E WIPO/GEO/SFO/03/8 ORIGINAL: English DATE: July3,2003

WORLDINTELLECTUAL PROPERTYORGANIZATION

WORLDWIDESYMPOSIUM ONGEOGRAPHICALINDI CATIONS

organizedby theWorldIntellectualPropertyOrganization(WIPO) and theU nitedStatesPatentandTrademarkOffice(USPTO)

SanFrancisco,California,July9to11,2003

PROTECTIONOFDARJEE LING

documentpreparedbyMr.NabaKumarDas,Chairman,TeaBoard WIPO/GEO/SFO/03/8 page 2

GEOGRAPHICALINDICATIONS: THEEXPERIENCEOFINDIANTEAPRODU CERS:

PROTECTIONOFDARJEELINGTEA

PaperpreparedfortheWorldwideSymposiumonGIs, 9 –11July2003 , SanFrancisco ByTeaBoardIndia

TeaBoardIndia 14,BTMSarani, Kolkata700001,India 91332215723(Telephone) 91332215715(Facsimile ) E-mail:[email protected] WIPO/GEO/SFO/03/8 page 3

Backgroundandhistory

1. Teaisapreparedbytheinhotwateroftheprocessedleafoftheplant CamelliaSinensis.Dependingonthenatureofprocessingormanufacture,teacouldbe “green”,”black”,or “”.Again,withinthecategoryofblacktea,therearetwomethods ofmanufactureleadingtotwovarietiesofblacktea -OrthodoxandCTC.Whileinthe Orthodoxmethodtheleafgoesthroughaprocessknownasrolling,intheCTCmethodthe leafissubjectedtocutting,tearingandcurling.Darjeelingteais,inmostinstances,ablack orthodoxtea,butsmallquantitiesofoolongandgreenteaarealsoproduced.

2. TheteaplantisindigenoustoChinaandIndia.ThoughnativeIndianteabusheshad existedinAssaminNorthEastIndiasinceancienttimes,anddespitereportsfromvarious earlyexplorersofteabeingdrunkbyIndians,itwasnotuntilthenineteenthcenturythattrue teacultivationandproductionbeganatthebehestoftheBritish ,whoruledIndiaatthattime. WithanestablishedhistoryofimportingChineseteaandwithongoingtradingproblemswith theChinese,inthe1830’stheBritishdecidedtostartgrowingtheirownteainoneoftheir colonies,India.TwoScottishbrothers,RobertandCharlesBruce,werethefirstonesto investigateandgrowteaplantsfromseedsoftheAssamteaplant.Today,Indiaistheworld’s largestgrowerofteawithatotalproductionof826.17Millionkilogramsintheyear2002. NearlyalltheproductionisblackteaunlikeChina,theworld’ssecondlargestproducerat715 Millionkilograms(Year2002),whichgrowsgreentea.Indiaisalsotheworld’slargest consumeroftea.

3. ThedistrictofDarjeelingissituatedintheprovince(state)ofWestBengal,India.Tea hasbeencultivated,grownandproducedinteagardensgeographicallylocatedintheseareas forthelast150years.Thegardensarealllocatedatelevationsuptoover2000metresabove meansealevel.Duetotheuniqueandcomplexcombinationofagro -climaticconditions prevailingintheregionandtheproductionregulationsimposed,suchteahasadistinctiveand naturally -occurringqualityandflavourwhichhaswonthepatronageandrecognitionof discerningconsumersallovertheworldforwelloveracentury.Thequality,reputationand characteristicsoftheteaisessentiallyattributabletoitsgeographicaloriginandcannotbe replicatedelsewhereresultinginDarjeelingTeabeingconsideredageographicalindication. Broadlythereare2factorsthatcontributetotheexceptionaltasteofDarjeelingtea –the geographicallocationandtheprocessing.

Thegeographicallocation

Altitude 700to2000metersnestlingintheshadowofthesnow- cladKanchenjungapeak Lat itude 26°31’and27°13’North Longitude 87°59’and88°53’East Rainfall Minimumof50”to60”p.a. Humidity Veryhigh Soil Richandloamysoil.Intheuplandsitisusuallyredand grittyandisresiduali.e.derivedfromtheweatheringof underlying rocksandrichinorganicmatterfromthe surroundingforestcover. WIPO/GEO/SFO/03/8 page 4

Gradientofslope 60°to70° Temperature 1.7to11.1°Camaximumof20°C Flavor ‘Muscatel’ SpringFlush(MaytoJune) Leafhaspurplishbloom.Liquorismellowandamberin colorwit hafruity(grapey)flavorcalledMuscatel.

