Geographical Indications in U.S.-EU Trade Negotiations

Geographical Indications in U.S.-EU Trade Negotiations

March 28, 2014
Geographical Indications in U.S.-EU Trade Negotiations
What are GIs? Geographical indications (GIs) are
How are GIs Protected in the WTO? The protection of
geographical names that act to protect the quality and
GIs is provided for in the Agreement on Trade-Related
reputation of a distinctive product originating in a certain
Aspects of Intellectual Property Rights (TRIPS), which was
region. The term is most often, although not exclusively,
signed in April 1994. TRIPS is among the multilateral rules
applied to wines, spirits, and agricultural products. Some
dating back to the development and signing of the General
food producers benefit from the use of GIs by giving certain
Agreement on Tariffs and Trade (GATT) in 1947, followed
foods recognition for their distinctiveness, differentiating
by subsequent negotiating rounds leading to the
them from other foods in the marketplace. In this manner,
establishment of the WTO in 1995. The United States is a
GIs can be commercially valuable. As intellectual property,
signatory of the TRIPS Agreement and is subject to its
GIs may also be eligible for relief from acts of infringement
rights and obligations. Discussions are also ongoing to
or unfair competition. The use of GIs might also protect
potentially create a multilateral register for notifying and
consumers from deceptive or misleading labels.
registering GIs for wines and spirits.
Examples of GIs include Parmesan cheese and Parma ham
TRIPS defines GIs as "indications which identify a good as
from the Parma region of Italy, Tuscan olive oil, Roquefort
originating in the territory of a Member, or a region or
cheese, Champagne from the region of the same name in
locality in that territory, where a given quality, reputation or
France, and Irish whiskey. Other examples are Darjeeling
other characteristic of the good is essentially attributable to
tea, Ceylon tea, Florida oranges, Idaho potatoes, Vidalia
its geographical origin" (Article 22(1)). Accordingly, a
onions, Washington State apples, and Napa Valley wines.
product’s quality, reputation, or other characteristics can be
determined by where it comes from, and GIs are place
Why are GIs a U.S. Policy Concern? Ongoing trade
names (or in some countries words associated with a place)
negotiations between the United States and the European
used to identify products that come from these places and
Union (EU) seek to establish a free trade area as part of the
have these characteristics. Under TRIPS, member countries
Transatlantic Trade and Investment Partnership (TTIP).
have committed to providing a minimum standard of
Resolving concerns about GIs are among the primary
protection for GIs to “avoid misleading the public and to
negotiating priorities for many in the U.S. food and
prevent unfair competition,” along with “enhanced”
agricultural industries. Several industry groups and some
protection for wines and spirits that carry a geographical
Members of Congress have expressed concern that the EU
indication, subject to certain exceptions. (See box.)
is using GIs to impose restrictions on the use of common
names for some foods—such as parmesan, feta, and
Geographical Indications and the TRIPS Agreement
provolone cheeses, and certain wines—and limit U.S. food

companies from marketing these foods using these common
The WTO TRIPS Agreement provides general standards of protection
names. These same concerns have implications for EU
for al GIs, and can be found in two articles of the agreement:
trade agreements with other countries, such as Canada, on
• Article 22: Defines a standard level of protection that covers al
U.S. market access in other countries. GIs may be included
products. GIs are to be protected in order to avoid misleading
the public and to prevent unfair competition.
in a discussion of intellectual property rights (IPR) in the
TTIP negotiations. GIs are also being discussed as part of
• Article 23: Provides a higher or enhanced level of protection for
geographical indications for wines and spirits: subject to a number
the Trans-Pacific Partnership (TPP) trade negotiations
of exceptions, they have to be protected even if misuse would not
between the United States and several of its trading
cause the public to be misled.
partners.
Exceptions are provided for in Article 24. In some cases, GIs do not
have to be protected or the protection can be limited. Examples
In the United States, many food manufacturers view the use
include: when a name has become the common (or “generic”) term
of such common or traditional names as generic terms, and
(for example, “cheddar” now refers to a particular type of cheese not
view the EU’s protection of its registered GIs as a way to
necessarily made in Cheddar in the United Kingdom), and when a term
monopolize the use of certain wine and food terms, and as a
has already been registered as a trademark. Other exceptions include:
where a term has been used for at least 10 years prior to April 15,
form of trade protectionism. The use of GIs, particularly for
1994, or in good faith if prior to that date; where a term is also subject
wines and dairy products, has become a contentious
to good faith trademark rights; where a term has significance as a
international trade issue. Some consider GIs to be protected
personal name; and where a term has become identified with the
intellectual property, while others consider them to be
common name for a good or service.
generic or semi-generic terms. Laws and regulations
No exception is granted for wines and spirits, even if the true origin of
the goods is indicated, the GI is used in translation, or is accompanied
governing GIs differ between the United States and EU,
by expressions such as "kind," "type," "style," "imitation." Registration of
which further complicates this issue. GIs are protected by
a misleading trademark for wines/spirits must be refused or invalidated.
agreements of the World Trade Organization (WTO).
www.crs.gov | 7-5700

