Safeguarding Wine And Spirits Heritage - A Comparative Study Of GI Protection In India, Thailand And France
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SAFEGUARDING WINE AND SPIRITS HERITAGE: A
COMPARATIVE STUDY OF GI PROTECTION IN INDIA,
THAILAND AND FRANCE
Sumathi S, Sastra Deemed University, Thanjavur, Tamilnadu Suyambulingam S, Sastra Deemed University, Thanjavur, Tamilnadu
ABSTRACT
Geographical Indications (GI) is a sign which confers protection to the products which originates from a specific geographical location ensuring its quality and authenticity. It aims to protect cultural heritage of a product which means traditional and unique processes adopted in the manufacturing of such products. The protection of geographical indications (GIs) products of wine and spirits industry in India, particularly under the Geographical Indications of Goods (Registration and Protection) Act, 1999, faces several legal challenges. One significant issue is the inadequacy of enforcement mechanisms, leading to widespread misuse and counterfeiting of GI products. Many producers lack awareness of their rights under the GI Act, which hampers effective protection and enforcement.
The primary objective of this research is to examine the challenges faced by Indian wines and spirits in securing international recognition and protection under the existing Geographical Indications (GI) framework. This includes assessing the reasons behind the low number of GI-protected wines in India and identifying the barriers that hinder broader global protection and market access for Indian wine GIs. By examining India's GI protections in comparison to those of prominent wine and spirits-producing nations, such as France and Thailand this study evaluates the effectiveness of India’s regulatory approach. The legal landscape necessitates urgent reforms to improve awareness, streamline the registration process, and strengthen enforcement mechanisms, ensuring that India can effectively safeguard its unique geographical indications in the global market.
By addressing these legal issues, India can better safeguard its diverse geographical indications, promoting both cultural heritage and economic growth. Keywords: Geographical Indications, Wine and Spirits, Counterfeit, International Recognition, Convention countries, Reciprocity agreements.
BACKGROUND:
The wine and spirits industry has a rich history of geographical Indication protection, dating back to ancient times. France is one of the largest wine producers where the world’s first GI protection was given to burgundy wines of France in the fifteenth century. However, the French wine industry's progress came to an abrupt halt as Mildew and then Phylloxera spread over the country and the rest of Europe, destroying the wines. Then came an economic crisis in Europe, followed by two world wars, and the French wine industry was in decline for decades1. As a result, In 1935, the Appellation d'origine contrôlée was established to defend French local wine producers interest as a result of this tragedy. In recent years, the importance of GIs has gained recognition globally, with various countries implementing legal frameworks to protect their unique products.
France, a pioneer in the protection of wine and spirits through GIs, has a long-established system that ensures the integrity of its celebrated Bordeaux and Champagne, among others. The French model offers robust legal protections and has set a benchmark for other nations. In contrast, India and Thailand present diverse approaches to GI protection, influenced by their unique cultural landscapes and legal environments. Thailand’s wine and spirits industry though relatively younger developed in late twentieth century has also recognized the importance of GI protection with designations like khao yai wine produced in Gran Monte winery. Thailand, with its rich tradition of spirits, such as Mekhong spirits , is also in the process of developing its GI framework, aiming to enhance the international recognition of its local products.
Since it is a developing country like India it faces similar challenges with respect to proper GI enforcement and protects consumers trust. India has Geographical Indications of Goods (Registration and Protection) Act, 1999 Thailand have Geographical Indication Act, 2003 to protect GI products. Effective GI protection is crucial in wine and spirits industry as it prevents counterfeiting, ensures quality consistency and preserves traditional production measures. This study aims to compare the approaches taken by India, Thailand, and France in the safeguarding of wine and spirits heritage through GIs. By analyzing the strengths and weaknesses of each country's legal frameworks, enforcement mechanisms, and cultural implications, we can gain insights into effective strategies for protecting and promoting the rich tapestry of global wine and spirits heritage.
