Geographical Indications (GI) are of great importance for regional identity, as well as for enhancing indigenous products. They imply products that have qualities, reputation, or characteristics specifically associated with their place of origin. Such products are not only an important source of income in their local economies but are also a means of defending traditional knowledge and craftsmanship. However, the infringement of GIs is posing a grave threat to these very benefits. This article discusses the concept of GI infringement, its causes, types, and remedies available under Indian law, including civil as well as criminal actions.
What is a Geographical Indication (GI)?
Geographical Indications refer to any such sign (denominations of origin), that identifies that any article related to goods has originated in such a specific region and with particular qualities or a reputation linkable to that region; these goods are often local factors, like geography and climate, or cultural practice; in India, GIs, like other countries, are under the Geographical Indications of Goods (Registration and Protection) Act, 1999.
Examples of GIs found in India are:
Darjeeling Tea – Famous for its distinctive fragrance, produced in Darjeeling, West Bengal.
Kancheepuram Silk – Famous silk, made in the town of Kancheepuram, Tamil Nadu.
Mysore Silk – Famous for its purity and quality, produced in Mysore, Karnataka.
These GIs protect the regional heritage and ensure that the benefits reaped from such products go to local producers.
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What is Infringement of Geographical Indication?
GI Infringement occurs when a product is misrepresented as coming from a specific geographical area without fulfilling the qualifying requirements or even being from that area. This ranges from using the GI name or symbol on products that are not actually related to the place it claims to represent. The main objective of GI protection is to prevent unfair competition and consumer deception.
For instance, the marketing of a product that does not grow in Darjeeling under the name "Darjeeling Tea" is undoubtedly a GI infringement. This negatively affects the reputation of the product and deceives consumers about the true origin of the product.
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Forms of Infringement of Geographical Indication
There are various forms of GI infringement. All these forms of infringement differ in the areas where the product and its market suffer.
1. False Representation of Origin
The most common form of infringement involves marketing a product under a GI that it does not actually own. This means the company labels tea grown in Assam as "Darjeeling Tea" to cheat and mislead the consumers into a wrong impression while violating the GI.
2. Misuse of the name and symbols of GIs
In this aspect, the name or trademark of a GI is used on not genuine products. This may, for example, be the terms "Mysore Silk" on non-genuine silk products.
3. Passing Off
This happens when a seller uses a GI name or symbol in such a manner that it confuses or deceives consumers to believe the product is genuine. For instance, using the packaging similar to that of an authentic GI product with the intention of misleading the buyers is an infringement.
4. Use of Similar or Deceptively Similar Marks
In some cases, producers may use names that are similar to a registered GI name to take advantage of its reputation. For example, using "Darjeeling Gold" or "Kashmir Pashmina" to sell inferior products can mislead consumers into thinking these products are authentic.
5. Non-Qualifying Use of GI Name
Another type of infringement is using GI names on products that are not up to the required standards. For instance, selling rice labelled as "Basmati" which is not grown in the regions of Haryana, Punjab, or Uttarakhand, which is the original place of true Basmati rice.
Reasons for GI Infringement
GI infringement arises from several causes, mostly associated with both legal gaps and economic incentives.
Lack of Awareness
Most of the small producers do not understand the concept of geographical indications and how to safeguard their products. This ignorance is usually unintentional.
High Demand and Profit Motive
GI products are usually of good quality, and hence, they have a high demand in the market. Some manufacturers use this factor to their advantage by marketing non-authentic goods as GI products.
Inadequate Enforcement
Though laws are enforced, they are often rather weak. These are markets where systems are inadequate to monitor violations, especially in emerging and less regulated markets.
Globalization and Counterfeiting
More demand for authentic GI products worldwide is created with globalization. More people now produce or attempt to create counterfeit goods labelled with names that seem to be GI.
Economic Pressure
In some regions, producers might infringe upon GIs to gain more money. In such cases, with weak enforcement, the potential revenue from selling pirated products may be more than that of taking the risk.
Remedies for GI Infringement in India
India has specific remedies for GI infringement. These can broadly be classified into civil remedies and criminal remedies. Thus, it ensures that the rights of GI holders are protected and genuine producers are not harmed.
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1. Civil Remedies
Civil remedies are usually filed by the owner of the GI. The most common civil actions include:
Injunction: A court can issue an injunction to immediately stop the sale or distribution of goods that infringe on a GI. The objective is to prevent further damage to the reputation and market of the genuine product.
Damages or Compensation: The aggrieved party can seek damages or compensation for the economic loss under the infringement. It includes loss of reputation, consumer confusion, and any financial losses due to the sale of counterfeit goods.
Delivery of Infringing Goods: Under Section 22 of the Geographical Indications of Goods (Registration and Protection) Act, 1999, the court can order the delivery of the infringing goods to be disposed of or destroyed so that they do not find their way into the market.
Declaratory Relief: A court can declare that the defendant has infringed the GI rights of the plaintiff and that the goods do not comply with the GI criteria.
2. Criminal Remedies
Another criminal remedy exists under Indian law in case of GI infringement. The proceedings are more serious in nature and result in punishment including imprisonment.
Penal Provisions under the GI Act: Section 66 of the Trade Marks Act, 1999 also extends to GIs. Any person found guilty of infringing on a GI can face a fine of up to ₹2 lakh and/or imprisonment for up to 3 years. This penalty can be extended if the infringement is particularly severe.
Prosecution for Fraudulent Activities: Where it amounts to fraud, such a person may be liable to criminal procedure under Sections 420 and 468 of IPC, in terms of cheating and forgery.
Seizing and destruction of infringing goods: Authorities can seize and destroy the goods if they prove infringing GIs. Counterfeited products and also packaging stuff misleading consumers will be caught under this head.
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Summing Up
GI infringement is a serious issue that affects the reputation of indigenous products and the livelihoods of local communities. It is essential to recognize the importance of GIs in preserving the identity of regional products and ensuring fair competition in the marketplace. India's legal framework provides strong mechanisms for both civil and criminal remedies against GI infringement. However, increased awareness, better enforcement, and stricter certification processes are needed to combat this issue effectively.
Infringement of Geographical Indication FAQs:
Q1. What is a Geographical Indication (GI)?
A GI is a sign that is used to indicate that the product originates from a particular area and possesses qualities unique to that area.
Q2. What constitutes GI infringement?
GI infringement is when a product is marketed falsely as originating from a particular region, not meeting the requisite criteria.
Q3. What are the types of GI infringement?
Types encompass misrepresentation of origin, abuse of GI symbols, passing off, and trademarks being used deceptively.
Q4. What remedies are available to address GI infringement in India?
The remedies include civil action, such as injunctive relief and damage claims. Besides, criminal relief under the Trade Marks Act and the Indian Penal Code is available.
Q5. How can GI infringement be avoided in India?
Awareness building, proper certification and stricter enforcing machinery are the ways to prevent GI infringement.