WRITTEN QUESTION P-1769/01

by Luciana Sbarbati (ELDR) to the Commission

(12 June 2001)

Subject: The electronic market and the safeguarding of designations of origin

Globalisation and electronic commerce are threatening intellectual property and designations of typical products to such an extent that they must be protected without delay. Typical Italian products are under threat in that imitations of regional products are being traded in an uncontrolled and unrestricted way on the Net.

Rules are needed to put a stop to all wrongful commercial practices which are distorting international competition, deceiving consumers and damaging producers. The Court of Justice decision expected on 6 June may prove decisive for the future of products such as Parmesan, Parma ham, Gorgonzola, wines and olive oil.

These attacks on typical products come at a time when revision of the common agricultural policy is being debated and they are favouring products of suspect origin and dubious quality. What will the Commission do to ensure implementation of standards capable of safeguarding the lawful trade in agri-foodstuff products of specific quality and to protect the SMEs and small producers working in these sectors?

Why is Council Regulation (EEC) No 2081/92(1) (framework law protecting consumers from wrongful trading and producers from misappropriation of product names, and safeguarding designations of origin and geographical indications of agricultural products and foodstuffs at Community level) which was referred to in the Commission's answer to a previous question (P-0724/01(2)) not being applied? Is it perhaps inadequate?

(1) OJ L 208, 24.7.1992, p. 1.

(2) OJ C 235 E, 21.8.2001, p. 240.

Answer given by Mr Fischler on behalf of the Commission

(30 July 2001)

Council Regulation (EEC) No 2081/92 of 14 July 1992 lays down the rules for the protection of geographical indications and designations of origin for agricultural products and foodstuffs.

As already stated in the answer to Written Question E-794/01 by Mr Vinci and Mr Bertinotti(1), the registration under this Regulation gives producers an exclusive right to use the registered name for their products. This is an industrial property right.

The basic feature of the exclusive right is thus that other people than the producers concerned are not allowed to use the name. Article 13 of the Regulation establishes the exact significance of the term use, and sets out the powers available to holders of the right. These powers are extensive. The prohibition covers all practices that refer in any way at all to a protected geographical indication so as to take unjustified advantage of its reputation. The Regulation thus durably strengthens the position of the producers entitled to use the registered name for their products.

The Regulation specifically prohibits the following practices:

- any direct or indirect commercial use of a name registered in respect of products not covered by the registration in so far as those products are comparable to the products registered under that name or insofar as using the name exploits the reputation of the protected name;

- any misuse, imitation or evocation, even if the true origin of the product is indicated or if the protected name is translated or accompanied by an expression such as style, type, method, as produced in, imitation or similar;

- any other false or misleading indication as to the provenance, origin, nature or essential qualities of the product, on the inner or outer packaging, advertising material or documents relating to the product concerned, and the packing of the product in a container liable to convey a false impression as to its origin;

- any other practice liable to mislead the public as to the true origin of the product.

However, to enable manufacturers to adjust to these rules, the Regulation provides for transitional arrangements in cases expressly provided: Member States may maintain national systems that permit the use of names registered under the simplified procedure for a period of not more than five years after the date of publication of the Registration. A transitional period may also be awarded, under certain conditions, for names registered under the ordinary procedure. This is the reason why the use of certain designations has been in certain cases transitory admitted for products not complying with the registered product specification.

Council Regulation (EEC) No 2081/92 certainly lays down a well-structured and solid legal framework to guarantee producers from abuse and unfair appropriation.

Obviously, no guarantee can be valid unless there is an inspection system. The Regulation provides that Member States are responsible for the inspections, where they have some leeway to organise their own systems. However, Article 10 is related only to the control of the registered denominations and do not deal with illegal uses of these denominations. Enforcing the property rights awarded under the Regulation is under the responsibility of the Member States and national courts may decide on any infringement of these property rights.

The protection granted by Council Regulation (EEC) No 2081/92 only applies at Community level, except in case of bilateral or multilateral agreements.

In addition, the Commission has been actively involved in promoting discussions on how to improve the already existing level of protection available to geographical indications for agricultural products and foodstuffs under the trade related aspects of intellectual property rights (TRIPs) Agreement.

(1) OJ C 350 E, 11.12.2001, p. 37.