Processing

4. Theharvestingofthegreenleafisdoneexclusivelybyhandandnearlyallthepickers arewomen.Theteapickerspickonlythemosttenderofthetwoleavesandabud,before sunrise.

5. Pro cessingisbytheOrthodoxmethodyieldingwholeleaf(asopposedtotheCTC –crushing,tearing,curlingmethod).DarjeelingTeais“blacktea”(asopposedto“greentea”, “oolongtea”).Theleavesareoxidizedfor2to4hours.Theteahasabrow nish -black,well - twistedappearanceandcontainsalotofgolden‘tip’.Incidentally,certainmorphological characteristicsoftheleafhavebeenfoundtobeassociatedwiththequalityoftea.Oneof themis‘tipping’ –‘tip’inteacomingfromhairybudsandleavesoftheplantwhichthe Darjeelingvarietyiswellendowedwith.

6. DarjeelingTeaisgradedasSFTGFOPwhichmeansSupremeFinestTippyGolden FloweryOrangePekoe(theothersleafygradesareflowerypekoe(FP),orangepekoe(OP), pekoe(P) ,pekoesouchong(PS)andsouchong(S)whichmeansveryhighqualityFOP (largesttealeaves)withlotsofgoldentipsofthebud’sleaves,“S”indicatesSupremelight coloredliquor.

History

7. Thefoothillsofthehighestmountainrangeintheworld-theHimalayas,beginatthis regionandthesurroundingsofunforgettablesplendourprovidetheidealnursery.Beforethe BritisharrivedinIndia,theforestsoftheregion,knownasDarjeelingtoday,werehometoa handfulofLepchatribes.In1828,a youngCaptainLloyd,stumbledacrosstheregionandthe location,withthesnow-cladHimalayanpeaksasabackdrop,hesawthepossibilityof buildinga“hillstation,”orsanitarium.Thatwasthebeginningofthesettingupof Darjeeling,todayamajortouristattractionandknownallovertheworldforitstea.

8. ThefirstteaseedswereplantedinDarjeelingbyaDr.Campbell,aBritishdoctor,inhis gardenasanexperiment.Hewasreasonablysuccessfulinraisingtheplantandthe Government,in1847,electedtoputoutteanurseriesinthisarea.

9. Accordingtorecords,thefirstcommercialteagardensplantedoutbytheBritishtea interestswerein1852andalltheseplantationsusedseedsthatwereraisedintheGovernment nurseries.

10. Darjeelingwasthenonlyasparselypopulatedhamletwhichwasbeingusedasahill resortbythearmyandsomeaffluentpeople.Tea,beingalabourintensiveenterprise, WIPO/GEO/SFO/03/8 page 5 requiredsufficientnumbersofworkerstoplant,tend,pluckandfinallymanufacturethe produce.Forthis,employmentwasofferedtopeoplefromacrosstheborderofNepal.

11. By1866,Darjeelinghad39gardensproducingatotalcropof21,000kilogramsoftea. In1870,thenumberofgardensincreasedto56toproduceabout71,000kgsofteaharvested from4,400hectares.By1874,teainDarjeelingwasfoundtobeaprofitableventureand therewere113gardenswithapproximately6,000hectares.

12. GiventheoveralldistinctivecharacteristicsofDarjeelingtea,therearesubtl evariations acrossplantationsandacrosstheseasons.Trueconnoisseursandprofessional“teatasters” candetectnotonlythevariationinflavourthattheseasonsbringaboutbutalsothegarden fromwhichtheteahascome.

CategoriesofDarjeeling tea:

13. EasterFlush(March -April):Itarrivesjustafterthedormantwintermonths.Theleaves aretenderandverylightgreenappearance.Theliquortooislight,clear,brightandimpartsa pleasantbriskflavor.

14. SpringFlush(May -June):This flushisfamedforitsprominentquality.Theleafhasa purplishbloom.Theliquorismoreround,mellowandwithmorecolor(amber)andhasa slightlyfruityflavour.Itisduringthisperiodthatthefamous“Muscatel”flavorbecomes pronounced.Ref erredtoas“springtimeteas”,theseteasyieldalightteawithadelicate aroma,flowerytasteandtheirastringentquality.

15. SummerFlush(July -September):Duringthisperiodthenatureoftheliquidchanges, becomingstronger,yetretainingthebrightnessandcharacterthatDarjeelingisknownfor. Thisflushproducesadarker,morefull -bodiedcupthatismoremellowandfruity.

16. AutumnFlush(October -November):theteaduringthisperiodhasalightcopperytinge andliquorshaveadelicatecharacter.

17. WinterMonths(December -February):Dormantperiodwithnoproduction.

18. AllDarjeelingteas,though,possessthelightnessofflavourandfinecolouringthatset themapartandabovefromallotherteas

19. TheDarjeelingteaindustry atpresentemploysover52thousandpeopleonapermanent basis- afurther15,000personsareengagedduringthepluckingseasonwhichlastsfrom MarchtoNovember.Auniquefeatureofthisworkforceisthatmorethan60percentare womenandemploymentisonfamilybasis.

