect to trade in agricultural products and the negotiation of
obligations to provide protection for geographical indications in the context of the
TRIPS Agreement. This link has obviously not been forgotten by delegations at work
in either area since 1995. The WTO system is designed to establish conditions of
competition aimed at regulating the opportunities for goods from its members in the
competitive environment of their markets and at liberalizing trade in goods, building
upon about half a century of experience in the GATT. When, as a result of the
negotiations in the Uruguay Round, trade in agricultural products came under the
discipline of a rule-based system, a consequence thereof was believed to be that this
might encourage moves towards added value in agricultural production and exports,
since market shares will be increasingly determined by basic competitiveness rather
than the ability and inclination to subsidize. Consequently, investments for the
development of quality products like high-value, consumer-ready food preparations
and other food and drink items increased. At the same time, however, the demands for
protection against misappropriation of geographical indications and other forms of
intellectual property became stronger.5
Sta n d a r d s f o r t h e P r o t e c t i o n o f G eo g r a p h i c a l
Indications under Section 3 of Part II of the TRIPS
Agreement 6
- second, the general standards of protection that must be available for all
geographical indications;
- third, the additional protection that must be accorded to geographical indications
for wines and spirits;
- fourth, the provisions concerning, on the one hand, future negotiations aimed at
increasing the protection of geographical indications and, on the other, permissible
exceptions to the protection required under the agreement.
The protection provided under the agreement has to be available to rights holders
from WTO members without discrimination as to their nationality.7 The agreement
also specifies in some detail the procedures and remedies that must be available so as
to allow rights holders to effectively enforce their rights with the assistance of judicial
or other competent authorities.8 It also incorporates, by reference, the provisions of the
Paris Convention relating to geographical indications.9
Definition
The agreement defines geographical indications in Article 22.1 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. Thus, this definition specifies that
the quality, reputation or other characteristics of a good can each be a sufficient basis
for eligibility as a geographical indication, where these are essentially attributable to
the geographical origin of the good.10 11
identifying a wine when used on a wine that does not originate in the place indicated
by that geographical indication. In other words, for this form of protection to apply,
there is no requirement to show that the use in question might mislead the public or
amounts to unfair competition, irrespective of whether the true origin of the good is
indicated or the geographical indication is accompanied by expressions such as
“kind”, “style”, “type”, “imitation” or the like. Protection must also be available
against the registration of a trademark for wines, if the trademark contains a
geographical indication identifying wines and the wines do not have the origin
indicated by the geographical indication.15 Similar protection must be given to
geographical indications identifying spirits. With respect to use of these geographical
indications for other products, the general standards of protection under Article 22
apply.
In the case of homonymous geographical indications (that is, different
geographical indications that consist of or contain the same identifier),16 protection
should be accorded to each homonymous indication. However, this protection may not
hold if use of one of the homonymous geographical indications in a given WTO
member would falsely represent to the public in that member that the products in
question originate in the territory of the other homonymous geographical indication.17
The agreement contains a specific rule18 concerning homonymous geographical
indications for wines, laying down that, in the case of such geographical indications,
practical conditions must be determined so as to differentiate the homonymous
indications, taking into account the need to ensure equitable treatment of the relevant
producers and also to ensure that consumers are not misled.
Exceptions
Article 24 contains a number of exceptions regarding the protection of geographical
indications. They should be read in conjunction with the provisions in the same
article19 concerning negotiations aimed at increasing the protection of geographical
indications and which WTO members are not allowed to refuse to enter into or
conclude on the basis of the existing exceptions applied in accordance with Article 24.
There are three main exceptions that are of particular relevance with respect to the
additional protection for geographical indications for wines and spirits. The first main
exception provides that a member state is not obliged to protect a geographical
indication in cases where a geographical indication has become the generic name in a
country for the products in question or for a grape variety.20
The second main exception deals with the situation where a geographical
indication may conflict with pre-existing trademark rights acquired in good faith,
which should be protected in accordance with the TRIPS provisions on trademarks, as
B uilt-i n A g e n d a Ite ms 26
T hree of the TRIPS Agreement’s built-in agenda items relate to the protection of
geographical indications and are based on Articles 23.4, 24.1 and 24.2. In 2001,
part of this work became part of the work programme of the Doha Development
Agenda, as adopted by the WTO’s Ministerial Conference.
Article 24.1
There are situations where a particular geographical indication may not enjoy, or may
not fully enjoy, the protection provided for in Article 22 or 23, in accordance with the
exceptions provisions contained in Article 24 as applied by a country with respect to
that geographical indication. The relevant indication may, in that country, for example,
be a generic term in accordance with Article 24.6, or the subject of prior trademark
rights in accordance with Article 24.5. If the country of origin of the geographical
indication in question would like to change such a situation, it will have to resort to
bilateral or multilateral negotiations. In this regard, reference should be made to the
provisions of Article 24.1 of the TRIPS Agreement, which establish a negotiating right
in this respect for the country of origin.
