4 Reasons 4 Using Geographical Indications
A geographical indication (GI) is a distinctive sign identifying a product whose quality, reputation or other characteristics relate to its geographical origin. GIs represent a type of Intellectual Property and are crucial to both the European and global economies. A sign must identify a product as originating in a given place to be considered a GI. In the infographic below, we explain the benefits of geographical indications:
4iP Council has developed this interactive guide in cooperation with eminent academics and experts to share best practice and deepen understanding of the value of trademark registration. In particular, we would like to thank the following organisations for their valuable insights, engagement and support.
4 Reasons 4 Using Geographical Indications
A GI product has a story of origin, hard work, tradition, guarantee and quality behind it.
At European Union level, unitary geographical indications (GI) protection was traditionally provided for wines, spirit drinks, aromatised wines and for agricultural products and foodstuffs.
In 2023, an EU-wide protection system that safeguards the name of locally renowned crafts and industrial products such as glass, lace or natural stones was established. The EUIPO will play an important role in this new system, especially in terms of managing the registration procedure through a cost-efficient process - See: https://www.euipo.europa.eu/es/news/geographical-indications-for-craft-and-industrial-products-signature-by-the-co-legislators-at-the-strasbourg-plenary
Producers must comply with a particular set of requirements. GIs products are monitored by independent control bodies that ensure that producers comply with specific requirements.
In exchange, they get extended legal protection and they can use the following EU logos
Protected Designation of Origin (PDOs)
The product's unique characteristics are inherently tied to its geographic origin, with every stage of production, processing, and refinement strictly confined to the designated region.
The product's unique characteristics are inherently tied to its geographic origin, with every stage of production, processing, and refinement strictly confined to the designated region.
Protected Geographical Indications (PGIs)
The product possesses distinctive qualities and a reputation from its geographical origin. Certain key stages, including production, processing, or preparation, occur exclusively within the specified area, contributing to its uniqueness.
The product possesses distinctive qualities and a reputation from its geographical origin. Certain key stages, including production, processing, or preparation, occur exclusively within the specified area, contributing to its uniqueness.
If you are curious about how GI products are controlled, take a look at this study from the European Union Intellectual Property Office. Controls are carried out at production and market levels by national authorities.
This is a cornerstone on the EU GIs system which is about the interaction between trade marks and geographical indications. The legal framework contains criteria for coexistence between trade marks and geographical indications. For instance, in the wake of the Lisbon Revision 2015, one of the most-discussed issues was the conflict between trade marks and geographical indications. See Heath, C., Marie-Vivien, D. Geographical Indications and the Principles of Trade Mark Law – A Distinctly European Perspective. IIC 46, 819–842 (2015)
As with other IP rights, a GI confers an exclusive right allowing all producers in a given area to use the protected name.
GI protection does not cover generic elements but protects registered names against any direct or indirect commercial use.
GI protection covers any direct or indirect commercial use also for comparable products or where the name exploits the reputation of the protected name, even when those products are used as ingredients. The direct or indirect use happens when there is a high degree of visual and aural similarity between the names and the products are identical or there is a commercially relevant ingredient, or they are comparable, or the similarity is not as regards the product but related any services, which may be associated with the direct or indirect distribution of those products.
It is forbidden any misuse, imitation or evocation of that indication, even in case of conceptual similarity.
It merits a special mention the EU case law clarifying what is ‘evocation’ about. Evocation does not require, as a preliminary condition, that the product protected by a GI and the product or service covered by the contested sign be identical or similar and, second, is established where the use of a name creates, in the mind of an average European consumer who is reasonably well informed and reasonably observant and circumspect, a sufficiently clear and direct link between that name and the GI. The existence of such a link can result from several aspects, in particular, the partial incorporation of the protected designation, the phonetic and visual relationship between the two names and the similarity resulting from it, and even in the absence of those aspects, from the conceptual similarity between the GI and the contested sign or from a similarity between the products covered by that GI and the products or services covered by the contested sign.
Source: Javier Guillem for Observatory EUIPO-
Therefore, using, copying, evocating or suggesting the GI, even indirectly, is not allowed.
Take a look at this webinar where Javier Guillem Carrau gives his insights on court decisions related to GIs protection.
