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September 21, 2021

Comment: Is A GI Registration More Beneficial Than Registration Of A Certification Trademark?

Author: Intern - Avi Minz

As opposed to an esoteric legal notion, intellectual property should be viewed as a powerful instrument for economic progress instead. A growing number of business choices are being made based on the use of intellectual property (IP). Invention and imagination are at the heart of new goods, brands and designs that come on the market practically every day. Many of these inventions are the result of small and medium-sized companies (SMEs). However, obtaining consumer recognition and loyalty is a challenging task for these SMEs. The use of IP like Geographical Indications and Certification Mark can help minimize the marketing related challenges. The author is of the opinion that GIs are better options for businesses than Certification marks for an effective way to gain market access.

A certification mark can be obtained by establishing a standard trade mark or adopting appropriate licensing arrangements. But the rules governing the use of the certification trade mark often acts like additional burden over the administration in registration process and over the regulation. Additionally, it can be revoked by third parties if the authorized users do not meet standards and certification marks are not recognised outside of specific geographic areas.

On the other hand, Geographical Indication can also be used to describe a brand’s reputation due to its place of origin. Although like certification mark GIs also improve the reputation and value of local products but GIs also boost the local economy by supporting local businesses. And since these items have a better reputation for quality, their manufacturers, many of whom are small and medium-sized businesses, can sell them to get higher profit.

Unlike Certification Mark, a GI label guarantees the origin and particular features of a product. Also, it helps consumers to understand the quality and origin of the items they buy by providing extensive information on where the goods that carry a GI label were manufactured and how they were created. As quality control and assurance of a quality output are intrinsic features of GI in many situations it helps in developing trust between product manufacturers with consumers and getting a high return on their investment with a GI. Along with the fact that GIs provide local job opportunities and help improve region’s international reputation, it’s clear that unlike certification marks which just support producer objectives and profit, GIs not only encourage producer goals but also the well-being of a whole region’s economy. Hence, GIs can become a more beneficial source for enhanced market value by business.

Disclaimer: Views, opinions, interpretations are solely those of the author, not of the firm (ALG India Law Offices LLP) nor reflective thereof. Author submissions are not checked for plagiarism or any other aspect before being posted.

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