Economic, Commercial and Intellectual Property Laws · Law relating to Geographical Indications of Goods

Infringement, Offences and Penalties under the Geographical Indications Act

Updated 11 October 2026 · Fact-checked

Only a registered geographical indication can be enforced by an infringement action (Section 20). Section 22 defines infringement by a non-authorised user: misleading origin, unfair competition, or false literal use. Sections 38 and 39 deal with falsifying and applying false GIs. The penalty is 6 months to 3 years and ₹50,000 to ₹2,00,000. Section 50 governs cognizance and police powers.

Understand Infringement, Offences and Penalties

A geographical indication (GI) tells buyers that goods come from a place and carry a quality or reputation linked to it. If anyone could misuse it, genuine producers would lose out and buyers would be cheated. The Act therefore gives two kinds of remedy: civil action for infringement, and criminal action for offences.

Registration is the starting point. Under Section 20, no one can sue to prevent or recover damages for infringement of an unregistered GI. But the Act does not affect an action for passing off goods as the goods of another person.

Infringement (Section 22). A person who is not an authorised user infringes a registered GI in three ways. First, by using it in the designation or presentation of goods so as to suggest they come from a place other than their true origin, in a manner that misleads people about origin. Second, by using it in a way that amounts to unfair competition, including passing off. Third, by using another GI which is literally true as to the place where the goods originate but falsely makes people think the goods come from the place covered by the registered GI.

Unfair competition means any act of competition contrary to honest practices in industrial or commercial matters. It includes creating confusion with a competitor's establishment or goods, false allegations that discredit a competitor, and GIs likely to mislead about nature, manufacturing process, characteristics, suitability or quantity.

Additional protection (Section 22(2) and (3)). The Central Government may notify certain goods or classes of goods for additional protection. For these, a non-authorised user infringes even by using another GI that indicates the true origin, or uses a translation, or adds words such as 'kind', 'style' or 'imitation'. Section 84 separately protects continued use of a notified convention country's GI identifying wines or spirits, if used continuously for at least ten years before 15 April 1994, or in good faith before that date.

Offences. Section 38 explains falsifying a GI and falsely applying it to goods. Section 39 prescribes the punishment. Section 50 decides who can start a prosecution, which court tries it and what the police can do.

Key rules to remember

Unregistered GI: No infringement action for an unregistered GI (s 20(1)); passing off remedy remains (s 20(2)); Registration is needed for an infringement suit, not for passing off.
Infringement of registered GI: Non-authorised user + (misleading origin OR unfair competition/passing off OR literally true but falsely suggests origin) = infringement (s 22(1)); The person must not be an authorised user.
Additional protection: Notified goods (s 22(2)): use even with true origin, translation, or 'kind', 'style', 'imitation' = infringement (s 22(3)); Needs a Central Government notification.
Exception for lawfully acquired goods: Further dealing, including processing or packaging, is not infringement unless the condition of goods is impaired after being put in the market (s 22(4)); Applies where goods were lawfully acquired by a non-authorised user.
Falsifying (s 38(1)): Making the GI or a deceptively similar one without the authorised user's assent; or altering, adding to or effacing a genuine GI; Burden of proving assent lies on the accused (s 38(4)).
Penalty (s 39): Imprisonment: 6 months to 3 years; fine: ₹50,000 to ₹2,00,000; Court may impose less for adequate and special reasons recorded in the judgment. The accused can escape by proving absence of intent to defraud.
Cognizance and trial (s 50): Offences under ss 42, 43, 44: complaint in writing by Registrar or authorised officer. Trial: not below Metropolitan Magistrate or Judicial Magistrate of the first class. Offences under ss 39, 40, 41: cognizable.; Exception: for s 42(1)(b), a Registrar's certificate is enough for cognizance.
Police search and seizure (s 50(4)-(5)): Officer not below Deputy Superintendent of Police; without warrant; must first obtain and follow the Registrar's opinion; interested person may apply for restoration within 15 days; Seized articles go before the Magistrate as soon as practicable.
Five-year limit (s 26(4)): No action on a trade mark's use or registration after 5 years from when its infringing use became known to the registered proprietor or authorised user; Subject to the conditions in the section, including that the GI is not used or registered in bad faith.

How to solve Infringement, Offences and Penalties questions

Use this order for any question on infringement, offences or penalties. It keeps your answer in ICSI style: provision, facts, conclusion.

1Read the facts and decide whether the question is about civil infringement, a criminal offence, or a trade mark conflict.
2Check whether the GI is registered. If not, say Section 20 bars an infringement action but passing off remains available.
3For infringement, test the person against Section 22(1): is the person a non-authorised user, and which limb applies (misleading origin, unfair competition, or literally true but false suggestion)?
4Check whether the goods are notified for additional protection under Section 22(2). If so, apply Section 22(3): true origin, translation or 'kind/style/imitation' also infringes.
5Check exceptions: lawfully acquired goods (s 22(4)), good-faith prior trade marks (s 26(1)), common names (s 26(2)), personal names (s 26(3)), and the five-year limit (s 26(4)).
6For offences, link the act to Section 38 (falsifying or falsely applying), then state the Section 39 punishment and the defence of no intent to defraud.
7Add procedure if asked: complaint by Registrar or authorised officer, trial court level, cognizable offences, police power and Registrar's opinion (s 50).
8End with a clear one-line conclusion.

Quickest way: Four-question check

When to use it: Short-answer or case-study questions when time is tight.

