The document delves into the concept of Geographical Indication (GI) in India, explaining its definition, legal framework, and economic benefits, including the protection it provides to local producers and its potential to enhance exports. It also provides a detailed overview of the registration status of various GIs in India and includes case studies, particularly the success story of Darjeeling tea, highlighting the importance of GI for consumer protection and market integrity. Additionally, it discusses challenges such as information asymmetry and the need for collective action among GI rights holders to combat unauthorized use.

1. By:
Amit Pal

2. Content
* Background
*Overview of Geographical Indication in India
*Economics of Geographical Indication
*Registrations of Geographical Indication in India
* Business Model Study on Geographical Indication
2

3. Introduction
3
What is common between
Mathura Peda , Agra Petha & Tirupati Laddus
Darjeeling Tea & Kangra Tea
Banarasi Saree & Lucknow Chikan Craft & Zarodari
These product are Geographical Indication from
India

4. 4
What is Geographical Indication ?
A geographical indication (GI) is a name or sign used
on certain products which corresponds to a specific
geographical location or origin (e.g. a town, region, or
country).
The use of a GI may act as a certification that the
product possesses certain qualities, is made
according to traditional methods, or enjoys a certain
reputation, due to its geographical origin

5. What can be Geographical Indication?
 Agricultural Product
 Food Stuff
 Wine & Spirit Drink
 Handicraft
 Clothing
 Industrial Product
5

6. Features: Geographical Indication
 Link a product to a particular region. It is an indication.
 Indicate qualities, attributes, reputation associated with geographic
origin.
 Suggest connection to region’s inherent characteristics (e.g., soil, climate,
territory). It originates from a definite geographical territory.
 May also imply production skills/processes associated with region.
 It is used to identify agricultural, natural or manufactured goods. The
manufactured goods should be produced or processed or prepared in that
territory.
6

7. Benefits of Geographical Indication
 It confers legal protection to Geographical Indications for the
specific country.
 Prevents unauthorized use of a Registered Geographical Indication
by others
 It provides legal protection to Indian Geographical Indications
which in turn boost exports.
 It promotes economic prosperity of producers of goods produced in
a geographical territory.
7

8. Duration & Level of Protection
A registered geographical indication is protected:
 for ten years from the date of filing
 and is renewable for every ten years as long as it is still in use.
GI, irrespective of product categories, it mandates a two-level system of protection:
(i) the basic protection applicable to all GI in general (under Article 22), and
(ii) additional protection applicable only to the GI denominating wines and spirits (under
Article 23).
There are three main ways to protect a geographical indication:
• so-called sui generis systems (i.e. special regimes of protection); That which is the only
one of its kind -Unique. Sui generis is a Latin term meaning “a special kind”. In
intellectual property rights discourse (IPRs) the term refers to a special form of
protection regime outside the known framework
• using collective or certification marks; and
• methods focusing on business practices, including administrative product approval
scheme
8

9. Content
* Background
*Overview of Geographical Indication in India
*Economics of Geographical Indication
*Registrations of Geographical Indication in India
* Business Model Study on Geographical Indication
9

10. Overview :GI in India
Geographical Indications of Goods (Registration and
Protection) Act, 1999.
To provide for the registration and better protection of
geographical indications relating to goods in India
The Act would be administered by the Controller General
of Patents, Designs and Trade Marks- who is the Registrar
of Geographical Indications.
As a member of WTO this act came into force in15 Sep,
2003
10

11. Status Geographical Indication in India
Total 240 GIs have been registered with the GI
Registry of India since 2004
143, 60%
65, 27%
10, 4% 8, 4%
7, 3% 3, 1%
2, 1%
Type of GI Registered
Handicraft
Agricultural
Manufactured
Food Stuff
Textile
Handmade
Carpets
35
28
24
23
17
15
12
11
11
10
10
9
State Wise -GI
Karnataka
Uttar Pradesh
Tamil Nadu
Kerala
North East
Odisha
Andhra
Pradesh
Rajasthan
11

12. Some Well Known GI
Tejpur Litchi Gir Kesar Mango Kangra Tea
Malabar Pepper Nagpur Orange Nashik Grape
12

13. Some Well Known GI
Bikaneri Bhujia Allahabad Surkha Darjeeling Tea
Mahilabadi Dussheri Tirupati Laddu Muga Silk
13

14. Some Well Known GI
Madhubani Paintings Surat Zari Craft Kashmir Pashmina
Chanderi Fabric Banarasi Saree Sangreri Handblock
14

15. Some Well Known GI
Firozabad Glass Khurja Pottery Lucknow Chicken
Lucknow Zarodari Mirzapur Dari Moradabad Metal Craft
15

16. Some Well Known GI
Saharanpur Wood Craft Bhadohi Carpet Goa Fenni
Mysore Sandal Soap Mysore Sandal Oil Kannauj Perfume
16

