With the ink well and truly dry on the New Zealand–European Union Free Trade Agreement (Agreement), it’s clear that cheese and other products are affected by brand-new rules for geographical indications (GIs). From Kaitaia to Otago, local producers now face a high-stakes game: use certain protected European names and you could end up in a legal pickle.
GIs: More than just a name
GIs are about more than place; they denote quality, reputation, and authenticity. For years, New Zealand has protected GIs for wines and spirits under the Geographical Indications (Wine and Spirits) Registration Act 2006. However, under the Agreement, the scope has expanded dramatically, blanketing cheeses, meats, olives and other foodstuffs in a new legal regime, and aligning New Zealand’s obligations to cover hundreds of EU GIs.
With this new legislation, Kiwi-products cannot use names like “Feta”, “Parma Ham”, or “Prosecco” unless they genuinely hail from the corresponding European region and are made in accordance with the requisite product standards.
Legal bite: What happens if you infringe?
The Agreement mandates robust legal consequences for any producer caught misusing protected GIs. The new framework prohibits not only infringement where a GI is used on the relevant goods themselves, but also in any marketing or promotional material relevant to the sale of the goods and covers where a name even hints at a protected product (sorry "Champagne-like" but that just won't do!).
Legal consequences of infringing activities include:
- MPI investigation: the issuing of a notice of direction after a complaint by an interested person to MPI and investigation by a GI officer. A notice of direction may require the user to take certain action to remedy the infringement including ceasing use of the GI, withdrawing the infringing goods from sale and removing related advertising and promotional material.
- Injunctions: requiring the user to immediately cease use of the protected name.
- Damages: users may have to pay monetary compensation if their use causes loss to the GI rights holder.
- Orders for disposal: expect non-genuine ‘Feta’ or ‘Champagne’ labelled products to be pulled from shelves and destroyed.
- Customs seizures: New Zealand Customs Service may block infringing goods from being imported or exported if there is a border protection notice in place.
These remedies echo existing enforcement tools under the Trade Marks Act 2002 and the Fair Trading Act 1986, but how they will work in practice is still taking shape.
Producers: Get your house in order
Now is the time for New Zealand producers to take stock. “Grandfathering” exceptions may let some existing users continue, but these are limited to established lists and tightly prescribed. Ignorance or inertia around the new rules could prove costly.
The message is clear: the price of non-compliance isn’t merely a slap on the wrist, but potentially penalties, enforcement action and public fallout.
Take home
As New Zealand enters this new era of trade with the EU, producers must ensure their brands, packaging and labelling are GI-compliant. Legal advice is highly recommended and we can offer guidance both to rights holders seeking redress for infringement of their GI rights and to producers seeking to understand their obligations and how best to avoid infringing the GI rights of others. Because when it comes to GIs, to brie or not to brie isn’t just a question, it’s a matter of law.
This article was prepared by Sophie Thoreau (special counsel) and Amy Irvine (solicitor).
