(1)

On 10 November 2020, the Council adopted conclusions on intellectual property policy indicating that it was ready to consider the introduction of a system for specific protection of geographical indications for non-agricultural products, on the basis of a thorough impact assessment of its potential costs and benefits.

(2)

In its Communication of 25 November 2020 entitled ‘Making the most of the EU’s innovative potential – An intellectual property action plan to support the EU’s recovery and resilience’, the Commission committed itself to considering, on the basis of an impact assessment, whether to propose a Union protection system for non-agricultural geographical indications.

(3)

In its Resolution of 11 November 2021 on an intellectual property action plan to support the EU’s recovery and resilience, the European Parliament highlighted the fact that the recognition of geographical indications for non-agricultural products is relevant for the priorities of the Union programmes currently in development, underlining its support for the Commission’s initiative to establish, on the basis of a thorough impact assessment, effective and transparent protection at Union level for geographical indications for non-agricultural products, in order to align with, inter alia, the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications (4) (‘the Geneva Act’) which provides for the possibility of protecting geographical indications for both agricultural and non-agricultural products.

(4)

In order for the Union to be able to exercise fully its exclusive competence in relation to the common commercial policy, and in full compliance with its commitments under the Agreement on Trade-Related Aspects of Intellectual Property Rights (‘TRIPS Agreement’) of the World Trade Organization (WTO), on 26 November 2019, in accordance with Council Decision (EU) 2019/1754 (5), the Union acceded to the Geneva Act, which is administered by the World Intellectual Property Organization (WIPO). The Geneva Act offers a means of obtaining protection for geographical indications, regardless of the nature of the goods to which they apply, and therefore includes craft and industrial products. In order to fully comply with those international obligations, ensuring that there is uniform recognition and protection throughout the Union for geographical indications for craft and industrial products is a priority for the Union.

(5)

For many years, protection of geographical indications has been established at Union level for wines (6) and spirit drinks (7), as well as agricultural products and foodstuffs, including aromatised wines (8). It is appropriate to provide Union protection for geographical indications for products falling outside the scope of existing Union law, while ensuring convergence. That protection should be aimed at encompassing a large variety of craft and industrial products, such as natural stones, woodwork, jewellery, textiles, lace, cutlery, glass, porcelain, and hides and skins. The introduction of such a system for the protection of geographical indications for craft and industrial products would bring benefits for consumers, by improving awareness in relation to the authenticity of products. It would also have a positive economic impact on micro- and small and medium-sized enterprises (MSMEs) by strengthening competitiveness, and it would have a general positive impact on employment, development and tourism in rural and less-developed regions. Furthermore, such a system would also facilitate access to third-country markets through trade agreements with the Union and would achieve the full potential of geographical indications for craft and industrial products.

(6)

Several Member States have national systems for the protection of geographical indications for craft and industrial products. Those systems differ in terms of the scope of protection, administration and fees, and do not offer protection beyond the national territory. Other Member States do not provide for the protection of geographical indications for craft and industrial products at national level. That fragmented and complex landscape of various protection systems at Member State level might result in increased costs and legal uncertainty for producers and be a disincentive to invest in traditional crafts in the Union. The existence of a harmonised Union protection system is essential for creating the legal certainty necessary for all stakeholders, and for preventing infringements of intellectual property rights in relation to craft and industrial products, thereby allowing the Union to better protect its interests, including at international level.

(7)

Making products which are strongly linked to a specific geographical area often depends on local know-how and is often based on the use of local production methods that are rooted in the cultural and social heritage of the home region of such products. Efficient intellectual property protection has the potential to contribute to increased profitability and attractiveness for traditional craft professions. Specific protection of geographical indications is recognised so as to safeguard and develop cultural heritage in the agricultural and craft and industrial sectors. Therefore, efficient procedures should be established for the registration at Union level of geographical indications for craft and industrial products, which take into account local and regional specificities. The system for the protection of geographical indications for craft and industrial products provided for in this Regulation should ensure that production and marketing traditions are maintained and enhanced.

(8)

Uniform protection throughout the Union for intellectual property rights related to geographical indications can create incentives for the production of quality products, contribute to the fight against counterfeiting, ensure the wide availability of quality products for consumers and contribute to the creation of valuable and sustainable jobs, including in rural and less-developed regions, which would help counter depopulation trends. In particular, in view of the potential of such protection to contribute to the creation of sustainable and highly skilled jobs in rural and less-developed regions, producers should aim at creating a substantial proportion of the value of the product designated by a geographical indication within the defined geographical area. The requirements that a given quality, reputation or other characteristic of a product is to be essentially attributable to its geographical origin and that the product is to originate in a defined geographical area, as established in this Regulation, reinforce the understanding that a substantial proportion of the value of the product designated by the geographical indication is to be created inside the given geographical area. Those requirements should ensure that only products with a strong link to the geographical area can benefit from the protection provided for in this Regulation.

