PROJECT ON

Role of GI in a Global Economy:

Challenges & Issues

SUBMITTED TO

Ankit Sir

United World School of Law (UWSL),

KARNAVATI UNIVERSITY

SUBMITTED BY

Name: - Abhinandan Roy

Sachin yadav

Roll No: - 2, 70

Semester: -10
ACKNOWLEDGEMENT

The texted reported in this project is the outcome of my own effort and no part of this project
assignment has been copied in any unauthorized manner and no part of it has been
incorporated without due acknowledgement.

I would like to express my gratitude to my teacher for providing support and guidance. I got
to learn a lot more which will be very helpful for me.
index
Introduction

Geographical Indication (GI) is a form of intellectual property rights that identifies a product
as originating from a specific geographical region or location, where the unique qualities or
characteristics of the product are largely due to its geographical origin. GIs are used to protect
the quality, reputation, and distinctiveness of certain agricultural, food, and beverage
products, handicrafts, and other goods that have a strong connection to a particular region or
culture. GIs help to promote rural development, encourage innovation and creativity, and
contribute to the economic growth of the regions where the products are produced.
In a global economy, the role of geographical indication is critical, as it helps to promote the
trade of high-quality products while protecting them from unfair competition and imitation.
By securing the rights of producers, GIs ensure that they receive a fair price for their
products, which can help to sustain local communities and economies. However, there are
several challenges and issues associated with the use of geographical indications in a global
economy.
One of the main challenges is the protection and enforcement of GIs. While the World Trade
Organization's Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
provides a framework for the protection of GIs, many countries do not have effective legal
mechanisms to enforce these protections. As a result, producers may face difficulties in
protecting their products from infringement and counterfeiting.
Another challenge is the recognition of GIs across different jurisdictions. The criteria for
determining whether a product can be recognized as a GI may vary from country to country,
which can make it difficult for producers to obtain recognition and protection in international
markets. Furthermore, some countries may have different standards for defining the
geographical boundaries of a GI, which can lead to disputes and conflicts over the use of a
particular name or label.
Finally, the globalization of the food industry has led to the homogenization of products,
which can threaten the authenticity and uniqueness of GIs. As multinational corporations
dominate the market, they may produce generic products that are similar to GIs, thereby
diluting the value of the original product. Additionally, globalized supply chains and
distribution networks may make it difficult for producers to maintain the integrity and quality
of their products.
A case study of the role of geographical indications in a global economy can be seen in the
example of Parmigiano-Reggiano cheese from Italy. Parmigiano-Reggiano cheese is a well-
known GI that has been produced in the Emilia-Romagna region of Italy for over 800 years.
The cheese is made using traditional methods and is aged for a minimum of 12 months,
which gives it a unique flavor and texture.
Despite its long history and reputation, Parmigiano-Reggiano cheese has faced several
challenges in the global market. The production of imitation cheeses labeled as "Parmesan"
or "Reggiano" has become widespread, which has led to confusion among consumers and has
undermined the value of the original product. Additionally, the globalization of the food
industry has led to increased competition from other cheeses, which has put pressure on the
producers of Parmigiano-Reggiano to maintain their market share.
To address these challenges, the Consortium for the Protection of Parmigiano-Reggiano was
established in 1934 to protect the integrity and quality of the product. The Consortium sets
strict standards for the production and labeling of Parmigiano-Reggiano cheese and works to
enforce these standards through legal action against infringing producers. The Consortium
also promotes the product through marketing and educational campaigns, which help to raise
awareness of the unique qualities of Parmigiano-Reggiano cheese and to differentiate it from
imitation products.
In conclusion, the role of geographical indication in a global economy is critical for
protecting the quality, reputation, and distinctiveness of certain agricultural, food
Definition of Geographical Indications:
Geographical indication indicates that particular goods originate from a country, region or