1Ayuda, María-Isabel; Ferrer‐Pérez, Hugo; Pinilla, Vicente (2019). "A leader in an emerging new international market: the determinants of French wine exports, 1848–1938". ISSN-1468-0289
LITERATURE REVIEW:
This literature review aims to synthesize the current state of research on this topic , highlighting key findings, methodological approaches, and gaps that warrant further exploration. In a paper the author2 (Vanessa L. Brown ,June 1, 2006) highlights that the US and French systems differed significantly regarding production methods and varietal authorisation. The US system does not carefully regulate production and does not specify which varietals can be cultivated in a specific region to be considered an AVA Winery. The AOC system relies on old methods and grape varietals, making it hesitant to absorb new ideas and practices. In contrast, the US wine market has been at the forefront of innovation globally. This study aims to demonstrate that stringent implementation of intellectual property rights (IPRs) might hinder innovation and harm domestic industries.
(Tushar Kanti Saha and Nalin Bharti, 2006)The post-TRIPS Agreement offers improved protection for wines and spirits. Unprotected products continue to face uncertainty as no other products have received additional legal protection under TRIPS. This has brought in inequity and unfair treatment of other products of comparable importance derived from the geographical areas and regions of the developing world3. GIs in Thailand are not only about economic benefits; they also aim to preserve cultural heritage. Products with GI status can enhance regional identity and promote traditional production methods. GIs are increasingly tied to sustainable agricultural practices in Thailand, promoting environmentally friendly production methods that can help in the longterm viability of the wine and spirits sector.
Studies reveal that while the Thai system shares some similarities with the French model, it faces challenges related to enforcement and awareness among producers (Chatchai & Khaowwichit, 2021). Unlike France, where GIs are deeply embedded in cultural identity, Thailand's GIs are often still in the early stages of development, which raises questions about their effectiveness in safeguarding heritage products (Sompong, 2022). (Lisa P Lukose, 2022) When Article 23 of TRIPS Agreement qualifies only wines and spirits for higher level protection, the Indian GI Act, 1999 does not restrict the additional protection to any specific classes of goods4. This comparative study of 2 The french wine industry in crisis: is it a case of intellectual property rights gone too far? Vanessa L. Brown (2006).
3 Beyond Wines and Spirits: Developing Countries’ GI Products and their Potential in WTO Regime with Special Reference to India ,Tushar Kanti Saha and Nalin Bharti, Journal of Intellectual Property Rights Vol 11, March 2006, pp 89-97 4 Additional Protection for Geographical Indications in India: A Working of Section 22 (2) of Indian GI Act, Lisa P Lukose Journal of Intellectual Property Rights Vol 27, September 2022, pp 325-332 DOI:
10.56042/jipr.v27i5.62742
GI protection in India, Thailand, and France highlights the critical role GIs play in safeguarding the heritage of wine and spirits.
RESEARCH PROBLEM:
This study aims to explore the challenges and opportunities for enhancing the international recognition and protection of Indian wines and spirits under the Geographical Indications (GI) Act, 1999. Despite the potential of India’s wine and spirits industry, the limited number of GIprotected wines reflects gaps in securing global protection for Indian wine GIs. By comparing India’s GI framework with France’s established GI system and Thailand’s efforts to secure international recognition, this research will evaluate how reciprocity under Section 85 can be leveraged to improve the global recognition and protection of Indian wines and spirits, and recommend legal reforms to enhance India’s international GI strategy for wines in convention countries.
OBJECTIVES:
This study will compare India's GI protection system with those of France and Thailand, focusing on their mechanisms for achieving international recognition and protection for GI products. This research will evaluate the role of reciprocity agreements between India and convention countries in facilitating the international protection of Indian wine GIs. Based on these findings, the study aims to propose legal and policy reforms to enhance India’s international GI strategy for wines, with a focus on improving global recognition, market protection, and aligning India’s approach with international best practices.
RESEARCH QUESTIONS:
1. Whether the low number of GI-protected wines in India is due to legal, procedural, or
market-related barriers preventing broader international recognition?