(9)

It is therefore necessary to ensure fair competition for producers of craft and industrial products in the internal market; to ensure that reliable information pertaining to such products is available to consumers; to safeguard and develop cultural heritage and traditional know-how; to ensure that geographical indications for craft and industrial products are registered efficiently, at both Union and international level; to provide for effective controls and enforcement in relation to geographical indications for craft and industrial products throughout the internal market, including in electronic commerce; and to establish a link with the international registration and protection system based on the Geneva Act.

(10)

The tasks assigned by this Regulation to Member State authorities, the Commission and the European Union Intellectual Property Office established by Regulation (EU) 2017/1001 of the European Parliament and of the Council (9) (‘the Office’) could require the processing of personal data, in particular where it is necessary to identify applicants in procedures for registration, amendment of the product specification or cancellation of the registration, opponents, or beneficiaries of a transitional period granted by way of derogation from the protection of a registered geographical indication. Processing of such personal data is therefore necessary for the performance of a task carried out in the public interest. Any processing and making public of personal data received in the course of the procedures under this Regulation, for example for the purposes of registration, including opposition, amendment of the product specification, cancellation of the registration, controls and the granting of a transitional period, should respect fundamental rights, including the right to respect for private and family life and the right to protection of personal data under Articles 7 and 8 of the Charter of Fundamental Rights of the European Union (‘the Charter’). In that context, Regulation (EU) 2016/679 of the European Parliament and of the Council (10) and Directive 2002/58/EC of the European Parliament and of the Council (11) place certain obligations on Member States, while Regulation (EU) 2018/1725 of the European Parliament and of the Council (12) places certain obligations on the Commission and the Office. Where the Commission and the Office jointly determine the purposes and means of the data processing, they should be considered joint controllers.

(11)

Geographical indications for craft and industrial products which have a given quality, reputation or other characteristic linked to their place of production, confer a collective right that can be exercised by all eligible producers in a defined geographical area that are willing to adhere to a product specification, in accordance with this Regulation. Producers acting collectively have more market power than individual producers and can make use of synergies when managing their geographical indications. Geographical indications reward producers for their efforts to produce a diverse range of quality products. Applications for registration of geographical indications should therefore be submitted by producer groups.

(12)

In certain geographical areas there might only be one producer willing to submit an application for the registration of a name as a geographical indication. Therefore, it should also be possible for a single producer to be considered an applicant. However, a single producer should not be allowed to define the geographical area by reference to its own land or workshop. The geographical area should always refer to a particular part of a territory and not to private property boundaries.

(13)

It should also be possible for a local or regional authority designated by a Member State or a private entity designated by a Member State to be an applicant. In such cases, the application should state the reasons for such designation.

(14)

In addition, a local or regional entity of the Member State from where the respective producer group or single producer originates should be allowed to provide assistance to that producer group or single producer in the preparation of the application and in the first phase of the registration procedure. The assistance could include advice and the sharing of documents, contacts and information.

(15)

The system for the protection of geographical indications for craft and industrial products laid down in this Regulation is aimed at enabling consumers to make more informed purchasing choices and, in this context, labelling and advertising help consumers to identify quality products on the market correctly. Intellectual property rights related to geographical indications help operators and companies to valorise their intangible assets. To avoid creating unfair competition and to uphold the internal market, any producer, including a third-country producer, should be able to use a registered geographical indication and to market products designated by such a geographical indication throughout the Union, including in electronic commerce, provided that the product concerned complies with the corresponding product specification and that the producer is subject to controls.

(16)

A name of a product should be eligible for protection as a geographical indication if the product complies with three cumulative requirements: the product should be rooted in or originate in a specific place, region or country; a given quality, the reputation or other characteristic of the product should be essentially attributable to its geographical origin; and at least one of the production steps should take place in that geographical area. To fulfil those requirements, it needs to be demonstrated that the geographical origin is an essential factor for the given quality, reputation or other characteristic of the product. Those requirements are in line with the requirements for geographical indications as set out in the Geneva Act and in the Union legislation on the protection of geographical indications for agricultural products, foodstuffs, wines and spirit drinks. However, products that are contrary to public policy should not be the subject of a protected geographical indication. The need to apply that public policy exception should be assessed on a case-by-case basis, and the exception should be applied in accordance with the Treaty on the Functioning of the European Union (TFEU) and the relevant case law of the Court of Justice of the European Union.

(17)

The production step or production steps indicated in the product specification are those which confer a given quality, reputation or other characteristic on the product. Human or natural factors, or a combination of those factors, determine if a production step is relevant for it to be included in the product specification. Products primarily produced outside the given geographical area and only transported there for packaging or for a production step that could be carried out elsewhere without entailing a significant difference in the given quality, reputation or other characteristic of the product, should not qualify for protection. That principle would make it possible to prevent low-quality products without unique characteristics and produced almost entirely outside the given geographical area from being sold as products designated by a geographical indication.

