Geographical Indication Protection
What are geographical indications and geographical indication protection?
A geographical indication (GI) is a sign that typically contains a geographical name or refers to a specific geographical area and is used to indicate products of special quality linked to the given geographical area. GIs contribute to the conservation of quality and traditions and conduce also to inform consumers on the nature and origin of various goods by providing clear and concise information on the origin of products and indirectly on their quality.
The term of geographical indication is generally used as a collective name for all signs used in trade to identify the geographical origin of products. However, industrial property rights protection can only be obtained if certain conditions are met as a result of official proceedings. The purpose of GI protection thus obtained is granting exclusive rights to producers and manufacturers operating in a specific area to use the sign referring to the given geographical area, region or locality, thereby encouraging the supply of products of reliable origin and quality that are clearly distinguishable from other products to consumers. Consequently, GI protection provides a means of action against anyone who uses the protected sign/name unlawfully.
Signs/names relating to agricultural products (including foodstuffs), wines, spirits, as well as craft and industrial products originating in Hungary may be protected at European or international level, obtaining national protection is no longer possible.
The European Union protected geographical indication provides protection to rights holders in all Member States of the European Union. The most important rules regarding GIs for agricultural products, wines and spirits are incorporated in Regulation (EU) 2024/1143 of the European Parliament and of the Council, while those for craft and industrial products are contained in Regulation (EU) 2023/2411 of the European Parliament and of the Council.
International registration provides protection in the contracting states that signed the Lisbon Agreement and remains valid for as long as the given sign/name is protected in the country of origin / in the European Union.
Pursuant to the relevant EU regulations, there are two types of geographical indications. In both cases, products bearing a GI shall originate from a specific place, region or country but the link between the quality, reputation or other characteristics of the product and the geographical area varies.
- In the case of designations of origin, the characteristics in question shall be essentially or exclusively the result of the geographical environment and the natural and human factors associated with it, furthermore the production, processing and preparation of the product, i.e. all stages of production, shall take place in the area concerned.
- In the case of geographical indications, however, it is sufficient for the characteristics to be fundamentally or essentially attributable to the given geographical origin and at least one of the production steps to take place in the area concerned.
As to agricultural products and wines, protection can be obtained for both designations of origin and geographical indications, however, in the case of spirits and craft and industrial products, protection can only be obtained for geographical indications.
What does geographical indication protection entitle you to?
Geographical indications are a collective right that belongs to all producers operating in a given geographical area, provided that they comply with the product specification related to the certain GI. This means that not only those listed in the register (applicants) are entitled to use the protected geographical indication but anyone who produces the product bearing the given GI in the geographical area concerned and in accordance with the product description is entitled to do so.
Consequently, any entitled party may take action to protect their interests, not only those who have applied for registration of the GI in question.
The protection obtained is valid for an unlimited period of time and does not need to be renewed.
How can you obtain geographical indication protection?
Applications for registration shall be submitted by producer groups in the case of agricultural products, wines and spirits but as an exception a single producer may also be considered a producer group. In the case of craft and industrial products, applications shall also be submitted by producer groups, however, a single producer may be considered a producer group under certain conditions.
EU protection is granted in a two-phase procedure:
- as to agricultural products, wines and spirits, the Minister of Agriculture is responsible for the national phase, while the EU phase falls under the responsibility of the European Commission;
- as to craft and industrial products, the national phase is conducted by the Hungarian Intellectual Property Office (HIPO), while the European Union Intellectual Property Office (EUIPO) is responsible for the EU phase, however, in exceptional cases, the conduct of the EU phase falls within the competence of the European Commission.
As regards obtaining international GI protection, only those who are already registered right holders (applicants) may initiate proceedings for international protection.
When does GI protection cease to exist?
It is possible to initiate the cancellation of a protected EU GI. In this regard, the group of potential initiators is quite broad; essentially, any natural or legal person with a legitimate interest may initiate the cancellation procedure. Similar to the registration one, the cancellation procedure consists of two phases: a national and an EU phase.
Further information
As to agricultural products, wines and spirits, for which the national phase is conducted in Hungary under the authority of the Minister of Agriculture, further information is available in Hungarian at website below.
https://gi.kormany.hu/indexWith regard to craft and industrial products, for which the national phase is conducted by HIPO, detailed information is available on the subpage Protection of Geographical Indications for Craft and Industrial Products.