The European Union is in the process of reforming the intellectual property law. One of the reforms is aimed to strengthen protection of geographical indications (GI) and takes into account the current market realities of e-commerce. One of the new regulations will be partially applicable very soon and two new regulations on these issues will be fully binding as early as next year. The selected issues concerning two new regulations are outlined below.

What are geographical indications? 

A geographical indication is an indication of a specific geographical origin of a given product. Such product owes its special characteristics to that geographical origin.

Depending on how strong is the link between a product's characteristics and its geographical origin, the product maybe protected with protected designation of origin (“PDO”) e.g. champagne, or a protected geographical indication (“PGI”) e.g. Grappa della Lombardia.

1. New EU regulation on the protection of geographical indications for craft and industrial products

Regulation (EU) 2023/2411 of the European Parliament and of the Council of 18 October 2023 on the protection of geographical indications for craft and industrial products and amending Regulations (EU) 2017/1001 and (EU) 2019/1753 entered into force ( hereinafter „Regulation on the protection of geographical indications for craft and industrial products”). It shall be binding from 1 December 2025.

• Background

In the European Union, a system for protection of geographical indications for wines, spirits as well as food and agricultural products has been in existence for years. With the enactment of the Regulation on the protection of geographical indications for craft and industrial products protection is extended now to new categories of  products.

• Geographical indications for craft and industrial products

As set out in the Regulation on craft and industrial products, craft products are produced either entirely by hand or with the aid of manual or digital tools, or by mechanical means, whenever the manual contribution is an important component of the finished product.

On the other hand industrial products are defined as produced in a standardized way, including serial production and by using machines.

The provided definitions mean that, in practice, goods such as natural stones, woodwork, jewellery, textiles (including lace) cutlery, glassware, porcelain and leather will be eligible for protection through geographical indication.

• Procedure for registration of geographical indications for craft and industrial products

As of  1 December 2025, it will be possible to apply for GI registration for craft and industrial products.

As a general rule, only a group of producers may apply for registration. However, under the exemption, an applicant may be a single producer if:

1. the person concerned is the only producer willing to submit an application; and
2. the geographical area concerned is defined by a particular part of a territory without reference to property boundaries and has characteristics that differ appreciably from those of neighbouring geographical areas, or the characteristics of the product are different from the characteristics of products manufactured in neighbouring geographical areas.

The name of craft or industrial products must cumulatively satisfy the following requirements to be eligible for registration as a geographical indication:

1. the product originates in a specific place, region or country; 
2. the product’s given quality, reputation or other characteristic is essentially attributable to its geographical origin; and
3. at least one of the production steps of the product takes place in the defined geographical area.

Both generic terms and homonymous names, i.e. names written or pronounced in the same way but referring to different geographical areas, are excluded from applying for protection.

The standard registration procedure will be a two-stage process. The first stage is the examination procedure at national level and the second stage involves the examination of the application at EU level by EUIPO. The Regulation provides for the possibility to oppose an application at both levels - within the national opposition procedure and also at the EU stage, but not by the same entity.

Regulation on the protection of geographical indications for craft and industrial products foresees the possibility of granting temporary protection for a geographical indication with effect from the date on which the application for registration is filed with the Office until the date on which a decision on the application is adopted or the application is withdrawn.

1. New EU regulation on geographical indications for wine, spirits and agricultural products

• Regulation (EU) 2024/1143 of the European Parliament and of the Council of 11 April 2024 on geographical indications for wine, spirit drinks and agricultural products, as well as traditional specialities guaranteed and optional quality terms for agricultural products, amending Regulations (EU) No 1308/2013, (EU) 2019/787 and (EU) 2019/1753 and repealing Regulation (EU) No 1151/2012 (hereinafter referred to as the “Regulation for wines, spirits and agricultural products”) shall apply from 13 May 2024. This Regulation will deal with geographical indications for different product categories (wines, spirits, agricultural products), which were previously regulated only in separate legal acts. The Regulation for wine, spirits and agricultural products will apply as from 13 May 2024, and in its entirety will apply from 1 January 2025[1].
• The applications for registration of geographical indications may only be filed by a producer group, meaning an entity, irrespective of its legal form, which gathers producers of the same product whose name is proposed for registration. In the case of a geographical indication which designates a trans-border geographical area, several applicant producer groups from different EU member states or third countries may submit a joint application for registration of a geographical indication.
• Protection of geographical indications used as an ingredient

Geographical indications registered in the EU register of geographical indications are protected against any direct or indirect commercial use of a geographical indication in respect of products not covered by the registration where those products are comparable to the products registered under that name or where the use of that geographical indication in respect of any product or service exploits, weakens, dilutes or damages the reputation of the protected name, including where those products are used as an ingredient.