(18)

MSMEs often have limited resources to deal with administrative tasks. The competent authority of the Member State from where the applicant originates should endeavour to assist, at the request of the applicant, in the preparation of the single document provided for in this Regulation, in line with its administrative practice. Where a Member State decides to use the direct registration procedure provided for in this Regulation ('direct registration procedure’), the Office, in close cooperation with the single point of contact of the Member State concerned, should endeavour to provide assistance with the single document. Any assistance provided by the authorities or the Office should be without prejudice to the applicant remaining responsible for the single document.

(19)

To obtain protection as geographical indications, names should be registered at Union level only. The standard procedure for the registration of a geographical indication under this Regulation should comprise two phases. Member States should be responsible for the first phase (‘national phase’) and the Office should be responsible for the second phase (‘Union phase’). Where a Member State has been granted a derogation from that standard procedure, it should be possible for an applicant from that Member State to submit an application directly to the Office through the direct registration procedure. The protection granted under this Regulation upon registration should be equally available to geographical indications for products originating in third countries (‘third-country geographical indications’) that fulfil the corresponding requirements and that are protected in the third country of origin. The Office should carry out the corresponding procedures for third-country geographical indications.

(20)

Member States should provide for efficient, predictable and expeditious administrative procedures. Information about those procedures, including any applicable deadlines and the overall length of the procedures, should be publicly available. The Member States, the Commission and the Office should cooperate within the Advisory Board, established pursuant to this Regulation (‘the Advisory Board’), to share best practices with a view to promoting the efficiency of those procedures.

(21)

The procedures for registration, including opposition, amendment of the product specification, cancellation of the registration and appeal in respect of geographical indications originating in the Union should be carried out by the Member States and the Office and those procedures should fulfil transparency requirements. The Member States and the Office respectively should be responsible for the distinct phases of those procedures. Member States should be responsible for the national phase, which consists of receiving the application from the applicant, examining it, managing the national opposition procedure and, following the positive completion of the national phase, submitting the application to the Office to launch the Union phase. Member States should establish the detailed procedural arrangements for the national phase. Those arrangements should include consultations between the applicant and any national opponents, as well as the submission by the applicant of a report on the outcome of those consultations, and on any modifications made to the application. Moreover, the admissibility of the opposition and the reasons for refusing registration in the national phase should be aligned with those in the Union phase. The Office should be responsible for examining applications in the Union phase, managing the opposition procedure and granting or refusing registration. The Office should also carry out the corresponding procedures for third-country geographical indications.

(22)

The Office should encourage parties to make use of alternative dispute resolution, such as mediation, with a view to reaching a friendly settlement. To that end, the Office should offer the parties the opportunity to make use of those services in the procedures available at Union level. The Office should provide those services itself, but the parties should also have the possibility of making use of other mediation services.

(23)

In order to facilitate the management by competent authorities of applications, it should be possible for two or more Member States to cooperate in the national phase of the procedures, including with regard to examination, national opposition, submission of applications to the Office, amendment of the product specification and cancellation of the registration; and to decide that one of them is to manage the procedures on behalf of the other Member State or Member States concerned. In those cases, those Member States should, without delay, inform the Commission accordingly and provide information on the main parameters of the cooperation.

(24)

Under certain circumstances, it should be possible for Member States to obtain a derogation from the obligation to designate a national competent authority to be responsible for the national phase of the procedures for registration, including national opposition, amendment of the product specification and cancellation of the registration. That derogation should take into account the fact that certain Member States do not have a specific national system for the protection of geographical indications for craft and industrial products, that the local interest in those Member States to protect geographical indications is minimal, and that, under those circumstances, it would not be justified to oblige them to set up all the infrastructure needed for such a system. It would be more efficient and cost-effective to provide for an alternative path for producer groups from those Member States to protect their products, namely a direct registration procedure with the Office. That alternative would also yield cost advantages for Member States.

(25)

The Commission should, after examining the information provided by a Member State, adopt a decision on the request for a derogation by that Member State allowing it to make use of the direct registration procedure. When examining the request, the Commission should assess all relevant circumstances, such as the number of existing protected names of products, the number of potentially interested producers and producer groups in the Member State concerned, the size of the population of the Member State concerned, the volume of sales, the manufacturing capacities and the markets for the products in question, and other information that the Member State considers to be relevant as evidence of a low level of interest at national level. It should be possible for the Commission to also use, for example, information gathered via a public consultation, a market survey or analysis, or letters from relevant professional chambers or from any other relevant official instances, to take a decision. The Commission should retain the right to amend or to rescind a decision allowing a Member State to make use of the direct registration procedure, where conditions cease to be met by the Member State concerned. This, for example, would be the case if the number of direct applications submitted by applicants from that Member State were to exceed the original estimate by that Member State in a recurrent manner over time.

