Introduction

Intellectual Property (IP) is a fascinating domain of human creativity and innovation. It means the products created by the use of the human mind as well as some resultant inventions, literary works, original designs, and the identities of various trademarks or logos that serve as brands in the market. These creative concepts are shielded by legal means called patents, copyrights, and trademarks. The Intellectual Property system is designed in such a way that the creation of a balanced ground is ensured where interests of the inventors and the public are reconciled so that the innovative and creative energies can  be developed and operated in an encouraging environment. The International Intellectual Property Rights Conventions, such as the Paris Convention for the Protection of Industrial Property, (1883), and the Berne Convention for the Protection of Literary & Artistic Works (1886) facilitate cooperation among the nations, promote innovation, and protect creators’ rights globally. They are the fundamental basis of a global regulatory framework that provides equal protection to original art works worldwide. There are various facets of intellectual property, including Geographical Indication.

The term geographical indication (GI) is a sign observed on products manufactured in a particular geographic area and having specific qualities or a reputation due to the origin of the products. Ace in Champagne, France or Darjeeling tea in India are just a few examples. A GI is a name or sign that represents a specific geographical location or origin (like a town or region). To be a GI, the sign has to be the one that identifies a product as coming from a certain place. the characteristic of origin of the product is usually the reason for its uniqueness, traits of product, physical specificities and/or popularity should be the result of the creative genius of the place from which it comes. GIs hold the relationship between a product and its first place of production. They block the illegitimate use of the GI, it ensures that only the products that meet certain criteria are allowed to wear the GI.

There are a number of geographical indications like Appellation of Origin, Protected Designation of Origin and Protected Geographical Indication. GOI has awarded almost 370 GI tags under the provisions of the Act which have been granted under Section 2(f) of the Geographical Indications of Goods (Registration and Protection) Act, 1999. In the recent past, the products of Odisha, India were also granted GI certification such as Red Ant Chutney, Koraput Kala Jeera Rice, etc. Through these agreements, national and regional authorities are impelled to support local communities’ special knowledge like food and craft production which is indigenous in character and places a special focus on such agricultural communities all over and the world.

The GIs play a vital role in not only protecting the cultural heritage of the locals but also in promoting them through communication with and visiting the market to which consumers are attracted, saying that the uniqueness celebrated comes from products from different parts of the world. GIs assure that the products are not fake and also let people experience the different cultures and arts. However, the major problems relating GIs like Lack of Awareness, Inadequate Infrastructure, Quality Control, Effortful Marking and Enforcement. The GIs fail to shield people from the vested interests institutional interests as the GI concept is getting enforced yet not supported by everyone.

Localisation vs Globalisation in GI tag

The diversity of cultural attitudes to the registration of GIs lies both in the variety of state needs that the states express in the definition of supported objects, and in the level of importance of the region.  The TRIPS Agreement defines geographical indications under Article 22.1 as “…indications which identify a good as originating in the territory of a Member [of the World Trade Organization], or a region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin”. [1] Among other international agreements like the Madrid Protocol that take GIs as collective marks, there is an inserted part for the appellation of origin and the protection of GI in the Lisbon treaty system. GATT arose as a measure to avoid the misleading of the original product identification. To fulfill this objective, the contracting parties should have collaborated, according to the description of GIs as mentioned in Article IX (6) “Besides, other responsibilities of the cooperation included respecting the contractual party’s unique regional or geographic designation.”[2]

Before 1999, there was no particular legislation regarding GI tags. The case of Mohan Meakin Breweries Ltd. v. The Scotch Whisky Association in 1980 concerned the use of the brand name “Highland Chief” in connection with a product referred to as “Malted Whisky.” The device included the head and shoulders of a Scottish gentleman dressed in plaid, feather bonnet and tartan edging, creating the impression that the product is Scottish in origin, potentially misleading or confusing an unsuspecting Indian buyer. The applicant’s mark was not registered on Whisky by the Delhi High Court.

But the necessity for GI tag was given considerations when on September 2, 1997, US Patent and Trademark Office issued patent to Ricetec Inc. for new “lines and grains” of “Basmati” rice as a brand name while its headquarters located in Alvin, Texas. This is why the basis upon which this trademark has been awarded is because Ricetec Company Incorporated claimed that their newly produced rice verity had higher yield than the original Basmati rice which only grows in few parts of North America. They have used trade names “Texmati,” “Kasmati,” and “Jusmati,” which they argued were some form of Basmati rice over several years. For India it is unacceptable because there was no grant and it was not marketed based on Indian interest; therefore this move by India challenged the company’s action. The same issue came up with Darjeeling tea whereby fake goods were sold worldwide.[3]

The Lok Sabha passed the Geographical Indication of Goods (Registration and Protection) Act 1999 of India to protect the uniqueness of these products. The GI Act was incorporated in 2003 and the Geographical Indications of Goods (Registration and Protection) Rules, 2002 came into force. The main purpose of the GI Act was to give protection to the GIs of the products in India which could in turn protect the interests of the farmers and avoid the wrong utilization of the GIs by unauthorized persons and protect buyers from being deceived. Consequently, this would produce an uplifting economy by the presentation of GI products in trade. Geographical Indication of Goods (Registration and Protection) Act 1999 of India under Section 2(e) describes GI tags.

