From 1 May 2024, changes to the Geographical Indications (Wine and Spirits) Registration Act 2006 (GI Act) in New Zealand will be enacted, affording European Geographical Indications (GIs) broader protection under the New Zealand law. This is welcome news for European GI (and NZ GI interests – more on that later!) We explain the expanded protection regime below and how GI holders can best utilise it.
A GI serves as a sign or label that indicates a product’s geographical origin, such as a town or region. As a result, products that are associated with recognised GIs are linked to specific qualities or characteristics as a result of being produced in a particular geographical area, for example, as a result of the traditions or production methods associated with a particular geographical location. In this way, GIs play a crucial role in safeguarding regional heritage, promoting quality, and ensuring consumer trust in products associated with specific places.
Prior to the introduction of the new legislation, New Zealand law provides no sui generis system for the recognition of GIs. GIs may be protectable through:
Section 9 of the FTA prohibits misleading or deceptive conduct in trade. If a product falsely claims a geographical area of origin or lacks the characteristics associated with a GI, it could breach the FTA.
The law of passing off prevents one trader from misrepresenting their goods or services as those of another.
A GI may be protected in New Zealand as a trade mark, including collective or certification trade marks.
Specifically for wines and spirits, a higher level of protection is presently available if the GI is registered under this act. The Act establishes a registration regime for the geographical indications of wine and spirits, administered by the Intellectual Property Office of New Zealand (IPONZ) and affords additional protections, e.g. in trade mark oppositions and enforcement.
On 25 March 2024, the European Union Free Trade Agreement Legislation Amendment Bill 2024 received royal assent in New Zealand (Amendment Act). The Amendment Act expands the protection of GIs beyond wine and spirits registered under the current GI Act.
From 1 May 2024, New Zealand will provide enhanced protection for European Union Geographical Indications (GIs) under the New Zealand-European Union Free Trade Agreement (FTA). In summary:
New Zealand will register approximately 2,000 EU GIs for food, wine, spirits, and other beverages for domestic protection.These GIs are used on a wide range of products, primarily in the food and beverage sector – the full list will be available on the GI Register.
No person or business in New Zealand can use the GIs registered in NZ on or in relation to their products, unless they are importing a product that comes from the specific location in Europe that is related to the GI and complies with the requirements of that GI.
The new restrictions apply even if the product indicates its true place of origin, uses a translation or transliteration of the GI or uses the GI alongside words such as “kind”, “type”, “style”, “imitation” or similar.By way of example, “Comte-style” in relation to cheese produced in New Zealand will not be permitted.
Traders in New Zealand with existing stock in breach of the restrictions can continue to sell stock after 1 May 2024 until it is exhausted.This is subject to a small number of GIs that have phase out periods, which allow use for commercial purposes for a period of time. These are:
5 years for Bayerisches Bier / Bavarian beer, Münchener Bier / Munich beer, Gorgonzola, Grappa, Madeira / Madera, Sherry / Jerez and Prosecco; and
9 years for Feta and Port.
The restrictions are subject to ‘prior users’, namely businesses that have used the terms “Gruyère” or “Parmesan” continuously for at least 5 years before 1 May 2024 may continue to use the term.The use of these terms must be accompanied by a legible and visible indication of the geographical origin of the relevant product. For example, a cheese made in Dunedin that is marketed as “Gruyère” must clearly indicate that it originated in New Zealand.
Under the FTA, the EU has also pledged to provide similar protection for New Zealand-registered GIs for wines and spirits.
The EU will eliminate tariffs for most New Zealand goods entering the EU from the first day the FTA enters into force. For goods like meat and dairy, there will be an increase in quota volume and reduced in-quota tariff rates. New Zealand exporters are expected to save around $100 million per year on tariff elimination alone.