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(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 (‘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 , 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 and spirit drinks , as well as agricultural products and foodstuffs, including aromatised wines . 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 (‘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 and Directive 2002/58/EC of the European Parliament and of the Council place certain obligations on Member States, while Regulation (EU) 2018/1725 of the European Parliament and of the Council 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.