Novel Decision dealing with infringements against Designations of Origin

In a civil proceedings managed by the attorneys of Berenguer & Pomares, the Audiencia Provincial (Appeal Court) of La Rioja has upheld the entitlement of the Regulatory Council of the Protected Geographical Indication (PGI) “Espárrago de Navarra” to claim damages due to the misuse of the term “Navarra” to distinguish asparagus not covered by said PGI. The Decision nº 299 of September 7, 2012 confirms the rulings of first instance which found the infringement of the PGI, the commission of unfair competition, as well as the invalidity of the trademark used in the infringement (“CORONAS DE NAVARRA”) and the cease of its use. The first instance Decision, though, did not grant damages since it was found that the Regulatory Council did not fulfil the requirements of locus standi provided in art. 33.1 of the Unfair Competition Law.

However, in the appeal Decision, the Audiencia Provincial of La Rioja expressly recognizes the entitlement of the Regulatory Council to claim damages since it complies with the locus standi requirements, given that “it takes active part in the market running the tasks which has been legally entrusted with” and given that “its economic interests are directly damaged or under the risk of the unfair competition acts”; and so granting a € 10.000 compensation for moral damages.

This ruling amends a so far trending case-law and involves a significant improvement on the effective enforcement of the Designations of Origin and the Geographical Indications, which had been deprived of economic compensation in previous cases of infringement due to an incomplete understanding of the functions of the Regulatory Councils. 

Please find in the following link a press release by the Regulatory Council of the PGI “Estpárrago de Navarra”:

http://www.reynogourmet.com/es/noticias/1-noticias/544-la-audiencia-provincial-da-la-razon-a-la-igp-esparrago-de-navarra-y-obliga-a-coronas-de-navarra-a-dejar-de-comercializar-esparragos-de-peru-y-china-bajo-esta-marca