The geographical indication designating a product used as an ingredient in a processed product may be used in the name of that processed product, or in its labelling, or in advertising material where: 

1. the processed product does not contain any other product comparable to the ingredient designated by the geographical indication; 
2. the ingredient designated by the geographical indication is used in sufficient quantities to confer an essential characteristic on the processed product concerned; and 
3. the percentage of the ingredient designated by the geographical indication in the processed product is indicated in the label.

It is noteworthy that in the case of spirits the above  rules do not apply.

In practice it will be important to determine the scope of the concept of “comparable product” and to identify criteria allowing a consistent assessment of “conferring essential characteristics on processed products”. Delegated acts from the European Commission can be expected to address these concepts.

• Strengthening the protection of geographical indications online

Notably, the Regulation, for wine, spirits and agricultural products, introduces obligations binding on the part of providers of online services. Indeed, any information related to advertising, promotion and sale of goods that is accessed by persons established in the Union and which infringes the protection of geographical indications will be considered as illegal content within the meaning of Article 3(h) of the Digital Services Act[2].

Accordingly, the relevant national judicial or administrative authorities of the EU member states will be able to issue an order to take action against such illegal content.

• Sustainable practices

A producer group, or a recognised producer group where such a group exists, may agree on sustainable practices to be adhered to in the production, or with regard to other activities subject to one or more obligations provided for in the product specification, of the product designated by a geographical indication.

Such undertakings are intended to apply higher sustainability standards than those imposed by EU or national law. It should be noted that these are voluntary commitments which are an incentive and not mandatory.

• Cancellation of the registration due to non-use

The Regulation for wine, spirits and agricultural products provides for the cancellation of the registration of a geographical indication in the event:

1. where compliance with the requirements for the product specification can no longer be ensured; or
2. where no product has been placed on the market under the geographical indication for at least the last seven consecutive years.

The cancellation procedure may be launched at the initiative of the European Commission, at the reasoned request of a EU member state, a third country or any natural or legal person having a legitimate interest.

• A strengthened level of protection concerning Internet domains

Both the Regulation for craft and industrial products and the Regulation for wine, spirits and agricultural products, while adapting to market circumstances, provide for an intensified level of protection regarding internet domains. With the forthcoming changes, the protection of geographical indications will also apply to the use of a domain name in a way that could mislead the consumer as to the true origin of the product. The national top-level domain name registries established in the Union will ensure that any alternative dispute resolution methods concerning domain names recognize registered geographical indications as a protective right that can be invoked under these procedures.

What are the benefits of registering a geographical indication?

Most importantly, the protection conferred by registration of a geographical indication from the moment the indication is entered in the Union register is perpetual and covers the entire territory of the European Union. Once entered in the European Union register, geographical indications are protected against misuse, imitation or evocation of the name protected as a geographical indication by terms such as: "style", "type", "method", "as produced in", "imitation", "flavor", "aroma", "like" and similar and other false or misleading indications relating to the origin, nature or essential characteristics of the product.

Geographical indications, like trademarks, enable consumers to identify goods by their origin. The main difference between geographical indications and trademarks is that geographical indications indicate the origin of goods from a specific place, geographical area, whereas trademarks indicate the origin of goods or services from a specific business entity.

The abbreviation “PDO” or “PGI” should appear on the labels of GI products. Such an abbreviation provides assurance of the authenticity of the GI products. It also provides reliable information to the consumer on the quality or other characteristics associated with the geographical origin.

Therefore, the use of both geographical indications and trademarks communicates to consumers more information about the offered goods, distinguishing goods in trading against goods and services produced by competitors.

[1] Article 10(4) and (5), Article 39(1) and Article 45 shall apply from 1 January 2025.

[2] Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a Single Market For Digital Services and amending Directive 2000/31/EC (Digital Services Act). According to the indicated provision, “illegal content” means any information that, in itself or in relation to an activity, including the sale of products or the provision of services, is not in compliance with Union law or the law of any Member State which is in compliance with Union law, irrespective of the precise subject matter or nature of that law.