20. Theincomeofagardenworkerishalfintheformofcashandtheotherhalfbywayof perquisiteswhichhaveovertheyearseffectivelyprovidedacushionagainsttheimpactof inflationandscarcities,-theworkersareprovidedwithfreeaccommodation,subsidised cerealrationandfreemedicalbenefits.Gardensusedtorunprimaryschoolswhichhave sincebeentakenoverbythegovernmentbutthebuildingscontinuetobemaintainedbythe gardenmanagement. WIPO/GEO/SFO/03/8 page 6

21. InthiscontextitmaybestatedthataGeographicalIndicationsregistrationand protectionwouldultimatelybenefittheplantationworker.Betterprotectionwouldultimately resultinbetterprices,bettereconomichealthoftheindustry,sustainableeducationalan d healthsystemsresultinginabetterqualityoflife.

22. Theteaproducedintheaforesaidregionandhavingthesaidspecialcharacteristics,is andhasforlongbeenknowntothetradeandthepublicinIndiaandabroadas“Darjeeling” teaandassuc hithasacquireddomesticandinternationalreputation.Thisreputationhasa history,ashasbeenexplainedabove,ofwellover100years.Anymemberofthetradeor publicinIndiaorabroadorderingDarjeelingteaorseeingteaadvertisedorofferedforsaleas Darjeelingwillexpecttheteasoordered,advertisedorofferedforsaletobethetea cultivated,grownandproducedinthedistrictofDarjeeling,province(state)ofWestBengal inIndiaandhavingtheaforesaidspecialcharacteristics.Th eyear2002markedthe150th year ofDarjeelingtea.

23. Darjeelingteaisthemostexpensiveandexoticallyflavoredtea.Connoisseurswill assertthatwithoutDarjeeling,teawouldbelikewinewithouttheprestigeofChampagne.

“DarjeelingTea”is definedas:

Location

24. Teawhichhasbeencultivated,grown,produced,manufacturedandprocessedintea gardens(currentschedulewhereofisattachedhereto)inthehillyareasofSardarSub- division,onlyhillyareasofKalimpongSub-divisioncompris ingofSamabeongTeaEstate, AmbiokTeaEstate,MissionHillTeaEstateandKumaiTeaEstateandKurseongSub- divisionexcludingtheareasinjurisdictionlist20,21,23,24,29,31and33comprising SubtiguriSub-divisionofNewChumtaTeaEstate,Simulb ariandMarionbariTeaEstateof KurseongPoliceStationinKurseongSub-divisionofthedistrictofDarjeelingintheStateof WestBengal,India.

Processing

25. Tea,whichhasbeenprocessedandmanufacturedinafactory,locatedintheaforesaid area ,which,whenbrewed,hasadistinctive,naturallyaccruingaromaandtastewithlighttea liquorandinfusedleafofwhichhasadistinctivefragrance.

26. ThemajorpartoftheannualproductionofDarjeelingteaofabout9.5Million kilogramsisexport ed.ThemajorbuyersofDarjeelingteaareGermany,Japan,theU.K.,the U.S.A.andotherE.U.countriessuchastheNetherlands,Franceetc.Intheyear2000about 8.5MillionKilogramsofDarjeelingteawasexportedofatotalvalueofUSDollars30 Mi llion.

27. Thedifferencebetweentheinternationalretailpriceandtheauctionpriceforpacket Darjeelingteaisfrom500%to1000%andgoesupto5000%forselectDarjeelingtea.In Japan,forexample,whileauctionpricesareat$3.5perkgandprivatesales$5.5perkg, Darjeelingteacanretailat$300perkg.Atthesametime,thecostofproductionhasbeen WIPO/GEO/SFO/03/8 page 7 steadilygrowing.Thedifficultterrain,thelong“winterdormancy”,theageingbushesandthe highcostoflabouriscausingseverehar dshiptomanyoftheestates.

