EU-New Zealand trade deal brings Port, Champagne, and Manchego to Wellington
European Council approval of free trade agreement drives changes to New Zealand’s IP laws | Agreement extends protection for EU’s 2,000 wines and 163 food GIs | Copyright and design updates also needed.
The conclusion of a free trade agreement (FTA) between the European Union (EU) and New Zealand “will require changes” to the country’s IP laws, say lawyers.
The agreement holds particular significance for EU food and drink producers, providing protection for distinctive regional products under the Geographical Indications (GIs) status.
While New Zealand's current GIs regime protects only wine and spirits, the FTA extends this protection to nearly 2,000 EU wines and spirits, including Prosecco, Polish Vodka, Rioja, Champagne, and Tokaji.
Additionally, 163 EU food GIs, such as Asiago, Comté, or Queso Manchego cheeses, Istarski pršut ham, Lübecker Marzipan, and Elia Kalamatas olives, will be protected under the FTA.
GI recognition establishes IP rights that aid producers in marketing products, commanding premium prices, and allowing consumers to identify authentic, high-quality items, according to the agreement.
Christopher Young, partner at Minter Ellison Rudd Watts, said that “many of these names (for example ‘feta’, ‘port’, and ‘prosecco’) are commonly used in New Zealand as historically there have not been GI controls around use of these terms”.
However, as part of the agreement, New Zealand businesses will have five to nine years to cease using protected terms on their packaging for more commonly used indications.
“The agreement also includes an exception where users of ‘parmesan’ and ‘gruyere’ may continue to use the terms if they have prior good faith use for at least five years prior to the entry into force of the fair trade agreement,” explained Young.
The EU will commit to recognising New Zealand's 23 GIs related to wine and spirits, with the possibility of including more GIs in the future.
The agreement prohibits illegal sales of imitations, ensures non-genuine GI products cannot use GI terms, and restricts expressions such as 'kind,' 'type,' 'style,' 'imitation,' or similar terms.
The agreement further protects against misleading use of symbols, flags, or images suggesting a false geographical origin.
Copyright changes
Chapter 18 of the agreement discusses the IP implications of the new decision outlining the aim to boost the creation, production, dissemination, and commercialisation of innovative goods and services.
The copyright articles outline exclusive rights for authors, performers, producers of phonograms, and broadcasting organisations.
Provisions include establishing a resale right, collective management of rights, and limitations and exceptions to copyright.
Young emphasised that New Zealand is obligated to introduce an artist resale royalty scheme to enable artists to receive a 5% royalty payment when their artwork is resold on the secondary art market.
This is a requirement of both the EU fair trade agreement and the fair trade agreement between New Zealand and the UK which came into force May 31, 2023.
The Resale Right for Visual Artists Act 2023 will take effect on December 1, 2024.
Additionally, “New Zealand will extend the term of copyright protection by 20 years to a total of 70 years after the death of the author—this change must be made within four years of the fair trade agreement coming into force,” confirmed Young.
Design protections
Articles also explore trademark guidelines, design protections, and the relationship between design protection and copyright.
Provisions cover exceptions, grounds for revocation, and protection of registered designs, including conferring certain rights for holders of unregistered designs for at least three years from the date of public availability.
Young highlights that in New Zealand “unregistered designs are generally protected and enforceable through copyright law”.
The next step will be ratification by New Zealand’s parliament with the agreement likely to be in force in mid-2024.
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