17. Some Well Known GI
Odhisa Pattachitra Meerut Scissors Makrana Marble
Mysore PAK Agra Petha Mathura Peda
17

18. Content
* Background
*Overview of Geographical Indication in India
*Economics of Geographical Indication
*Registrations of Geographical Indication in India
* Business Model Study on Geographical Indication
18

19. Nature of Geographical Indication
 Like all IPR ,a GI is an intangible asset ,an identifiable
,nonmonetary resource which create a legal claim to future
benefits through special rights & privilege to it
 GIs may not be sold, transferred, licensed, rented or exchanged,
since they are either collectively owned (certification marks) or
controlled by the State
 The useful life of this asset is indefinite.
19

20. Nature of Geographical Indication
 GI benefits are excludable and non-rival or partially rival -GIs is
the fact that benefits are shared, and non-rival, or, at most,
partially rival
 Once protected, the production of GI-labeled products is always
geographically confined to the region, locality or territory that
provided the good with its special attributes
 This geographical confinement implies capacity limitations in
supply, often resulting in price premium
20

21. Why for Partial Rivalry & Imperfect
Excludability exist ? A brand associated to a particular GI might benefit from a higher
consumer recognition or reputation, and exert a higher price
premium, thus adding an element of competition to other GI
producers.
 Free-riding by “insiders” (i.e. right-holders), through cuts in quality,
may also entail dilution of the GI and partial rivalry of benefits.
 A GI is protected from its unlawful utilization by non-right holders;
free-riding from “outsiders” might be even more damaging to the
goodwill of GI legitimate producers.
21

22. Issues of Geographical Indication
 Localised Club Asset”
The properties of geographical confinement of production,
excludability of benefits and non-rivalry of benefits allow the GI to
be characterized as “a localized club asset”, with a club
membership consisting of the firms producing the GI good.
 The “club” aspect of the GI derives from the collective nature of
the IPR. Cost-sharing, value-added-sharing and profit-sharing
agreements are present all along the production, marketing and
distribution chains of a GI product. Collective action among GI
right-holders is required to coordinate activities, as well as to
avoid free-riding on the reputation of the GI
22

23.  Huge information gaps (information asymmetry) exists in the
markets today that lead to typical market information problems in
the form of adverse selection and moral hazard. Information
asymmetry impacts negatively on the market: the quality of total
supply drops, higher-quality products are driven out of the market.
 GI protection has the potential to eliminate information
asymmetry and benefit both the producers and the consumers.
Once the goods are registered as GI, they will be protected under
the GI Law and any violation on this account would be tantamount
to a legal offence. If the Act is implemented effectively, it will act
as a deterrent to unethical producers selling their low quality and
cheap products free riding on the reputation enjoyed by GI goods.
23
Issues of Geographical Indication

24. Content
* Background
*Overview of Geographical Indication in India
*Economics of Geographical Indication
*Registrations of Geographical Indication in India
* Business Model Study on Geographical Indication
24

25. Indian GI registry system
• The Geographical
Indications Registry (GIR)
is situated at Chennai.
• Its main function is
registration of
Geographical Indications
under the Act
• Whether a particular
product is registerable or
not is determined by the
Registrar of Geographical
Indications, on receipt of
the application
25

26. Legal Battle over Geographical Indication
 West Bengal vs Odhisa over “Rossgullas “
 India & Pakistan fight over “Basmati Rice “
 Scotch Whisky Association (SWA WINS LEGAL
BATTLES FOR SCOTCH IN INDIA 25th February, 2016
26

27. Content
* Background
*Overview of Geographical Indication in India
*Economics of Geographical Indication
*Registrations of Geographical Indication in India
* Business Model Study on Geographical Indication
27

28. Case Study –Darjeeling Tea
Background
 Darjeeling boast produce most coveted tea in the world
 Position of Darjeeling is same as in wine Champagne holds
 Hilly reason offers a unique & complex combination of Agro –
climatic condition for Tea plantation
 First tea garden planted in 1852 by British
 Planted area is about 17,400 hectare in 87 Tea garden & produced
by 10 Million Kg /year
 Industry is controlled by Private sector
 The Darjeeling Planter association closely worked with Tea board of
india ,a government organization (Administer all stage of tea
cultivation
28

29. Case Study –Darjeeling Tea
Background
 Accounted for about to 1% of India tea production
 Quality ,Reputation & characteristics have made this region a
hallmark .
 Tea quality is essentially attribute to its geographical origin
 Trader as well as individual buyer expect that tea must be
produce in definite region of Darjeeling Region
 So we see the importance of GI in product category
29

