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Revised Geographical Indication Protection Regime to Commence in New Zealand on 1 May 2024

Trade Marks
  • The revised GI legislation will come into effect on 1 May 2024.
  • From that date, the use of approximately 2,000 additional geographical indications will be restricted.
  • The misuse of registered geographical indications will be subject to enhanced civil and administrative enforcement regimes.
  • Those engaged in NZ trade should ensure they are in compliance with the new requirements by 1 May 2024.

Earlier this year, we reported on the introduction of legislation into the New Zealand Parliament to expand protection for geographical indications under the European Union-New Zealand Free Trade Agreement (EU-NZ FTA).  Our earlier article can be found here.

The legislation has now been passed by the New Zealand Parliament, and the Intellectual Property Office of New Zealand has confirmed that the new legislation will come into effect on 1 May 2024.  This is also the date on which the EU-NZ FTA will come into effect.

Summary of the Changes

The amendments to the Geographical Indications (Wine and Spirits) Registration Act 2006 (to be renamed the “Geographical Indications Registration Act 2006”) (GI Act) that come into effect on 1 May 2024 include the following:

  1. An expanded definition of geographical indications to cover non-wine and spirit geographical indications.
  2. The automatic recognition as registered geographical indications, and entry into the New Zealand Geographical Indications Register, of the approximately 2,000 geographical indications set out in the EU-NZ FTA (the full list can be found here under “EU GIs to be protected in New Zealand”).

    The use of these geographical indications will be prohibited in New Zealand in relation to the “product class” for which the geographical indication is registered unless the product meets the requirements for use of the geographical indication under EU law.

    There are certain exceptions, including where the registered geographical indication is:

    1. the name of a person or their predecessor in business;
    2. is the customary name of a plant variety or animal breed; or
    3. is the customary common name for the good in New Zealand AFTER the geographical indication is protected in New Zealand;
  1. The implementation of a revised civil enforcement regime, which will allow any person “with an interest in upholding the restrictions on use of the registered geographical indication”, including the Chief Executive of the Government Department responsible for the GI Act (Chief Executive), to commence proceedings in the High Court to seek relief for a breach of a restriction on use of a registered geographical indication.
  2. The creation of an administrative enforcement regime administered by the Chief Executive, which will allow “GI Officers” to enforce compliance with the restrictions on use of a registered geographical indication. A failure to comply with a direction from a “GI Officer” will be punishable by either an “infringement fee” or a court imposed fine.
  3. The implementation of border protection measures to allow for New Zealand customs to investigate, inspect, intercept and detain goods suspected to breach a restriction on use of a geographical indication.

There are no changes to the “direct registration” system for geographical indications in New Zealand, which remains limited to wine and spirit geographical indications.

 

How Can Businesses Prepare for the Changes?

From 1 May 2024, the use of one of the newly protected geographical indications will be prohibited in relation to the product class for which it is registered unless the product complies with the requirements for that geographic indication.  Any misuse can potentially the subject of both civil and administrative enforcement procedures.

For a very small number of geographical indications, a phase-out period has been agreed between New Zealand and the European Union to allow sufficient time for businesses to adopt new descriptors and educate the public as to their meaning.  For example, the term “Feta” for cheeses is subject to a nine-year phase out period (ending 1 May 2033), and the term “Prosecco” for wine is subject to a five-year transition period (ending 1 May 2029).  However, as a condition for reliance on the phase-out period, the country of origin of the goods must be legibly and visibly indicated on the product to prevent any confusion with the registered geographical indication.

The very short timeframe means that it is important that any businesses importing and/or exporting foodstuffs and beverages into New Zealand take immediate steps to ensure they will be in compliance with the new rules.  In particular, businesses need to ensure that:

  1. they familiarise themselves with the list of new geographical indications to be protected from 1 May 2024;
  2. If they are manufacturing and/or importing into New Zealand any product that will not meet the requirements for the newly protected geographical indications, the manufacture or import of those products ceases before 1 May 2024 unless an exception or phase-out period applies.

    If any business has stock of non-compliant products on 1 May 2024, newly introduced section 78 of the GI Act will allow businesses to exhaust their stock of those goods, and market and sell their products accordingly, without infringing the geographical indication.

  1. if they are using a geographical indication that is the subject of a phase-out period:
    1. the packaging and marketing of that product clearly refers to the country of origin of the product; and
    2. steps are taken to commence the process of transitioning away from the use of the geographical indication before the end of the phase-out period.

 

More information about the implementation of the amendments to the GI Act and the protection of the new geographical indications can be found on the website of the Intellectual Property Office of New Zealand here.