Introduction to the GI system

Origin Linked Products (OLP) are products that have a specific link to their area of origin because of their reputation for quality. They are distinguished from comparable products by their local identity and their typicity because of their link to the terroir.

A geographical indication (GI) is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.

Article 22.1 of the TRIPS Agreement defines “geographical indications” as:

 

“ indications which identify a good as originating in the territory of a [WTO] 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.” 

 

What is an OLP and a GI?

GI Triangle

5 central components

Supply chain

Institutional / legal framework

Market / Consumer

Product

Impacts

Institutional & legal frameworkLegal protectionOfficial recognitionExclusive right to use the name Control and certificationNational and regional authoritiesNGO support organisation

Product, Specificity, TerroirReputation, History, TraditionGeographical or traditional nameLocal ressourcesKnow-how, TypicityCode of practiceDelimited geographical area

Producers ProcessorsConsumersRetailersSupply chain organisation (interprofession)Value chainFree-riders

MarketingUsurpationConsumer trust

Sustainable development

Product

Identification and qualification

Product identification

The 4 main elements of a Geographical Indication (GI):

1. Specific product quality

2. A name and reputation that differentiates the product from others

3. A defined geographical area of production

4. Specific production methods

Product identification

1. Specific product quality linked to the geographical origin

• Specific quality = some characteristics differentiate the product form the other products of the same category and consumers perceive it on the local, national and international market.

• Typicity = the product is not only specific but also unique by the combination of natural and human production factors anchored in the territory (terroir)

Product identification

2. A name and reputation that differentiates the product from others

• Reputation is linked to the consumer's perception and the recognition on the market

• The geographical name of the product plays an important role in consumer recognition

Product identification

3. A defined geographical area of production/collective dimension

• The geographical area bears both the natural resources (physical and biological environment) and the human resources linked to the generations of inhabitants and producers

• The product is tied to a local community and has a heritage dimension (collective right)

• The potential for engaging the value creation process depends of the will, motivation and capacity of the local community to coordinate their action and promote the product collectively

Product identification

4. Specific production methods

• Know-how

Product qualification

Setting rules for GI products through the code of practice:

1. Specific product characteristics

2. Delimitation of the geographical area

3. Definition of the guarantee system

4. Sustainability

Changes and up-dates of the code of practice should be possible to adapt to the market and ensure reproduction of local resources in a sustainable perspective. But the product’s specific quality and link to the territory must be maintained!

Product qualification

1. Specific product characteristics

• Description of the main physical, chemical, microbiological or organoleptic characteristics of the product

• Ingredients that should be used or not used• All phases of the production process• Focus on the elements justifying the link between the specific

quality and the terroir

Product qualification

2. Delimitation of the geographical area

• Physical criteria (soil, climate, topography, water supply,…)• Local practices (varieties, harvesting, processing practices,…)• History and reputation• Localizing of GI producers (actual and potential)

Product qualification

3. Definition of the guarantee system

• Provides assurance to consumers of a product conformity to the specification established in the code of practice.

• Includes the mechanisms set up to ensure the respect of the rules (control) and the related information to consumers (certification)

• Critical points and final product characteristics must be measurable

• The control plan specifies how the rules in the code of practice must be checked (what, how, when, documents, sanctions, frequency and coverage)

Product qualification

4. Sustainability

• Biodiversity preservation• Preventing overexploitation• Preservation of culture and traditions• Socioeconomic effects (power distribution)• Territorial impact

Supply chain and marketing

Remuneration

Remuneration: supply chain organisation

• Common asset shared by all members of the GI production system: GI reputation.

• Justification for setting up a collective organisation to support the GI system at all stages: setting up rules, controlling processes, product commercialization and conflict resolution.

• Roles: help reach agreements among producers on production and marketing issues, manage the control system, collective market promotion.

• Structure: representatives of all stakeholders of the GI production system (producers, processors, retailers,…).

Remuneration: marketing

• The marketing plan includes all tasks needed to sell. • 2 parts:

1. Strategic marketing: defines market objectives on the basis of potentials, limitations, market characteristics, competitors. Answers the questions: Who to sell to? Where to sell? Based on market analysis.

2. Operational marketing: looks at implementing the strategy. Answers the questions: How to sell? When to sell?

Impact

Reproduction of local ressources

Reproduction of local ressources: impact

Natural and human resources used in the GI system must be reproduced, improved and preserved in order to have a long-term sustainable system. • Economic component: fair distribution of the value created• Environmental component: preservation or improvement of the

natural resources• Social and cultural component: promoting traditions and the

cultural heritage, reinforcing the sense of local identity, fighting rural exodus.

Reproduction of local ressources: impact

Important to set up a monitoring and controlling system to evaluate the impact.

GIs can enhance local development with positive benefits for the whole community (restaurants, guest houses, tourism activities)

Institutional and legal framework

Role of public policies

Role of public policies

Public authorities shall ensure the sustainability of the GI system as it supports rural development.

The sustainable development of GI products requires:

1. A legal framework

2. An institutional framework

3. An integrated rural development system

Role of public policies

1. Legal framework

• Since 1995, the TRIPS agreement has required all WTO members to establish a national legal framework for the protection and use of GI names for specific products

• Public law approach: public authorities enact legislation dedicated to the specific protection of GIs (sui generis system)

• Private law approach: using laws against unfair competition, passing off and trademark law, where the protection is based on private action.