(26)

Pursuant to such derogation, procedures for registration, amendment of the product specification and cancellation of the registration should be managed directly by the Office. In that regard, the Office should receive assistance from the administrative authorities of the Member State concerned when needed, through an appointed single point of contact, as regards, in particular, the examination of the application. The single point of contact should have the necessary expertise and local knowledge on geographical indications. In order to assist the Office, the single point of contact should be allowed to consult experts with product- or sector-specific knowledge.

(27)

The application of the direct registration procedure should not exempt Member States from the obligation to designate a competent authority for carrying out controls and to take the necessary action to enforce the rights set out in this Regulation.

(28)

To ensure efficient and consistent decision-making as regards applications, the competent authority of a Member State should inform the Office without undue delay of any proceedings before a national court or another body concerning an application submitted by that competent authority to the Office, and of the final outcome of such proceedings. For the same reason, the competent authority should keep the Office informed of any national administrative and judicial proceedings against the decision of the competent authority that could affect the registration of a geographical indication.

(29)

As from the date of the submission of an application by a Member State to the Office, Member States should be able to grant temporary national protection to a geographical indication prior to the completion of the Union phase, provided that the internal market or the Union’s trade policy are not affected. Temporary national protection should not be granted in the event of direct registration.

(30)

To allow operators whose interests are affected by the registration of a geographical indication to continue to use the registered name for a limited period of time, a specific derogation for the use of such a name for a transitional period should be granted by the Office. Such a transitional period could also be allowed in order to overcome temporary difficulties, with the long-term objective of ensuring that all producers comply with the product specification. Without prejudice to the rules governing conflicts between geographical indications and trade marks, it should be possible to continue to use names that would otherwise contravene the protection of a geographical indication, under certain conditions and for a transitional period.

(31)

The Commission should, in certain specific cases, be able to take over from the Office the power to decide on individual applications, on requests for amendment of the product specification or on requests for cancellation. Any Member State or the Office should be able to request that the Commission exercise that prerogative. The Commission should also be able to act on its own initiative. The Office should, in any event, remain responsible for the examination of the file and the opposition, and, based on technical considerations, should prepare a draft implementing act for the Commission.

(32)

For the proper functioning of the internal market, it is important that producers and other operators concerned, as well as authorities and consumers, have quick and easy access to relevant information concerning geographical indications.

(33)

To avoid fragmentation of the internal market and to ensure transparency and uniformity across the Union, it is necessary to establish an electronic Union register of geographical indications for craft and industrial products (‘the Union register’), which should be easily accessible to the public in a machine-readable format. The Union register should be established and maintained by the Office and the personnel for its operation should be provided by the Office. The possibility of using existing databases should be considered in order to avoid creating an unnecessary administrative burden.

(34)

The Union negotiates international agreements, including those concerning the protection of geographical indications, with its trade partners. Protection of geographical indications for craft and industrial products in the Union can also stem from such agreements, irrespective of the international registration provided for under the Geneva Act and of the registration system set out in this Regulation. It should be possible to enter in the Union register geographical indications protected in the Union by virtue of an international registration under the Geneva Act or under international agreements with Union trade partners, in order to facilitate the provision of information to the public, to increase transparency for the benefit of consumers and, in particular, to ensure protection and control of the use to which those geographical indications are put. In such cases, the respective names should be entered in the Union register as protected geographical indications.

(35)

Any party adversely affected by a decision of the Office should have the right of appeal before the Boards of Appeal of the Office (‘the Boards of Appeal’). Decisions of the Boards of Appeal should, in turn, be amenable to actions before the General Court, which has jurisdiction to annul or to alter the contested decision.

(36)

An Advisory Board composed of experts from Member States and the Commission should be established to provide the necessary knowledge and expertise concerning certain products, sectors and local circumstances that could influence the outcome of the procedures under this Regulation. In order to obtain the specific technical knowledge necessary for the examination of individual applications at any stage of the procedures for registration, including opposition, appeal or other procedures, the Geographical Indications Division of the Office or the Boards of Appeal, on their own initiative or at the request of the Commission, should have the possibility of consulting the Advisory Board. That consultation, where necessary, should also include a general opinion on assessing quality criteria, establishing the reputation of a product, determining the generic nature of a name, and assessing the risk of confusing consumers. The opinion of the Advisory Board should not be binding. The Advisory Board should invite, where appropriate, experts in the product category concerned, including representatives of regions and academia. The procedure for appointing the experts and the operation of the Advisory Board should be specified in the rules of procedure of the Advisory Board, adopted by the Management Board.

(37)

Protection should be granted to geographical indications entered in the Union register, to ensure that they are used fairly and in order to prevent practices liable to mislead consumers, in particular as regards comparable products. To establish whether products are comparable to a product protected by a geographical indication, account should be taken of all relevant factors. Those factors should include: whether the products have common objective characteristics, such as the production method, physical appearance or use of the same raw material; under which circumstances the products are utilised from the point of view of the relevant market segment; whether the products are frequently distributed through the same channels; and whether they are subject to similar marketing rules.