Several GI products are very much a part of the cultural heritage of a certain area or community. Along with the latter, the representation of a community, the traditional knowledge, skills, and practices in the product signal the essence of the generation and can be seen as a real embodiment of that culture. In a way, also the preservation and the GI products promotion contribute to the protection of the cultural elements, which are then saved and remaining for the future generations. Kandangi Saree is one of the traditional handwoven sarees from Tamil Nadu, Banarasi Silk is the Luxury silk fabric from Varanasi, Kanchipuram Silk Sarees from Kanchipuram, Tamil Nadu and Nagpur Orange which is known for its juicy sweetness etc. These geographical indicators are bestowed with a purpose to conserve the rural India which eventually result in promoting Indian culture in this modern world of globalization.

However when these products in the global markets are mass produced they lose their unique qualities and origin which leads to higher prices. Eg. Saffron, often referred to as “red gold,” is an excellent example of how Geographical Indications (GIs) navigate the tension between globalization and localization. The Kashmiri saffron, known for its distinctive aroma, color, and medicinal properties, has been awarded a GI tag to protect its authenticity and heritage. This GI status ensures that only saffron produced in the specific regions of Kashmir, using traditional methods, can be marketed as “Kashmiri Saffron.” However, in the global market, where saffron is a highly prized and expensive commodity, the challenge emerges as large corporations enter the fray, leveraging the Kashmiri saffron GI for their branding and profit. While the GI tag helps protect local farmers from counterfeit products and supports the premium pricing of genuine Kashmiri saffron, these small producers often struggle to compete with the marketing power and distribution networks of larger companies. This situation exemplifies the complex dynamics of GIs in a globalized economy, where the very tool meant to protect local identity can sometimes lead to its commodification and exploitation by more powerful market players.

Conclusion

In today’s interconnected world, we’re seeing an interesting phenomenon: local products are making their way onto the global stage. But as they do, something curious happens. These products, once deeply rooted in local culture and tradition, undergo a transformation. They become commodities, branded and packaged for a worldwide audience. This shift raises some important questions. Who really controls the narrative when local products go global? More often than not, it’s large corporations with deep pockets and far-reaching influence. While Geographical Indications (GIs) are meant to protect local products from unfair competition, the reality is that bigger players often end up shaping how these products are presented on the world stage. There’s a real risk that instead of preserving local identities, we’re molding them to fit global market trends.

For small producers, GIs can be a lifeline. They offer a way to stand out in a crowded market, highlighting what makes their products unique. This can lead to better prices and wider market access. But here’s the catch: the benefits aren’t always straightforward. The global market is a tough arena, dominated by corporations with vast resources. These companies can afford extensive marketing campaigns and efficient distribution networks that small producers simply can’t match. This imbalance can lead to a frustrating scenario: small producers might hold the GI, but they’re often overshadowed by larger companies exploiting the same tag for profit.

There’s another challenge too. As demand for these products grows globally, there’s pressure to ramp up production. For small producers using traditional methods, this can be a real struggle. They might find themselves forced to choose between maintaining the quality that earned them the GI in the first place and meeting the increased demand. This means help with marketing, legal protection, and developing sustainable production methods. Governments, NGOs, and international organizations all have a role to play here. We need initiatives that help small producers reach global markets without losing control of their story and their brand.

The tension between globalization and localization in the context of GIs reflects a broader challenge. GIs can be a powerful tool for protecting and promoting local identities on the world stage, but they also expose these identities to market forces that can reshape or exploit them. For small producers, it’s a double-edged sword. GIs can empower them, leading to better prices and recognition. But without careful management, they risk being overshadowed by the big players who dominate the global market. As we navigate this complex landscape, it’s crucial to create support systems that allow small producers to maintain control over their cultural heritage while still benefiting from global market opportunities. It’s a delicate balance, but one that’s essential if we want to preserve the rich diversity of local products in our increasingly globalized world.

Author:–Geetanjali Lengare, in case of any queries please contact/write back to us at support@ipandlegalfilings.com or   IP & Legal Filing.

[1] World Intellectual Property Organisation(2021) “Geographical indications An introduction, 2nd edition”

[2] Rangnekar, D. (2004b). “The International Protection of Geographical Indications: The Asian Experience,” UNCTAD-ICTSD Regional Dialogue, “Intellectual Property Rights, Innovation and Sustainable Development”, Hong Kong, 8–10 November

[3] Guha, S. K. (2012). The basmati controversy rears head across Indo-Pak borders.