Specific GIs protection applies independently to the national unfair competition rules. This is a key point to understand which type and extension of protection are granted, how this is interconnected with existing trademarks, and how much protection for the GIs is foreseen in the EU. J. Guillem Carrau: How much protection for Geographical Indications (GIs)? A jigsaw of case law is falling into place in the EU (2022) 44 E.I.P.R., Issue 9© 2022 Thomson Reuter.
The ultimate objective of the legislation on PDOs and PGIs is to protect traditional products ‘with specific characteristics linked to geographical origin’. See: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:62019CC0490
“Padua’s Guardia di Finanza concluded an operation in the sector of counterfeiting and alteration of food products and commercial fraud, seizing 9 200 bottles of wine, 40 000 labels and 4 200 boxes, all unduly bearing a French geographical indication for sparkling wine. The sale of only the recovered bottles would have yielded an income of around EUR 350 000 to the organisation, which would have increased to over EUR 1.8 million considering the tens of thousands of ready-to-use trademark infringing labels seized.”
Fake sparkling wine case (IT) Europol & EUIPO ‘IP CRIME AND ITS LINK TO OTHER SERIOUS CRIMES Focus on Poly-Criminality’ (2020), p.42-43
Fake sparkling wine case (IT) Europol & EUIPO ‘IP CRIME AND ITS LINK TO OTHER SERIOUS CRIMES Focus on Poly-Criminality’ (2020), p.42-43
Europol and INTERPOL coordinated Operation OPSON 2020, which targeted the trafficking of counterfeit and substandard food and beverages, it is the ninth operation of its kind. It ran from December 2019 to June 2020 and involved law enforcement authorities from 83 countries. It was also supported by the European Anti-Fraud Office (OLAF), the European Commission, the European Union Intellectual Property Office (EUIPO), national food regulatory authorities and private sector partners. Counterfeit and substandard food and beverages can be found in shops worldwide. Operation OPSON IX was created to combat organised crime involved in this area. Most of the IPR infringements are connected with alcoholic beverages, condiments and meat products. The IPR violation, in 92 cases, remained undetermined, but in 25 cases, it was related to a trademark, while 10 cases were associated with the geographic indication of origin and 5 to copyright.
Operation “Vuoti a rendere” is an Italian investigation started by NAS Carabinieri of Florence in January 2018, in the framework of Op. OPSON VII and finalised during Op. OPSON IX. The case involved Italian criminals responsible for food fraud, concerning the counterfeiting of prestigious GI wines and international high-cost wines. The investigation revealed a scam based on reusing original primary packaging (empty wine bottles) and secondary packaging (wooden boxes). The authentic empty bottles were gathered from restaurants and mainly managed by two individuals working in the food industry. The bottles were refilled with poor products from different origins, purchased online or at hard discount stores. Afterwards, the bottles were refilled with cheap wines, sealed with corks and counterfeit capsules of a different or similar colour to the original. Packaging films and false masking guarantee seals were finally applied to conceal the lack of distinctive signs on the capsules used for the counterfeit units. Once a contact with a buyer was established via a big e-commerce platform, the counterfeiters expanded even further their promotional offers, setting prices way below the ones seen usually on the market. A magnum format (1.5 l) of some counterfeit wines typically exceeds € 1000 per bottle. The fraudulent products were sold as genuine in Italy and abroad. Therefore, a completely uncontrolled market was identified based on the absolute lack of traceability.
EUROPOL and INTERPOL, ‘OPERATION OPSON IX Analysis Report’ (January 2021) p.18-19
Operation “Vuoti a rendere” is an Italian investigation started by NAS Carabinieri of Florence in January 2018, in the framework of Op. OPSON VII and finalised during Op. OPSON IX. The case involved Italian criminals responsible for food fraud, concerning the counterfeiting of prestigious GI wines and international high-cost wines. The investigation revealed a scam based on reusing original primary packaging (empty wine bottles) and secondary packaging (wooden boxes). The authentic empty bottles were gathered from restaurants and mainly managed by two individuals working in the food industry. The bottles were refilled with poor products from different origins, purchased online or at hard discount stores. Afterwards, the bottles were refilled with cheap wines, sealed with corks and counterfeit capsules of a different or similar colour to the original. Packaging films and false masking guarantee seals were finally applied to conceal the lack of distinctive signs on the capsules used for the counterfeit units. Once a contact with a buyer was established via a big e-commerce platform, the counterfeiters expanded even further their promotional offers, setting prices way below the ones seen usually on the market. A magnum format (1.5 l) of some counterfeit wines typically exceeds € 1000 per bottle. The fraudulent products were sold as genuine in Italy and abroad. Therefore, a completely uncontrolled market was identified based on the absolute lack of traceability.
