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An analysis of GI proposals in the WTO, including Australia's stance on GI extension, voluntary registers, and implications in export markets, discussing challenges and benefits for developing countries.
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Geographical Indications: Prospects for the development of the International Legal Framework Tegan BrinkAustralian Permanent Mission to the WTO, Geneva, Switzerland
Australia’s Interests • New world country founded on immigration • inherited many European names and traditions • Large agricultural exporter • including dairy products • Systemic interest in the IP system
International Context • Increasing business interest and use of GIs • No agreement on GI proposals in the WTO • Little, if any, work on GIs in WIPO
What Prospects? • The current legal framework for GIs is working well • There may be scope for further work & cooperation on GIs • But rewriting TRIPs neither necessary nor desirable.
The EC’s proposals in the WTO • Extension: to extend the higher level of protection provided to wines and spirits in Art 23 of the TRIPs Agreement to all products (TN/IP/W/11) • Register to facilitate the protection of GIs for all products (TN/IP/W/11) • “Clawback”: a list of 41 terms submitted in the agriculture negotiations that the EC would like to reserve for the exclusive use of its producers (includes, feta, parmesan and champagne).
Australia’s position • Oppose negotiations on GI-extension • no problem with current system; commercial and systemic concerns with EC proposal. • Support a voluntary register which facilitates the protection of wines and spirits GIs but does not increase that protection. • Oppose clawback • unjustified, discriminatory, illegal
GI-extension (1) Main arguments in favour of extension: • Current dual level of protection discriminates against products that are not wine and spirits. • Art 22-level protection is inadequate
GI-extension (2) Responses: • Discrimination alone does not justify extension • historical reasons: Art 23 result of a “deal”. • No evidence why current system is inadequate • problem with current rules or with their enforcement? • GIs already eligible for higher protection through TM systems • eg. Parmigiano-Reggiano, Roquefort, Ceylon tea, Jamaica Blue Mountain Coffee all protected as certification marks in Australia.
GI-extension (3) Development benefits? • Would specific developing country products be eligible for protection? • GIs are marketing tools – worth little without investment in the brand. • GIs do not create quality • GIs do not guarantee access to markets • Numbers: a fair trade?
Australia’s concerns withGI-extension • Costs to governments, producers and consumers. • Wine is not cheese! • Costs of relabelling and remarketing • Risks in export markets and new markets • Links to the register
Implications in Export Markets The case of feta • Current situation • Extension • Extension plus register
Register(1) • In-built agenda - wines and spirits register negotiations mandated by TRIPs Art 23.4: • In order to facilitate the protection of GIs for wines [and spirits], negotiations shall be undertaken in the Council for TRIPs concerning the establishment of a multilateral system of notification and registration of GIs for wines eligible for protection in those Members participating in the system”.
Register (2) • 3 proposals • Joint Proposal cosponsored by 17 Members including Australia (TN/IP/W/10) • Hong Kong Proposal (TN/IP/W/8) • EC proposal (for all products) (TN/IP/W/11)
Register (2) • Key Issues: • Participation: voluntary or mandatory? • Legal Effects: obligation to consult or obligation to protect? • Costs and Burdens
Participation • Joint Proposal is voluntary • HK Proposal is voluntary (but with a review clause) • EC proposal is not voluntary • If you don’t object to the inclusion of a term (ie participate!) you can’t deny protection to it on such grounds that the term doesn’t meet the definition of a GI in your country or is generic.
Legal Effects • Purpose of system is to facilitate protection • But what does facilitate mean? • Joint Proposal: information-based. • EC proposal: registration = presumption of protection in all Members. • Hong Kong proposal: registration = (more limited) presumption of protection in all Members.
Joint Proposal • Searchable database • National offices would commit to consult the database, allowing them to make more informed decisions. • Key features: • voluntary–no burdens on non-participating Members. • preserves existing balance of rights & obligations • minimal costs • preserves the territoriality of IP rights. • continues to allow WTO Members to determined for themselves the appropriate method of implementing the TRIPs Agreement, in line Art I:1.
EC Register • All terms would be presumed to be protected in all markets • Unless you engage in a complex reservations process • If not, would waive right to decline protection on such grounds as the GI not meeting the definition of a GI, or being generic in its territory • presumption of protection would be irrebutable • The burden would then shift to other interested parties to rebut the presumption on such grounds as prior use, if permitted under the national law.
Australia’s concerns • Inconsistent with negotiating mandate: • applies to all products • mandatory participation • increases protection does not facilitate it • Impact on balance of rights & obligations in TRIPs • legal presumptions • limitations on existing exceptions • Inconsistency with IP principles • Costly and burdensome
Implications in Export Markets (2) The case of feta (continued) • GI-extension + register • Presumption of protection • No need to seek protection or meet definition • Burden would shift to other parties to defend prior use • No possibility to invoke generics exception unless government in export market has lodged an objection • RESULT = De facto and near universal protection of feta as a Greek GI (“clawback by stealth”)
Legal Presumptions • Why should burden of proof fall on existing users of a generic term, rather than the party seeking exclusive use of the term? • Why should the existing exception for generic terms be subject to bilateral negotiations? • Presumptions alter the balance of rights and obligations – does not just facilitate, but increases protection • Unclear how presumptions could be implemented in systems that use TMs to protect GIs.
EC RegisterImplications for IP Law (1) Government-negotiated IPRs? • Requires active government involvement in asserting and defending private rights • Inconsistent with the principle that IPRs are private rights
EC Register Implications for IP Law (2) Universal IP? • GI status in country of origin would have legal consequence for its status in other countries. • Inconsistent with the principle of territoriality in TRIPs • The term would be presumed to have a certain quality or reputation in all overseas markets that would entitle it to TRIPs-level protection regardless of whether it has ever been sold in those markets. • Reservations system doesn’t solve this.
What about the Madrid System? • Not an appropriate model for GI register in TRIPs • Developed through incremental harmonisation • No such convergence in national GI systems • Outstanding questions • Will registered GIs be published? • Will there be national opposition procedures? • Harmonisation well beyond TRIPs – better placed in WIPO. • And Madrid can currently be used to protect GIs as certification marks… So what’s the problem with the current framework?
Limitations to a WTO outcome • Contested mandate • Overreaching proposals • Inconsistent with goals of Doha round • Lack of widespread support • Inconsistent with TRIPs principles • Link to agriculture negotiations • Presuppose a greater harmonisation than exists
Starting points for a more constructive debate • Avoid improper accusations of ‘usurpation’ • Respect consumers choices • Accept that some terms have become generic • Reconcile any TRIPs proposals with the TRIPs Agreement • recognise & accommodate different GI systems • get the balance right • Accept that to achieve greater harmonisation, further work is required…in WIPO.
Thank you! Any further questions? tegan.brink@dfat.gov.au