Geographical Indication

There are three kinds of trademarks, i.e., brand names, certification marks, and collective marks. The collective marks are used by a guild of merchants or manufacturers on their products. The collective marks used for unique products originating only from a specific area are known as Geographical Indication (GI). The uniqueness attribute is derived from environment for the agricultural produce and human skills for the products


What is GI

There are three kinds of trademarks, i.e., brand namescertification marks, and collective marks. The collective marks are used by a guild of merchants or manufacturers on their products. The collective marks used for unique products originating only from a specific area are known as Geographical Indication (GI). The uniqueness attribute is derived from environment for the agricultural produce and human skills for the products.

Background

The GI law evolved in Europe for the appellation of origin. It was confined to the products that were unique due to the geographic environment. India enacted her GI law after signing the TRIPS Agreement. India engineered the definition of GI provided in the TRIPS Agreement by including skills-based products that were unique for the traditional knowledge confined to a geographical area in her the Geographical Indications of Goods (Registration and Protection) Act, 1999. The GI Act came into effect in the year 2003. 

Besides rich biological diversity, India is home to three thousand plus unique crafts. These are confined to different geographical areas. The Indian GI law has widened the scope of the GI product definition extending to the unique goods originating from a particular area and attributed to human skills. 

The Characteristics of GI

The GI signifies uniqueness, heritage, standard, and specific geographic source of origin. The uniqueness can be attributable to natural attributes or craftsmanship associated with a particular geographic area.

Nature or human skills attributes confined to a geographical area usually have an interesting history of origin. The traditional knowledge becomes heritage with its tradition, collective practice, and refinement, enrichment with the local tradition through generation after generation sustenance and enrichment. Gradually, with time and a set of quality standards develop, the GI product can expand its market spread based on its uniqueness, heritage, and standard intangibles. This would also result in a product that is produced by the people of a particular geographical area thereby connecting buyers with the traditional original source/artisans. 

The confinement of the GI endorsed goods to a unique geographical area differentiates it from the Collective Marks.

GI Attributes
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GI Ownership

The GI ownership can be unbundled into the two kinds of rights. The GI proprietor and the registered GI Users.

The ownership rights vest in a guild or society of the GI stakeholders. The collective ownership provides GI the potential to be the most powerful IP. The GI proprietor, the society or association of the GI stakeholders, should be a non-profit making entity.

Who can be a registered GI User

The GI stakeholders should also be within the same geographical area as the GI. This is the prime eligibility of a GI User. The GI stakeholders post the GI registration may apply for the GI Registered User registration. After securing the registered user license, they may use the GI on their product.

What are the benefits of GI Registration

The GI offers multi-fold benefits of GI are for both the GI Users and the GI endorsed products. 

Why buyers pay premium for GI products 1
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A GI works as a Goodwill Ambassador for a GI endorsed product. The GI is a symbol of the legacy of the endorsed product. The collective use of GI by the Users brings back goodwill to the GI product. It also results in better market penetration leading to a higher volume of orders at a premium price. The better business under the influence of common goodwill sets forth the competition among the Users to innovate around the product to enhance their own brand value. No one except the GI Users can endorse their product with the GI seal.

The GI is a symbol of the historic local tradition, reputation, consistency, and aesthetic values. It is an assurance of unique environmental conditions under which it was produced. It silently conveys perfect craftsmanship and authenticity amounting to a well-known product. The GI makes it easier to trace the origin of the product.  

The GI Renewal 

The GI registration is renewable at ten years intervals. The renewal applies to both the GI Registration and the GI User Registration.

The Key Takeaways

The Geographical Indication (GI) establishes a product in the international market.

The GI products inherit the premium branding attributes and makes the acceptance easier for the buyers.