EUROPOL and INTERPOL, ‘OPERATION OPSON IX Analysis Report’ (January 2021) p.18-19
“Twenty house searches were carried out in Italy and Germany and a total of 150 000 litres of fake olive oil seized at different locations, including five lorries transporting 23 000 litres of counterfeit oil each. It is estimated that the suspects made profits of around EUR 8 million every year, taking into account that they acquired 1 million litres of seed oil every year for approximately EUR 1 million, and then they sold the counterfeit product between EUR 5 and EUR 10 per litre.”
Oro Giallo (IT, DE) case Europol & EUIPO ‘IP CRIME AND ITS LINK TO OTHER SERIOUS CRIMES Focus on Poly-Criminality’ (2020), p.44-46
Oro Giallo (IT, DE) case Europol & EUIPO ‘IP CRIME AND ITS LINK TO OTHER SERIOUS CRIMES Focus on Poly-Criminality’ (2020), p.44-46
Check out the official publication of the Official Journal of the EU regarding the regulation on Geographical Indications (GIs) for craft and industrial products here: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202302411
See the related documents for the Regulation on Geographical Indications for Craft and Industrial Products
Take a look at how the EUIPO will play an important role in this new system, especially in terms of managing the registration procedure through a cost-efficient process
Explore the EUIPO page for Geographical Indications (GIs) for craft and industrial products
A GI product has a story of origin, hard work, tradition, guarantee and quality behind it.
At European Union level, unitary geographical indications (GI) protection was traditionally provided for wines, spirit drinks, aromatised wines and for agricultural products and foodstuffs.
In 2023, an EU-wide protection system that safeguards the name of locally renowned crafts and industrial products such as glass, lace or natural stones was established. The EUIPO will play an important role in this new system, especially in terms of managing the registration procedure through a cost-efficient process - See: https://www.euipo.europa.eu/es/news/geographical-indications-for-craft-and-industrial-products-signature-by-the-co-legislators-at-the-strasbourg-plenary
Producers must comply with a particular set of requirements. GIs products are monitored by independent control bodies that ensure that producers comply with specific requirements.
In exchange, they get extended legal protection and they can use the following EU logos
Protected Designation of Origin (PDOs)
The product's unique characteristics are inherently tied to its geographic origin, with every stage of production, processing, and refinement strictly confined to the designated region.
The product's unique characteristics are inherently tied to its geographic origin, with every stage of production, processing, and refinement strictly confined to the designated region.
Protected Geographical Indications (PGIs)
The product possesses distinctive qualities and a reputation from its geographical origin. Certain key stages, including production, processing, or preparation, occur exclusively within the specified area, contributing to its uniqueness.
The product possesses distinctive qualities and a reputation from its geographical origin. Certain key stages, including production, processing, or preparation, occur exclusively within the specified area, contributing to its uniqueness.
If you are curious about how GI products are controlled, take a look at this study from the European Union Intellectual Property Office. Controls are carried out at production and market levels by national authorities.
This is a cornerstone on the EU GIs system which is about the interaction between trade marks and geographical indications. The legal framework contains criteria for coexistence between trade marks and geographical indications. For instance, in the wake of the Lisbon Revision 2015, one of the most-discussed issues was the conflict between trade marks and geographical indications. See Heath, C., Marie-Vivien, D. Geographical Indications and the Principles of Trade Mark Law – A Distinctly European Perspective. IIC 46, 819–842 (2015)
As with other IP rights, a GI confers an exclusive right allowing all producers in a given area to use the protected name.
GI protection does not cover generic elements but protects registered names against any direct or indirect commercial use.
GI protection covers any direct or indirect commercial use also for comparable products or where the name exploits the reputation of the protected name, even when those products are used as ingredients. The direct or indirect use happens when there is a high degree of visual and aural similarity between the names and the products are identical or there is a commercially relevant ingredient, or they are comparable, or the similarity is not as regards the product but related any services, which may be associated with the direct or indirect distribution of those products.