2. Whether EU’s (France) automatic GI protection system for wines offers valuable
insights for improving India’s approach to international GI recognition and protection?
3. Whether Thailand’s strategies for securing international GI recognition for its products
can be adapted to enhance India’s GI protection for wines?
4. Whether reciprocity agreements between India and convention countries adequately
support the protection and enforcement of Indian wine GIs in global markets?
INDIA
India's agricultural and cultural diversity results in distinctive wine and spirits, such the sparkling wine made in Nashik, the Feni from Goa, and the Judima rice wine from Assam. These drinks are significant commodities because they are more than just goods; they are symbols of India's rich history and traditional craftsmanship. However, there is a need to prevent copying of these distinctive beverages and preserve their legacy and quality standards as the demand for genuine regional products rises. The heritage of these products and the livelihoods of the communities who produce them are protected by Geographical Indications (GIs), which have become a powerful legal tool. Feni from Goa, Nashik Valley Wine and Judima rice wine from Assam are three Indian goods that have been granted GI tag.
Due to its distinctive characteristics, which are a result of the local soil, climate, and specific production methods, Nashik Valley Wine, which is mostly made in the Nashik region of Maharashtra, has gained international recognition. Such items if the GI protection has guaranteed international recognition will assure quality,helps stop imitations, and boost exports and benefit rural economies. As of today, foreign liquor varieties having the Geographical Indication recognition in India includes the “Peruvian Pisco”, “France’s Champagne”, “Napa Valley wine of the United States of America”, “UK’s Scotch Whisky” , “Cognac of France” ,“Porto of Portugal”, “Douro wine of Portugal”, “Tequila of Mexico” , “Presecco of Italy”, and “Irish Whiskey”5. In order to preserve India's wine and spirit legacy, GI rules are essential.
Through the enforcement of geographical indications, the legislation protects against fraudulent labelling and ensures authenticity by limiting the use of GI labels to items that originate from the designated regions within India as it is a national legislation. This protection raises the market value of goods and gives communities financial incentives to maintain customs, like the distinctive winemaking techniques used in Nashik wine, feni and judima rice wine. 5 Wines and Spirits in the Realm of Geographical Indications(gis), Chadha & Chadha Intellectual Property Law Firm, https://www. lexology. com/library/detail. aspx? g.
Notwithstanding the advantages, there are difficulties in implementing GI regulations for wines and spirits in India. Inconsistent enforcement may result from India's fragmented market and producers and consumers lack of knowledge about GIs. Additionally, India's wine and spirits business is still expanding in comparison to other countries with strong GI frameworks, and it is still imperative that producers and consumers understand the importance of GIs. The legacy of India's wines and spirits might be further strengthened by enhancing the GI framework, strengthening enforcement procedures, and launching government-led awareness initiatives. Notably, spirits in India does not receive a single GI tag as that of wine products. The reason is majority of spirits production are controlled by state governments preventing private individuals to produce and sell in the market.
Article 23 of the TRIPS Agreement The Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement under the World Trade Organization (WTO) provides a robust framework for the protection of Geographical Indications (GIs). Article 23 of TRIPS6 is particularly significant for wines and spirits, as it mandates a higher level of protection for these products compared to other goods. Article 23 requires WTO members to prevent the use of GIs identifying wines and spirits that do not originate in the designated geographical area, even if the true origin of the goods is indicated or accompanied by expressions like “kind,” “type,” or “style. ”7 This goes beyond the general GI protection under Article 22, which hinges on preventing misleading practices.
