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Out-Law News 1 min. read

Regional trade mark policy of EU is unfair to non-EU states


The World Trade Organisation (WTO) has apparently ruled that Europe's policy of recognising regional trade marks only from non-EU countries that have trade mark protections equivalent to those found in the EU breaches international rules on fair trade.

Regional trade marks, such as Champagne, Parma Ham or even Florida Oranges, relate to products that are connected with a particular territory. These are geographical indications that, unlike normal trade marks, are not an exclusive individual right, but are available to any producer in the region concerned. As such, the EU gives them special protection.

But last year the US and Australia filed separate complaints with the WTO over what they see as the EU's discriminatory approach to geographical indications, alleging that the EU does not allow the geographical indications of other WTO members to be registered, and protected, in the EU unless that other member provides the same protections as the EU.

This, the Office of the United States Trade Representative explained at the time, is inconsistent with national treatment and most favoured nation obligations under international trade agreements, as it allows the EU to treat imported products in a less favourable manner than EU products.

The WTO set up a dispute settlement panel to investigate the complaint in October last year. The panel has now issued a preliminary ruling that, according to the Associated Press, is in favour of the US and Australia.

EU trade spokeswoman Arancha Gonzalez confirmed to the AP that the EU has received the ruling – which has not been published – but refused to comment further. The WTO has likewise declined to comment.

A final ruling is not expected until next year.

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