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CS Professional · Intellectual Property Rights - Law and Practice · Geographical Indications

Darjeeling Leaf Traders, not authorised users, bought genuine tea lawfully from an authorised user of a registered GI, repacked it into smaller pouches and sold it. The condition of the tea was not impaired after it was put in the market. Is this infringement?

It is not infringement. Where goods under a registered geographical indication are lawfully acquired by a non-authorised user, further dealings including processing or packaging do not infringe, unless the condition of the goods is impaired after being put in the market. No Registrar consent is required.

  1. AYes, because only authorised users may package the goods
  2. BYes, because repackaging is an act of unfair competition
  3. CNo, because further dealings in lawfully acquired goods including processing or packaging do not infringe unless condition is impaired after being put in the marketCorrect
  4. DNo, but only if the Registrar gives written consent for repackaging

Explanation

Section 22(4) provides that further dealings, including processing or packaging, in lawfully acquired goods are not infringement, except where the condition of the goods is impaired after being put in the market. Here no impairment occurred and no consent is required.

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