The provision disallows the registration of trademarks that misuse or imitate protected GIs for wines and spirits, even when the public is not misled. India, a member of the WTO, aligns its domestic GI protection with TRIPS requirements through the Geographical Indications of Goods (Registration and Protection) Act,
1999. This law provides a statutory mechanism for registering and safeguarding GIs, which is
vital for the protection of indigenous wines and spirits. Article 23 Supports Safeguarding Indian Wines and Spirits Indian products like Nasik Valley Wine benefit from TRIPS-compliant protections
6 https://www.wto.org/english/res_e/publications_e/ai17_e/trips_art23_jur.pdf
7https://www.rostrumlegal.com/geographical-indication-under-the-trips-agreement-commercial-interest-servedbut-equity-declined/
against unauthorized use of the GI name, ensuring authenticity and market exclusivity. The stringent GI protection under Article 23 helps Indian wines and spirits stand out in international markets, allowing producers to command premium pricing. The elevated status provided by Article 23 safeguards the cultural heritage linked to these products while promoting economic benefits for local communities. Many Indian GIs still lack international recognition, limiting the broader benefits of Article 23 protections. For instance, although "Feni" is protected domestically, international recognition is limited, posing a challenge for its global branding. Section 84 and 85 of GI Act The GI Act prohibits the registration of a geographical indication (GI) in India under the following conditions: • If the GI is likely to mislead or confuse as to its true geographical origin.
• If the GI is generic (i. e. , it has become a common name for the goods in general trade). • If the use of the GI is contrary to any law or morality, or likely to hurt public order or cause confusion. Article 23 of TRIPS requires GIs for wines and spirits to be protected against misuse or misrepresentation, even if the true origin is indicated (e. g. , “Indian Champagne” for sparkling wine not from the Champagne region). Section 83 reflects this spirit by ensuring that misleading or improperly used GIs cannot be registered. For example: Indian producers cannot label their sparkling wine "Champagne," as it is a protected GI under Article 23.
If a foreign producer falsely labels their wine as “Nasik Valley Wine,” the GI holders can file a lawsuit in India under Section 84 and 85 to stop such misuse only if the other country is a convention country or it has entered into reciprocity agreement with India in accordance with TRIPS and complied with the Indian GI Act provisions. It is not an automatic recognition as that of EU countries like France where the wines once given GI in France all the other EU countries are automatically prevented from using that GI. France need not institute fresh suit in each countries for claiming protection of its wine products. SECTION 84: Applications for registration from citizens of convention countries
Under this section, the Central government has the power to give status of “Convention country” to any foreign country is it satisfies the following requirements.
1. There must be a treaty, convention or any arrangements between India and the other
country.
2. That foreign country affords to citizens of India similar privileges as granted to its own
citizens. This section is unclear as to whether Indian GI products in order to get their GI products registered with the foreign countries have to compulsorily satisfy the second condition since laws of other countries varies. And moreover, if the condition is not satisfied then Indian GI products won’t get protection in that country. This section is based on mutual agreements which is not possible as different countries have different criterias for giving GI to a particular product. This provision ensures that the use of a geographical indication (GI) related to wines or spirits is not restricted by the Geographical Indications Act or the Trade Marks Act, 1999, if the GI has been used continuously and legitimately by citizens or residents of a country or group of countries or inter-governmental organizations.
The key conditions for this protection are: Continuity of Use: The GI must have been used consistently in connection with goods (like wines or spirits) in the country of origin. Time Frame: The use must have been for at least 10 years before April 15, 1994, or the use must have been in good faith before that date. This clause protects the rights of producers from countries where a GI has been traditionally used, allowing them to continue using it even if it is not formally registered in India, as long as they meet the specified conditions. SECTION 85: Provision as to reciprocity This section states that if a foreign application is made in accordance with section 84 then they are entitled to GI protection in India if they satisfy the two conditions under that section.
Failed to satisfy leads the countries to refusal of registration of or to be registered proprietor or authorised user under this Act. This protection is meant to safeguard the interests
of Indian producers and owners of GIs in international markets where reciprocity is not granted. In some jurisdictions, the enforcement of GI protection is weak or inconsistent. This leads to misuse, counterfeiting, or misleading use of GIs by unauthorized producers, which damages the reputation of genuine producers from India. This is particularly problematic for wine and spirits, where authenticity and regional identity are crucial for branding. Without global recognition and enforcement, there is a risk of brand dilution and confusion, as similar products from other countries may use the same or similar geographical names.