Article 24.2
In November 1996, the TRIPS Council initiated, under Article 24.2 of the TRIPS
Agreement, its review of the application of the provisions of the section of the
agreement pertaining to geographical indications. In the context of this review, a
checklist of questions was prepared concerning various aspects of national regimes for
the protection of geographical indications.27 Following the submission of responses by
members, the WTO Secretariat issued a summary paper of these responses, as
requested by the council.28 Following the receipt of further responses, the document
has meanwhile been updated once.29
This summary paper provides, in its first section, a general overview of the
various means of protection that exist in this area of law. The succeeding seven
sections of the summary paper enter into the details that members provided as to the
following features of the systems they are employing:
(a) the various definitions of protectable subject matter and any other substantive
criteria that may need to be complied with in order for a geographical indication to be
eligible for protection;
(b) procedures applied in relation to the formal recognition of geographical
indications as being eligible for protection;
(c) who is entitled to use a protected geographical indication and any procedures
that apply to obtain such an entitlement; the duration of protection of geographical
indications; arrangements regarding cancellation or forfeiture of geographical
indications; and arrangements for monitoring the use of geographical indications;
(d) protection available to prevent unauthorised use of geographical indications,
including use by those who are not from within the area to which the geographical
indication refers and those who are eligible or authorised users but are not using the
geographical indication properly;
(e) enforcement procedures;
(f) the relationship of geographical indications to trademarks, including
protection provided to prevent the registration as trademarks of signs containing or
consisting of geographical indications.
The summary paper treats the differing means of protection in three broad
categories. The first relates to laws focusing on business practices. Typically, the issue
at stake in legal proceedings regarding the use of a geographical indication under such
laws is not whether the geographical indication as such is eligible for protection but,
rather, whether a specific act involving the use of a geographical indication has
contravened the general standards contained in laws covering unfair competition,
consumer protection, trade descriptions, food standards, etc. The second category
concerns protection through trademark law. Trademark law may provide two types of
protection for geographical indications. On the one hand, protection may be provided
against the registration and use of geographical indications as trademarks. On the
other hand, protection may be provided through collective, guarantee or certification
marks. In contrast to the general means of protection of the first and second
categories, the third category of protection concerns means specifically dedicated to
the protection of geographical indications. Some of these means provide sui generis
protection for geographical indications that relate to products with specifically defined
characteristics or methods of production; other means apply without such specific
definitions.
there is a clear mandate to launch negotiations, while opponents have claimed that
there is no agreement to negotiate any extension.
For purposes of negotiations regarding the register, an ad hoc negotiating group,
the Special Session of the Council for TRIPS, has been established.
- The Hong Kong, China proposal.35 The Hong Kong government has
proposed a voluntary system whereby a registered GI would create a rebuttable
presumption or “prima facie evidence” in participating members with regard to
the ownership of the GI, compliance with the Article 22.1 definition and
protection in the country of origin. While Hong Kong, China is not a producer
of wines and spirits, it has made the proposal for systemic reasons. Its concern is
that failure in this negotiating group might endanger the whole Doha
Development Agenda.
The special session has also discussed costs and other burdens that the future
system might entail.36
which such names refer. Some other members have argued that the Doha text on
agriculture does not provide a mandate for such a proposal.
Outlook
to conform to their interests. The law prohibits big companies from buying out small
landholders. In 1911, when the companies sought to buy grapes from outside the
region there was a riot. An attempt to expand the geography of the “Champagne”
region also led to violence. Small growers have retained their clout because increasing
demand for Champagne requires an ever-increasing supply. But vineyards are fixed,
and grape prices can only rise. Further, as GIs are about “quality”, and with
consumers becoming more discerning, small farmers are increasingly becoming their
own producers of “exclusive” Champagne. This is like in Burgundy, where the best
wines are made and bottled by small farmers. EU rulings on anti-competition prohibit
companies from colluding with growers to fix grape prices. An analysis of
Champagne’s evolution has two lessons for new GI marketing in Asia-Pacific. First, it
takes a lot of time, patience, savvy marketing and quality control to create a valuable
GI. (Champagne took 150 years.) Second, pro-development legal regulations by the
state can empower small farmers and users of traditional knowledge to retain their
influence over corporate juggernauts.
In many, if not all, countries, unfair competition laws or consumer protection laws
contain general provisions dealing with the misappropriation of indications serving to
designate products that originate in a geographical area. In addition, many countries
have also put in place special systems aimed at providing the necessary transparency
about those geographical indications that deserve special protection because of the
specific, geographically determined qualifications that make certain products unique.
