This article is written by Utkarsh Singh, a law student from Amity Law School, NOIDA. This is an exhaustive article that deals with the Geographical Indication Act and its offences and penalties.

Introduction

If you will buy a packet of Darjeeling tea then how would you know that it is actually from Darjeeling or know the authenticity of that packet?  You will know by the Geographical Indication (GI) which tells us that it is real Darjeeling tea and it is good. Geographical Indication is important because it maintains the reputation and quality of the product as some dishonest shop owners use the name of the product but do not deliver the quality of that product and do not have the geographical indication on their goods. The Trade-Related Aspects of Intellectual Property Rights (TRIPS) gives minimum protection to geographical indication and more protection to wine and spirits. Articles 22 to 24 of Part II Section III of the TRIPS provide minimum standards for protecting the geographical indications that WTO (World Trade Organization) have to follow. By the Indian Geographical Indications of Goods (Registration and Protection) Act, 1999, geographical indication in a relation of products means that it is a sign which tells these products are agricultural products, natural products or manufactured products as derived or produced in a state or a country, or a region or locality in that state, in which the quality, reputation and other things are maintained. Geographical Indication also tells us details about the product like where it is formed, in which territory it is found in, its region, or locality, how it is prepared, assembled, or mass-produced etc. Some famous geographical indications which are used widely are Darjeeling tea, Alphonso Mango, Coorg Cardamom, Kanchipuram Silk Saree, Kolhapuri Chappal, Rasgulla, and many more. If one registers a geographical indication in India then he can avert uncertified use of the product and can file a civil suit or can make a criminal complaint against the person who is selling geographical indication products without any authorization.

Geographical Indication Act

The Geographical Indication Act was formed because it can preserve and maintain the quality and reputation of the product in the market. With the help of Geographical Indication, one can tell the original place of the product because it is necessary that the product retains or gets the quality and reputation from that place. The legislation which is the Geographical Indication Act provides protection to the Geographical Indications that are registered.

It also protects the goods as it can get misused by an unauthorized person. This will increase the market value of goods and give fair competition to other people in the market. It increases the economic condition of the place where the Geographical Indicated product is from and it helps people from getting deceived by the falseness of the geographically indicated product. The Geographical Indication of Goods (Registration and Protection) Act came into force in 2003 and it was formed in 1999. Before 1999, there was no particular law to regulate Geographical Indication. This law has two parts- Part A is connected to the registration of Geographical Indication and Part B deals with the information about the registered Geographical Indication user like addresses, names, descriptions. The registration of Geographical Indication is only for ten years and it can be renewed after a period of ten years. There is a very good example of Basmati rice, as basmati rice is different from other rice, it has long texture and has soft grain, which is grown on the foothill of the Himalayas and this flavour and textured rice cannot be grown anywhere else no one can replicate it.

Offences and Penalties under Geographical Indication Act

Under this Act, a person will be characterized to commit an offence when he is falsely applying geographical indications or a duplicate of a geographical indication. When a person violates the geographical indication act there are some penalties, which can be jail for a time period between 6 months to 3 years and maybe he would have to give a fine between five thousand to two lakhs. The Court has the power to reduce the penalties or punishment under special circumstances.

Falsifying and Falsely Applying Geographical Indications

When a person does these following things then he will be held liable for falsifying a Geographical Indication-

• If a person uses a Geographical Indication or a descriptively similar geographical indication without the concern of the authorized owner then he will be held liable.
• If a person falsifies an authenticated geographical indication by altering, by adding something to it or making some minor changes to it then he will be held liable.

When a person does these following things then he will be held liable for falsely applying a geographical indication-

• If he uses the geographical indication or makes minor changes and uses it without taking the permission of the authorized user, then he will be held liable.
• If a person uses any package which has a geographical indication or somewhat similar to the geographical indication of such authenticated user for any packing, filling or wrapping any goods other than the original product of the certified user, then he will be held liable for false applying. 

Penalty for Applying False Geographical Indications

When a person does the following things then he will get punishment or penalty which are six months to three years of jail or fine of fifty thousand rupees to two lakh rupees.

• If he makes a duplicate copy of some geographical indication
• If he falsely applies geographical indication to some other product
• If he is making, disposing of or have anything like dice, block, machine or instrument which tells us that he is falsifying a geographical indication
• If he uses any product to make a fake geographical indication of a country, territory or some manufactures’ name
• If he interferes with a geographical indication of origin he uses any goods.

However, he will not be punished or fined if he proves that he did not have any intention to falsify the geographical indication. The fine can be lessened if there is some special case.   

