ࡱ> npmM Wbjbj== .jWWSl>>>>>>>RN N N N j ,RV  L 6$ 8 $" $$J>D D D R>>  RRRD R> > RD RR >> d۱R N  & 0V n%<n%RRR>>>> "Doha's Impact on TRIPS: Balancing Geographical Indications (GIs) Protection" organized by the International Trademark Association (INTA) 1 May 2002, 0900 - 1130 Introduction: Doha Declaration Paragraph 18 states: With a view to completing the work started in the Council for Trade-Related Aspects of Intellectual Property Rights (Council for TRIPS) on the implementation of Article 23.4, we agree to negotiate the establishment of a multilateral system of notification and registration of geographical indications for wines and spirits by the Fifth Session of the Ministerial Conference. We note that issues related to the extension of the protection of geographical indications provided for in Article 23 to products other than wines and spirits will be addressed in the Council for TRIPS pursuant to paragraph 12 of this declaration. This panel considered the two aspects of Paragraph 18, namely, the multilateral system of notification and registrations of GIs for wines and spirits, and possible extension of TRIPS Article 23 GI protection to products other than wines and spirits. The panel consisted of the following participants: INTA: Clark Lackert, Chehrazade Chemcham EU: Antonio Berenguer US: Dominic Keating French Roquefort Confederation: Anne Richard Miguel Torres SA: Luis de Javier Danish Dairy Board: Hans Bender Clark Lackert, INTA Moderator (Chair of INTA International Amicus Committee and Partner in King and Spalding, New York) introduced the debate by explaining what GIs are and how they are protected. He also explained INTA concerns and the challenges that Article 18 of the Doha Declaration presents. Mr. Lackert enumerated the relevant international treaties protecting GIs such as: the Paris Convention, the Madrid Agreement; the Lisbon Agreement, the TRIPS Agreement and regional legislation such as the EU Regulation. He explained INTA position on the Protection of GIs under the TRIPS Agreement which is contained in the INTA Board of Directors Resolution of 1997 which endorses the First in Time, First in Right principle (available at  HYPERLINK "http://www.inta.org" www.inta.org.) found in TRIPS Article 16(1) when read together with the saving clause of TRIPS Article 24(5), and elsewhere. This principle is endorsed by other organizations such as OIV (1994), which support the concept of treating trademarks and GIs equally, with conflicts between them being resolved by means of the principle of priority. He also mentioned INTAs critical analysis of the EU Foodstuffs Regulation (2081/92) which is also available on the INTA website. INTA remains concerned about the international or national registers of GIs. INTA has questions on the TRIPS Agreement and on whether or not these GI provisions have been understood. INTA believes that it is important to look at the legitimate concerns of developing countries and finally establish an ultimate balance between trademark and GI protection. Issue One: International GI Register for Wines and Spirits Antonio Berenguer from the EU Commission Directorate General for Trade explained how important this issue is for the EU. He gave an overview of the problems that EU producers who benefit from GI protection in Europe encounter in the world to protect their names. He explained that GI protection outside Europe is often too low, in particular for products other than wines and spirits and that enforcing effectively GI protection is often too costly and too difficult. Mr. Berenguer explained how all of the above prevented producers benefiting from GI protection from expanding internationally, especially when they are small producers with lesser resources. In light of the current obstacles to GI international protection, the EU believes that they are two solutions, which are the establishment of a GI register, on the one hand, and on the other hand the extension of the scope of the TRIPS additional protection to products other than wines and spirits. Mr. Berenguer first presented the EU position on the International GI Register for wines and spirits. He explained that it is mandated by the TRIPS Agreement and the Doha Declaration. Mr. Berenguer explained why the international business community needs such an international register. On a multinational basis a producer dealing with different systems faces costly registration and litigation procedures that discourage investment and curtail trade exchanges. The register would establish a rebuttable presumption of validity, which would enable producers to fight illegitimate use of their names abroad in a less costly and more efficient manner. It would enable notification and registration of their GI that, if unopposed, could not become, for example, generic. This would preserve the use of those names even for small producers that were not yet present in third country markets. Mr. Berenguer finally explained the common misunderstandings concerning the EU proposal: The ϲʹ system would not replace the national systems of protection; it would only create a presumption of validity, which is rebuttable. This would therefore provide GI holders with a first line of defense against usurpations.. The Register