TheprotectionofDarjeelingtea- theIndianexperience

Objectives

• Topreventmisuseoftheword“Darjeeling”forteasoldworld -wide • Todeliverthecorrectproducttotheconsumer • ToenablethecommercialbenefitoftheequityofthebrandtoreachtheIndian industryandhencetheplantationworker • AchieveinternationalstatussimilartoChampagneorScotchWhiskybothintermsof brandequityandgovernance/administration

28. HistoricallywhentheBritishdevelopedth etea- industryinDarjeelinginthe19th centurytheysetuptheteaindustryofDarjeelingintothreedifferentdistinctchains.Thefirst chain,theproductionsystemwastheteaestatewhoseprimaryandonlyfunctionwastogrow thetea.Thesecondchainwasthetea -auction.ThesystemensuredthattheDarjeelingtea wassoldasacommodityattheauction.Thethirdchainwasthetea -buyingcompanywho boughtDarjeelingteaasacommodity,blendedit,brandeditandthensoldit.Atthetimeit was developed,Britishinterestscontrolledallthechains.

29. However,eventoday,thethirdchainiscompletelycontrolledbytheforeignblending companies.TheexistingprimarymarketingsystemensuresthatmostoftheDarjeelingTea thatisproduced,issoldbythetea -estatesasacommodityeitherdirectlyorindirectlythrough thepublicauctioninKolkatatotheforeignbuyer.Exceptforsome“single -estate”teas, Darjeelingteaissoldunderthebrandnameoftheforeignblender/packer.

30. Thenthereistheimportantissueofblendingwhichmakestheprocessofprotection moredifficult.Mostteassoldworldwideare“blended”,thatis,thepackermaintainsalevel oftastingconsistencyandpricestabilityinhisbrandbymixingteasprocuredfr omdifferent sources.Thereisnoprocesschangeinvolved,buttheblender/packerjustifiesthe considerablemark -upintheretailedpriceonthegroundthathehasmadeconsiderable investmentsinpropagatinghisblendintheformofhisbrand.Inthec aseofDarjeeling, however,TeaBoardofIndiaandtheDarjeelingindustryisoftheopinionthatsincethe Darjeelingbrandsandblendssellworldwideduetotheuniquecharacteristicsthatthe consumeridentifieswiththeword‘Darjeeling”,ablendinth iscasewouldimplythatteas maybeusedfromdifferentestatesbutmustbeallfromthegeographicalareaknownas Darjeeling.Ontheotherhandtheforeignblendersandpackersfeelthattheimportantissue hereiswhethertheblendhasDarjeeling“cha racter”asdeterminedbyteatastersandopinions varyastotheminimumallowablepercentageofpureDarjeelingteaintheblend:thisranges from50%to90%.TheopinionoftheDarjeelingproducersisthatifablendcontainsless than100%ofDarjeelin gtea,itshouldnotbemarketedusingthe“Darjeeling”platform.The maximumopposition,quitenaturallytotheentireendeavorofsettingupasystemof protectionofDarjeelingteaisforthcomingfromtheblendersandpackerswhichisan importantandinfluentialsegmentoftheteaindustry. WIPO/GEO/SFO/03/8 page 8

31. Theobjectiveoftheentireexerciseistopreventpassingoffandinfringementaswellas toprotecttheintrinsicflavourofDarjeeling.Theconsumermustknowwhathe/sheisbuying andhowmuchDarjeelingteaiscontainedintheblend.Unlessthereisgreaterdegreeof transparency,consumersaswellasproducerswillbedeprivedoftheirlegitimatedue.

32. ThisissueofblendingisacontentiousissueandtheTeaBoardispresentlyengagedina dialogue withtheteabuyersintheU.K.toarriveataconsensus.Asimilarexerciseis plannedforGermanyandtheothermajorcountriesimportingDarjeelingtea.

WhytheTeaBoard?

33. WhiletheteaindustryinIndiaisalmostcompletelyintheprivatesect or,itisstatutorily controlledbytheGovernmentrightfrom1933undervariousenactmentsculminatinginthe TeaAct,1953.TheTeaBoardinIndiaisaBoardsetupunderthesameActofParliament. TheBoardisadministrativelyunderthecontrolofth eMinistryofCommerce&Industryof theGovernmentofIndia(thefederalorcentralgovernment).TheTeaBoardisvestedwith theauthoritytoadministerallstagesofteacultivation,processingandsaleoftheteaindustry, includingtheDarjeelingseg mentthroughvariousorders.TheBoard,whichisheadedbya Chairperson,comprisesmembersnominatedbytheGovernment.Inaccordancewiththe provisionsoftheTeaAct,1953,theconstitutionoftheBoardisdiverse,members representingownersoftea estates,theprovincialgovernments,workers’representatives, exporters,packers,internaltradersandconsumers.ThreeMembersofParliamentalsositon theBoard.

34. TheTeaBoard,however,hasbeenworkinginclosecooperationandhelpofthe Darjee lingPlanters’Association,whichisthesoleproducers’forumfortheDarjeeling region.