It is forbidden any misuse, imitation or evocation of that indication, even in case of conceptual similarity.
It merits a special mention the EU case law clarifying what is ‘evocation’ about. Evocation does not require, as a preliminary condition, that the product protected by a GI and the product or service covered by the contested sign be identical or similar and, second, is established where the use of a name creates, in the mind of an average European consumer who is reasonably well informed and reasonably observant and circumspect, a sufficiently clear and direct link between that name and the GI. The existence of such a link can result from several aspects, in particular, the partial incorporation of the protected designation, the phonetic and visual relationship between the two names and the similarity resulting from it, and even in the absence of those aspects, from the conceptual similarity between the GI and the contested sign or from a similarity between the products covered by that GI and the products or services covered by the contested sign.
Source: Javier Guillem for Observatory EUIPO-
Therefore, using, copying, evocating or suggesting the GI, even indirectly, is not allowed.
Take a look at this webinar where Javier Guillem Carrau gives his insights on court decisions related to GIs protection.
Specific GIs protection applies independently to the national unfair competition rules. This is a key point to understand which type and extension of protection are granted, how this is interconnected with existing trademarks, and how much protection for the GIs is foreseen in the EU. J. Guillem Carrau: How much protection for Geographical Indications (GIs)? A jigsaw of case law is falling into place in the EU (2022) 44 E.I.P.R., Issue 9© 2022 Thomson Reuter.
The ultimate objective of the legislation on PDOs and PGIs is to protect traditional products ‘with specific characteristics linked to geographical origin’. See: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:62019CC0490
“Padua’s Guardia di Finanza concluded an operation in the sector of counterfeiting and alteration of food products and commercial fraud, seizing 9 200 bottles of wine, 40 000 labels and 4 200 boxes, all unduly bearing a French geographical indication for sparkling wine. The sale of only the recovered bottles would have yielded an income of around EUR 350 000 to the organisation, which would have increased to over EUR 1.8 million considering the tens of thousands of ready-to-use trademark infringing labels seized.”
Fake sparkling wine case (IT) Europol & EUIPO ‘IP CRIME AND ITS LINK TO OTHER SERIOUS CRIMES Focus on Poly-Criminality’ (2020), p.42-43
Fake sparkling wine case (IT) Europol & EUIPO ‘IP CRIME AND ITS LINK TO OTHER SERIOUS CRIMES Focus on Poly-Criminality’ (2020), p.42-43
Europol and INTERPOL coordinated Operation OPSON 2020, which targeted the trafficking of counterfeit and substandard food and beverages, it is the ninth operation of its kind. It ran from December 2019 to June 2020 and involved law enforcement authorities from 83 countries. It was also supported by the European Anti-Fraud Office (OLAF), the European Commission, the European Union Intellectual Property Office (EUIPO), national food regulatory authorities and private sector partners. Counterfeit and substandard food and beverages can be found in shops worldwide. Operation OPSON IX was created to combat organised crime involved in this area. Most of the IPR infringements are connected with alcoholic beverages, condiments and meat products. The IPR violation, in 92 cases, remained undetermined, but in 25 cases, it was related to a trademark, while 10 cases were associated with the geographic indication of origin and 5 to copyright.
Operation “Vuoti a rendere” is an Italian investigation started by NAS Carabinieri of Florence in January 2018, in the framework of Op. OPSON VII and finalised during Op. OPSON IX. The case involved Italian criminals responsible for food fraud, concerning the counterfeiting of prestigious GI wines and international high-cost wines. The investigation revealed a scam based on reusing original primary packaging (empty wine bottles) and secondary packaging (wooden boxes). The authentic empty bottles were gathered from restaurants and mainly managed by two individuals working in the food industry. The bottles were refilled with poor products from different origins, purchased online or at hard discount stores. Afterwards, the bottles were refilled with cheap wines, sealed with corks and counterfeit capsules of a different or similar colour to the original. Packaging films and false masking guarantee seals were finally applied to conceal the lack of distinctive signs on the capsules used for the counterfeit units. Once a contact with a buyer was established via a big e-commerce platform, the counterfeiters expanded even further their promotional offers, setting prices way below the ones seen usually on the market. A magnum format (1.5 l) of some counterfeit wines typically exceeds € 1000 per bottle. The fraudulent products were sold as genuine in Italy and abroad. Therefore, a completely uncontrolled market was identified based on the absolute lack of traceability.
