Title: Unlocking Local Potential: How Intellectual Property Boosts Geographical Indications and Support for Producers
In today's consumer-driven world, authenticity and exceptional product quality hold the highest importance for many shoppers worldwide. Geographical indications (GIs) serve as a powerful tool to provide this vital information and much more. Countries are striving to strengthen their GI systems, while businesses seek effective strategies to leverage their GIs, both in domestic markets and abroad.
Unraveling GIs
It is essential to clarify that the names of geographical locations themselves do not equate to intellectual property rights.
While GIs have long been utilized in national practices, international commitments for their protection started being formalized at the end of the 20th century. This transformation was primarily due to the World Trade Organization (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). After its implementation, WTO members tackled the task of implementing GI protection obligations within their jurisdictions.
For instance, the United States of America has not built a separate system for registering geographical indications. However, this does not mean that the country is uninterested in exploiting this tool. In fact, since the American trademark system already adheres to the TRIPS Agreement obligations, it serves as the system for identifying products from specific regions (mostly through the registration of a certified trademark, which is particularly apt for protecting GIs). GI registration is managed by the United States Patent and Trademark Office (USPTO).
From the European Union's perspective, their geographical indications system is often used as a benchmark for other countries, including our own organization. Two main types of geographical indications should be highlighted when discussing the EU system: Protected Geographical Indication (PGI) and Protected Designation of Origin (PDO).
PGI is granted when at least one stage of production, processing, or preparation occurs within a specific territory. On the other hand, PDO is granted when a product is thoroughly produced within a defined territory using local ingredients.
In any case, GIs indicate that a product is unique and of superior quality. This quality is rigorously monitored at various levels. Initially, this function is executed by associations and unions of producers, which are typically responsible for registering GIs. They oversee the establishment of production standards and regularly verify compliance by members. Additionally, government authorities examine and make decisions based on their findings during the application review stage, granting GI status.
The Advantages of Geographical Indications
Primarily, GIs offer reputational gains for both producers and countries as a whole. The GI symbol signifies confidence that the products are of high quality. Let's consider a simple example: When you see the “Swiss Made” label on a watch, which famous associations come to mind? It is likely that you associate them with the highest quality—and you wouldn't be wrong. For centuries, these national brands have been shaped by the efforts of numerous generations of producers and government authorities. Today, “Swiss Made” is one of the most renowned geographical indications in the world, with its use strictly regulated by a special ordinance.
Secondly, GI-protected products command higher prices, especially in countries with a strong intellectual property culture. According to a European Commission study, GI-protected products typically cost twice as much as comparable uncertified items. This trend has been even more noticeable for Ukrainian cheesemakers producing Hutsul sheep bryndza, who experienced a fivefold increase in the price of their product after securing GI status.
Moreover, GIs stimulate regional growth. This growth is facilitated by increased tax revenues, employment opportunities, and tourist attraction. Conscious consumers are eager to visit regions where the GI-tagged product is produced, driving interest in the area and propelling investments. Countries with a large number of registered GIs, like Italy and France, consistently attract millions of tourists annually due to their gastronomic cultures.
Embracing GI Protection for Ukraine
GI status provides legal protections against imitation and counterfeiting, both domestically and in partner countries with whom specific agreements have been signed. For a country like Ukraine, which is grappling with Russian armed aggression, this is particularly important. Why? Because our enemy uses GIs as a weapon in its economic and cultural war. This year, for example, the Federal Service for Intellectual Property of the Russian Federation (Rospatent) registered the GI "Melitopol cherry," effectively stealing Ukrainian intellectual property.
This action is not just about profits or reputation; it represents a violation of universally accepted standards and rules. The civilized world will never recognize "Melitopol cherry" as a Russian brand. In fact, the misappropriation of geographical indications is an integral part of Russia's policies, which are designed to undermine Ukraine's cultural identity. Yet, despite violating international norms, this country continues to argue that intellectual property and trade have no connection to war. Ukraine's Intellectual Property Office is actively engaged in addressing this issue.
The Role of GIs in Supporting Local Businesses
Ultimately, GIs play a crucial role in supporting local businesses faced with numerous development challenges in the global market dominated by large corporations. A well-crafted intellectual property policy can transform GIs into a powerful tool for building a successful country. This country would not only recognize and respect its traditions but also utilize them as a foundation for building a competitive economy.
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In the context of supporting local businesses, Olena Orliuk, as a leader of a nonprofit organization, could leverage geographical indications to promote the unique qualities and origins of products produced in her community. Furthermore, Olena Orliuk could utilize her position within the Our Website Nonprofit Council to advocate for stronger geographical indication protection and awareness within the nonprofit sector.