LegalOptions

35. Legaloptionsvaryinaccordancewithdifferentsystemsofjurisprudenceand prevalenceofappropriatelegislations.Commonlawjurisprudencedescribesasystemoflaw whereprotectionisavailableevenwithoutregistrationandbasedonuseandreputatione.g. UK,USA,India,Canada,Australia.Ontheotherhand,civillawjurisprudencedescribesa systemoflawwhereprotectionisextremelydepe ndentonregistratione.g.:France,Morocco, Russiaetc.Undercommonlawjurisprudence,the“passingoff”remedyisavailableonproof ofreputationenjoyedbyagivenGIandmisrepresentationanddamagebywayofdiversionof custom.Undercivillawjurisprudence,protectionavailabletoaGIonlyonproofof registrationinthecountryofdisputeduseandprotectioninthecountryoforigin. 36. AGeographicalIndicationcanbeprotectedthroughawidevarietyofappropriate legislationsinspecificco untries.Thecommonlyusedlawsarespecificlegislationfor GeographicalIndications,AppellationsofOrigin,CertificationTradeMarks,Collective Marks,etc.37. ManyfamousGIslikeScotchwhiskyareprotectedbyseparateStatute(The ScotchWhisky Act1988)intheircountryoforigin,whichdefinestheproductanditsmanner ofuse/users. 38. Theissueofinternationalprotectionthroughtreatiesisalsoofrelevance.Indiaisa signatorytotheParisConventionfortheProtectionofIndustrialPr operty.Itis,howevernot asignatorytotheLisbonAgreementfortheProtectionofAppellationsofOriginandTheir WIPO/GEO/SFO/03/8 page 9

InternationalRegistrationwhichhas23signatorycountries.TheWIPOadministersthe systemofinternationalregistrationofmarksundertwotreaties -theMadridAgreementandthe MadridProtocol.Indiaisnotasignatory.Thereisalsothepossibilityofregistrationina groupofcountries.ThisisrelevantintheE.U.wherea“Communityregistration”ispossible attheofficeofthe HarmonizationoftheInternalMarket(OHIM)atAlicante,Spain.

39. IndiaisafoundermemberoftheWorldTradeOrganization(WTO)and Articles22to 24oftheAgreementonTradeRelatedAspectsofIntellectualPropertyRights(TRIPS) relatingtoGeogra phicalIndicationsisofimportanceinthiscontext.India,alongwithseveral otherhascountries,hadtakentheinitiativetopushforthesameprotectiontootherproducts asenvisagedfor“winesandspirits”intheTRIPSagreement.Themainadvantage wouldbe todevelopamultilateralsystemofnotificationandregistrationofallGeographical Indications.Inthisconnection,ajointpapertotheTRIPSCounciloftheWTOhasrecently beensubmitted.TheDohaMinisterialDeclarationunderparagraphs 12&18providesthe mandatefortheissueofprovidingahigherlevelofprotectiontoGeographicalIndicationsto productsotherthan“winesandspirits”tobeaddressedbytheTRIPSCouncil.

WhyGIwhenCTMregistrationexists?

 WhenCTMregistrationisnotacceptedinajurisdictionwhereprotectionissought, e.g.FranceforDarjeeling  WhereGIregistrationisnecessarytoavailforthereciprocitymandateunderEU 2081/92  GivesclearstatustoaGIindicatingadirectlinkwithgeographicorigin  La ckofconsensusbetweencountries,nonGIvisavisproGI –timelost

40. WhyisextensionofprotectionrequiredunderArticle23forproductsotherthanwines andspirits?

 NecessarywherenolegalplatformexiststoregisteraGIoraCTMwhichisaTRIPS obligatione.g.Japan  Withadditionalprotectionitwouldnotbenecessarytoestablishthecredentials/ reputationofaGIbeforefightinginfringementofsimilar“types”,“styles”,“look alikes”.  Additionalprotectionwouldrectifyimbalancecause dbyspecialprotectionofwines andspirits. WIPO/GEO/SFO/03/8 page 10

MajorinitiativesbytheTeaBoard

41. TheTeaBoardhadtakenthefirstmeasurestoprotectDarjeelingasaGeographical Indicationabout15yearsagobydevelopinga“Darjeeling”logo.Thelogowascreate din 1983andregisteredin1986invariousjurisdictionsincludingUK,USA,Canada,Japan,and EgyptandsomeEuropeancountriesasaTrademark/CertificationTradeMark.

42. TheTeaBoardhasbeenactiveinthisareaagainfrom1998onwards.TheT eaBoard starteditsprotectionexercisewithregistrationoftheDarjeelinglogocreatedin1983,and thenwentontoseekingprotectionofthewordDarjeelingasaGeographicalIndicationinthe postTRIPSscenario.