To solve this issue India can enter into bilateral agreements countries with top producers of wine and spirits so that Indian products can get GI protection in that countries by incorporating the principle of “Automatic recognition” in that countries without instituting a separate legal action for GI violations.
INDIA GDP IN SPIRITS
In Indian economy Alcohol( wine and spirits) sales account for 11.7% of India's indirect tax revenue, 7.7% of total tax revenue, and 1.2% of the country's nominal GDP. At the state level, it accounts for 24.6% of state tax income. This is not insignificant in a country that is facing numerous economic difficulties.8 So it is important to safeguard Indian spirits and wines from being misused by others.
THAILAND
Thailand has become a significant player in Southeast Asia's wine and spirits market, owing in part to its dedicated approach to safeguarding Geographical Indications (GIs) through its legal system. The cornerstone of this protection is the Geographical Indication Act of 2003, which enables the nation to make an impact on its distinctive agricultural products including wine and spirits for both internal and foreign trade. The GI Act was put into place to protect goods that have characteristics or a reputation associated with their place of origin. WIPO is now working with DIP Thailand to develop a technical assistance program in the areas of customer identification and GI commercialisation outside of the nation's borders in order to aid in the commercialisation of GIs on the global market.
Unlike other nations, such as the European Union, Thailand does not require manufacturers to form an association in order for 8https://retail. economictimes. indiatimes. com/blog/alcohol-sector-accounts-for-2-of-the-gdp-generatesemployment-in-allied-sectors-of-retail-fb-and-more/105611108
the GI to be registered. As an alternative, producers typically organise into informal associations, also known as community associations that register for the same product9. It seeks to protect local cultures, increase the value of traditional products, and guarantee that customers obtain genuine goods. The past few decades have seen a progressive evolution of Thailand's wine sector. Due to their creative viticulture techniques and ideal environment, wine-producing regions like Khao Yai and Hua Hin have gained prominence. Thailand has produced award-winning wines despite being a relatively newcomer to the world wine industry, suggesting the possibility of international recognition. By offering a framework that can assist regional winemakers in creating their brand identities and safeguarding their goods from imitation, the GI Act encourages the development of this sector.
Local alcoholic beverages, especially Mekhong and other rice-based spirits, have a lot of potential for GI registration. These goods are excellent candidates for GI protection since they represent traditional production techniques and cultural heritage. By registering these alcoholic beverages under the GI Act, their marketability both domestically and internationally is increased while maintaining their authenticity. The integrity of authentic GI products is threatened by counterfeit goods, a problem that affects both Thailand and India. The uneven application of GI rights enforcement makes it challenging to shield producers from unfair competition. The reason is that the resources required for regulatory organisations to effectively monitor and enforce GI protections are inadequate like France.
Thailand has two primary alcoholic beverages that have been granted Geographical Indication (GI) status by the Department of Intellectual Property of Thailand: Phurua plateau wine and Khao yai wine. Phurua plateau wine have been given GI tag in 2005 by the Department of Intellectual property, Thailand. Wine experts from France, the wine capital, have accepted the GI registration of Phurua Plateau wines10. In 2018, Granmonte Vineyard and Winery, in collaboration with the Thai Wine Association, registered the Khao Yai Wine Geographical Indication. Marketingwise, it was challenging to use the GI as a marketing tool because alcohol cannot be advertised in Thailand11. 9 Thailand Leads the Way to GI Registration in ASEAN Countries, https://www. wipo.
