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Intellectual Property Rights - Law and Practice · Geographical Indications

Infringement, Offences and Penalties under the GI Act, 1999

Updated 11 October 2026 · Fact-checked

Only a registered geographical indication can be enforced by an infringement action (Section 20). Registration gives the registered proprietor and authorised users the right to relief, and gives the authorised user the exclusive right to use. Falsifying or falsely applying a GI is an offence (Section 39). Civil relief includes injunction, damages or account of profits (Section 67).

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. The Act protects it through registration. Without registration you cannot sue for infringement.

Section 20 says no one can start a proceeding to prevent, or recover damages for, infringement of an unregistered GI. But the Act does not touch the right to sue for passing off. So an unregistered GI holder still has a common law route.

Section 21 sets out what registration gives, if it is valid. The registered proprietor and the authorised user get the right to obtain relief for infringement. The authorised user alone gets the exclusive right to use the GI for the registered goods. That exclusive right is subject to conditions and limitations on the register. Where two authorised users hold identical or nearly resembling GIs, registration alone does not give either one exclusive rights against the other.

The Act also has criminal and penal provisions. Section 38 defines falsifying a GI and falsely applying it to goods. Section 39 punishes these acts. Section 42 penalises false claims that a GI is registered. Section 37A lets the Registrar authorise an adjudicating officer to hold an inquiry and impose penalties after a reasonable opportunity of being heard.

Civil remedies are in Section 67. Validity disputes in an infringement suit go to the High Court by rectification application (Section 58). Section 25 stops a trade mark from being registered where it misleads about the true origin of goods.

Key rules to remember

Bar on suing for unregistered GI
Unregistered GI → no infringement action (s.20(1)); passing off remedy preserved (s.20(2))
State both limbs. Many answers miss s.20(2).
Rights from valid registration
Proprietor + authorised user → right to relief; authorised user → exclusive right to use (s.21(1))
Exclusive use belongs to the authorised user, not the proprietor as such. It is subject to conditions on the register (s.21(2)).
Falsifying a GI
Without assent of authorised user: make the GI or a deceptively similar one; or alter, add to or efface a genuine GI (s.38(1))
In prosecution, the accused must prove the proprietor's assent (s.38(4)).
Falsely applying a GI
Without assent: apply GI or deceptively similar GI to goods or package; or use such a package for other goods (s.38(2))
Both falsifying and false application make a 'false geographical indication' (s.38(3)).
Penalty for falsifying or falsely applying
Imprisonment 6 months to 3 years + fine ₹50,000 to ₹2,00,000 (s.39)
Court may go lower for adequate and special reasons recorded in the judgment. Not punishable if accused proves absence of intent to defraud.
Penalty for false claim of registration
Lower of 0.5% of total sales, turnover or gross receipts (audited accounts) and ₹5,00,000 (s.42(2))
Applies from 1-8-2024 by amendment. Covers claiming registration for an unregistered GI, for goods not covered, or claiming exclusivity the register does not give.
Civil relief
Injunction + damages or account of profits (plaintiff's option) ± delivery-up (s.67(1))
Ex parte or interlocutory orders: discovery, preservation of evidence, restraint on dealing with assets (s.67(2)).
Innocent defendant protection
No damages or profits (except nominal) if unaware and ceased forthwith on learning (s.67(3))
Both conditions must be met. Injunction is still available.

How to solve Infringement, Offences and Penalties questions

Use this order for any problem or theory question on GI infringement and penalties.

  1. 1Check whether the GI is registered. If not, state s.20: no infringement action, but passing off remains.
  2. 2If registered, confirm the registration is valid and note any conditions or limitations on the register (s.21).
  3. 3Identify who is suing: proprietor, authorised user, or both, and what right each holds.
  4. 4Classify the defendant's act: making or altering a GI (falsifying), applying it to goods or packages (falsely applying), false claim of registration, or a trade mark issue.
  5. 5Check assent and intent: the accused bears the burden of proving assent (s.38(4)) and of showing no intent to defraud (s.39).
  6. 6Name the consequence: criminal punishment (s.39), penalty (s.42, adjudication under s.37A), or civil relief (s.67).
  7. 7Check for defences or limits: innocent use (s.67(3)), a validity challenge sent to the High Court (s.58).
  8. 8Conclude clearly in one or two sentences.

Quickest way: Registered? Act? Remedy?

When to use it: Use when you have a short fact-based question and little time.

  1. Registered or not? If not, write s.20 and passing off, then stop.
  2. Match the act to the section: falsify or falsely apply gives ss.38-39; false 'registered' claim gives s.42.
  3. Quote the punishment or relief with its figures.
  4. Add one line on burden of proof or innocent use if the facts hint at it.

Common mistakes in Infringement, Offences and Penalties

  • Saying an unregistered GI holder has no remedy at all.

    Students remember s.20(1) and forget s.20(2).

    Fix: Write that infringement action is barred but passing off remedies remain.

  • Giving the exclusive right to use to the registered proprietor.

    Mixing up proprietor and authorised user.

    Fix: Under s.21(1)(b) the exclusive right to use is given to the authorised user. Both can seek relief for infringement.

