What do you mean by infringement of a Geographical Indication (GI)? What are the penalties and remedies available against such infringement?
Q.6 – What do you mean by infringement of a Geographical Indication (GI)? What are the penalties and remedies available against such infringement?
I. Meaning of Geographical Indication (GI)
Geographical Indication means an indication that identifies goods as originating from a particular place/region, where quality, reputation or other characteristics of those goods are essentially attributable to that geographical area.
(Section 2(1)(e) of the Geographical Indications of Goods (Registration & Protection) Act, 1999)
Examples:
- Darjeeling Tea
- Kanchipuram Silk
- Banarasi Saree
- Nagpur Orange
- Mysore Sandal Soap
II. Meaning of GI Infringement — Section 22 of GI Act, 1999
According to Section 22, a GI is infringed when:
1. Unauthorized use of a registered GI
If a person uses a GI without permission on goods not originating from that region
→ and such use misleads consumers regarding origin.
Example:
Selling ordinary tea as “Darjeeling Tea”.
2. Use of GI causing unfair competition
Any use of GI that causes:
- confusion,
- unfair commercial advantage, or
- misrepresentation
Example:
“Like Darjeeling Tea”, “Darjeeling-type tea”.
3. Using GI even when true origin is mentioned
Even if a trader writes:
“Made in Delhi but processed like Kanchipuram Silk”
It is still infringement because it exploits the GI’s reputation.
4. Using GI in translation or accompanied by expressions
Words such as "style", "kind", "imitation", “type” also amount to infringement.
Example:
“Kanchipuram-type saree” → infringement.
III. Penalties for GI Infringement (Criminal Penalties)
Sections 39–41 of GI Act, 1999
1. First Offence
- Imprisonment: 6 months to 3 years
- Fine: ₹50,000 to ₹2,00,000
2. Second or subsequent offence
- Imprisonment: 1 year to 3 years
- Fine: ₹1,00,000 to ₹2,00,000
The court may reduce punishment for “adequate and special reasons”.
IV. Civil Remedies for GI Infringement (Section 67)
A registered proprietor or authorised user can file a civil suit for:
1. Injunction
Court stops the defendant from further use.
- Temporary injunction
- Permanent injunction
2. Damages or Accounts of Profit
- Claim compensation
- Or ask court to direct defendant to hand over profits made from illegal use.
3. Delivery/Seizure of Infringing Goods
Court may order:
- removal of labels,
- destruction of counterfeit goods,
- delivery of infringing materials for disposal.
V. Case Laws
1. Tea Board of India v. ITC Ltd. (2011)
- Issue: Use of the name “Darjeeling Lounge” by ITC hotel.
- Court held: No infringement because the lounge did not deal with Darjeeling Tea and there was no misrepresentation.
- Importance: GI protection is not absolute; must prove consumer confusion.
2. Scotch Whisky Association v. Pravara Sahakar (2008)
- Defendants used “Scotch” for Indian whisky.
- Held: Infringement because “Scotch” is a GI of Scotland.
- Importance: Even indirect use causing confusion amounts to infringement.
3. Khoday Distilleries v. Scotch Whisky Association (2008)
- Supreme Court emphasized that GI protects:
- quality,
- heritage,
- reputation of producers of the geographical area.
VI. Why GI Protection Is Important
- Prevents misuse of famous regional goods.
- Protects reputation and economic interests of original producers.
- Enhances export value.
- Prevents unfair competition in the market.
VII. Conclusons
Infringement of a GI occurs when a GI is used without permission in a way that misleads the public about the true geographical origin of goods. The GI Act, 1999 provides criminal penalties, as well as civil remedies such as injunctions, damages, and seizure of infringing goods. The Act aims to safeguard the quality, reputation and economic benefits associated with geographically unique products.
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