How a single GI regulation would benefit everybody

Geographical Indications (GIs) are a crucial tool to help local producers to sell their goods for the correct value and preserve them from counterfeiting and copies. Nevertheless, at the moment, there is a complicated context in the EU made by three different systems: PDO, PGI and GI. The European Commission approved a proposal that will create a single GI for Europe, and it needs Parliament and Council approval to become effective. Harmonising these policies and creating a single regulation could benefit institutions, producers, and consumers.

Geographical Indications (GIs) in the EU

There is proof of GIs dating back to the 6th century BC when the winery products of the Greek island of Chios were known internationally (WIPO, 2021). However, even if the idea was de facto used in many trade agreements throughout history, they were institutionalised between the late 19th and early 20th century. The World Intellectual Property Organization defined GIs as a "sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin." (Sajn, 2023, p.2). The examples of such products are various, and each nation has its typical ones: Italy has wines, like Barolo, or cheeses, like Parmigiano Reggiano, to mention a few; on the other hand, France has the Roquefort and Champagne. So, these signs were created to assure the producer of the proper value of their goods and guarantee that their receipt cannot be copied and that no other product can be sold by that name. Thanks to this function, GIs are now a popular topic among governments and international organisations because they can effectively support the development of specific areas (WIPO, 2021).

The EU has its own regulations and provides many instruments to defend native products. Right now, in the common market, there are three types of GIs – Protected Designation of Origin (PDO), Protected Geographical Indication (PGI), Geographical Indication (GI) – and several quality schemes – such as the Traditional Speciality Guaranteed (TSG) one, which is the most important. Each one of them represents a different speciality: PDOs are food, agricultural products and wine for which all production steps take place in a specific geographical location; instead, PGI is used for food, agricultural products and wine for which at least one of the production steps takes place in a specific geographical location; GIs are spirit drinks for which at least one of the stages of preparation takes place in a specific region, but natural products can come from elsewhere; last, TSG sign is used for food and agricultural products that are made traditionally, anywhere in the world, but they have to follow the registered recipe (Sajn, 2023). 

However, according to many, the processes required are too complex, and recent Commission evaluation shows that there is low consumer awareness, there are difficulties in the enforcement of producers' rights – primarily online – there is an unclear role of producer groups, and last, Member States implement rules unevenly (Sajn, 2023). So, there should be a reform to improve the processes and enforcement. Unifying current regulations in a single GI sign can be a first step to boosting traditional EU products.

The new regulation proposal

Bearing in mind all the weaknesses of present-day regulation, the European Commission, in March 2022, approved the proposal "for a regulation of the European Parliament and of the Council on European Union geographical indications for wine, spirit drinks and agricultural products, and quality schemes for agricultural products […]". The first aim of this law is to create a single GI system for all the different categories – wine, spirit drinks and agricultural products – to facilitate the understanding, the process and the enforcement. It will also try to make the procedure easier and quicker, defining all the contents that application documents must report. According to the new regulation, even the controls will be improved, requiring Member States to designate one or more enforcement authorities responsible for enforcement of the GIs, each state will have to assist others mutually and exchange information, and the national opposition procedure would be harmonised and would have to last at least two months. The new legislation would increase the protection of GIs on the internet, too: Country-code top-level domain name registries established in the EU would have an option, on request, to revoke or transfer a domain name registered to a recognised producer group.

Moreover, given the nature of these regulations valuing receipts and methods of production, the Commission want to give more importance to the European Union Intellectual Property Office (EUIPO) in the process, especially establishing and managing a domain name information and alert system and during the phases of scrutiny and opposition procedure. Then, there would be an addition to producer groups' powers: first of all, some of them can be recognised by the Member States to be entitled to have additional powers and responsibilities; also, they will have the competence to execute internal controls and combat counterfeiting and suspected fraudulent uses; furthermore, someone could use a GI labelled product as an ingredient, only if they have an agreement with the producer group; last, producer group will be able to set social, environmental or economic sustainability requirements to a product specification, that have to exceed EU ones in order to be legit.

Harmonised policies are more efficient

This proposal has already been discussed by both the Parliament and the Council and is scheduled to be voted on in March 2023. The brief summary in the previous section makes it possible to understand that the new European regulation's goal is to harmonise not only Member States' policies but even its own. From three different systems, the EU Commission want to adopt a single GI sign and ensure that every one of the 27 states (to date) will comply with the regulation in the same way. Because this is the only way to guarantee a quick process for producers to register their brand and efficient control and enforcement, so that they cannot be counterfeited or used by non-original makers. Finally, it will be an excellent opportunity to help consumers understand the importance of a European IG – for their health and regions – and how to spot it and its label without being too confused by all those acronyms.

References

• Sajn, N. (2023). “Geographical indications for wine, spirit drinks and agricultural products”. European Parliamentary Research Service, Strasbourg.
• WIPO. (2021). “Geographical Indications: an Introduction”. World Intellectual Property Organization, Geneva.