locality and has some special characteristics, qualities or reputation which is attributable to its
place of origin. These special characterstics, qualities or reputation may be due to various
factors, e.g. natural factors such as raw materials, soil, regional climate, temperature,
moisture
etc; or the method of manufacture or preparation of the product such as traditional production
methods; or other human factors such as concentration of similar businesses in the same
region, specialization in the production or preparation of certain products and the maintaining
of certain quality standards. A geographical indication (GI) is a name or sign used on certain
products which corresponds to a specific geographical location or origin (e.g. a town, region,
or country). India, as a member of the World Trade Organization (WTO), enacted the
Geographical Indications of Goods (Registration and Protection) Act, 1999 has come into
force
with effect from 15 September 2003. GIs have been defined under Article 22(1) of the WTO
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreementas:
"Indications which identify a good as originating in the territory of a member, or a region or a
locality in that territory, where a given quality, reputation or characteristic of the good is
essentially attributable to its geographic origin." The salient features of the Act are defines
Geographical Indication, provides a mechanism for registration of GIs, establishes a GI
Registry, elaborates the concept of authorised user and registered proprietor, higher level of
protection for notified goods and remedies for infringements.
Section 2(e) of the Act defines a GI as : “geographical indication”, in relation to goods,
means an indication which identifies such goods as agricultural goods, natural goods or
manufactured goods as originating, or manufactured in the territory of a country, or a
region or locality in that territory, where a given quality, reputation or other characteristic of
such goods is essentially attributable to its geographical origin and in case where such goods
are manufactured goods one of the activities of either the production or of processing or
preparation of the goods concerned takes place in such territory, region or locality, as the
case may be.”
Therefore to qualify for protection an indication must:
1. Identify the good and its area of geographical origin.
2. Possess a given quality, reputation or other characteristics which
3. Is essentially attributable to its area of geographic origin.
Manufactured goods over a period of time while agricultural goods easily discernable.
Registration Process:
An application for registration must be made before the Registrar of Geographical
Indications by any association of persons or producers or any organization or authority
established by or under any law for the time being in force representing the interest of the
producers of the concerned goods.
The application must be made in an appropriate form containing the nature, quality,reputation
or other characteristics of which are due exclusively or essentially to the geographical
environment, manufacturing process, natural and human factors, map of territory of
production, appearance of geographical indication (figurative or words), list of producers,
along with prescribed fees.
v The examiner will make a preliminary scrutiny for deficiencies, in case of deficiencies,
the applicant have to remedy it within a period of one month from the date of
communication. The Registrar may accept, partially accept or refuse the application. In
case of refusal, the Registrar will give written grounds for non acceptance. The
applicant must within two months file reply. In case of re-refusal, the applicant can
make an appeal within one month of such decision.
v Registrar shall, within three months of acceptance may advertise the application in the
GI Journal.
v If there is no opposition, the Registrar will grant a certificate of registration to the
applicant and authorised users .
Historical Background of Law on Geographical Indication in India:
The concept of geographical indication has its origin in 19th century Europe and has
considerably evolved since then. The current international framework is laid down in Article
22 of the Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement which
mandates member countries to provide for the protection of all GIs, where the obligation is
for
members to provide the ‘legal means for interested parties’ to secure protection of their GIs.
The TRIPS defines GIs 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 essential attributable to its geographical origin’ (Article 22).
Under
Article 22, the scope of protection is composed of three aspects:4
1. Protection against the use of indications that mislead the public or are deceptive.
2. Protection against the use of indications in a manner that are acts of unfair competition;