(38)

In order to strengthen the protection of geographical indications for craft and industrial products and to combat counterfeiting effectively, the protection under this Regulation should also apply to domain names on the internet. It is also important to have due regard to the TRIPS Agreement, and in particular Articles 22 and 23 thereof, and to the General Agreement on Tariffs and Trade, which was concluded, on behalf of the Union, by virtue of Council Decision 94/800/EC (13), including Article V of that Agreement on the freedom of transit. Within that legal framework, to combat counterfeiting more effectively, such protection should also apply with regard to goods entering the customs territory of the Union without being released for free circulation, and placed under special customs procedures such as those relating to transit, storage, specific use or processing.

(39)

It should be ensured that the use of a geographical indication in the name of a manufactured product that contains or incorporates, as a part or a component, the product designated by the geographical indication is made in accordance with fair commercial practices and does not exploit, weaken, dilute, or is not detrimental to, the reputation of the geographical indication. The consent of the producer group or the individual producer of the product designated by the geographical indication should be required for such use.

(40)

Generic terms that are similar to, or form part of, a name or term that is protected by a geographical indication should retain their generic status.

(41)

Homonymous names (‘homonyms’) are names that are spelt or pronounced in the same way, but refer to different geographical areas. A name which is wholly or partly homonymous with a geographical indication already registered or applied for, should not be registered, unless certain circumstances justify its protection, considering the need for equal treatment of producers and the need for consumers not to be misled as to the true geographical origin of the product. Homonyms that are liable to mislead consumers as to the true identity or geographical origin of the product should not be registered as a geographical indication.

(42)

While trade marks and geographical indications differ in nature and purpose, the relationship between them should be clarified in relation to criteria for the rejection of trade mark applications, the invalidation of trade marks and the coexistence of trade marks and geographical indications. The protection of geographical indications needs to be balanced against the protection of trade marks with a reputation and of well-known marks, in particular in light of the fundamental right to property as set out in Article 17 of the Charter, as well as the obligations resulting from international law. When assessing the relationship between a geographical indication and a trade mark, any continuity of the protection of a geographical indication established by registration or usage in a Member State, where the geographical indication has become subject to Union protection in accordance with this Regulation, and any priority claimed in relation to a trade mark application, should be taken into account.

(43)

Producer groups play an essential role in the application process for the registration of geographical indications, as well as in procedures for amendment of the product specification and for cancellation of the registration. They should be equipped with the necessary means to identify and market better the specific characteristics of their products. The role of producer groups should therefore be specified.

(44)

Country-code top-level domain name registries established in the Union offering alternative dispute resolution procedures to settle disputes relating to the registration of domain names should ensure that such procedures also cover geographical indications. Following an appropriate alternative dispute resolution procedure or judicial procedure, it should be possible for country-code top-level domain name registries established in the Union to revoke or transfer a domain name registered under a country-code top-level domain to the relevant producer group, where the domain name registration contravenes the protection of a geographical indication, where the domain name is being used in bad faith, or where the domain name has been registered by its holder without that holder having a right to or a legitimate interest in the geographical indication.

(45)

The Commission should evaluate the feasibility of establishing an information and alert system against the abusive use of craft and industrial geographical indications within the domain name system, and submit to the European Parliament and to the Council a report on its main findings. Based on the outcome of that evaluation, the Commission should, where necessary, present a legislative proposal in order to establish such a system.

(46)

As the Union system for the protection of geographical indications for craft and industrial products as provided for in this Regulation is new, it is important to raise awareness about this initiative among consumers, producers, especially MSMEs, and public authorities at local, regional, national and international level. To that end, the Member States, the Commission, the Office and the relevant stakeholders should be encouraged to carry out promotional activities on a regular basis to raise awareness.

(47)

The Union symbol, indication and abbreviation identifying registered geographical indications, and the rights therein pertaining to the Union, should be protected in the Union as well as in third countries, with the aim of ensuring that they are used on genuine products and that consumers are not misled as to the characteristics of products.

(48)

The use of the Union symbol, indication and abbreviation on the packaging of craft and industrial products designated by a geographical indication should be recommended, also on online sales websites, in order to make those products, and the guarantees attached to them, better known to consumers and to allow for easier identification of those products on the market, thereby facilitating checks. The use of the Union symbol, indication and abbreviation should remain voluntary for third-country geographical indications.

(49)

For the sake of clarity for consumers and to maximise coherence with regard to Union legislation for the protection of geographical indications for agricultural products, foodstuffs, wines and spirit drinks, the Union symbol used on the packaging of craft and industrial products designated by a geographical indication should be identical to that established under Commission Delegated Regulation (EU) No 664/2014 (14) and used on the packaging of agricultural products and foodstuffs, wines and spirit drinks designated by a geographical indication.