Registered? If not, no infringement action (s 20); mention passing off.
Is the person an authorised user? If yes, there is no infringement.
Which Section 22 limb fits, or is Section 22(3) triggered for notified goods?
If it is criminal, quote Section 39: 6 months to 3 years and ₹50,000 to ₹2,00,000, then add the Section 50 procedure.

Common mistakes in Infringement, Offences and Penalties

Saying an unregistered GI can be enforced by an infringement suit.
Students mix GI law with the general idea of protecting origin.
Fix: Remember Section 20(1) bars it. Mention that passing off remedies are preserved under Section 20(2).
Quoting the wrong punishment, such as a minimum of one year or fine of ₹1,00,000.
Penalty figures are confused with other IP statutes.
Fix: Learn Section 39: 6 months to 3 years, fine ₹50,000 to ₹2,00,000, with the court's power to reduce for adequate and special reasons.
Ignoring the defence of no intent to defraud.
Students read only the punishment part of Section 39.
Fix: State that the accused is punishable unless he proves he acted without intent to defraud. For assent, the burden is on the accused (s 38(4)).
Thinking any police officer can search and seize.
General criminal procedure is assumed.
Fix: Only an officer not below Deputy Superintendent of Police, and only after obtaining and following the Registrar's opinion (s 50(4)).
Applying the 'kind', 'style', 'imitation' rule to all goods.
The rule sounds general.
Fix: It applies to goods notified under Section 22(2). Without notification, test the ordinary Section 22(1) limbs.
Treating a resale of genuine GI goods by a trader as infringement.
Students forget Section 22(4).
Fix: Lawful dealing, including processing or packaging, is not infringement unless the condition of the goods is impaired after being put in the market.

Worked examples

Example 1

Rohan sells ordinary tea in boxes labelled with a registered GI from another region, falsely suggesting the tea comes from that region. He is not an authorised user. Examine his liability under the GI Act, 1999.

Show the solution

Provision: Under Section 22(1)(a), a registered GI is infringed by a non-authorised user who uses it in the designation or presentation of goods suggesting they originate elsewhere than their true origin, in a manner that misleads people as to origin.
Facts: The GI is registered, Rohan is not an authorised user, and the labelling misleads buyers about origin.
Criminal angle: Applying the GI to goods without the authorised user's assent is falsely applying a GI under Section 38(2)(a). Section 39(b) punishes it.
Punishment: Imprisonment of 6 months to 3 years and fine of ₹50,000 to ₹2,00,000, unless Rohan proves he acted without intent to defraud. The burden of proving assent lies on him (s 38(4)).
Conclusion: Rohan infringes the registered GI and is also liable to prosecution.

Answer: Rohan infringes the registered GI under Section 22(1)(a) and commits an offence under Sections 38 and 39, punishable as stated, unless he proves absence of intent to defraud.

Example 2

A police sub-inspector, on suspicion of GI falsification, raids a shop without a warrant and seizes dies and goods. Is the action valid? What can the shop owner do?

Show the solution

Provision: Offences under Sections 39, 40 and 41 are cognizable (s 50(3)).
Who can act: Under Section 50(4), only a police officer not below the rank of Deputy Superintendent of Police or equivalent may search and seize without warrant.
Conditions: The officer must be satisfied that the offence has been, is being or is likely to be committed, and must first obtain the Registrar's opinion and abide by it.
Application: A sub-inspector is below the required rank, so the search and seizure is not valid under this section.
Remedy: Any person with an interest in seized articles may, within fifteen days of seizure, apply to the Judicial Magistrate of the first class or Metropolitan Magistrate for restoration (s 50(5)). The Magistrate decides after hearing the application and the prosecution.
Conclusion: The action is not valid, and the owner can apply for restoration within fifteen days.

Answer: The seizure is not valid because the officer is below Deputy Superintendent of Police rank. The shop owner may apply to the Magistrate for restoration within fifteen days of seizure.

Exam tips

Write the Section number with each limb of infringement. Section 22, 38, 39 and 50 are the core.
Learn the penalty figures exactly: 6 months to 3 years and ₹50,000 to ₹2,00,000.
For case studies, check registration, authorised-user status and notification before concluding.
Use a short ICSI-style structure: provision, application to facts, conclusion.
Connect to related topics only where relevant, such as Section 25 and Section 26 for trade mark conflicts, without drifting into Trade Marks Act details.

Practice questions from Law relating to Geographical Indications of Goods

Infringement, Offences and Penalties in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CS ProfessionalInfringement, Offences and Penalties

Infringement, Offences and Penalties: frequently asked questions

Can I sue for infringement of an unregistered GI?

No. Section 20(1) bars any proceeding to prevent or recover damages for infringement of an unregistered GI. But Section 20(2) preserves action for passing off.

What is the punishment for falsifying a GI?

Section 39 prescribes imprisonment of not less than six months, extending to three years, and a fine of ₹50,000 to ₹2,00,000. The court may impose less for adequate and special reasons recorded in the judgment.

What is special protection for wines and spirits?

Section 84 allows continued and similar use of a notified convention country's GI identifying wines or spirits by a citizen or domiciliary who used it continuously for at least ten years before 15 April 1994, or in good faith before that date. Separately, Section 22(2) and (3) give additional protection to goods notified by the Central Government.

Who can file a complaint for offences under the GI Act?

For offences under Sections 42, 43 and 44, courts take cognizance only on a written complaint by the Registrar or an officer authorised by him in writing. For Section 42(1)(b), a Registrar's certificate is enough.

Which court tries offences under the GI Act?

No court inferior to a Metropolitan Magistrate or Judicial Magistrate of the first class can try an offence under this Act (s 50(2)).