Penalty for Selling Goods to which False Geographical Indication is applied

If a person has some goods, he is selling the goods or lets for hire, goods or products which have the fake or false geographical indication then he will be liable for six to three years of jail. He may have to pay the fine which is fifty thousand rupees to two lakh rupees. The punishment or penalty may get lessened in some cases but the reason should be written in the judgment. However, the accused has the right to give the proof that at the time of the claimed offence is committed there were all reasonable precautions were taken and there was no to accuse him of that geographical indication was not real or any complaint about the goods. 

Enhanced Penalty on second or subsequent conviction

When a person has already committed an offence under Section 39 or Section 40 of Geographical Indication Act and he was convicted at that time then if he does the same offence then he will be punishable. The punishment for this will be not less than one year and it may extend to three years as per the seriousness of the offence and he may have to pay a fine of not more than one lakh or it may extend to two lakhs as per the seriousness of the offence.

The punishment can be lessened in some cases for a reasonable and special reason but the reason has to be in the judgment. The punishment can be less than a year and the fine can be less than one lakh.

Penalty for falsely representing a Geographical Indication as registered

If a person is falsely representing a Geographical Indication as registered then a person shall be punished with imprisonment which may extend till three years or he has to pay a fine which may extend to two lakhs rupees or he may have to do both, which depends on the seriousness of the offence.

Penalty for Improperly Describing a place of business as connected with the Geographical Indications registry

If a person is doing work in his place of business or a document released by him and his words which may logically tell us the brief description that his working place is connected with the Geographical indication registry, then he may get punished for a maximum term of two years or he may have to give fine or both.

Penalty for falsification of entries in the register

If any person does or tries to cause, a false or fake entry in the register which seems to be a duplicate of another entry in the register and has done it knowingly while writing or entering it in the register then he should be punished with legal detention or by making him pay a fine which may extend up to two lakhs rupees.

No Offence in Certain Cases

In Section 39, 40 and 41 are stated the connection to a registered geographical indication or a certified user of that geographical indication. It will not be considered an offence under the sections written above if-

• The so-called felony is related to registered geographical indication and the actions are permitted under this Act.
• The so-called felony is related to registered geographical indication and the actions are permitted under any other law which is in force for a time being.

Forfeiture of goods

When a person is convicted under Section 39 or Section 40 or Section 41 or he is acquitted under these Sections with proof that he has committed fraud or under Section 40 on proof which is given in clause(a) or clause (b) or clause(c) of that section, then the court can order the convicted or acquitted to give all his goods to the government which means giving away all the things which are related to the goods along with the goods as a penalty.  

Exemption of certain persons employed in ordinary course of business

When a person is charged with Section 39 of the Geographical Indication Act then he has to prove-

• That on ordinary time he is working on behalf of someone else to apply Geographical Indication or he would be making blocks, machines, or other instruments related to goods which are being used in making Geographical Indication.
• The case where he is subjected to a charge, he was employed and has no interest in the goods or anything by the gain or loss depending upon the selling rate of that goods.
• When he was committing the charged offence, he took every precaution that would have no reason to suspect him for the authentication of the geographical indication.
• When he was using the geographical indication, he gave all the information required in his power to the person who has the geographical indication. By this, he can demand the acquittal.

Offences by companies

If a company does an offence under this Act then the company and each and every employee of the company which was in charge at the time of the commission of offence will be held liable and will be prosecuted and punished. However, if someone proves that the offence is committed without the knowledge of that person then that person shall not be held liable to any kind of punishment but if it is proved that the offence was done in the knowledge of the people then the people who had knowledge will be held liable and will be punished.

Punishment for abetment in India of Acts done out of India

If a person committed the crime in India, out of India or may be found in any different part of India then that person will be held liable for the commission of an offence which is given in the act of geographical indication and he will be held liable at that place only where he is found.

Conclusion

In today’s time, Geographical Indication is very important because it tells the quality and authenticity of the product and with the help of the Geographical Indication Act, our quality of goods is maintained and we can have a fair competition. It gives market recognition and maintains a premium price for the goods. Somewhat it helps in the development of rural areas where these goods are manufactured. This act also gives punishment to those who do not follow the rules and regulations.

References 

• https://www.advocatekhoj.com/library/bareacts/geographicalindicationsofgoods/index.php?Title=Geographical%20Indications%20of%20Goods%20(Registration%20and%20Protection)%20Act,%201999
• http://egyankosh.ac.in/bitstream/123456789/15478/1/Unit-7.pdf
• https://www.latestlaws.com/articles/all-about-geographical-indications-of-goods-act-1999-by-ritik-dwivedi/
• https://vikaspedia.in/social-welfare/entrepreneurship/geographical-indications
• https://www.mondaq.com/india/trademark/655394/geographical-indications-law-in-india-everything-you-must-know?signup=true

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