EUROPOL and INTERPOL, ‘OPERATION OPSON IX Analysis Report’ (January 2021) p.18-19
Operation “Vuoti a rendere” is an Italian investigation started by NAS Carabinieri of Florence in January 2018, in the framework of Op. OPSON VII and finalised during Op. OPSON IX. The case involved Italian criminals responsible for food fraud, concerning the counterfeiting of prestigious GI wines and international high-cost wines. The investigation revealed a scam based on reusing original primary packaging (empty wine bottles) and secondary packaging (wooden boxes). The authentic empty bottles were gathered from restaurants and mainly managed by two individuals working in the food industry. The bottles were refilled with poor products from different origins, purchased online or at hard discount stores. Afterwards, the bottles were refilled with cheap wines, sealed with corks and counterfeit capsules of a different or similar colour to the original. Packaging films and false masking guarantee seals were finally applied to conceal the lack of distinctive signs on the capsules used for the counterfeit units. Once a contact with a buyer was established via a big e-commerce platform, the counterfeiters expanded even further their promotional offers, setting prices way below the ones seen usually on the market. A magnum format (1.5 l) of some counterfeit wines typically exceeds € 1000 per bottle. The fraudulent products were sold as genuine in Italy and abroad. Therefore, a completely uncontrolled market was identified based on the absolute lack of traceability.
EUROPOL and INTERPOL, ‘OPERATION OPSON IX Analysis Report’ (January 2021) p.18-19
“Twenty house searches were carried out in Italy and Germany and a total of 150 000 litres of fake olive oil seized at different locations, including five lorries transporting 23 000 litres of counterfeit oil each. It is estimated that the suspects made profits of around EUR 8 million every year, taking into account that they acquired 1 million litres of seed oil every year for approximately EUR 1 million, and then they sold the counterfeit product between EUR 5 and EUR 10 per litre.”
Oro Giallo (IT, DE) case Europol & EUIPO ‘IP CRIME AND ITS LINK TO OTHER SERIOUS CRIMES Focus on Poly-Criminality’ (2020), p.44-46
Oro Giallo (IT, DE) case Europol & EUIPO ‘IP CRIME AND ITS LINK TO OTHER SERIOUS CRIMES Focus on Poly-Criminality’ (2020), p.44-46
Check out the official publication of the Official Journal of the EU regarding the regulation on Geographical Indications (GIs) for craft and industrial products here: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202302411
Explore the EUIPO page for Geographical Indications (GIs) for craft and industrial products
Take a look at how the EUIPO will play an important role in this new system, especially in terms of managing the registration procedure through a cost-efficient process
See the related documents for the Regulation on Geographical Indications for Craft and Industrial Products
Commonly, producers of GI-protected products reveal their traditional knowledge and the territory they come from. This includes biodiversity, sustainable development, optimal use of resources, and the unique know-how of the farmer or livestock breeder.
Take a look at the history of Parmigiano Reggiano.
See how the French region Champagne became renowned worldwide.
You can find here the macronutrient composition of Parma Ham.
A survey conducted by the European Commission found that 81% of EU consumers consider the origin of a product to be from a geographical region that they know is an important factor in their decision to buy food products. Similarly, the survey found that 82% of EU consumers believe that respecting and promoting local tradition and ‘know-how’ is an important factor in their decision to purchase food products. European Commission ‘ Special Eurobarometer 504- Europeans, Agriculture and the CAP’ November 2020’ P 260-61
https://europa.eu/eurobarometer/surveys/detail/2229.
https://europa.eu/eurobarometer/surveys/detail/2229.