would not alter the relationship between a trademark and a GI. This would continue to be controlled by the existing TRIPS Agreement and domestic rules. The ϲʹ system would not replace national registration. The register provides for a defensive protection. An offensive protection, if available, by the ϲʹ member authorities would continue to be dependent on national registration or other systems of protection. The Register would not require additional enforcement procedures. It would use whichever system of enforcement of the ϲʹ member states is already available. The Register only reverses the burden of proof in national courts. The Register would not affect past use of names which would continue to be controlled by the TRIPS applicable rules (notably Article 24) Mr. Dominic Keating from the United States Mission to the World Trade Organization examined the three proposals (the EU, Joint and Hungarian) that are on the table in the ϲʹ TRIPS Council for a multilateral system of notification and registration of GIs for wines and spirits and raised practical and legal questions about each of them. Mr. Keating explained that the EU proposal requires participating Members to submit a declaration to the ϲʹ Secretariat, which notifies their proposed GIs. The Secretariat would then transmit the notifications to all ϲʹ Members. Members would have 18 months to challenge any indications that they believe should not be registered. After that period of time, all unchallenged terms would be subject to mandatory protection by all ϲʹ Members, whether participating or not. That is, non-participating Members would be obligated to protect the GIs of others, but would not have their own GIs protected (a TRIPS-plus requirement). ϲʹ Member governments would be responsible for the enforcement. Mr. Keating explained that the EU proposal raised implementation and cost issues with respect to enforcement, processing notifications and dispute settlement, as well as questions of responsibility on behalf of governments that fail to bring challenges in a timely manner. In effect, action would need to be taken in all affected 140+ ϲʹ countries, which would pose a huge burden on interested parties. Mr. Keating then presented the Joint Proposal, which was originally communicated by Canada, Chile, Japan and the United States. The Joint Proposal was intended to offer ϲʹ Members an efficient and non-burdensome means of facilitating GI protection. Under the proposal, participating ϲʹ Members would notify GIs to the ϲʹ Secretariat. The Secretariat would enter the notifications into a centralized database available via the Internet and in hard copy. Participating Members would use the database for domestic determinations regarding trademarks and GIs. Non-participating Members would have no obligations placed upon them by this proposal. The Joint proposal only involves cost for review of the database and the use of domestic administrative and judicial systems. This proposal raises issues such as the dissemination of the information within the government, the legal status of the database information, interpretation of the database, differences in national legislation, and possible refusals to recognize the database by member states. Mr. Keating finally presented the Hungarian proposal. He explained that it builds on the EU proposal. It allows for a universal effect of certain challenges and it provides for binding arbitration to resolve negotiations. However, like the EU proposal, the Hungarian proposal is binding on all ϲʹ member states (even those who are not participating), is costly and burdensome. Anne Richard, Secretary General for the Confdration Gnrale des Producteurs de Lait de Brebis et des Industriels de Roquefort ( HYPERLINK "http://www.roquefort.fr" www.roquefort.fr) explained that GI holders need first of all to protect their names and products against misuse all around the world. She explained that when a GI holder wants to protect his GI, he needs to adapt his protection strategy to each country. She also mentioned the 100-year-old fight that Roquefort went through to protect his GI in the US. She also mentioned Roquefort experiences in Eastern Europe where there is cheese carrying the name Roquefort that has nothing to do with the genuine Roquefort and its method of preparation. She explained that such misuse only contributes to mislead consumers as to the origin of products, which have an international reputation. She explained that French Roquefort producers are very much in favor of the establishment of an international register as long as it extends to other products than wines and spirits. However, Madame Richard is aware that it is not going to resolve the ongoing issues but it will help protect new GI that enter on the international market. She also explained that given the number of existing GI, the international community should focus first on the GI present on international markets and that a solution should be found for well-known GI. Mr. Luis de Javier, Director of the Legal Department of Miguel Torres SA ( HYPERLINK "http://www.torres.es" www.torres.es) gave an overview of his company and explained how his company lost the exclusivity of the use of its long time used mark TORRES after the EU