(50)

The added value of geographical indications is based on consumer trust. Such trust can only be well-founded if the registration of geographical indications is accompanied by effective and efficient verification and control mechanisms. Consumers should be able to expect that any geographical indication is covered by robust verification and control systems, regardless of whether the products originate in the Union or a third country.

(51)

In order to ensure that there is consumer trust in the specific characteristics of craft and industrial products designated by a geographical indication, producers should be subject to a system based on a producer’s self-declaration that verifies compliance with the product specification before and after the product is placed on the market. For the purposes of controls, each Member State should designate competent authorities for the verification of compliance and monitoring. It should be possible to have one competent authority designated for the national phase and a different competent authority designated for the controls, should a Member State so decide. The respective competent authority should be allowed to delegate certain control tasks to product certification bodies or natural persons.

(52)

The self-declaration should be submitted by the producer to the competent authority responsible for verifying compliance with the product specification. To demonstrate continuous compliance, such self-declaration should be submitted every three years. Producers should be required to submit an updated self-declaration immediately when there is an amendment to the product specification of a kind that has an effect on the product concerned. Verification based on self-declaration should not prevent producers from having compliance of their products with the product specification verified by third parties. It should be possible for such third-party verification to supplement a self-declaration, but not to replace it.

(53)

The self-declaration should provide the competent authority with all necessary information regarding the product, in order for the authority to check its compliance with the product specification. To ensure that the information provided in the self-declaration is comprehensive, a harmonised structure for such declarations should be set out. The producer should take full responsibility for ensuring that the information provided in the self-declaration is complete, consistent and accurate, and should be able to provide, without affecting protection of know-how and trade secrets, the necessary evidence to allow for the verification of that information.

(54)

Upon receipt of the self-declaration, the competent authority should conduct an examination of the self-declaration that includes at least a check of the completeness and consistency of the self-declaration. Obvious inconsistencies should be clarified and missing information should be requested from the producer. Where the competent authority is satisfied that the information provided in the self-declaration is complete and consistent and it has no other reservations concerning compliance, the competent authority should issue, or renew, an official certificate of authorisation to produce the product designated by the geographical indication.

(55)

To ensure compliance with the product specification and to check the accuracy of the information provided in the self-declaration, the competent authority should, with appropriate frequency, perform conformity checks in the market, including in electronic commerce, based on a risk analysis and taking into account the risk of non-compliance, including fraudulent or deceptive practices.

(56)

In the event of non-compliance with the product specification, the competent authority should take appropriate measures to ensure that the producers concerned remedy the situation and to prevent further non-compliance.

(57)

As an alternative to the verification procedure based on self-declaration, Member States should be allowed to provide for a verification procedure based on verification of compliance by a competent authority or a designated third party. Such verification procedure should include controls of compliance with the product specification both before and after the product has been placed on the market. The competent authority should be allowed to delegate, where necessary, to product certification bodies or natural persons certain control tasks related to checking the geographical origin, or the production process, of the product concerned.

(58)

European standards (EN standards) developed by the European Committee for Standardization (CEN) and international standards developed by the International Organization for Standardization (ISO) should be used for the accreditation of product certification bodies as well as by those bodies for their operations. The accreditation of those bodies should take place in accordance with Regulation (EC) No 765/2008 of the European Parliament and of the Council (15). Product certification bodies established outside the Union should demonstrate that they comply with Union or internationally recognised standards by means of a certificate issued by a body that is a recognised signatory of a multilateral recognition agreement under the auspices of the International Accreditation Forum (IAF) or a member of the International Laboratory Accreditation Cooperation (ILAC). Natural persons should have the expertise, equipment, infrastructure and resources required to perform the control tasks delegated to them. They should be suitably qualified and experienced, act impartially and be free from any conflict of interest as regards the performance of the control tasks delegated to them.

(59)

Information on competent authorities, and on product certification bodies and natural persons to which control tasks have been delegated, should be made public by Member States and the Office to ensure transparency and to allow interested parties to contact them.

(60)

Monitoring the use of geographical indications in the market is important to prevent fraudulent and deceptive practices, thus ensuring that the producers of products designated by a geographical indication are properly rewarded for the added value of their products bearing a geographical indication and that persons infringing the rights conferred by a geographical indication are prevented from selling non-compliant products. Therefore, Member States should designate competent authorities to monitor the market in order to detect any misuse of geographical indications, and to carry out controls based on a risk analysis. In the event of a detected misuse of a geographical indication, the relevant competent authority should take appropriate administrative and judicial steps to prevent or stop the use of names of products or services that contravene the protection of a registered geographical indication, where such products are produced or marketed, or such services are provided or marketed, in their territory. It should be possible for those authorities to be the same as the authorities designated for the verification of compliance with the product specification. It should be possible for such monitoring to be undertaken by authorities carrying out product controls or controls in the market in another context, for example customs controls, market surveillance or law enforcement.