3. Refusal or invalidation of trademarks that contain or consist of indications, where it may

mislead the public.
Article 22.2.a prohibits the use of indications (words, phrases, images or symbols) that
will mislead/ deceive the public about the good’s geographical origin. Article 22.2.b prohibits
any use of GI that constitutes an act of unfair competition as defined in Article 10bis of the
Paris Convention. The language of Article 10bis indicates that in order to prohibit such acts
as
acts of unfair competition, it has to be established that their use is misleading or will create
confusion to the public, and that damages result or there is likelihood of damages resulting
from such use of GI. As per Article 22.3 of TRIPS, registration of GI as trademarks shall be
refused or invalidated at the request of an interested party, if their use is likely to mislead the
public as to the true place of origin. Most countries including developing countries disallow
the
registration of geographical names as trademarks, unless these have attained secondary
meaning. Prior to 1999, there was no specific law in India on geographical indications which
could adequately protect the interests of producers. Despite India being a party to the TRIPs
Agreement, she did not enact a law on geographical indications until 1999. The judiciary,
however, has been active in preventing persons to take unlawful advantage of geographical
indications.
In Mohan Meakin v. Scotch Whisky5, the Delhi High Court affirmed the order of the
Registrar
of Trademarks by which he refused to register the applicant’s mark proposed to be used on
whisky produced in India consisted of the words “Highland Chief” and the device of the head
and shoulders of a gentleman dressed in Scottish highland costume wearing, inter alia, feather
bonnet and plaid and edged with tartan, a well-known symbol of Scottish origin.
In another case, Scotch Whisky Association v. Pravara Sahakar Karkhana6 the Scotch
Whisky
Association succeeded in restraining the defendants from selling their whisky under the
description “Blended with Scotch” along with the device of Scottish drummer wearing a kilt
or
tartan and the word “Drum Beater”.
The Legal framework in India:
As a party to the TRIPS Agreement, India is required to protect GI and hence in order to
fulfill
that obligation, the Geographical Indications of Goods (Registration and Protection) Act,
1999
was enacted. It may also be noted that India felt that some of its products have high potential
to benefit from GI registration and it was necessary to put in place a comprehensive
legislation
for registration and for providing adequate protection for GI.
For unless a geographical indication is protected in the country of its origin, there is no
requirement under the TRIPS Agreement for other countries to extend reciprocal protection.
The main benefits which accrue from registration under the Act are as follows:
1. Confers legal protection to GI in India;
2. Prevents unauthorized use of a registered geographical indication by others;
3. Enables seeking legal protection in other WTO member countries.
From the perspective of a developing country, one of the best features of the Indian Act is the
comprehensive definition given of GI, whereby agricultural, natural and manufactured goods
all come under the ambit of GI. This is especially important in the Indian context considering
the wide variety of goods that is deserving of protection ranging from agricultural products
like Basmati, Darjeeling tea to manufactured goods such as Banrasi sari, Kolhapure chappals,
Chanderi silk etc. Section 11of the Act provides that any association of persons, producers,
organization or authority established by or under the law can apply for registration of a GI.
Another important aspect of the Act is the possibility of protecting a GI indefinitely by
renewing the registration when it expires after a period of ten years.
In the domestic context, the Indian Act has tried to extend the additional protection reserved
for wines and spirits mandated by TRIPS to include goods of national interest on a case to
case basis. Section 22.2 of the Act endows the Central Government with the authority to give
additional protection to certain goods or classes of goods. This is especially important in the
developing country context considering that we may not have wines and spirits to protect like
the West but other exotic niche products like teas, rice etc. Section 25 of the Act, by
prohibiting the registration of a GI as a trademark, tries to prevent appropriation of a public
property in the nature of a geographical indication by an individual as a trademark, leading to
confusion in the market.
Also, according to section 24 of the Act, a GI cannot be assigned or transmitted. The Act
recognizes that a GI is a public property belonging to the producers of the goods concerned;
as such it cannot be the subject matter of assignment, transmission, licensing, pledge,
mortgage or any contract for transferring the ownership or possession.7
Impacts of GI registration in India: Some cases

A number of observers point out that of all the different types of intellectual property rights,
GImay be more amenable to the particular context of developing countries. GIs may
especiallyfacilitate protection of the collective rights of the rural and indigenous communities
in theirindigenous knowledge, ensuring that the entire community which has preserved the
knowledgeand has passed it on with incremental refinement over generations, stand to benefit
from theknowledge and that this is not locked up as the private property of one individual
(Sahai andBarpujari, 2007). Other advantages of GIs are that the knowledge remains in the
publicdomain, the scope of protection is limited to controlling the class and/ or location of
peoplewho may use the protected indication and the rights can potentially be held in
perpetuity aslong as the product-place link is maintained (Commission on Intellectual
Property Rights,2004). Also, holders of a GI do not have the right to assign the indication,
thus, preventing itstransfer to non-locale producers.
Evidence on the socio-economic impacts of GIs in the Indian context are, however,
limitedalthough anecdotal evidence suggests that GIs have significant implications for
producers indeveloped and developing countries (Jena and Grote, 2007) . Interestingly, the
collective natureof GIs also brings to the fore significant collective action related problems
across variousstages of organization and governance (Das, 2009). For example, a group of
producers may take the initiative in the GI registration process, while others not willing to
join initially may join later thereby attempting to free-ride on the efforts of the fore runners.
In India, there are many GIs that are registered in the names of some central or state
government departments or bodies, yet there is no homogeneity among those initiatives and
involvements across states. A
number of studies have also found that GIs could lead to exclusion of many from enjoying
the benefits (Gopalakrishnan et.al (2007), Rangnekar (2009)). Firms with better bargaining
positions may also end up making disproportionate share of the economic value generated
from securing protection (Rangnekar, 2004). It is against this backdrop that our study has
tried to assess the situation on the ground with respect to a number of registered GIs, through
in depth, field level case studies as well as primary survey based on a standard questionnaire
prepared for the purpose. Some of these case studies include Muga silk of Assam, Banaras
brocades and saris, Malabar pepper and Vazhakulam Pineapple, all of which are registered
GIs.
Muga Silk of Assam Muga silk is a registered GI from the state of Assam. Historical
evidence suggests that Assam’s silk industry had reached the pinnacle of perfection by the
7th century A.D.