A study conducted in Hungary has shown that consumers associate products with Geographical Indications as having superior value and quality compared to similar products with no GI. Indeed, there is evidence that food products backed by an official designation, such as a GI label, can command a substantial price premium. The results of the study also suggest that the presence of a GI has a considerable impact on a consumer's willingness to purchase. Áron Török and others, ‘Understanding Consumers’ Preferences for Protected Geographical Indications: A Choice Experiment with Hungarian Sausage Consumers’ (2022) 11 Foods 997. 1008-9
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8997744/pdf/foods-11-00997.pdf
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8997744/pdf/foods-11-00997.pdf
Javier Guillem Carrau, ‘Towards the extension of geographical indication protection of the European Union beyond the agricultural products: an EU craft GI's system’ (2023) E.I.P.R. 45(12), 725, 730
Take a look at Limoges Porcelain (porcelain, also registered in 2017) https://porcelainedelimoges.fr/en/ig/what-is-a-geographical-indication/ and Britanny Granite stone-Granit de Bretagne (granite, registered in 2017)
Commonly, producers of GI-protected products reveal their traditional knowledge and the territory they come from. This includes biodiversity, sustainable development, optimal use of resources, and the unique know-how of the farmer or livestock breeder.
Take a look at the history of Parmigiano Reggiano.
See how the French region Champagne became renowned worldwide.
You can find here the macronutrient composition of Parma Ham.
A survey conducted by the European Commission found that 81% of EU consumers consider the origin of a product to be from a geographical region that they know is an important factor in their decision to buy food products. Similarly, the survey found that 82% of EU consumers believe that respecting and promoting local tradition and ‘know-how’ is an important factor in their decision to purchase food products. European Commission ‘ Special Eurobarometer 504- Europeans, Agriculture and the CAP’ November 2020’ P 260-61
https://europa.eu/eurobarometer/surveys/detail/2229.
https://europa.eu/eurobarometer/surveys/detail/2229.
A study conducted in Hungary has shown that consumers associate products with Geographical Indications as having superior value and quality compared to similar products with no GI. Indeed, there is evidence that food products backed by an official designation, such as a GI label, can command a substantial price premium. The results of the study also suggest that the presence of a GI has a considerable impact on a consumer's willingness to purchase. Áron Török and others, ‘Understanding Consumers’ Preferences for Protected Geographical Indications: A Choice Experiment with Hungarian Sausage Consumers’ (2022) 11 Foods 997. 1008-9
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8997744/pdf/foods-11-00997.pdf
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8997744/pdf/foods-11-00997.pdf
Javier Guillem Carrau, ‘Towards the extension of geographical indication protection of the European Union beyond the agricultural products: an EU craft GI's system’ (2023) E.I.P.R. 45(12), 725, 730
Take a look at Limoges Porcelain (porcelain, also registered in 2017) https://porcelainedelimoges.fr/en/ig/what-is-a-geographical-indication/ and Britanny Granite stone-Granit de Bretagne (granite, registered in 2017)
According to this Article, the economic reason for safeguarding geographical indications is that the place of origin can be used as a quality signal, and regional resources can be incorporated in origin-labelled products as quality features. This allows producers of GIs to differentiate themselves by creating niche markets and moving away from commodity markets.
This publication highlights that producers who do not comply with the GI specifications will be unable to enter the niche markets because their products will not be protected. In contrast, manufacturers who adhere to the respective specifications benefit from improved market access.
French origin-labelled cheeses earn an average of two euros per kilo more than French non-origin-labelled cheeses. In addition, there is evidence of price premiums for GIs from developed countries. These studies include willingness-to-pay surveys, which found that 43 % of EU consumers are willing to pay a 10% premium for a product with GI labelling. In comparison, 8% of EU consumers would be willing to pay a 20% premium. A. Berenguer, “Geographical origins in the world”, paper presented at the workshop “Promoting agricultural competitiveness through local know-how”. Proceedings of the Montpellier Workshop. Washington DC: World Bank Group; Paris: MAAPAR; Montpellier: CIRAD.
Benefitting from GI protection can attract investors in connection with the production steps and the specific region in which the products are manufactured. For example, a boost in tourism connected with GI-protected items can make the respective region more attractive to investors.
This Study from the European Commission stated that there are clear economic benefits for Agri-food and drink products whose names are protected by the European Union as a GI.
The collective action of producers may boost productivity and regional development by encouraging the exchange of production expertise, building value chains, and other forms of collaboration. "Economic aspects of geographical indication protection at EU level for non-agricultural products in the EU”, p. 29.
Collective action can potentially support innovation if manufacturers work together to improve quality or update product specifications*. The product specifications entailed using CI GIs can also foster the spill-over of innovative practices among manufacturers**.
* "Economic aspects of geographical indication protection at EU level for non-agricultural products in the EU”, p. 29.