Securing protection for such geographical indications in other countries has, however,
been complicated due to differences in approach as to whether protection is justified
or what kind of protection is appropriate, and due to the difficulty to reconcile these
differences given their historical, economic or commercial context.
International rules for the protection of geographical indications would perhaps
better be designed starting from the premise that a wide diversity in national systems
simply exists. In particular, procedures for the international registration of
geographical indications should recognize this. A flexible interpretation and
application of the Lisbon Agreement provides a possible basis for a solution in this
respect, as does the possible creation of a link between the Lisbon Agreement and the
Madrid Protocol.41
Endnotes
1. Matthijs Geuze has been Senior Counsellor in the World Intellectual Property
Organization since 2002. From 1989 to 2002 he was employed by the Secretariat
of the GATT and the World Trade Organization, and from 1981 to 1989 by the
Dutch Patent Office. The views expressed are his personal views rather than those
of the organisations with which he is or has been affiliated.
2. See WIPO document SCT/8/4.
3. The WTO Agreement is a reflection of the single undertaking embarked upon in
the Uruguay Round of multilateral trade negotiations: a negotiating package
consisting of subjects put forward by the various trading partners, which, when
negotiated on their own, would not likely have led to a successful outcome among
all trading partners. This negotiating package had to be adopted as a whole, i.e.,
“nothing was agreed until everything was agreed.”
4. WTO document IP/C/W/253 and IP/C/W/253/Rev.1.
5. Matthijs Geuze, “Protection of Geographical Indications under the TRIPS
Agreement and Related Work of the World Trade Organization.” WIPO
Symposium on the International Protection of Geographical Indications in the
Worldwide Context, Eger, Hungary, 24-25 October 1997. WIPO Publication No.
760.
6. Dariel de Sousa, “Protection of Geographical Indications under the TRIPS
Agreement and Related Work of the World Trade Organization (WTO).” WIPO
Symposium on the International Protection of Geographical Indications,
Montevideo, Uruguay, 28-29 November 2001.
7. The provisions that lay down these obligations are contained in Articles 3 and 4 of
the TRIPS Agreement. Australia and the United States initiated dispute settlement
procedures against the European Communities for its non-compliance with these
obligations. See the panel reports contained in WTO documents WT/DS174/R
and WT/DS290/R.
8. Part III of the TRIPS Agreement (i.e., Articles 41 to 61).
9. Article 2.1 of the TRIPS Agreement.
10. For background information on proposals tabled in the negotiations, reference is
made to Daniel Gervais, The TRIPS Agreement – Drafting History and Analysis.
2nd edition. London: Sweet and Maxwell, 2003.
11. As regards the definition of the Lisbon Agreement, reference is made to Matthijs
Geuze, “Let’s Have An Other Look at the Lisbon Agreement – its Terms in their
Context and in the Light of its Object and Purpose.” WIPO International
Symposium on Geographical Indications, Beijing, China, 26-28 June 2007.
12. TRIPS, Article 22.2(a).
13. TRIPS, Article 22.2(b). Pursuant to Article 10bis of the Paris Convention, this
includes “any act of competition contrary to honest practices in industrial or
commercial matters”, in particular
- “All acts of such a nature as to create confusion by any means whatever with the
establishment, the goods, or the industrial and commercial activities, of a
competitor;
- “False allegations in the course of trade of such a nature as to discredit the
establishment, the goods or the industrial and commercial activities, of a
competitor;
- “Indications or allegations the use of which in the course of trade is liable to
mislead the public as to the nature, the manufacturing process, the characteristics,
the suitability for their purpose, or the quality of the goods.”
14. TRIPS, Article 22.3.
15. TRIPS, Article 23.2.
16. An example is “Rioja”, La Rioja being the name of wine-producing regions that
exist in both Argentina and Spain.
17. TRIPS, Article 22.4.
18. TRIPS, Article 23.3.
19. See section III below.
20. TRIPS, Article 24.6.
21. Australia and the United States initiated dispute settlement procedures against the
European Communities for its alleged non-compliance with these obligations. See
the panel reports contained in WTO documents WT/DS174/R and WT/DS290/R.
22. TRIPS, Article 24.5.
23. 15 April 1994.
24. TRIPS, Article 24.4.
25. TRIPS, Article 24.3.
26. Dariel de Sousa, “Protection of Geographical Indications under the TRIPS
Agreement and Related Work of the World Trade Organization (WTO).” WIPO
Symposium on the International Protection of Geographical Indications,
Montevideo, Uruguay, 28-29 November 2001.
The views expressed in this article are those of the author(s) and not necessarily those
of the Estey Centre Journal of International Law and Trade Policy nor the Estey
Centre for Law and Economics in International Trade. © The Estey Centre for Law
and Economics in International Trade. ISSN: 1496-5208