Wine Industry Gets Boost from Geographical Indications Act Changes - Associate Minister of Commerce Media Statement

In a move to support the growing reputation of New Zealand wines internationally, the government plans to bring into force a geographical indications registration system for wine and spirits, Associate Minister of Commerce, Judith Tizard today announced.

A geographical indication indicates that a wine or spirit comes from a specific geographical origin and possesses a particular quality, reputation or other characteristic that arises from that place of origin. Famous international examples include Champagne for sparkling wine and Scotch for whiskey.

"Geographical indications are a valuable marketing tool for New Zealand wine. Distinctions between our regional varieties, such as Marlborough and Hawkes Bay, are increasingly recognised and sought after by consumers domestically and internationally," Judith Tizard said.

New Zealand has a Geographical Indications Act that establishes a registration system for recognising and protecting geographical indications in New Zealand. Although passed in 1994, the Act has not come into effect.

"The New Zealand wine industry has matured considerably since the 1994 Act was passed. It's now in a position to really exploit the geographical branding opportunities that New Zealand wines have and the Act provides a useful support for those branding efforts."

The proposed changes will streamline the process for registering geographical indications and provide greater certainty for users of registered geographical indications, including users of foreign geographical indications seeking protection in New Zealand. Registration will continue to be voluntary and existing measures to ensure truthfulness in labelling, such as the Fair Trading Act 1986, will continue to apply.

It is hoped that amending legislation will be introduced in the New Year.

Further Information

What Are the Changes?

The key amendments will:

• Align the Act more closely with the provisions of the TRIPS Agreement, this includes:
  • limiting the scope of the Act to wine and spirits geographical indications only. The Act is currently worded in a manner that potentially allows its application to all goods. Limiting the Act to wines and spirits clarifies the purpose of the Act; and is consistent with New Zealand's obligations under the TRIPS Agreement;
  • replacing the definition of "geographical indication" with the TRIPS definition. The current definition simply refers to indications that identify a good as originating from a particular area. The TRIPS definition requires the good to possess a certain quality, reputation or other characteristic due to its geographical origin; and
  • including all of the exceptions and limitation to protection as provided in the TRIPS Agreement. This would allow a geographical indication to be excluded from registration on the basis that, for example, it is considered a generic term in New Zealand.
• Streamline the process for registering geographical indications:
  • applications will be made to and considered by the Intellectual Property Office of New Zealand (IPONZ); and
  • the role of the Geographical Indications Committee will be altered so that it does not sit to consider every application, but can be used to provide advice if, for example, an application is opposed on accurate boundary demarcation.

What Is a Geographical Indication?

The TRIPS Agreement defines geographical indications as "indications which identify a good as originating in the territory of a Member, or a region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin." Examples include Champagne for sparking wine, Scotch for whiskey and Roquefort for cheese.

In respect of all goods, WTO Members are required to provide the legal means to prevent the misleading or unfair commercial use of a geographical indication (e.g. to prevent the use of "parmesan" in a manner which misleads consumers into believing the cheese in produced in Italy when it is in fact produced in New Zealand). A higher level of protection, however, is required for wines sand spirits. Members are required to provide the legal means to prevent the use of a geographical indication where the wine or spirit does not originate from the place indicated (e.g. to prevent the use of "Champagne" on a wine product other than from the particular French region, even if its use is not misleading, such as the label clearly stating "product of New Zealand".

When Will the Act Come into Force?

This date is yet to be determined. Regulations to be made under the Act will need to be drafted following the amendment of the Act. Consideration will also be given to the implementation of regulations under the Wine Act 2003, which contains provisions relating to geographical labelling of wine, to determine an appropriate date.

How Will This Apply to/Help Exported Wines?

The Geographical Indications Act will support the geographical branding of New Zealand wines in the international market. It will provide greater certainty and credibility around the use of New Zealand geographical indications, as geographical indications will be able to be formally considered in terms of the TRIPS Agreement, and have their boundaries clearly demarcated and formally recorded.

Registration will also provide exporters with greater confidence of compliance with the wine labelling regulations of foreign markets. The European Union, for example, require a geographical indication on a wine label as a pre-requisite for other important consumer information, such as wine's vintage and grape variety, to also be included.

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