int/web/ipadvantage/w/stories/thailand-leads-the-way-to-gi-registration-in-asean-countries One province one geographical Indication, Department of Intellectual property, Thailand https://ipthailand. go. th/images/gibook/GI_Thailand_1. pdf 11 Khao Yai Wine – Thailand's Award-Winning New Latitude Wine, From Dream to Thai Award-Winning wines with Tropical Accents and GI Recognition , https://www. wipo. int/web/ip-advantage/w/stories/khao-yai-winethailand-s-award-winning-new-latitude-wine
GEOGRAPHICAL INDICATIONS PROTECTION ACT, B.E. 2546 (2003):
Thailand is bound by the Agreement on Trade Related Aspects of Intellectual Property Rights, which is annexed to the Marakesh Agreement establishing the World Trade Organisation, under Articles 22 to 25. However, the laws that are currently in place in Thailand are not adequate for supporting the protection policy and such obligations. So, in order to ensure compliance with TRIPS agreement the Thai government enacted the GEOGRAPHICAL INDICATIONS PROTECTION ACT, B. E. 2546 (2003). Section 6 of this Act deals with International registration of GI products. This section states that A geographical indication of a foreign country eligible for protection under this Act shall be supported by clear evidence that it is the geographical indication eligible for protection under the law of that country and has been in continual use up to the date of application for its registration in Thailand12.
As per section 8 the person who is not of Thai nationality wanting to register GI must satisfy two conditions. 1. Being a national of a country which is a party to the international conventions or agreements for protection of GI’s to which Thailand is also a party. By these sections it is clear that foreign products to get GI even though they are members to the convention have to satisfy the national laws requirements to get GI protection. Because Thailand has a sui generis legislation in contrast to France which is a member of EU granting automatic recognition. Thailand’s GI protection system for wine is still developing. The legal framework for protecting local products under GIs is not as comprehensive or robust as in wine-producing countries, where GI regulations are more advanced.
In Thailand, the majority of wine consumed is imported, primarily from countries with long-established wine industries, such as France, Italy, Chile, and Australia. Imported wines dominate the market, and Thai wines often struggle to gain visibility or market share, limiting the incentives for GI protection. But like India, Thailand makes every attempt to recognise foreign GI’s as evident from the data stating that
11 products from foreign origin rains GI tag in Thailand13.
FRANCE
France is well known for its extensive wine and spirits heritage, which is safeguarded by a number of stringent legal frameworks, most notably Geographical Indications (GIs). By guaranteeing that only goods with a true connection to a certain region can use the name
12 (Section 6), GEOGRAPHICAL INDICATIONS PROTECTION ACT, B.E. 2546 (2003)
Institutional Aspects of Geographical Indications Administration in Thailand 21/10/2015, https://www.wipo.int/edocs/mdocs/geoind/en/wipo_geo_bud_15/wipo_geo_bud_15_7.pdf
associated with that region, France's GI system is crucial for preserving the authenticity, quality, and cultural value of its wine and spirits. In addition to safeguarding French producers' interests, this system maintains a centuries-old legacy that is respected all over the world. The French government created the Appellation d'Origine Contrôlée (AOC)14, or Controlled Designation of Origin, in 1935 as one of the main legal foundations for safeguarding wines and spirits in France. Originally created for wines, the AOC system has since been expanded to include cheeses, spirits, and other agricultural goods. Products must meet stringent requirements pertaining to production processes, place of origin, and quality standards under the AOC framework.
Champagne is a manufactured product; whose application for a GI tag was filed by Comite Interprofessional du Vin de Champagne (CIVC) a branch of AOC on 29th September, 2008 and the product was given GI Certification on 4th October, 201015. To protect this famous wine against imitation and dilution of its legacy, for instance, the title "Champagne" can only be applied to sparkling wines produced in the Champagne area under certain circumstances. One of the first nations to create a system that safeguards Geographical Indications was France. This system, known as the Appellation d'Origine Contrôlée, or "AOC," forbids the production and sale of goods bearing a Geographical Indication that has already been recognised and protected by the AOC. This institution has defended it GI protection for wines in nearly 121 countries for its champagne sparkling wine including India16.
The AOC system restricts output to designated geographic areas and requires respect to traditional practices. These specifications guarantee the preservation of France's traditional production processes and stop artisanal methods from being undermined by industrial-scale production. Similar frameworks around the world, such the EU's Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI), which likewise seek to preserve heritage products, were influenced by the AOC system. French GIs like Champagne, Cognac, and Bordeaux have global recognition. France has successfully negotiated with other countries and regions to protect its GIs through international treaties, like the World Trade Organization’s (WTO) TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights).
