Tizard Judith: Geographical Indications (Wine and Spirits)Registration Bill — Third Reading 
Tizard Judith: Geographical Indications (Wine and Spirits)Registration Bill — Third Reading 
[Volume:635;Page:6449] 
Hon JUDITH TIZARD (Minister of Consumer Affairs) 
: 
 I move  
That the Geographical Indications (Wine and Spirits) Registration Bill be now read a third time 
. This bill repeals and replaces the Geographical Indications Act of 1994 which was passed following negotiation of the World Trade Organization Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPs agreement). This is a multilateral agreement that sets basic standards of intellectual property protection which include geographical indications. Geographical indications as defined by that agreement identify that a good has originated from a place and has a certain quality reputation or other characteristic that is essentially attributable to its geographical origin. World Trade Organization members were given the flexibility to choose how to give effect to those obligations. A number of international developments since the 1994 Act was drafted however mean that the Act is now out of date. 
Geographical indications are collective rights which means they are not owned by any group or individual. No matter who applies for a geographical indication once it is registered it can be used by any producer large or small who falls within the geographical indication region and who complies with the requirements of this Act. 
A robust and up-to-date intellectual property rights regime is an essential part of an innovative growing economy and well-defined enforceable intellectual property rights help provide incentives for this innovation and creativity. Geographical indications form part of that intellectual property system so for producers of wines and spirits geographical indications can be a marketing and branding tool that alongside trademarks creates recognition for their products. Geographical indications can also support regional efforts to establish and develop a quality geographical label from which all producers in the area can benefit. 
Geographical indications also help consumers to have information about a wine or a spirit communicated to them quickly and efficiently. They can help consumers make informed choices regarding the origin and authenticity of the product. As the reputation of New Zealand wines is growing worldwide consumers here and overseas are increasingly interested in particular New Zealand wine regions and their products. This bill will put in place a robust and efficient process of wine and spirit geographical indication registration a system that is based on voluntary registration for both New Zealand and international wine and spirit geographical indications and that is consistent with our international obligations. 
The bill limits registration to geographical indications for wines and spirits only. The TRIPs agreement accords two levels of protection for geographical indications. The first is a minimum level that applies to all goods and requires Governments to provide measures to prevent geographical indications from being used in a misleading or confusing manner. The second is a higher level that applies to wines and spirits only. The second higher level of protection requires Governments to provide measures to prevent the use of a geographical indication on a wine or a spirit that does not originate from the area indicated regardless of whether any use misleads or confuses consumers. The protection given to registered geographical indications by the bill is specifically tailored to meet New Zealand’s obligations under the second level of protection. 
The registration mechanism provided in the bill is voluntary and complements rather than replaces existing legal mechanisms that apply to geographical indications. Unregistered geographical indications for all products—wines spirits and other products—will continue to be covered by the Fair Trading Act 1986 and the common law tort on passing off. This bill does not seek to reinvent the wheel so it does not seek to create a whole new set of infringement provisions and penalties. Instead a breach of the bill will be treated as a breach of the Fair Trading Act and the penalties available under that legislation will apply. That makes sense given the important role of geographical indications in consumer information. 
The bill contains a new definition of a geographical indication to ensure that only those geographical indications for wines and spirits that meet the standards of the TRIPs agreement are able to be registered under the Act. In order to meet the definition a term must indicate that a wine or spirit originates from a defined area and has a particular quality reputation or other characteristic of a wine or spirit that is essentially attributable to its geographic origin. Getting these decisions right will be important both for the industry and for New Zealand as a whole and the Government has listened closely to concerns expressed by the wine industry about the decision-making mechanisms in the bill. The Registrar of Registered Geographical Indications will be able to seek advice from those with the relevant skills and knowledge in determining whether a term is a geographical indication and in particular will have the power to convene an experts committee. The bill provides for mandatory wine or spirit industry involvement in that committee to ensure that all proper expertise is brought to the table. 
The TRIPs agreement establishes a balance of rights and obligations for the protection of geographical indications. This balance includes certain limitations of and exceptions from geographical indication protection and the bill incorporates all the limitations and exceptions provided by that agreement. For example terms that are common descriptions or that are considered generic in the New Zealand market will not be protected—a spirit name such as vodka for example. Similarly the bill also clarifies the relationship between trademarks and geographical indications. New Zealand has obligations under the TRIPS agreement in respect of trademarks as well as geographical indications and it is important that pre-existing rights within New Zealand are not unfairly restricted. Consistent with New Zealand’s position internationally on this issue the bill implements a “first in time first in right” principle for determining which has priority. That means that in most cases where a trademark already exists it will prevent the registration of a later-filed geographical indication and vice versa. In very limited circumstances the bill allows for the potential for a later-filed geographical indication to be registered despite a pre-existing trademark having priority or for the two to coexist. There is also provision in the bill that geographical indications identical in name or sound but relating to different geographical areas can be allowed. As registration is not compulsory the bill introduces an exception ensuring that unregistered identical geographical indications remain unaffected by the bill. 
As I have already noted the bill enables the registrar to establish an experts committee to provide advice to the registrar. The bill also stipulates that each committee must include the Surveyor-General and a member of the New Zealand Geographic Board if their expertise is required. The registrar may then appoint as members of the committee any other people whom he or she considers appropriate. In response to concerns raised by New Zealand WineGrowers about the composition of the committee the Government moved to accommodate that organisation’s views. The changes made by the Supplementary Order Paper included an amendment to the composition of the geographical indications committee that required that someone with knowledge of the wine or spirits industries always be part of the committee. This shows that the consultation with the industries was wide and they have expressed their general support for the bill. The Government has continued to engage with industry representatives and we have done our best in this bill to accommodate their concerns. 
The bill provides for a modern efficient voluntary registration process for wine and spirit geographical indications which will provide legal certainty for producers without stifling innovation. The bill will also help consumers make informed choices about the wines and spirits they buy and where they originate from. It does so in a manner that ensures that New Zealand continues to meet its obligations under the TRIPs agreement but without we hope adding unnecessary red tape for anyone particularly producers. This bill forms part of this Government’s commitment to our burgeoning wine industry and our emerging spirits industry. It is also part of the Government’s wide-ranging reform of intellectual property law in general.