ruled in favor of the Portuguese GI Torres. This is a clear example, said Mr. de Javier, of a later-protected GI harming a famous trademark with valuable goodwill. He explained that as a European he believed in appellations of origin (AOP) but he emphasized that they should be an instrument for producers to compete on the international markets and not be a barrier to trade. He explained that AOP should be used for comparative advantages. He went on to explain that if the EU has a position that makes European companies and producers loose market shares, there is a pressing need to change the EU policy. He supported the idea of a register, however he explained that it is important to remember that a register functions on the basis of the first in time first in right principle in accordance with traditional rules that have their roots in Roman law, that is, the concept of priority. Hans Bender, President of the Danish Dairy Board ( HYPERLINK "http://www.mejeri.dk" www.mejeri.dk) explained that the international register could be seen as a positive element for settling disputes, however he emphasized on the importance to move slowly and carefully. He explained that many uncertainties remained. There is a long tradition in several European countries to protect denominations of origin for various products. The most well-known is the probably the French AOC-system, but similar arrangements can be found in Italy, Spain and Portugal. The products under these systems are well controlled and the owners of the rights to market the products under the protected denominations fight hard to reserve their rights and maintain the quality of their products. Mr. Bender urged that credit should be given only when credit is deserved. Mr. Bender did not recommend repeating on a multilateral level the EU system for protection of geographical denominations. In this connection he raised the issue of feta cheese to illustrate the inconsistency and unfairness of the EU system, which now for almost 10 years had been insisting on protecting the name feta on behalf of Greece. The Commission insisted that feta was a Greek denomination in spite of the product itself having an origin somewhere in the triangle Lubljana, Cairo and Teheran, and the name feta by itself derived from the Italian word for slice. The Commission had also indicated its positive attitude towards the protection of the names Edam and Gouda on behalf of the Netherlands. If this trend would be continued on a multilateral level it could be foreseen that a number of generic names would be protected for some parties or others whereby long established rights for third parties to utilize these denominations would be violated. Mr. Bender advised to take outset in the present situation and not try to roll back the existing situation. Issue Two: Extension of Article 23 GI Protection to Other Products: Mr Berenguer gave an overview of the European System of protection for products other than wines and spirits. He explained that such products are better protected in the EU than under the TRIPS Agreement and that the EU did not aspire to transfer that system to the multilateral arena. It simply wanted that all products would benefit from the better protection nowadays only available for wines and spirits. Mr. Berenguer also introduced examples on how the consumer is not adequately protected by the level of protection for GIs on products other than wines & spirits as enshrined by the TRIPS Agreement Article 22. He also presented the advantages for developing countries of such extension: Higher protection for wines and spirits mostly benefits the developed world and this needs to be rectified. Increased income coming from GI protection promote agricultural and industrial development. GIs are fair because anyone can use them and they cannot be removed from the territory by any corporation. GI promote trade and help developing countries products make inroads in foreign markets. GI can provide some protection to products which incorporate traditional knowledge. GI can even promote tourism and other geographically related activities. Mr. Keating explained that currently there is no international consensus as to what terms might be eligible for protection as a geographical indication. Some Members suggest that country names would not be eligible for protection while others suggest that only place names would be eligible. He explained that the private sector should be concerned about extension because it could lead to loss of trademarks, loss of generic terms, burden of renaming, re-branding, relabeling, loss of common terms and company names, changes to shipment routes, as well as potential loss of markets domestically and abroad. For government, extension would require a change in laws and regulations, and would create new bureaucracies. Extension would also create a burden of monitoring and enforcement of the new laws and regulations. Finally, Mr. Keating explained, extension would create an unfair exchange. That is, ϲʹ Members with few or no GIs of their own would be required to protect thousands of GIs belonging to other ϲʹ Members. An example was the over 6000 GIs notified from the EU to Switzerland under the new bilateral agreement. Mr. Keating then presented