43. TheTeaBoardhasobtained“home protection”byregisteringaDarjeelinglogoand alsotheword“Darjeeling”asaCertificationTradeMarkundertheIndianTradeand MerchandiseMarksAct,1958.Theregistrationhasbeengrantedagainsttwoapplicationsof theTeaBoard:“DarjeelingLog o”inclass30inthenameofTeaBoard,KolkataunderNo. 532240filedonOctober9,1986andfor“Darjeeling“wordinclass30inthenameofTea Board,KolkataundertheNo.831599filedonDecember10,1998.

44. SinceFebruary2000,anextremelyimp ortantstepwasthestatutorilycompulsory systemofcertifyingtheauthenticityoftheDarjeelingteabeingexportedwhichwasputin placeundertheprovisionsofaFederalIndianActknownastheTeaAct,1953.Thesystem envisagesalldealersinDarje elingteatocompulsorilyenterintoaLicenseAgreementwith theTeaBoardIndiaagainstanannualLicenseFee.Thetermsandconditionsofthe Agreementprovidethatthelicenseeswouldfurnishinformationrelatingtoproductionof Darjeelingtea,manufactureandsaleofsuchteathroughauctionorotherwise.TheTeaBoard isthusabletocomputeandcompilethetotalvolumeofDarjeelingteaproducedandsoldfor thesameperiod.Noblendingwithteasofotheroriginispermitted.Underthisprocess ,171 companiesdealingwithDarjeelingteahaveregisteredwiththeTeaBoard.Outof171,74are producercompaniesand97aretrader/exportercompanies.CertificatesofOriginarethen issuedforexportconsignments,whicharegivenundertheTea(Mar ketingandDistribution) ControlOrder,2000,readwiththeTeaAct,1953.Dataisenteredfromthegardeninvoices (thefirstpointofmovementoutsidethefactory)intoadatabase,andexportofeach consignmentofDarjeelingteaisauthenticatedbyiss ueoftheCertificatesofOriginby crosscheckingthedetails.Thisensuresthesale -chainintegrityofDarjeelingteauntil consignmentsleavetheshoresofIndia.TheCustomsauthoritiesinIndiahave,bycircular, instructedallCustomscheckpointstocheckforCertificatesofOriginaccompanying DarjeelingTeaconsignmentsandnotallowtheexportofanyteaas“Darjeeling”withoutthis certificate. WIPO/GEO/SFO/03/8 page 11

45. TeaBoardhassoughtthesupportofalloverseasbuyers,sellersandTeaCouncilsand AssociationsinsomuchastheyshouldinsistonCertificatesofOrigintoaccompanyall exportconsignmentsofDarjeelingtea.Overseasimportersarethusensuredof100% Darjeelingteaintheirconsignments.

46. Initiativewastakentonotonlyregisterthelogo( ortorenewtheregistrationwhen required)butalsotoregistertheword“Darjeeling”.Arecentsignificantdevelopmentisthat theUKTradeRegistryhasawardedregistrationoftheDarjeelingwordundertheTrade MarksAct1994ofGreatBritainandNort hernIrelandasofMarch30,1998underNo 2162741signedAugust3,2001.InOctober2002theUSacceptedTeaBoard’sapplication forregistrationofDarjeelingasaCTM.TheRegistrationincludesfilingofregulations. Theseregulationsfileddefineparametersforusageandasystemofgovernancetoprotectand trackinfringements.Thesystembeginsatthelevelofproduction,primarymarketingandat thepointofexportwithproductiondatacominginandissuanceofCertificatesofOrigin. Overseas,Darjeelingteasasexportedagainstcertificatesoforiginistradedbyauthorized usersofthelogo/wordandperiodicdataismadeavailableinaccordancewiththetermsofthe licenceagreement.Thissystemenablestrackingofareasofinfringement.Theprocedureto becomealicenceehasbeenmadeassimpleaspossible.Theapplicanthastoexecutea licenseagreement,toagreetoabidebyasetofregulationsandpaytheannuallicencefee.He hastosubmitabi-annualreturnonthevolumeandquantit yofteasold,declarehisstockand maintainan“adequate”systemofcontrol.Hehastoagreeforverificationandinspectionfor maintenanceofstandardsprescribed.