Banabhatta, the author of Harshacharita informs us that king Bhaskara Varma of Kamarupa
(ancient Assam) presented to Harshavardhana silken towels as “silken and pure as the autumn
moon’s night...”(cited in Sahai and Barpujari, op.cit.). In the present day, muga silk
constitutes the state’s most popular export product after Assam tea. The Patent Information
Centre of the Assam Science Technology and Environment Council (ASTEC) secured
registration for muga in 2006, which is incidentally the first registered GI from the north-
eastern region. While
ASTEC is the registered proprietor of the muga GI, till date, there are no registered users.
One to one interviews with weavers and silk traders in the town of Sualkuchi revealed very
low awareness about the GI protection of muga. While the price of muga has been rising over
the last few years, that has little to do with GI registration. The reason for the high prices of
the muga yarn, according to the various stakeholders interviewed, are diminishing area under
muga cultivation owing to rubber cultivation, diseases at the cocoon stage, loss incurred due
to the outdoor nature of muga rearing, and so on. Nevertheless, higher prices have not been
able to encourage the farmers to hold on to muga cultivation. As a result, muga has become
almost three times more expensive, compared with other similar varieties of silk. Apparel
with 100 percent muga yarn is rarely produced these days, except to cater to the state
emporiums, or for special orders. Muga is with often blended with imported tussar silk from
China or other indigenous silk yarn such as pat. Meanwhile, as observed in the field, power-
loom is getting increasingly popular for muga weaving, dealing a further blow to handloom
weavers. In an interview, an applicant for registered use of muga observed that fabric woven
on the powerloom has certain advantages and could be the only way out for entrepreneurs
like him as many weavers are leaving the profession owing to un remunerative wages.
Regarding the setting up of a quality control and inspection mechanism, as required by the
law, ASTEC has proposed employing the services of the Seri Bio Lab of the Institute of
Advanced Study in Science and
Technology, Guwahati, for quality control. An inspection body is yet to be constituted.
Hence, at this stage, even after six years of registration, GI in muga cannot give any
guarantee of quality or authenticity.
Banaras brocades and saris ‘Banaras brocades and saris’ secured registration under the GI
Act in September 2009, with the application filed by nine organisations viz. Banaras Bunkar
Samiti, Human Welfare Association (HWA), joint director industries (eastern zone), director
of handlooms and textiles Uttar Pradesh Handloom Fabrics Marketing Cooperative
Federation, Eastern UP Exporters

