New Zealand: The scope of the potential EU–New Zealand Fair Trade Agreement
Managing IP is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

New Zealand: The scope of the potential EU–New Zealand Fair Trade Agreement

Negotiations are underway for a European Union (EU)–New Zealand Fair Trade Agreement (FTA). The EU proposal on intellectual property includes a chapter on geographical indication (GI) names for protection. The Ministry of Foreign Affairs and Trade recently concluded a consultation period on the proposed list of EU GIs, but what remains to be seen is the scope of protection that will be afforded to the agreed terms. A review of the EU's proposed FTA provides us with some insight into what the EU expects to achieve.

The correct use of GIs

GIs shall operate as a collective right (akin to collective marks already recognised by the Trade Marks Act 2002) and will be available for use by any operator marketing a product that conforms to the corresponding specification. The applications will be open to opposition prior to registration.

The protection of GIs

The EU proposes to set a high level of protection for GIs. This includes prohibiting direct and indirect use of a protected name for comparable products not compliant with the product specification, or any other products if that use exploits the reputation of a GI, including where it is used as an ingredient.

It is unclear what use would amount to an exploitation of the reputation of a GI, in particular where the product is being used as an ingredient only. A conservative interpretation may restrict use of the GI to the ingredients list only.

Any misuse, imitation, or evocation, even if the true origin of the product is indicated, will be prohibited. This includes use of expressions such as "style", "type", "method", or similar, including when those products are used as an ingredient. This is a practice readily utilised by New Zealand producers and, if included in the final agreement, those producers will need to update their marketing strategies.

The relationship to trademarks

New trademark applications with a priority date later than the priority date of a protected GI shall be refused registration. This could cause an issue for unregistered rights that may otherwise have been afforded protection through those provisions, allowing for registration of trademarks that have acquired distinctiveness through use. The proposal suggests that these will not be granted protection as a registered trademark if they include a GI.

Parties must agree to protect GIs even where a prior trademark exists. It is unclear what will be considered a 'prior trademark' with the proposal stating that this includes trademarks which have been applied for, registered, or established by use before the date on which the application for protection of the GI is submitted. This suggests that existing unregistered rights may be recognised even in the absence of a registration (and thus softening the impact of the proposal for new applications).

Prior trademark registrations may continue to be used and renewed for that product, notwithstanding the protection of the GI, provided that no grounds for invalidity or revocation exist. Owners of prior trademarks will need to take care to ensure that their marks do not become generic, and therefore subject to removal. While there is a provision preventing registered GIs becoming generic, this is not the position for prior trademarks, and once removed the trademark would be unlikely to be afforded registered protection if a new application was filed.

While New Zealand stands to gain from the protection of GIs in the EU, the final terms of the FTA will need to strike a balance between the high level of protection proposed by the EU and the rights of existing traders in New Zealand.

ormiston-nadia.jpg

Nadia Ormiston


Baldwins Intellectual PropertyLevel 15, HSBC House, 1 Queen St, Auckland 1010, New ZealandTel: +64 9 373 3137Fax: +64 9 373 2123email@baldwins.comwww.baldwins.com

more from across site and ros bottom lb

More from across our site

High-earning businesses place most value on the depth of the external legal teams advising them, according to a survey of nearly 29,000 in-house counsel
Kilpatrick Townsend was recognised as Americas firm of the year, while patent powerhouse James Haley won a lifetime achievement award
Partners at Foley Hoag and Kilburn & Strode explore how US and UK courts have addressed questions of AI and inventorship
In-house lawyers have considerable influence over law firms’ actions, so they must use that power to push their external advisers to adopt sustainable practices
We provide a rundown of Managing IP’s news and analysis from the week, and review what’s been happening elsewhere in IP
Counsel say they’re advising clients to keep a close eye on confidentiality agreements after the FTC voted to ban non-competes
Data from Managing IP+’s Talent Tracker shows US firms making major swoops for IP teams, while South Korea has also been a buoyant market
The finalists for the 13th annual awards have been announced
Counsel reveal how a proposal to create separate briefings for discretionary denials at the USPTO could affect their PTAB strategies
The UK Supreme Court rejected the firm’s appeal against an earlier ruling because it did not raise an arguable point of law
Gift this article