GI Protection in Europe

Product approach Currently 4 kinds of goods can be protected under the EU quality schemes: Wines (Regulation 1308/2013) Aromatized wines (Regulation 251/2014) Spirit drinks (Regulation 110/2008) Agricultural products and foodstuffs (Regulation 1151/2012) Possible extension to non-agricultural products. EU Parliament Resolution of 6 Oct. 2015 requesting legislation

Introduction: Why Geographical Indications? Protected indications are a collective tool for producers to: promote the products of their territory, that can acquire a high reputation and, therefore, turn into valuable commercial assets for local producers. GIs also represent a factor of national economic development and sustainability of traditional products. They are often exposed to misappropriation or counterfeiting by unauthorized third parties, for unrelated products, and their protection is highly desirable both at the national and international level.

GIs are a truly global concept Some 3.500 GIs recognized in the EU Some 2.000 in China Some 400 in Latin America Some 300 in the USA (AVAs for wines & geographical certification marks) Some 150 in Africa (mainly South African wines, but first agri GIs in OAPI)

Introduction: Definition GIs are place names used to identify the origin, quality, reputation or other characteristics of products. Thus, a GI has historically been, and still is today, a way to create value through exclusivity. Several countries in Europe have developed effective legislation to protect GIs, even though there is still a lack of harmonization.

GI: a particular IP protection Protection to the NAME not to the product. Right to use: applies to any operator respecting product specification Protection indefinite (but possibility of cancellation if no use for 7 years)

Legislation Agricultural products and foodstuffs - R(EU) No 1151/2012 (replaces R(EC) 510/2006) Wines Regulation (EC) No 479/2008 Aromatized wines Regulation (EEC) No 1601/1991 Spirits Regulation (EC) No 110/2008

Geographical Indications in the EU 2 logos but same (high) level of protection 1. geographical area + 2. specific + 3. causal = product link 4. PGI or PDO

PDO and PGI PDO: closer link essential or exclusive between the product s qualities or characteristics and geographical environment with its natural and human factors. Raw materials and all stages of production take place in the zone Similarities to appellation of origin (Lisbon)

PDO and PGI PGI: Product possesses specific quality characteristics or reputation attributable to that geographical origin One stage of production process must take place in the region Similarities to TRIPS definition

PDO / PGI Difference: link between product and geographical environment. AGRICULTURAL PRODUCTS AND FOODSTUFFS: PDO Quality or characteristics are essentially or exclusively due to a particular geographical environment with its inherent natural and human factors All the production steps take place in the defined geographical area PGI Quality, reputation or other characteristic is essentially attributable to its geographical origin (either natural or human factors) At least one of the production steps takes place in the defined geographical area

WINES: PDO PDO / PGI Quality and characteristics of the product are essentially or exclusively due to a particular geographical environment with its inherent natural and human factors The grapes come exclusively from the geographical area PGI Quality, reputation or other characteristics attributable to that geographical origin (either natural or human factors) At least 85 % of the grapes come from the geographical area IDENTICAL LEGAL PROTECTION For the two schemes (PDO / PGI) For all 4 kinds of goods

Benefits - producer Name is reserved to products respecting the specification and are produced in a delimited geographical area (IP protection) Administrative protection by public authorities Name is not reserved to 1 single owner (TM), but can be used by all producers respecting the specification Differentiation on the market allows often a better price and better division of the added value

Value premium: "ADDED VALUE" The premium a GI can expect from the market, compared to non-gi products in average, the price of a GI product is 2.23 times the price of a comparable non-gi products /!\ does not reflect profitability of the GI schemes as it does not take into account the additional cost of compliance with GI specifications Wine Spirits Agr prod. and food. 1.55 2.57 2.75 0.00 0.50 1.00 1.50 2.00 2.50 3.00

Olive oil Baena Effects of GI protection: Premium Price

Benefits - consumer Has a guarantee on Origin of the product Quality of the product (specification) Authenticity of the product (no imitiation) Guarantee is assured by controls on production site and on the market.

Other benefits GIs encourage the preservation of: Biodiversity: plant, animal, Local savoir-faire and tradition Landscapes => positive impact on tourism GIs prevents the standardization of food and offers a wider choice to consumers As an important part of our culture, GIs contribute to social cohesion, rural development

EU total GI Sales value Sales value of EU GIs: 54.3 billion in 2010 (estimated at wholesale stage in the region of production) 5.7% of the total EU food and drink sector Estimated EU GI export value: 11.5 billion 15% of EU food and drink industry exports

Sales destination In value, 60% of sales take place on the domestic market, 20% on the EU market and 20% in third countries 663 GIs sold only in their MS of production 1525 GIs exported (1224 wines, 231 agri products, 70 spirits) Wines + spirits = 90% of total GI exports (in value) Source: AND study for the European Commission

Success stories and 'smaller' GIs Some impressive success stories: 7 GIs > 1 billion; 96 GIs > 100 million Small production may also benefit from the GI schemes: 80% of registered names = 20% of the total sales value % sales value and % of GIs by class of sales value (2010) Source: AND study for the European Commission

IP protection Protection against wrongful uses: direct or indirect use of a registered name on non-gi originating product; misuse, imitation or evocation, even if true origin is indicated or if name is translated; any other false or misleading indication or other practice liable to mislead consumer

3 databases 1) agricultural products and foodstuffs - DOOR (database of origin and registration) http://ec.europa.eu/agriculture/quality/door/list.html 2) wines E-Bacchus http://ec.europa.eu/agriculture/markets/wine/e-bacchus/ 3) spirits E-Spirit-Drinks http://ec.europa.eu/agriculture/spirits/

Overview

Applications from non-eu applicants (agricultural products and foodstuffs)

Practicalities producer group Specification Single document Control body Evidence of protection in country of origin Send via DOOR

Application: content 1) Specification 2) Accompanying information 3) Single document

1) Specification

Product s specificity: quality characteristic reputation Link requirement Link Particular conditions of the geographical environment: Natural factors: soil, climate, native variety Human factors: know-how, traditional technics

2) Accompanying information State if application is PDO/PGI Country of origin Applicant group name, address, legal status, size, composition: (farmers, producers, etc.) Proof of protection in country of origin In form of intellectual property right (GI, appellation of origin, trade mark etc.)

3) Single document Summary of specification To be published in EU official Journal Template Annex X Regulation (EC) 1898/2006 http://ec.europa.eu/agriculture/quality/schemes/legislation/index_en.htm

Oppositions Who? In EU: Any natural or legal person having a legitimate interest in EU via Authorities MS Non-EU countries: Authorities of a Third country or any natural or legal person having a legitimate interest Template http://ec.europa.eu/agriculture/quality/schemes/legislation/index_en.htm

Database of origin and registration: DOOR (agricultural products and foodstuffs) Full data Date of submission Links to summaries and specifications Links to official publications Links to control body For non-eu persons and bodies: On-line applications On-line objections

More information Agricultural products and foodstuffs: Council and European Parliament Regulation (EU) No 1151/2012 http://eur-lex.europa.eu/lexuriserv/lexuriserv.do?uri=oj:l:2012:343:0001:0029:en:pdf DOOR database http://ec.europa.eu/agriculture/quality/database/index_en.htm Quality policy web-pages: http://ec.europa.eu/agriculture/quality/index_en.htm

Expert s name: Natalie Pasinato Expert s title: IP Expert European Union Intellectual Property Office (EUIPO) Thank You