The Case for Better GI Protection Within the WTO Framework

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The Case for Better GI Protection Within the WTO
Framework

• Sebastiano Brancoli
• The Consultants International Group,
• North American Representatives for the
• Consorzio del Prosciutto di Parma
• St. Louis, MO, May 17, 2005

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Prosciutto di Parma in Figures

• 200 producers, with 3,000 employees
• 150 slaughterhouses
• 5,500 breeding farms
• Annual production /- 9 million hams
• 80 sold on the Italian market
• Exported to more than 40 countries
• Annual sales nearly 2 billion at retail

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Production Area for Prosciutto di Parma
By law it can only be processed in the area
around Parma. The unique characteristics of the
Parma region make it possible to air-cure these
high- quality hams to perfection.
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Parma Hams Traceability
It begins with the breeder, who puts a special
tattoo on both legs of the young pig within 30
days of the birth of the animal.
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Parma Hams Traceability
The processing plant then applies a circular
metal seal bearing the C.P.P. initials and the
date of the beginning of curing.
It continues with the slaughterhouse, where every
freshly-trimmed leg is checked for quality and
branded with a permanent identification mark.
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Parma Hams Traceability

• At the end of the processing, which takes place
  under the strict supervision of I.P.Q.
  inspectors,
• only the hams that meet prescribed quality
  standards are branded with the five-point ducal
  crown and the identification code for the plant
  where the ham was aged.

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What is a Geographical Indication?
GIs are used to define and protect goods that owe
their unique quality to their specific geographic
origin. Examples Prosciutto di Parma, Parmigiano
Reggiano, Basmati Rice, etc.
Parma Ham is a Protected Designation of Origin
food (PDO). PDOs are linked to a traditional
production region through natural and human
factors. All stages of the processing must take
place within this defined geographic area.
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Why do GIs Matter?

• GIs are important to the future of agriculture
  because
• they shift the focus of production to quality,
  eventually leading to increased production and
  local job creation
• they encourage diversification in production,
  thus preserving biodiversity, local know-how and
  natural resources
• they reward producers with a higher income in
  return for efforts to improve quality
• they provide consumers with high-quality products
  whose origin and mode of production is
  guaranteed and
• they have a positive impact on tourism.

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High Cost of Incomplete GI Protection

• Numerous abuses of the Parma Ham name
• High costs for producers
• Legal costs more than 1.3 million per year
• Image and credibility with consumers is
  undermined
• Loss of market opportunities
• High cost for consumers misled about the quality
  and origin of the product

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Misleading label and abuse of the Parma Ham
name in Canada
Parma Italy
Authentic Italian!
Italian flag
It must be Italian!
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Protecting a Geographical Indication Mission
(almost) Impossible!

• Absence of GI system in many countries
• Registration via trademark system often refused
  generic and/or descriptive name
• Limited interest in trademark registration if
  product not allowed in the country
• Name already registered as trademark Obligation
  to buy out a registration

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Article 22 Protection Not Sufficient

• TRIPS Article 22 mainly protects against consumer
  deception
• Extremely difficult to prove consumer deception
• Burden of proof on the holder of a GI
• Legal uncertainty up to courts to decide
• Article 22 does not prevent
• GIs from becoming generic
• Abuse of GI name by trademark holders
• Consumers not adequately protected against
  deception

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Better protection of GIs required

• Article 23 Protection for all GI products
• No discrimination between GI products
• Legal means to prevent
• Use of GI name even when the true origin is
  indicated
• Use of GI name in translation
• Use of GI name with expressions such as  like ,
   kind ,  style 
• Registration of a trademark than contains a GI
  name
• Need a legally-binding multilateral register open
  to all geographical indications

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• Thank you for your attention