Debate: Strengthening the system for protecting PDO and PGI denominations in the EU after the Prosecco/Prosek case
Date: THURSDAY, 17 FEBRUARY 2022
Speaker: Helena Dalli
Language: EN

As it is customary, the publication for objection of the traditional term Prošek was preceded by cautious Commission scrutiny based on the applicable legal framework. Given that the Croatian application fulfilled all the relevant legal conditions, the Commission published the application on 22 September last year.  All interested parties had two months from the date of publication to submit an objection. The Commission received 12 objections. So according to EU rules, admissible objections will be transmitted to Croatia for observations. Then any observation provided by Croatia will be communicated to Italy.  Following these exchanges and on the basis of all available information of EU legislation and of the jurisprudence of the European Court of Justice, the Commission will take the final decision to protect or reject the traditional term Prošek through a Commission implementing regulation.  As regards the reform of the EU Geographical Indications System, the Commission services are currently working on a proposal to strengthen the system of geographical indications, which, as you know, is a major agricultural policy objective of the von der Leyen Commission. The Commission intends to adopt the legislative proposal in April and submit it to the co-legislators.  The Commission proposal will aim to strengthen the system of geographical indications for all agricultural sectors. It will contribute to the objectives of the common agricultural policy, addressing societal demands on food and health and thus the objectives of the European Green Deal and Farm to fork strategy.  The proposal will be underpinned by an impact assessment analysing and assessing options based on facts and evidence, and I can reassure you that the Commission is taking the concerns raised in this major interpellation into consideration. While the fundamental structure of the EU GI system is sound, its revision focuses on two general objectives: ensuring effective protection of intellectual property rights within the EU, including efficient registration processes to further reward producers for their efforts, and increasing the uptake of GIs across the EU to benefit the rural economy.  More specifically, the Commission intends to further enhance the protection of protected designations of origin and protected geographical indications, including defining the scope of avocation. In addition to this, the whole system of protection against direct or indirect commercial use, misuse, avocation, imitation, should also apply to terms used in internet domain names, having regard to goods and services presented in the web page under that name.  Furthermore, the Commission also intends to introduce stricter rules on the use of GI names in the sale names of processed goods when the GI product is an ingredient of the processed product. In relation to your second question, the EU has an extensive set of rules on official controls in the agrifood chain to provide efficient and stronger enforcement tools at national level. Member States’ competent authorities must control if the producers comply with the rules set forth for geographical indications and take the necessary steps to stop unlawful practices on their territories. A network of food fraud contact points in the Member States has been set up to facilitate administrative assistance and cooperation in cases of cross—border violations. The European Anti-Fraud Office is a member of this network. It has launched several inquiries targeting in particular infringement of intellectual property rights, including geographical indications on its own initiative or to support the enforcement activities of competent national agencies against cross-border frauds.  The administrative assistance and cooperation system set up by the European Commission is providing a confidential network between the competent authorities, enabling Member States and, under specific conditions, stakeholders, to notify each other of suspected usurpations of geographical indications and to request action.  Moreover, to ensure monitoring of the control done by Member States, the Commission is auditing their official control systems and intervenes in case of systemic failure to apply EU law. The Commission also organises training sessions and seminars on control issues with regard to geographical indications in order to provide guidance and share best practices beyond our borders. The EU is fully committed to enhancing the international protection of EU geographical indications by including a comprehensive GI provisions in the intellectual property chapters in bilateral agreements. This way, a comparable level of protection and enforcement of GIs is guaranteed in the partner country to that of the EU. Each bilateral agreement protecting GIs lays down obligations on both parties to verify compliance of the products using these GIs with production rules, as well as specific enforcement mechanisms to apply on the party’s respective markets.  The Commission also engages with trading partners in intellectual property dialogues and intellectual property technical cooperation programmes, which promote the protection and effective enforcement of GIs in line with EU standards.  In addition, in accordance with Regulation No 608/2013 on customs enforcement of intellectual property rights, Member States’ customs authorities may act at the border and detain goods suspected of infringing PDOs and PGIs.  Regulation 608/2013 also gives OLAF a specific mandate for mutual assistance in fighting counterfeit goods imported from third countries. OLAF has been active in that field for several years, as illustrated by the dismantling of a fraudulent network producing fake rum. Finally, counterfeit food is also the focus of regular cross-border operations between Member State law enforcement, such as through the OPSON operations within the framework of the EU Policy Cycle on serious and organised crime facilitated by Europol with the active participation of OLAF.