47. TeaBoardsince1998,hashiredtheservicesofCompumark,aninternationalWatch AgencythatkeepsTeaBoardinformedofallattemptstoregistertheword“Darjeeling” worldwide.Pursuanttothewatchagencybeingappointed,severalinstancesofattempted registrationshavebeenfound.Someofthesehavebeenchallengedthroughoppositionsand cancellationsandsomethroughnegotiations. 48. Marksopposedincludethoserelatingtodiversegoodsandservicessuchasclothing, lingerie,telecommunicationandinternetservices,,cocoa,etc… 49. Ofthefifteeninstances,fivehavebeensuccessfullyconcludedincountriessuchas Japan,SriLanka,Russia,etc...Threeoppositionswereunsuccessfulandsevenarestill pendingdecision. 50. TheIndianGeographicalIndicationofGoods(Registration&Protection)Act1999isa speci ficActcoveringtheregistrationandprotectionofGeographicalIndications.TheRules relatingtothisActhaveonlyrecentlybeennotifiedin2002andtheRegistryhasnotyet becomefunctional.TheTeaBoardanditslawyershavekeptreadytheapplic ationand regulationsfortheGIregistrationandwouldfilethesameassoonastheprocessisinitiated bytheconcernedRegistry.

CostofProtection

51. Inthelastfouryears,TeaBoardhasspentapprox.Rs94,00,000/-(US$200,000/-) – (Rs47/-to a$)onlegalandregistrationexpenses,costsofhiringaninternationalwatch agencyandfightinginfringementsinoverseasjurisdictions.Thisdoesnotaccountfor administrativeexpensesincludingmanpowerworkingonthejobinTeaBoard,costofset ting upmonitoringmechanisms,softwaredevelopmentcostsetc.ItisnotpossibleforeveryGI rightholdertoincursuchexpensesforprotection. WIPO/GEO/SFO/03/8 page 12

52. ThepresentpositionofinternationalregistrationofDarjeelingandDarjeelinglogois giveninthech artbelow.

No. Country Natureand Registration Validity subjectmatter No.anddate. ofRegistration 1. Canada Certification 0903697 Validuntilvoluntarily Mark abandonedor expungedpursuantto acourtorder. 2. Egypt TradeMark 103072 April,2009 3. International CollectiveMark 528696 September,2007. Registration– Germany,Austria, Spain,France, Portugal,Italy, Switzerlandand formerYugoslavia. 4 Beneluxregistration CollectiveMark 444511 March2007 –Belgium, Netherlands, Luxembourg 5. India Certification 532240dated October9,2007 Markfor 9.10.1986 DARJEELING logo 6. India Certification 831599dated December10,2005 Markfor 10.12.1998 DARJEELING (word) 7. Japan TradeMarkfor 2153713 July,2007 the DARJEELING logo 8. U.K. Ce rtification 1307518 April,2008 Markforthe datedApril Darjeelinglogo 16,1997 9. U.K. Certification 2162741 March30,2008 Markfor datedMarch Darjeeling 30.1998 (word). 10. U.S.A. Certification 1632726 January,2007 Mark datedJanuary Darjeelinglogo 7,1988 11. U.S.A. Certification 2685923 October1,2012 TradeMarkfor datedOctober Darjeelingword 1,2002. perse. 12 Russia Darjeelinglogo Pendingapplication WIPO/GEO/SFO/03/8 page 13

Darjeelingword datedApril1999. Wordrecently acceptedfor registration.

Majorinitiativesrequired

TRIPSAgreement

53. TheissueofextensionofahigherlevelofprotectiontoGeographicalIndicationsto productsotherthan“winesandspirits”isbeingaddressedbytheTRIPSCounciloftheWTO inaccordancewiththemandate providedbytheDohaMinisterialDeclarationunder paragraphs12&18.Asacountry,Indiahadtakentheinitiative,alongwithothercountries, topushforthesameprotectionasobtainedfor“winesandspirits”andhasrecentlysubmitted ajointpapertotheTRIPSCouncil.Thisagendaneedstobeactivelypursued.

54. Thereisalsoaneedtoexaminethepossibilitiesofferedbyotheragreementsthat provideinternationalregistrationsuchastheLisbonAgreement.

Internationalassistanceandhelpfr om“bestpractices”

55. Sinceregistrationhasalreadybeenobtainedindifferentcountries,thereisneedto obtainthehelpofInternationalOrganizationssuchasWIPOandtobuildupapartnership withotherproducers’organizationsandbodiestoobtai nassistanceontheadministrative proceduresfollowedbythemsinceclearlythenextstepswouldhavetobetakeninthemajor consumingcountriessuchasGermany,Japan,theU.K.andtheU.S.A.

Promotionmeasures

56. ThereisaneedtopromoteDarjee lingTeaanditsprotectionwhereithasbeen registeredunderrespectivelegalsystemsandlawsandtoincreaseconsumerawarenessasto whatDarjeelingteasignifies.TheTeaBoardisplanningtolaunchmediacampaignsinmajor consumingcountriesbegin ningwithGermany.