  • Mixing up the penalties under s.39 and s.42.

    Both deal with misuse of a GI.

    Fix: s.39 is imprisonment plus fine for falsifying or false application. s.42 is a monetary penalty for false claims of registration.

  • Putting the burden of proving assent on the prosecution.

    Criminal law usually puts the burden on the prosecution.

    Fix: State that under s.38(4) the accused must prove the proprietor's assent.

  • Saying the court can never impose less than six months or ₹50,000.

    Ignoring the proviso to s.39.

    Fix: Add that the court may go lower for adequate and special reasons stated in the judgment.

  • Saying an innocent defendant escapes all relief.

    Overreading s.67(3).

    Fix: Only damages and profits (beyond nominal) are barred, and only if both conditions are met. An injunction can still be granted.

Worked examples

Example 1

Kaveri Handlooms of Salem sells sarees in packaging that carries a name deceptively similar to a registered GI for a handloom saree of Kanchipuram. It has no assent from the authorised users. The GI's authorised users want to act. Advise on the offence and punishment.

Show the solution
  1. Provision: under s.38(2)(a), applying a deceptively similar GI to goods or packages without assent of the authorised user is falsely applying a GI.
  2. Analysis: the facts show a deceptively similar name on the packaging and no assent. The burden of proving assent lies on Kaveri Handlooms (s.38(4)).
  3. Offence: falsely applying a GI is punishable under s.39(b).
  4. Punishment: imprisonment of 6 months to 3 years and fine of ₹50,000 to ₹2,00,000, unless Kaveri proves it acted without intent to defraud. The court may go lower only for adequate and special reasons recorded in the judgment.
  5. Civil route: the proprietor and authorised users may also sue for infringement, seeking an injunction and damages or account of profits (s.67).

Answer: Kaveri Handlooms commits the offence of falsely applying a GI (ss.38(2), 39). Unless it proves absence of intent to defraud, it faces 6 months to 3 years' imprisonment and a fine of ₹50,000 to ₹2,00,000. Civil relief under s.67 is also available.

Example 2

Himalaya Spices Ltd labels its turmeric 'Registered Geographical Indication' although the name is not registered as a GI. It also sues a rival for infringement of that name. Discuss the legal position.

Show the solution
  1. Provision: s.42(1)(a) bars any representation that a GI which is not registered is a registered GI. s.42(3) treats words like 'registered geographical indication' or 'R.G.I.' as referring to registration in the register.
  2. Analysis: the label makes exactly such a representation, so s.42 is contravened.
  3. Consequence: the penalty is the lower of 0.5% of total sales, turnover or gross receipts as per audited accounts, and ₹5,00,000 (s.42(2)). The Registrar may authorise an adjudicating officer to inquire and impose it after a reasonable hearing (s.37A).
  4. Suit: under s.20(1), no proceeding can be brought to prevent or recover damages for infringement of an unregistered GI. The infringement suit fails.
  5. Alternative: s.20(2) preserves passing off, so Himalaya Spices may sue on that basis if it can establish the needed facts.

Answer: Himalaya Spices contravenes s.42 and is liable to a penalty of the lower of 0.5% of audited turnover and ₹5,00,000. Its infringement suit is barred by s.20(1), though a passing off action remains open.

Exam tips

  • Write the section number beside every rule. Examiners look for s.20, 21, 38, 39, 42 and 67 in your answer.
  • Follow the paper's pattern: provision, analysis of the facts, conclusion. Do not skip the conclusion.
  • Learn the figures exactly: 6 months to 3 years, ₹50,000 to ₹2,00,000, and 0.5% or ₹5,00,000 whichever is less.
  • In fact-based questions, check registration first. It decides everything that follows.
  • Mention the High Court for rectification and validity disputes (s.58) when a defendant attacks the plaintiff's registration.

Practice questions from Geographical Indications

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.

Infringement, Offences and Penalties: frequently asked questions

Can I sue for infringement of an unregistered geographical indication?

No. Section 20(1) bars any proceeding to prevent or recover damages for infringement of an unregistered GI. However, s.20(2) keeps the right to sue for passing off.

What is the punishment for falsely applying a geographical indication?

Under s.39, imprisonment of at least six months and up to three years, with a fine of ₹50,000 to ₹2,00,000. The court may impose less for adequate and special reasons recorded in the judgment. The accused escapes if he proves he acted without intent to defraud.

What relief can a court grant in a GI infringement suit?

Section 67 allows an injunction and, at the plaintiff's option, damages or account of profits, with or without delivery-up of infringing labels and indications. Ex parte or interlocutory orders for discovery, preservation of evidence and restraint on dealing with assets are also possible.

Which court decides if a GI registration is valid during an infringement suit?

Under s.58, the validity issue is decided only on a rectification application made to the High Court, not the Registrar.

What is the penalty for falsely claiming a GI is registered?

Section 42(2) provides a penalty equal to the lower of 0.5% of total sales, turnover or gross receipts as per audited accounts, and ₹5,00,000. It was introduced by amendment effective 1-8-2024.