examples of how extension of GI protection might affect generic terms that are widely used such as Pilsner for beer, Sardine for fish, Lipizzaner for horses. Finally, Mr. Keating pointed out the EC's proposed exception to GI protection for mineral waters, such as Evian, highlight a conflict that exists between absolute GI protection and trademark rights. Anne Richard explained that the extension would benefit consumers who would be additionally protected from the false GI claims. Although in favor of extension, Anne Richard explained that it could be a problem for many names. However, she explained that interested parties should focus on the advantages of such extension system and not focus on specific cases. She was persuaded that a balanced system exists and that interested parties should work at building one taking as a model the system of protection that exists for wines and spirits. Anne Richard explained that given the great number of names, it is important to have a register of all the local GIs. Finally she raised the following interesting question: Do all GIs deserve to be on a register or should the register only list the well-known GIs that are sold on a world wide basis or are likely to be. She also explained that there should be no difference between wines and other products such as cheese and that protecting GIs is not a barrier to trade but a prevention to unfair competition. Mr. Luis de Javier supported Anne Richard comments and explained that it was logical to consider extension. He noted however that there was still a lot to be discussed and that we should proceed cautiously. He called on us to consider the effects that the system of protection of wines and spirits had on European producers placing them at the 3 or 4th rank in the world after the US and Australia before considering seriously granting such protection to additional products (i.e., the European wine industry is currently overregulated). Finally Mr. Hans Bender advised caution when considering the extension of protection to other products. He called our attention to the EU system and the consequences it had on generic terms in Europe. Mr. Bender expressed his concerns regarding the availability of generic terms in commerce and the bad faith claims of GI status to products that do not have any real GI qualities. He referred again to the feta battle in Europe and reminded that 10 EU member states notified feta as a generic term. In light of this case, Mr. Bender expressed his fear of the EC tendency to restrict the use of generic terms. Mr. Bender feared that in an extended system such tendency would become more uncontrollable. Mr. Bender noted that it was a very dangerous path for producers and more importantly for consumers whose protection is crucial. Mr. Bender here stated that recent testing has proven that the Greek feta cheese, which is a protected denomination in Greece, very often is produced not only from sheeps or goats milk but very often partly or completely from cows milk and even in many cases contain vegetable fats. Mr. Bender finally noted that many questions remain unanswered such as the way to avoid misleading consumers, the responsibility of enforcement of rights and finally ways to resolve conflicts. General Discussion: Examples of Questions asked: How does the proposal for a multinational register affect the issue of first in time, first in right? How would the register affect trademarks and GIs in a negative way? What would happen if countries do not wish to participate in the multinational register? Would the register extend to non-participants? Will the multinational register have an impact on developing countries? Examples of Comments: A multinational register would bring additional clarity for protection of GIs and would reduce enforcement costs. The TRIPS Agreement regulates the relationship between GIs and trademarks and this will not be altered by the establishment of a multinational register. Article 24.5 only forces prior trademark owners to coexist with the later GI. This article needs to be read with Article 16(1), which provides with the first in time first in right principle. Trademark owners want and deserve exclusivity. There is a question as to whether Article 16(1) contains the first in time, first in right principle. Fear that the EU system will be internationalized and create a bigger bureaucracy. TRIPS does not have a good reputation and the new protection for GIs will make the treaty more convoluted for countries that have yet to implement the other aspects of the TRIPS Agreement. These questions would be better in the hands of WIPO. Reason why there is a distinction between wines and other products in TRIPS is because the US and Europe concluded a side agreement at the end of the Uruguay Round, and it is best not to extend it further. It is important to grant protection to other products than wines and spirit in order to protect producers from the misuse and misappropriation of their names. The EU is not proposing the extension of the scope of protection for products other than wines and spirits for the benefit of developing countries, but rather for its own interests in protecting its thousands of GIs. 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