Association (EUPEA), Banarasi Vastra Udyog Sangh, Banaras Hath Kargha Vikas Samiti
and Adarsh Silk Bunkar Sahkari Samiti. The weaver community predominantly constitutes
poor Muslims and Dalits and the structure of production is based on a hierarchy of kothdars
(wholesale dealers), master weavers and other weavers. With the objective of understanding
the actual impact of registration on the ground level, TERI researchers conducted a
multistakeholder consultation at Varanasi interacting with registered users, Banarasi Sari
traders, bunkars(weavers), government officials, local buyers, NGO representatives, cottage
manufacturing units etc. The consultations indicated that the Banarasi sari industry is
impacted by a host of variables in terms of raw material and labour issues, the socio-
economic aspects of the region, and, to some extent, the pitfalls of excessive liberalisation
and legislation (Dwivedi and Bhattacharjya, 2012). The changing economic and market
situation has resulted in reduced income for weavers who cannot even meet their basic needs,
causing malnutrition and widespread poverty throughout the traditional weaver community.
Such destitution and despondency among the weavers has forced them to commit suicide or
has precipitated employment shifts, as evidenced by MGNREGA (Mahatma Gandhi National
Rural Employee Guarantee Act) benefits. It could be gathered from the fieldwork that the
promise of geographical indication protection has not curbed the menace of fakes. Machine-
based cheap product imitations continue to be sold. Cheap raw material imports have led to
the sale of what are known as Kelasaris, in the name of Banarasi saris. These use banana tree
resin to create threads which are then polished to give the look of silver or gold thread.
Chinese imitation saris, pegged at much lower prices, are flooding the market. Moreover,
there is a tenfold rise in the number of operating power-looms in the district of Varanasi
itself, although certain other studies put higher estimates. Most power-loom owners have
been producing cheap imitation products in large numbers to meet the growing demand, with
computerised designs. Enforcement under the legal regime is frustrated further through
absence of will on the part of GI holders to take action against the imitators. Despite the
stakeholders being aware of the deleterious impact of sales of fake saris, complex market
dynamics enforces silence among all concerned.
Malabar pepper Malabar pepper is famous for its quality. It is classified under two grades –
garbled and ungarbled. History is replete with instances of foreigners coming to the Malabar
Coast to trade in Indian spices in general and pepper in particular. It is stated that the
exorbitant price of pepper during the middle ages, a trade which was monopolized by the
Italians, forced the Portuguese to seek a sea route to reach India. Pepper is used as a spice and
it has also got medicinal properties. Malabar pepper is cultivated in the geographic regions
comprised in the Malabar region of the erstwhile Madras Presidency. Now these areas
comprise in the states of Kerala, Karnataka and Tamil Nadu. Malabar pepper accounts for
around 25 per cent of the entire world’s supply of pepper. This pepper is unique for its sharp,
hot and biting taste. Highly aromatic, with a distinctive fruity bouquet, it has the perfect
combination of flavour and aroma.
In order to protect the brand value of Malabar pepper, the Spices Board applied for a GI
registration and after completing the formalities the registration was granted .As pepper is
exported in huge quantities, there was a feeling that the GI tag would give better legal
protection against counterfeit products, more visibility to the brand etc. None of the
respondents interviewed by TERI researchers were aware of any infringement action initiated
against any of the counterfeit producers. There was also a general feeling that it is the traders
who reap benefit out of the GI tag and not the farmers. The general refrain was that farmers
do not get any extra benefit from the GI tag, which is also corroborated by findings from the
TERI survey discussed later. The general mood in the sector at the time of field visit was a
worry over the declining price in pepper. There were demands that there should be a
complete ban on future trades in pepper.
Duration and Renewal of GIs8:
Section 18 of the Geographical Indications of Goods (Registration and Protection) Act, 1999
lays down that the registration of a GI shall be for a period of ten years, but may be renewed
from time to time. The Registrar shall, on application made in the prescribed manner, by the
registered proprietor and within the prescribed period and subject to the payment of the
prescribed fee, renew the registration of the GI for a period of ten years from the date of
expiration of the original registration or of the last renewal of registration, as the case may be.
Concluding Observation:
Intellectual property rights have never been more economically and politically important or
controversial than they are today. Patents, copyrights, trademarks, industrial designs, and
geographical indications are frequently mentioned in discussions and debates on such diverse
topics as public health, food security, education, trade, industrial policy, traditional
knowledge, biodiversity, biotechnology, the Internet, the entertainment and media industries.
In a knowledge-based economy, there is no doubt that an understanding of IPRs is
indispensable to
informed policy making in all areas of human development. Geographical Indications is an
emerging field of Intellectual property. Every region has its claim to fame and it has to be
protected. Geographical Indications, a form of Intellectual Property, is statutorily protected
under the Indian Law which is in tune with India’s obligations under TRIPs.
The people of India may be benefited through utilizing this law. It is need of hour to raise the
awareness among people regarding protection of Indian GIs. With the increasing recognition
of GIs’ multifunctional character, the challenge will be to design and implement a
comprehensive GI scheme that could constitute the basis for sustainable development.