Geographical Indications 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.
Agriculture and food industry play an important role in Hungary's economy. The same applies to wine-making, which is closely connected with the previous two industries, although the country can be proud of several other agricultural products of traditionally high quality as well.
From the aspect of our presence in the domestic and international markets, the legal protection of geographical indications and their use [Art. 103(1) of the Trade Marks Act "TMA"] such as designations of origin [Art. 103(3) TMA] and geographical indications [Art. 103(2) TMA] can play an increasing role. Internationally renowned denominations such as Szegedi paprika, Gyulai kolbász (sausage), Makói hagyma (onion), Tokaj wine or Egri bikavér (red wine) not only contribute to improving the country's image but constitute a significant added value in the form of collective protection while maintaining the quality requirements of these products.
Geographical indication is the general term for indications used to identify the geographical origin of goods. However, they can only be protected by industrial property rights if they meet certain conditions and undergo a registration procedure. Recognising the connection between the quality of a given product and its geographical origin, the aim of protection by geographical indications is to enable the right holders to act against those who unlawfully use the given indication. (The most common example is if the given product is not originating from the given geographical area or if it does not meet the requirements contained in the product specification).
After our accession to the European Union (and as a result of recently adopted Community legislation) geographical indications, depending on the type of product they relate to, can be protected under four different regimes, which are supplemented by the international protection available under the Lisbon Treaty.
Accordingly, the geographical indications of agricultural products and foodstuffs enjoy Community level protection under Regulation 510/2006 (EC) (i.e. applicable to the whole territory of the European Union).
Geographical indications of spirit drinks can also enjoy community level protection based on the national protection granted by the Hungarian Intellectual Property Office (if the conditions set out in Regulation 110/2008/EC are met). Designations of origin and geographical indications of wine products can only be registered at Community level pursuant to Regulation 479/2008/EC starting from August 2009, in a system similar to that of foodstuffs. Exclusive protection for the indications of the remaining (primarily industrial) products can be obtained pursuant to the provisions of Chapters XVI-XVII of the TMA with effect to the territory of Hungary.
Obtaining Community level protection always consists of a national and a community procedural phase. Regarding that the community
protection systems of geographical indications are all connected with agricultural products, the national phase of the procedure
is always managed by the Hungarian Intellectual Property Office in coordination with the Ministry for Agriculture and Regional
Development.
The rules of the national phase are set out in the TMA and Gov. Decree 124/2007. (V. 31.), while the Community procedure is
regulated in the above mentioned Community regulations.
As already mentioned above, in addition to identifying the origin, geographical indications are also closely connected with quality, therefore these indications can only be used by producers whose products meet the mandatory requirements [Article 107(1) TMA]. An additional condition for the protection of the geographical indications of agricultural products, foodstuffs, spirit drinks and wine products is that the product specification must meet the requirements set out in Gov. Decree 124/2007. (V. 31.). The product specifications are verified under a separate legal instrument [Gov. Decree 124/2007. (V. 31.)], and control of compliance therewith is assigned to the authority designated in that instrument.
Below, you can find regulations concerning the national protection of geographical indications - obviously in the area in which they are applicable (i.e. Community protection for agricultural products and foodstuff falling under Regulation 510/2006/EC is not provided for under this procedure).
Any private individual, legal entity or company with no legal entity status can obtain protection for a geographical indication, if they produce, process or manufacture a product identified by a geographical indication in the geographical area identified by such geographical indication [TMA 107.§ (2)- (4)]. It is important to note that not only the applicants are entitled to use the protected geographical indication, but anybody who produces the product in the given region identified by the indication- also in accordance with the product specification if it is also a requirement for the protection..
The owner of the geographical indication is entitled to use the geographical indication in respect of the products listed in the product list [paragraph d) Article 5(1) Decree 16/2004. (IV.27.) of the Minister of Justice ("IM")], but may not give licence to any third party [Art. 109(1) TMA]. In case of infringement of geographical indications (Art 110 TMA), any of the right holders may take action against the infringing party.
Protection can be obtained by submitting an application to the Hungarian Intellectual Property Office [Article 4 Decree 16/2004. (IV.27.) of the IM].
The fee for submitting an application for geographical indication is HUF 107,000 regardless of the number of product groups included in the application.
The formal requirements of the application are set out in Articles 4 and 5 of Decree 16/2004. (IV.27.) of the IM on the detailed rules of trade mark applications and geographical indications.
In case of any infringement of geographical indication (Art. 110 TMA), the right holder or lawful user of a geographical indication may start a lawsuit at court and assert claims set out in the law.
In case of unlawful use of geographical indications subject to product specification, action may be taken not only by the right holders but also by those authorities which are in charge of verifying compliance with the product specification.
The protection becomes effective by registration with retroactive effect to the day of submission, and lasts for an indefinite period.
The geographical indication must be cancelled if it was registered despite its non-compliance with any of the conditions for protection (Arts. 105-106 TMA). In this case it is deleted from the registry by the Hungarian Intellectual Property Office [Art. 111(2) TMA].
The geographical indication may also be withdrawn if the right holders fail to comply with the requirements set out in the product specification [Gov. Decree 124/2007. (V. 31.)].
Further information:
As already mentioned above, in addition to identifying the origin, geographical indications are also closely connected with quality, therefore these indications can only be used by producers whose products meet the mandatory requirements [Article 107(1) TMA]. An additional condition for the protection of the geographical indications of agricultural products, foodstuffs, spirit drinks and wine products is that the product specification must meet the requirements set out in Gov. Decree 124/2007. (V. 31.). The product specifications are verified under a separate legal instrument [Gov. Decree 124/2007. (V. 31.)], and control of compliance therewith is assigned to the authority designated in that instrument.