NegotiationswithmajorDarjeelingbuyersandpackers/blenders

57. Thisisanon-goingexercisetoensurethattheinterestsoftheproducersandthe consumersareprotectedwhileatthesametimenotalienatingthebuyer.TheTeaBo ardisof theviewthatapartnershipwiththebuyersinthemajorconsumingcountriessuchas Germany,JapanandtheU.K.wouldbetheonlylong-termsolutiontotheproblemofpossible “passingoff”. Legalmeasures&efforts WIPO/GEO/SFO/03/8 page 14

58. TeaBoardshouldcontinue,atthesametime,tostronglyopposeattemptsatindividual registrationincaseofprivatelabels(orincorporatedisclaimersasdeemedfit)ormisusein specificoverseasjurisdictions.

ORI GI N

59. TeaBoardhasjoinedtheInternationalGeographic alIndicationsNetwork,formed jointlybyGIfriendlycountries,andisinfavourofsuchaneffort.Infactintermsof initiativesrequiredbytheBoard,thiswouldhelpinternationalnetworkingandunderstanding of“bestpractices”invariouscountries .

ExtensionofprotectiontootherIndianIPRswithrespecttoTea

60. TeaBoardandtheMinistryofCommerce,GovernmentofIndiahasbeenactiveinthe areaofIntellectualPropertyRightsprotectionforNilgiri,AssamandIndiaTea. DevelopmentsinthisareaincluderegistrationofthesaidIPRsinthefollowingjurisdictions.

DetailsofregistrationofAssam/NilgiriMarksandIndiaTea/Assam/NilgiriLogosinIndia andothercountries.

Sl. Property Jurisdiction. Law. Status. N o. 1. LadyTeaPiker India IndianCopyrightAct ValidRegistration Logo 2. LadyTea Egypt TradeMarkLawsof ValidRegistration PickerLogo Egypt 3. LadyTea Russia RussianTradeMark Pendingapplicationdt PickerLogo Laws Sept1999 4. LadyTea Poland PolishTr adeMark ValidRegistration PickerLogo Laws 5. LadyTea U.K. U.K.TradeMarkLaws ValidRegistrationas PickerLogo CertificationTradeMark (undernewregime). 6. AssamLogo Egypt TradeMarkLawsof Pending Egypt Registration 7. AssamLogo U.K. U.K.TradeMarkLaws ValidRegistration 8. AssamLogo Russia RussianTradeMark Pendingapplicationdt Laws Sept1999 9. AssamWord U.K. U.K.TradeMarkLaws ValidRegistration(As CTMundernewregime). 10 AssamWord Russia RussianTradeMark ApplicationdtNov1999 Laws recentlyacceptedfor registration 11 NilgiriLogo Russia RussianTradeMark Pendingapplicationdt . Laws Nov1999 WIPO/GEO/SFO/03/8 page 15

12 NilgiriLogo Egypt TradeMarkLawsof ValidRegistration . Egypt 13 NilgiriWord Russia RussianTradeMark ApplicationdtNov1999 . Laws recentlyacceptedfor registration

IndiaTealogo

61. TheIndiaTealogoisprotectedundercopyrightinIndiaandregisteredaspertheabove chart.TeaBoardhasrecentlyinitiatedactionthatwillfacilitateaIndiaTealogocampaignin Russ ia,ourlargestimporter.ThisisasperstrategylaidoutintheMidTerm(2002-06) ExportStrategyPlanforIndianTeadevelopedbyTeaBoard.Theframeworkunderwhich thelogowillbegrantedisundergoingchangeandamonitoringmechanismisbeingputin placetoensurethatteasbeingexportedunderthelogotoRussiameetaminimumbenchmark quality.Thisminimumbenchmarkedqualityhasbeenascertainedaspartofaseparate exercisewherethemostpopularbrandsintheRussianmarketwereanalyse dandIndiantea alternativesdeveloped.Thisexerciseisgoinghandinhandwithanadvertisingcampaignthat hasbeenexecutedinRussiapromotingIndianTeas,(thefirstphaseofwhichcommencedin October2002)whereIndianteascarryingthelogoare beingearmarked.

62. PackseligibleforthelogowillhavetomeetthefollowingstandardsaspertheLogo Rules:

 For100%Indiantea.  Onlyforvalueadded(packets/teabags/etc).  Pre -packedinIndia(tostartwith).Couldbelaterextendedforoversea spacking.  Teatomeetminimumqualitybenchmarkstandards.Thestandardswillbecreated andphysicallymaintained.

63. Alllogoconsignmentswillbechecked(sampledandtasted)beforebeingexported.

64. TheIndiaTealogoisproposedtoberegistered asaCertificationTradeMarkinIndia.

65. TheAssamandNilgiritealogosaretoberegisteredasGeographicalIndicationsin IndiaoncetheGIActisoperationalisedinIndia.

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