30. Case Study –Darjeeling Tea
Goods with Specific Geographic Origin
 Perfect soil & environmental condition for tea cultivation
 Height vary from 200 M to 2000 M above sea level with slope of 60 to 70
degree
 High rainfall in the area with high humidity with wind speed
 Higher carbon content in soil
 Unique weather condition
 Variety of tea bush “Camelllia Sinensis “
 Cultivated for generation so people got traditional knowledge with
skilled manpower
 Know –How passed through generation especially tea picking job
30

31. Case Study –Darjeeling Tea
IP Management
 Authentication done by The Tea board of India
 That is to ensure special characteristic associated with the tea &
High reputation
 Prevent misuse of the word "Darjeeling" for other types of tea sold
worldwide
 Deliver the authentic product to the consumer
 Enable the commercial benefit of the equity of the brand to reach
the Indian industry and hence the plantation worker; and
 Achieve international status similar to Champagne or Scotch
Whisky both in terms of brand equity and
governance/administration.
 At the legal level, the Tea Board is the owner of all intellectual
property rights associated with Darjeeling tea.
31

32. Case Study –Darjeeling Tea
Certification Trademark
 Logo as well as word “Darjeeling “ are registered trademark
 Logo was registered in major consumption area (Canada
,Egypt ,EU ,Japan ,UK ,USA ) as Trademark /Certification
/Collective Mark
Geographical Indication
 Logo as well as word “Darjeeling “ are registered under
Geographical Indications of good act of 1999
Copyright:
 Under Indian copyright act of 1957 ,logo is copyright
protected and registered as an artistic work
32

33. Case Study –Darjeeling Tea Licensing
 Tea industry is almost completely in the private sector
But government controlled under Tea Act of 1953
 Tea board comes under the Ministry of Commerce &
Industry
 Compulsory system for authenticity of Darjeeling Tea
 All dealers to enter incense agreement with Tea
Board & Pay annual license fee & furnish all
information of production and sale
 No blending is permitted with other origin tea
 Certificate of origin is issued for export consignment
 Tea board also seek support from overseas buyer to
insists for certificate of Origin
33

34. Case Study –Darjeeling Tea
IP Enforcement /Infringement
 Tea board hired Compumark a global trademark research & brand
protection provider
 Compumark is require & Monitor and report all cases of unauthorized
use & attempted registration
 Company successfully concluded 5 instances
 Bulgari Switzerland agreed to withdraw “Darjeeling Tea fragrance for
men “ pursuant of legal notice & negotiations
 In france also Comptoir des Parfums withdrew its application
 Some times company lost due to company specific legislation
 Board has spent $0.2M on legal & registration expenses , monitoring of
infringement
34

35. Case Study –Darjeeling Tea
IP Enforcement /Infringement
 Despite the GI registration and the efforts of the Tea Board, most
consumers are unfamiliar with what a GI is and are unaware of
the official Darjeeling tea logo.
 The widespread international popularity of Darjeeling tea has
caused most consumers to be convinced of a certain product only
by the name Darjeeling, a well known retail shop or a familiar
 Customer does not really verify the official GI logo when buying
loose or packaged Darjeeling tea
35

36. Case Study –Darjeeling Tea
Business Result
 Over 70 percent of the annual production of Darjeeling tea is
exported to, inter alia, Germany, Japan, the United Kingdom, the
United States of America and other EU countries.
 The Certificates of Origin issued by the Tea Board ensure the
supply of genuine Darjeeling tea. Due to its high quality and
flavor, it has gained recognition of discerning consumers
worldwide
 Darjeeling Planters Association to protect the geographical
indication of Darjeeling tea have ensured that the quality and
special characteristics of this tea are not lost and that consumers
receive the authentic product
36

37. Case Study –Darjeeling Tea
Business Result
 The cooperative scheme from the Board and the Association has
made Darjeeling tea a vintage product, aspired worldwide.
Likewise, although it is produced in a limited quantity, this
vintage tea generates returns several times higher than ordinary
tea
 The Darjeeling tea industry at present employs over 52,000
people on a permanent basis, and a further 15,000 persons are
engaged during the plucking season
 A unique feature of this work force is that more than seventy
percent are women.
37

38. Case Study –Darjeeling Tea
Model of Private & Public partnership
While the planters in Darjeeling have been producing
high quality tea for over 150 years now
 It is the Tea Board that has sole control over the
growing, quality control and exporting of Darjeeling
tea. Both the Tea Board and the Darjeeling Planters
Association have been involved at various levels in
protecting and defending the “Darjeeling” name and
logo. It is this collaboration between the Board
38

39. Case Study –Darjeeling Tea
Model of Private & Public partnership
http://timesofindia.indiatimes.com/business/india-business/Darjeelings-
Makaibari-becomes-most-expensive-tea-in-India/articleshow/41861909.cms 39

40. Thanks!
Suggestions are Most Welcome...
40