** FAO, Strengthening Sustainable Food Systems through Geographical Indications: An Analysis of Economic Impacts, Food and Agriculture Organization, Rome, Italy, 2018.
** FAO, Strengthening Sustainable Food Systems through Geographical Indications: An Analysis of Economic Impacts, Food and Agriculture Organization, Rome, Italy, 2018.
The collective organisation of producers enables them to face international competition collectively.
Without any connection to the product's origin, provenance, quality, artistry, or know-how, dishonest businesses have sought to take advantage of the reputation of GI products. Extending the protection of geographical indications to such items can assist SMEs in avoiding continual and costly defensive legal action, allowing them to invest more in research, product development, and market expansion while avoiding raising consumer prices. Opinion of the European Economic and Social Committee on the Green Paper — Making the most out of Europe's traditional know-how: a possible extension of geographical indication protection of the European Union to non-agricultural products (COM(2014) 469 final), paras. 3.3 and 3.4.
It is estimated that the introduction of EU-wide GI protection for CIPs will help producers seize opportunities to develop and commercialize industrial and handicraft products. It could, in the longer term, yield an overall expected increase in intra-EU trade of about 4.9-6.6 % of current intra-EU exports (EUR 37.6-50 billion).
According to this Article, the economic reason for safeguarding geographical indications is that the place of origin can be used as a quality signal, and regional resources can be incorporated in origin-labelled products as quality features. This allows producers of GIs to differentiate themselves by creating niche markets and moving away from commodity markets.
This publication highlights that producers who do not comply with the GI specifications will be unable to enter the niche markets because their products will not be protected. In contrast, manufacturers who adhere to the respective specifications benefit from improved market access.
French origin-labelled cheeses earn an average of two euros per kilo more than French non-origin-labelled cheeses. In addition, there is evidence of price premiums for GIs from developed countries. These studies include willingness-to-pay surveys, which found that 43 % of EU consumers are willing to pay a 10% premium for a product with GI labelling. In comparison, 8% of EU consumers would be willing to pay a 20% premium. A. Berenguer, “Geographical origins in the world”, paper presented at the workshop “Promoting agricultural competitiveness through local know-how”. Proceedings of the Montpellier Workshop. Washington DC: World Bank Group; Paris: MAAPAR; Montpellier: CIRAD.
Benefitting from GI protection can attract investors in connection with the production steps and the specific region in which the products are manufactured. For example, a boost in tourism connected with GI-protected items can make the respective region more attractive to investors.
This Study from the European Commission stated that there are clear economic benefits for Agri-food and drink products whose names are protected by the European Union as a GI.
The collective action of producers may boost productivity and regional development by encouraging the exchange of production expertise, building value chains, and other forms of collaboration. "Economic aspects of geographical indication protection at EU level for non-agricultural products in the EU”, p. 29.
Collective action can potentially support innovation if manufacturers work together to improve quality or update product specifications*. The product specifications entailed using CI GIs can also foster the spill-over of innovative practices among manufacturers**.
* "Economic aspects of geographical indication protection at EU level for non-agricultural products in the EU”, p. 29.
** FAO, Strengthening Sustainable Food Systems through Geographical Indications: An Analysis of Economic Impacts, Food and Agriculture Organization, Rome, Italy, 2018.
** FAO, Strengthening Sustainable Food Systems through Geographical Indications: An Analysis of Economic Impacts, Food and Agriculture Organization, Rome, Italy, 2018.
The collective organisation of producers enables them to face international competition collectively.
Without any connection to the product's origin, provenance, quality, artistry, or know-how, dishonest businesses have sought to take advantage of the reputation of GI products. Extending the protection of geographical indications to such items can assist SMEs in avoiding continual and costly defensive legal action, allowing them to invest more in research, product development, and market expansion while avoiding raising consumer prices. Opinion of the European Economic and Social Committee on the Green Paper — Making the most out of Europe's traditional know-how: a possible extension of geographical indication protection of the European Union to non-agricultural products (COM(2014) 469 final), paras. 3.3 and 3.4.
It is estimated that the introduction of EU-wide GI protection for CIPs will help producers seize opportunities to develop and commercialize industrial and handicraft products. It could, in the longer term, yield an overall expected increase in intra-EU trade of about 4.9-6.6 % of current intra-EU exports (EUR 37.6-50 billion).