Geographical Indications in U.S.-EU Trade Negotiations
How are GIs Protected in the United States? In the
include Regulation 1151/2012 and Regulation 510/2006
United States, GIs are protected under the U.S. Trademark
(agricultural products and foodstuffs); Regulation 479/2008
Act (15 U.S.C. §1051 et seq.). Section 4 of the act provides
(wine); and Regulation 110/2008 (spirits).
for the registration of “certification marks including
indications of regional origin.” According to the U.S. Patent
As of March 2014, there were 1,216 product names
and Trademark Office (USPTO), GIs are “indications that
registered as PDO, PGI, or TSG, according to the EU’s
identify a good as originating in the territory of a Member,
Database of Origin and Registration (DOOR). Figure 1
or a region or locality in that territory, where a given
illustrates that among the total EU registrations, about 30%
quality, reputation or other characteristic of the good is
are fresh and processed meat and fisheries products, and
essentially attributable to its geographic origin” and are
18% are for cheeses. Another 28% of registrations are for
protected through the trademark system.
fresh and processed fruit and vegetable products, including
grapes and other crops that may be used in certain wines
The United States does not protect a geographic term that is
and spirits, as well as olives and nuts. Another 10% are for
considered “generic,” being “so widely used that consumers
oils and fats, including butter, margarine, olive oil, and
view it as designating a category of all of the goods/services
others. Bakery goods and other miscellaneous products
of the same type, rather than as a geographic origin.” Many
account for another 12%. Figure 2 highlights that countries
U.S. food producers are also members of the Consortium
outside the EU also register product names under the EU’s
for Common Food Names, along with producers in other
quality scheme, including Asian and Eastern European
countries including Canada, Mexico, Argentina, Chile, and
countries, among others.
Costa Rica. This group aims to protect the right to use
common food names as well as protect legitimate food-
Figure 1. PDO/PGI/TSG Registrations, by Sector
related GIs.
In 1999, the United States challenged the EU’s GI laws
under WTO Dispute Settlement, alleging discrimination
against U.S. GIs and failure to protect U.S. trademarks. A
WTO panel ruled some aspects of the EU’s GI laws
inconsistent with TRIPS, resulting in certain changes to the
EU program.
USPTO does not have a special register for GIs in the
United States. Its trademark register, the Trademark
Electronic Search System (TESS), contains GIs registered
as trademarks, certification marks, and collective marks.
These register entries are not designated with any special
field (such as "geographical indications") and cannot be
readily compiled into a complete list of registered GIs.
How are GIs Protected in the European Union? In the

EU, a series of regulations governing GIs was initiated in
the early 1990s covering agricultural and food products, as
Figure 2. PDO/PGI/TSG Registrations, by Country
well as wine and spirits. The regulations protect product
names from misuse and imitation of agricultural products
for which an intrinsic link exists between the product or
foodstuff’s characteristics and geographical origin. Under
EU regulations, producers qualify for either a “protected
geographical indication” (PGI); a “protected designation of
origin” (PDO); or “Traditional Specialties Guaranteed”
(TSG). Product registration markers for these three quality
schemes are shown below and are intended to help protect
product names from misuse and imitation.

Source: CRS data compilation from EU’s Database of Origin and

Registration (DOOR), accessed March 21, 2014 (1,216 registrations).
PDOs cover “agricultural products and foodstuffs which are
produced, processed and prepared in a given geographical
For more information, see the USPTO’s and EU’s websites:
area using recognized know-how.” PGIs are similar with
http://www.uspto.gov/ip/global/geographical/; and
the exception that “at least one of the stages of production,
http://ec.europa.eu/agriculture/quality/schemes/index_en.htm.
processing or preparation takes place in the area.” TSGs
Renée Johnson, rjohnson@crs.loc.gov, 7-9588.
differ in that they highlight “traditional character, either in

IF00016
the composition or means of production.” EU regulations
www.crs.gov | 7-5700

Document Outline

Figure 2. PDO/PGI/TSG Registrations, by Country