France has also signed numerous bilateral agreements and is a leading proponent of GIs in international 14https://www. inao. gouv. fr/Les-signes-officiels-de-la-qualite-et-de-l-origine-SIQO/Appellation-d-origineprotegee-controlee-AOP-AOC
15 GEOGRAPHICAL INDICATION (GI) TAGS OF FRANCE, Tanya Sharma (2022),
https://www.theippress.com/2022/03/26/geographical-indication-gi-tags-of-france/
16 SHAMPANSKOYE: A potential Geographical Indication dispute between France and Russia? (2021),
https://www.theippress.com/2021/09/09
trade discussions, ensuring that French wines and spirits are protected from misrepresentation or counterfeit products globally. In addition to preserving its cultural legacy, France's all-encompassing approach to GI protection for wine and spirits boosts the country's rural economy and the livelihoods of small producers that depend on GIs' strong reputation. Therefore, French GI laws preserve a legacy for future generations by paying homage to the past while also committing to the future.
CASES ON GI PROTECTION ON WINES & SPIRITS:
In The Scotch Whisky Association & Another v. Golden Bottling Ltd17, The SWA filed a lawsuit against Jaipur-based Golden Bottling for using the term "Scot" in their "Red Scot" whisky. According to the SWA, consumers were led to believe that the whisky was Scotch whisky because the word "Scot" in the liquor's name is protected as a geographical indicator (GI) by WTO regulations. Golden Bottling was ordered by the Delhi High Court to stop using the word "Scot" or words that are similar in their whisky after the court found that the company had engaged in passing off. Golden Bottling was also mandated by the court to reimburse the SWA for damages and legal expenses. In Scotch Whisky Association (SWA) v. J. K. Enterprises18 involved a dispute over the use of the term "Scotch" in the marketing and sale of alcoholic beverages by J. K. Enterprises.
The SWA represents the interests of Scotch whisky producers and is dedicated to protecting the integrity of Scotch whisky as a Geographical Indication (GI). The primary issue was whether J. K. Enterprises could legally use the term "Scotch" for its products, given that the products were not produced in Scotland and did not meet the legal criteria for Scotch whisky. The court examined the definitions and regulations surrounding the production of Scotch whisky, considering whether J. K. Enterprises' labeling practices violated these regulations. The ruling stressed the importance of protecting the integrity of geographical indications to maintain consumer trust and uphold the standards of the industry.
The Madhya Pradesh High court ruled in favour of the Scotch Whisky Association, affirming that only products produced in Scotland under the established regulations can be labelled as "Scotch whisky. " 17 Scotch Whisky Association & Another v. Golden Bottling Ltd, 129 (2006) DLT 423, 2006 (32) PTC 656 Del
18 Scotch Whisky Association vs J.K. Enterprises on 18 December, 2023
In Comite Interprofessionnel Du Vin De Champagne (CIVC) v. Chinar Agro Fruit Products (2017 SCC Del 10704) revolves around the protection of the term "Champagne" as a Geographical Indication (GI). The CIVC is the official organization representing the Champagne industry in France, and it actively seeks to protect the name "Champagne" from misuse and unauthorized use in markets outside of France. The primary issue in this case was whether Chinar Agro Fruit Products could market its sparkling wines using the term "Champagne," given that these products were not produced in the Champagne region of France and did not comply with the necessary legal requirements to use the term. The court evaluated whether Chinar Agro's use of "Champagne" constituted a violation of the protections afforded to the term under international GI laws and Indian regulations.
