Geographical Indications Law in Paraguay
Geographical Indications Law in Paraguay
1. Concept of Geographical Indications
In Paraguay, Geographical Indications (Indicaciones Geográficas – IG) are a form of industrial property protection used to identify products that originate from a specific geographical area and whose quality, reputation, or characteristics are essentially attributable to that origin.
A GI links:
A product
A specific territory
A distinctive quality or reputation
This protection prevents misuse of regional names and promotes rural development and consumer trust.
2. Legal Framework Governing Geographical Indications in Paraguay
Geographical Indications in Paraguay are regulated primarily by:
Law No. 1294/98 – Trademarks Law
This law incorporates GI protection as part of industrial property rights.
Decree No. 22,686/98
Provides regulatory details on registration and enforcement.
International Commitments
Paraguay complies with international standards under:
The TRIPS Agreement (WTO)
MERCOSUR regulations, which harmonize GI protection across member states
3. Definition of Geographical Indications Under Paraguayan Law
Paraguayan law recognizes two distinct categories:
A. Geographical Indications (IG)
A sign identifying a product as originating in a place where a given quality, reputation, or other characteristic is attributable to its geographic origin.
B. Designations of Origin (Denominaciones de Origen – DO)
A stronger form of protection requiring that:
The product’s qualities are exclusively or essentially due to the geographic environment, including natural and human factors.
All stages of production occur in the defined geographical area.
4. Products Eligible for GI Protection
Paraguayan law allows GI protection for:
Agricultural products (e.g., yerba mate, sugarcane)
Foodstuffs
Wines and spirits
Handicrafts
Natural products
The law does not limit GIs to food, unlike some jurisdictions.
5. Registration System
Competent Authority
The National Directorate of Intellectual Property (DINAPI) is responsible for:
Receiving applications
Examining compliance
Registering Geographical Indications
Who May Apply
Producers’ associations
Cooperatives
Public institutions
Groups representing producers in the defined region
Individual producers cannot normally register a GI alone unless acting on behalf of a collective.
6. Registration Requirements
An application must include:
Name of the geographical indication
Delimitation of the geographical area
Description of the product
Specific qualities or reputation linked to the origin
Production methods
Control and verification mechanisms
The authority examines:
Authenticity
Territorial connection
Risk of confusion with existing trademarks
7. Rights Conferred by GI Registration
Once registered, the GI grants:
Exclusive right of use to authorized producers in the area
Protection against:
Imitation
Misuse
False or misleading labeling
Right to prevent use of expressions such as:
“Style”
“Type”
“Imitation”
when the product does not originate from the region
8. Limitations and Exceptions
Prior Trademarks
If a trademark was registered in good faith before GI recognition, it may continue to exist.
Generic Terms
Names that have become generic cannot be protected as GIs.
Good-Faith Use
Certain descriptive uses may be permitted if they do not mislead consumers.
9. Enforcement and Sanctions
Civil Remedies
Injunctions
Damages
Seizure of infringing goods
Administrative Sanctions
Fines
Cancellation of permits
Market withdrawal of infringing products
Criminal Liability
In cases of intentional deception, criminal sanctions may apply under general fraud laws.
10. Relationship with MERCOSUR and International Law
Paraguay recognizes:
GIs registered in other MERCOSUR states
International GI protections consistent with WTO obligations
This facilitates regional mutual recognition and strengthens export competitiveness.
11. Economic and Social Importance of GI Protection in Paraguay
Geographical Indications contribute to:
Rural development
Preservation of traditional knowledge
Increased product value
Export differentiation
Consumer protection
GIs also prevent unfair competition and misuse of regional reputations.
12. Key Legal Characteristics (Summary)
| Aspect | Paraguay GI Law |
|---|---|
| Legal nature | Collective industrial property right |
| Registration | Mandatory |
| Authority | DINAPI |
| Protected products | Broad (agricultural, food, crafts) |
| Rights | Exclusive regional use |
| Duration | Indefinite (subject to compliance) |
Conclusion
Paraguay’s Geographical Indications law provides robust protection aligned with international standards. It emphasizes:
Territorial authenticity
Collective ownership
Consumer transparency
By legally protecting regional names, Paraguay strengthens its cultural heritage, supports local economies, and enhances market trust.
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