(61)

The measures, procedures and remedies set out in Directive 2004/48/EC of the European Parliament and of the Council (16) are applicable to any infringement of intellectual property rights, including rights related to geographical indications. In addition, Regulation (EU) No 608/2013 of the European Parliament and of the Council (17) sets out the conditions and procedures for action by the customs authorities where goods suspected of infringing an intellectual property right, including a right related to geographical indications, are, or should have been, subject to customs supervision or customs controls within the customs territory of the Union. Likewise, Regulation (EU) No 386/2012 of the European Parliament and of the Council (18) sets out tasks and activities of the Office related to the enforcement of intellectual property rights, including fostering cooperation with and between relevant Member State authorities.

(62)

For the proper functioning of the internal market, it is important that producers can quickly and easily demonstrate that they are authorised to use a name that is protected as a geographical indication, for example in the context of customs controls or market inspections, or at the request of business partners or consumers. To that end, they should use an official certificate of authorisation to produce the product designated by a geographical indication put at their disposal.

(63)

Since the control system laid down in this Regulation follows a public-private approach, producers themselves should also contribute to the protection of geographical indications. They should perform compliance checks to verify the compliance of the product with the product specification, accompanied, as applicable, by internal compliance checks managed and organised by the relevant producer group. In addition, producers should be encouraged to support public authorities in monitoring the use of geographical indications in the market. Producers should also be encouraged to notify to the competent authorities any cases of non-compliance or possible infringements.

(64)

In order to strengthen the protection of geographical indications for craft and industrial products and to combat counterfeiting more effectively, the protection under this Regulation should apply to both the offline and online environment, including domain names on the internet. Intermediary services, in particular online platforms, are increasingly being used for the sale of products, including products designated by a geographical indication. In this regard, information related to the advertising, promotion and sale of goods that contravenes the protection of geographical indications provided for in this Regulation should be considered illegal content within the meaning of Article 3, point (h), of Regulation (EU) 2022/2065 of the European Parliament and of the Council (19) and should be subject to the obligations and measures under that Regulation.

(65)

Member States should provide for effective, proportionate and dissuasive penalties aimed at deterring possible fraudulent behaviour by producers of products designated by a geographical indication, and persons from infringing geographical indications.

(66)

Given that the production steps of a product designated by a geographical indication might take place in more than one Member State, and that products produced in one Member State might be sold in another Member State, administrative assistance and cooperation between Member States should be ensured to allow for efficient and effective controls and enforcement.

(67)

The action of the Union following its accession to the Geneva Act is governed by Regulation (EU) 2019/1753 of the European Parliament and of the Council (20). Certain provisions of that Regulation should be amended to ensure coherence in relation to the establishment of a Union system for the protection of geographical indications for craft and industrial products, in accordance with this Regulation. In this context, the Office should act as the Union’s competent authority in respect of geographical indications for craft and industrial products under the Geneva Act. Provisions of Regulation (EU) 2019/1753 applicable to geographical indications falling outside the scope of the Union law governing the system for the protection of geographical indications for agricultural products should, therefore, be amended so that they are aligned with this Regulation.

(68)

Likewise, to ensure coherence in relation to this Regulation, Regulation (EU) 2017/1001 should be amended. The tasks conferred on the Office under this Regulation as regards the administration and promotion of geographical indications should be added to the list of the tasks of the Office set out in Article 151 of Regulation (EU) 2017/1001.

(69)

For the tasks conferred on the Office under this Regulation, the languages of the Office should be all the official languages of the Union. In respect of applications, requests for amendment of the product specification and requests for cancellation submitted by third-country applicants, the Office should accept certified translations, into one of the official languages of the Union, of documents and information. The Office should have the possibility of using, where appropriate, verified machine translations.

(70)

Member States should have the possibility of charging a fee to cover the costs of managing the system for the protection of geographical indications for craft and industrial products. In that context, Member States should take into account the situation of MSMEs. The Office should not charge a fee for applications submitted by competent authorities of the Member States after the completion of the national phase of the registration procedure. However, the Office should charge a fee for the direct registration procedure, considering that that procedure generates more work for the Office than the processing of applications that have already been examined in the national phase. The Office should also charge fees for procedures under this Regulation concerning third-country geographical indications and for appeals.

(71)

Control and verification fees or charges should cover, but not exceed, the costs, including overhead costs, incurred by the competent authorities that perform controls. Overhead costs could include the costs of the organisation and support necessary for planning and carrying out controls, and where applicable, the use of product certification bodies or natural persons. No fee should be charged for the submission of the self-declaration and its processing.

