Previous Year Question
In order to comply with the TRIPS Agreement, India enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999. The difference/differences between a ‘Trade Mark’ and a Geographical Indication is/are:
A trademark is an individual’s or a company’s right, whereas a geographical indication is a community’s right.
A trademark can be licensed, whereas a geographical indication cannot be licensed.
A trademark is assigned to manufactured goods, whereas a geographical indication is assigned to agricultural goods/products and handicrafts only.
Which of the statements given above is/are correct?
Only 1
1 and 2
2 and 3
1, 2 and 3
Correct Answer: B
Detailed Solution
A geographical indication connects a good with a definite geographical territory where a particular quality, reputation or other characteristic of that good is essentially attributable to its geographical origin.
Statement 1 is correct: A trademark normally distinguishes the goods or services of an individual, company or commercial enterprise from those of others. A GI, however, is not the exclusive private right of a single company. It may be used by producers within the defined geographical area who satisfy the prescribed conditions and are registered as authorised users.
Statement 2 is correct: The proprietor of a trademark may assign or license it. In contrast, Section 24 of the GI Act prohibits the assignment, transmission, licensing, pledge or mortgage of rights in a registered geographical indication. Any agreement purporting to create such rights is void because a GI remains connected with its geographical territory and producer community.
Statement 3 is incorrect: Geographical indications are not confined to agricultural products and handicrafts. Under the Act, they may relate to:
agricultural goods;
natural goods;
manufactured goods;
handicraft or industrial goods; and
foodstuffs.
For manufactured goods, at least one activity involving production, processing or preparation must take place within the specified geographical territory. Therefore, the word “only” makes statement 3 incorrect.
Additional fact: The Act was enacted on 30 December 1999 and came into force on 15 September 2003. India’s Geographical Indications Registry is located in Chennai.