A Geographical Indication can drive sustainable tourism, particularly gastronomy tourism. Research has shown that local distinctions, including culture, history, food types and dietary preferences, attract tourists to particular destinations, so it is important that local foods and products are registered with geographical indications where possible. Moreover, there is evidence that local food is a significant factor that tourists consider when visiting a destination. Therefore, the registration of local products with a geographical indication can significantly impact the number of tourists a region gets, particularly where tourists have limited knowledge of a region. Hüseyin Pamukçu and others, ‘The Effects of Local Food and Local Products with Geographical Indication on the Development of Tourism Gastronomy’ (2021) 13 Sustainability 6692. P 10.
A study into the impact of GIs on regional economic development in Italy has shown a link between products marked with Geographical indications and increased economic prosperity, including a reorganisation of regional employment. A local product with a Geographical Indication can cause a shift away from agricultural-based employment towards higher value-added sectors such as financial, technical, and tourism-based employment opportunities. This reorganisation and diversification of local employment can insulate local economies from potential future reductions in demand for the local GI product. Ricardo Crescenzi ‘Geographical Indications and Local development: The Strength of Territorial Emeddeness’ Virginia Aparecida Castro, Marina Toledo de Arruda Lourenção and Janaina De Moura Engracia Giraldi, ‘Indicação Geográfica Como Recurso Estratégico de Marca Na Vitivinicultura Do Rio Grande Do Sul/Brasil’ (2021) 14 Revista de Administração da UFSM 276. p 387.
As regards craft GIs, it is estimated that the introduction of EU-wide GI protection for CIPs will help producers seize opportunities to develop and commercialize industrial and handicraft products. It could in the longer term yield an overall expected increase in intra-EU trade of about 4.9-6.6 % of current intra-EU exports (EUR 37.6-50 billion). Geographical indications for non-agricultural products — Cost of non-Europe report, European Parliament (2019), https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_STU(2019)631764
See this article on how artisanal products offer a unique experience and provide visitors with authentic, locally crafted goods.
Renowned for its centuries-old glassmaking heritage, the city of Murano attracts approximately 1.5 million visitors annually.
A Geographical Indication can drive sustainable tourism, particularly gastronomy tourism. Research has shown that local distinctions, including culture, history, food types and dietary preferences, attract tourists to particular destinations, so it is important that local foods and products are registered with geographical indications where possible. Moreover, there is evidence that local food is a significant factor that tourists consider when visiting a destination. Therefore, the registration of local products with a geographical indication can significantly impact the number of tourists a region gets, particularly where tourists have limited knowledge of a region. Hüseyin Pamukçu and others, ‘The Effects of Local Food and Local Products with Geographical Indication on the Development of Tourism Gastronomy’ (2021) 13 Sustainability 6692. P 10.
A study into the impact of GIs on regional economic development in Italy has shown a link between products marked with Geographical indications and increased economic prosperity, including a reorganisation of regional employment. A local product with a Geographical Indication can cause a shift away from agricultural-based employment towards higher value-added sectors such as financial, technical, and tourism-based employment opportunities. This reorganisation and diversification of local employment can insulate local economies from potential future reductions in demand for the local GI product. Ricardo Crescenzi ‘Geographical Indications and Local development: The Strength of Territorial Emeddeness’ Virginia Aparecida Castro, Marina Toledo de Arruda Lourenção and Janaina De Moura Engracia Giraldi, ‘Indicação Geográfica Como Recurso Estratégico de Marca Na Vitivinicultura Do Rio Grande Do Sul/Brasil’ (2021) 14 Revista de Administração da UFSM 276. p 387.
As regards craft GIs, it is estimated that the introduction of EU-wide GI protection for CIPs will help producers seize opportunities to develop and commercialize industrial and handicraft products. It could in the longer term yield an overall expected increase in intra-EU trade of about 4.9-6.6 % of current intra-EU exports (EUR 37.6-50 billion). Geographical indications for non-agricultural products — Cost of non-Europe report, European Parliament (2019), https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_STU(2019)631764
See this article on how artisanal products offer a unique experience and provide visitors with authentic, locally crafted goods.
Renowned for its centuries-old glassmaking heritage, the city of Murano attracts approximately 1.5 million visitors annually.
