Geographical Indications

The Geographical Indications (Wines and Spirits) Registration Act 2006 (the new Act) was passed in December 2006 and will come into effect in 2007.

What is a geographical indication and why is this new Act important?

A geographical indication (GI) is an indicator of the geographical area or region where a product comes from.

Consumers often prefer to buy certain products, especially wines, spirits and food because of a special quality, reputation or characteristic associated with their geographic origin. By protecting GIs, local producers get the most benefit from the association between their products and the geographical region.  GIs are a valuable marketing tool for New Zealand products both locally and internationally. 

The best-known GI internationally is the French GI – CHAMPAGNE. The name CHAMPAGNE can only be used on sparkling wine originating from the Champagne region in France. When New Zealanders buy a bottle of Champagne, we pay a premium price knowing the product will have a particular taste and quality because it has been produced in the Champagne region of France.

Why has this new Act been passed in New Zealand now?

The New Zealand government recognises the value of GIs and wants them protected.

The purpose of the new Act is to:

• contribute to the growth of the New Zealand wines and spirits industry
• provide a sound trading and marketing environment to encourage trade in our wines and spirits
• allow the government to comply with its international trade obligations.

The new Act replaces a piece of earlier legislation called the Geographical Indications Act 1994. Although it was good law at the time, for various reasons the 1994 Act never came into force.

What does the new Act protect?

The new Act only applies to wines and spirits.

GIs are especially important to the New Zealand wine industry. New Zealand stretches for almost 2,000 kilometres from north to south. Because of our rugged topography, we have many diverse wine regions. Marlborough sauvignon blanc and pinot noir from Martinborough and Central Otago are world famous. These geographic regions will be able to be registered as GIs.

GIs for goods other than wines and spirits are still protected by the Fair Trading Act. Traders cannot use GIs in a way that is misleading or deceptive. GIs are also protected by common law. A GI cannot be used to pass off a product as one that has been actually produced in a particular region when it has not.

Will GIs replace trade marks?

GIs and trade marks will be able to coexist.

The new Act works on a first-in-time, first-in-right principle.  Existing trade marks are protected.  And the Trade Marks Act has been amended to prevent registration of trade marks which contain GIs registered under this new law.

The new Act will prevent registration of a GI that is either identical or confusingly similar to an existing trade mark.  Prior trade marks used or registered for goods or services “similar to” wines or spirits will also be protected if use of a GI would be likely to deceive or cause confusion with such marks.

Protection for prior trade marks extends not only to prior registered trade marks but also to those trade marks subject of pending applications filed in good faith. Protection will also extend to unregistered trade marks where rights have been acquired through use in New Zealand in good faith.

How will it work?

The process to register a GI will be similar to registering a trade mark. The Registrar of Geographical Indications will keep a publically accessible register of GIs. It will be necessary to make an application to register a GI. The application will be considered by the Registrar and if it meets the criteria for a GI, registration will be granted from the date of the application. International GIs will also be registrable in New Zealand. Regulations are being prepared to put the application and registration process in place.

How can A J Park help me?

If you are involved in a business that produces wines or spirits, you may be able to benefit from registration of the name of the region where your products are made as a GI. Also, this is a good time to review your trade mark portfolio to see if it the new Act will affect your brands in any way. We are able to work with you to highlight any areas of concern and take action to secure your brands.

If you are an importer of wines and spirits, you might want to check how the new Act will apply to the products you import. We would be happy to meet with you and discuss the best way to protect your business.