JAGTIV · Previous Year Questions

UPSC

ECONOMY · 2010

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:

  1. A trademark is an individual’s or a company’s right, whereas a geographical indication is a community’s right.

  2. A trademark can be licensed, whereas a geographical indication cannot be licensed.

  3. 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?

A.

Only 1

B.

1 and 2

C.

2 and 3

D.

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.

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