(72)

The necessary set-up costs of the IT system that is envisaged under this Regulation – namely the digital system for the electronic submission of applications to the Office, the Union register, and the digital portal – should be financed from the Office’s accumulated budgetary surplus. The running costs arising from the tasks entrusted to the Office by this Regulation should be covered by the operational budget of the Office.

(73)

The digital system for the electronic submission of applications to the Office should include a front and back office and allow for smooth connection, interfacing with and integration to IT systems of national authorities, the Union register and the WIPO IT system for the administration of the Geneva Act. The Union register should be similar in appearance and have at least the same functionalities as the Union register of geographical indications for wines, foodstuffs and agricultural products.

(74)

In order to amend or supplement certain non-essential elements of this Regulation, the power to adopt acts, in accordance with Article 290 TFEU, should be delegated to the Commission in respect of: (i) specifying further the requirements in relation to documentation accompanying the application; (ii) listing additional items for the accompanying documentation that is to be submitted; (iii) specifying the criteria for the direct registration procedure; (iv) setting out the procedures and conditions applicable to the preparation and submission of applications to the Office; (v) specifying the content of the notice of appeal and the procedure for the submission and the examination of an appeal; (vi) specifying the content and the form of the decisions of the Boards of Appeal; and (vii) modifying the information and requirements in relation to the standard form for the self-declaration. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (21). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(75)

In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission as regards: (i) laying down rules that limit the information contained in the product specification, where such a limitation is necessary to avoid excessively voluminous applications; (ii) laying down rules on the form of the product specification; (iii) specifying the format and online presentation of the accompanying documentation; (iv) laying down detailed rules on the procedures for the preparation and submission of direct applications; (v) laying down detailed rules on the procedures for and the form and presentation of applications to the Office, including in relation to applications concerning more than one national territory; (vi) laying down rules on the submission of the opposition and specifying the format and the online presentation of the reasoned statement of opposition; (vii) laying down rules on the submission of the notice of comments and specifying its format and online presentation; (viii) decisions and procedures in cases where the Commission takes over from the Office the power to decide on an application; (ix) laying down detailed rules on, the procedure for, and form and presentation of a request for a Union amendment to the product specification and on the procedure for, and form of, standard amendments and the communication of such amendments to the Office; (x) laying down detailed rules on the procedures for and form of cancellation, as well as on the presentation of the requests for cancellation; (xi) setting out the IT architecture for and presentation of the Union register; (xii) specifying the format and online presentation of extracts from the Union register; (xiii) specifying the technical characteristics of the Union symbol and indication as well as the rules of their use on the products marketed under a registered geographical indication, including rules concerning the linguistic versions to be used; (xiv) specifying the nature and the type of the information to be exchanged and the methods for exchanging information for the purposes of controls; and (xv) determining the amounts of the fees to be charged by the Office and the ways in which they are to be paid or, in the case of the fee for appeals before the Boards of Appeal, reimbursed. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (22).

(76)

The current protection of geographical indications at national level is based on various regulatory approaches. Having two parallel systems at Union and national levels carries the risk of confusing consumers and producers. The replacement of national systems for the protection of geographical indications for craft and industrial products by a Union regulatory framework would create legal certainty, reduce the administrative burden for national authorities, ensure fair competition between the producers of products designated by such geographical indications as well as predictable and relatively low costs, and enhance the credibility of the products in consumers’ eyes. To that end, the national systems for the protection of geographical indications for craft and industrial products should cease to exist twelve months after the date of application of this Regulation. It should be possible to extend in time the protection granted under those national systems until the conclusion of the registration of the national geographical indications identified by the Member States concerned. Some Member States, in particular those that are party to the Lisbon Agreement for the Protection of Appellations of Origin and their International Registration, have registered, under that Agreement, geographical indications for craft and industrial products. They have also granted protection, under that Agreement, to third-country geographical indications. Regulation (EU) 2019/1753 should therefore be amended to allow for the continued protection of those geographical indications.

(77)

Given that a period of time is required to ensure that the framework for the proper functioning of this Regulation is in place to create a Union and international system for the protection of geographical indications for craft and industrial products, this Regulation should start to apply following the expiry of a reasonable period after its adoption. However, certain provisions in relation to the derogation from the national phase, the Advisory Board, the setting up of the IT system and the delegation of powers to the Commission should apply from the entry into force of this Regulation.

(78)

This Regulation respects the fundamental rights and observes the principles recognised in particular by the Charter. Therefore, this Regulation should be interpreted and applied in accordance with those rights and principles, including the right to the protection of personal data, the freedom to conduct a business and the right to property, including intellectual property.

(79)

Since the objective of this Regulation, namely the creation of a Union system for the protection of geographical indications for craft and industrial products, cannot be sufficiently achieved by the Member States, but can rather, by reason of the scale and effects of this Regulation, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity, as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

(80)

The European Data Protection Supervisor was consulted in accordance with Article 42(1) of Regulation (EU) 2018/1725 and delivered an opinion on 2 June 2022 (23),