The ruling underscored the importance of protecting the integrity of geographical indications to ensure consumers are not misled about the origins of the products they purchase. In Khoday Distilleries Ltd. v. Scotch Whisky Association (1996)19 Khoday Distilleries, an Indian company, marketed whisky with labelling that allegedly imitated Scotch whisky, which led to a dispute over deceptive marketing practices and misrepresentation of geographical indications. This case highlighted the role of GIs in preventing consume deception and preserving the distinct identity of spirits, particularly for products with significant heritage like Scotch whisky. In Scotch Whisky Association v. Pravara Sahakar Karkhana Ltd. (2009) In this case, the Scotch Whisky Association (SWA) challenged the use of the term Scotch by Pravara Sahakar Karkhana, an Indian company producing spirits.
The SWA argued that Scotch refers to whisky exclusively produced in Scotland, and any other use violated the geographical indication rights associated with Scotch whisky. This case emphasized that geographical indication laws protect the heritage of specific products, ensuring that only products originating from a particular region can use that name20.
FINDINGS:
Legal complexity, procedural obstacles, and market-related difficulties all contribute to 19Khoday Distilleries Ltd. vs The Scotch Whisky Association And Ors. on 25 September, 1998 ,AIR 1999
MADRAS 274, (1999) 37 ARBILR 161
20 The Scotch Whiskhy Association And ... vs Pravara Sahakar Shakar Karkhana Ltd. on 18 July, 1991
AIR1992BOM294
India's limited amount of GI-protected wines. The Indian wine industry is still in its infancy and does not yet have the track record, reliability, and worldwide recognition needed to obtain GI classification on a national and international level. Additionally, the market demand for GI wines is relatively small, and the regulatory climate is not yet completely supportive of winespecific GI protections, which lessens the motivation for producers to seek such rights. There might be a stronger drive for GI safeguards if the Indian wine business develops and becomes more well-known worldwide. The AOC (Appellation d'Origine Contrôlée) system in France is one of the most established and revered models of GI protection in the world, particularly for wine and other agricultural products.
Understanding the AOC and its functioning provides valuable insights that India could leverage to develop its own approach to Geographical Indication (GI) protection, especially for wine. Automatic recognition measures should be undertaken by India like France to gain global reach for wines and spirits. The AOC (Appellation d'Origine Contrôlée) system plays a crucial role in defending and protecting the reputation and quality of French wines on the global stage, including through legal action and international trade disputes. India can also set up an authority to have regular monitoring mechanisms for its GI violations across world. Reciprocity agreements are essential for India to ensure that its GI wines are protected in international markets.
By entering into bilateral and multilateral agreements, particularly with key wine-consuming countries, India can defend the authenticity of its wine regions and prevent misuse of GI names. Thailand has worked with international organizations like the World Intellectual Property Organization (WIPO) and the European Union to secure global recognition for its GIs. India can take a more active role in international organizations to build support for its GI wines. By working with WIPO and EU institutions, India could secure global recognition for wine regions like Nashik or Sula. International registration of wine GIs would help protect Indian wine brands from misuse and increase their value in the global market.
To conclude, India through its GI Act via sections 84 and 85 encourage automatic recognition of its convention countries in TRIPS so that the GI protection of its wines and spirits can attain global protection. Since only 3 wines have been given GI protection in India which have in 2023, the size of the alcoholic beverage market was about 55 billion U. S dollars it shows lack of implementation of GI awareness among wine producers.
RECOMMENDATIONS:
1. Formalize cooperation between Indian authorities and GI offices in convention
countries to ease the registration and recognition of Indian wine GIs globally.
2. Reciprocity ensures that Indian wines will be protected in markets that offer similar
protections to Indian GIs, creating a two-way system. If India recognizes the GIs of a particular country, that country is obligated to protect Indian wine GIs in return.
3. India should adopt a more proactive approach in registering Indian wine GIs
internationally, particularly in markets like China, Japan, and the EU, where Indian wines could be vulnerable to mislabelling or counterfeiting. Engaging with WIPO to ensure global GI recognition for Indian wines is a critical step.
4. The French AOC system offers a clear model for India to establish stringent quality
control and regional identity for its wine GIs. France’s success in securing international recognition and reciprocity agreements for wine GIs shows how global alliances and strong legal frameworks can be used to protect wine-producing regions.
REFERENCES:
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