Senate approves bill ratifying Mercosur agreement on the protection of Geographical Indications

Senate approves bill ratifying Mercosur agreement on the protection of Geographical Indications

At the beginning of the month (4/10), the Brazilian Federal Senate approved a draft legislative decree (PDL 165/22) ratifying the agreement signed in May 2019 between the Mercosur member states (Brazil, Argentina, Uruguay and Paraguay), aimed at protecting geographical indications (GIs) originating in the member countries.

A Geographical Indication (GI) is a distinctive sign for collective use, whose functions are to distinguish and signal the geographical origin of a given product or service, when the reputation and recognition of that good or its characteristics are linked to that origin. There are two types of GI provided for in national legislation: the Indication of Origin (IP) and the Denomination of Origin (DO).

Among other points, the approved agreement establishes a mutual commitment to respect each country’s GIs, in accordance with a resolution approved by the Common Market Group (GMC), Mercosur’s main executive body. In addition, the agreement allows the coexistence of two or more GIs on the same product or service, as well as the coexistence of similar GIs from countries outside the bloc.

When talking about the specifics of protection, it is important to highlight other provisions. Firstly, the agreement stipulates that officially recognized GIs cannot be registered as trademarks for similar products or services under national legislation, except in cases where the trademark application was made prior to the GMC resolution, i.e. when there is a prior trademark.

Furthermore, according to Article 5, trademarks that include a GI will not be accepted if their use involves unfair competition practices or could lead consumers to misunderstand the place of origin. The agreement also states that Mercosur members are under no obligation to protect terms of common use as GIs.

Finally, the agreement defines simplified procedures by which Mercosur member states will be able to recognize and protect the geographical indications of other members.

The text of the draft legislative decree and the Mercosur agreement can be accessed via the link: Projeto de Decreto Legislativo nº 165/22