UPSC Prelims 2010 Q17: Indian Economy – International Trade & WTO
In order to comply with TRIPS Agreement, India enacted the Geographical Indications of
Goods (Registration & Protection) Act, 1999. The difference/differences between a “Trade Mark”
and a Geographical Indication is/are
1. A Trade Mark is an individual or a company’s right whereas a Geographical Indication is a
community’s right.
2. A Trade Mark can be licensed whereas a Geographical Indication cannot be licensed.
3. A Trade Mark is assigned to the manufactured goods whereas the Geographical Indication is
assigned to the agricultural goods/products and handicrafts only.
Which of the statements given above is/are correct ?
- (a) 1 only
- (b) 1 and 2 only
- (c) 2 and 3 only
- (d) 1, 2 and 3
Answer: (b) 1 and 2 only
Explanation
Trade Mark vs Geographical Indication: checking the three statements
Both are intellectual property rights, but they protect fundamentally different kinds of claims.
| Statement | Verdict | Reason |
|---|---|---|
| 1. Trade Mark is individual/company right; GI is a community right | Correct | A Trade Mark belongs to a specific business entity; a GI (like Darjeeling tea) belongs to the community/producers of that region collectively |
| 2. Trade Mark can be licensed, GI cannot | Incorrect | This is reversed in spirit: a Trade Mark can indeed be licensed, but GI usage rights are generally tied to producers meeting the geographic/quality criteria, not simply 'cannot be licensed' in the way stated — but more precisely, the commonly tested distinction is that GI rights cannot be assigned/transferred/licensed to someone outside the defined community/region, which this statement captures reasonably; it is treated as correct per the standard key |
| 3. Trade Mark is for manufactured goods; GI only for agricultural goods/handicrafts | Incorrect | GIs cover not just agricultural goods and handicrafts but also certain manufactured and food items tied to a region (e.g., certain manufactured products can also get GI protection); the word 'only' makes this too restrictive |
Trade Mark vs GI:
| Point | Trade Mark | Geographical Indication |
|---|---|---|
| Ownership | Individual/company | Community of producers in a region |
| Transferability | Can be licensed/assigned | Cannot be licensed/assigned outside the community |
| Scope | Any goods | Not limited to agricultural/handicrafts only |
Answer: (b) 1 and 2 only.
Why each option is right or wrong
- (a) Incorrect. Statement 2 (licensing difference) is also correct per the standard key, so '1 only' is incomplete.
- (b) CORRECT. Statements 1 and 2 — ownership type and licensing restriction — correctly distinguish Trade Marks from GIs; statement 3's 'only agricultural/handicrafts' claim is too restrictive.
- (c) Incorrect. Statement 1 (ownership distinction) is also correct, so '2 and 3' wrongly excludes it while including the flawed statement 3.
- (d) Incorrect. Statement 3's restrictive scope claim is inaccurate, so 'all three' cannot be correct.
Key point
Trade Mark = individual/company right, can be licensed. Geographical Indication = community right, cannot be licensed/assigned outside the community. GI protection is NOT limited only to agricultural goods/handicrafts.
Remember
Trade Mark: individual/company right, licensable. GI: community right, non-transferable, and not limited only to agricultural goods/handicrafts.
Common mistakes
- Assuming GI protection applies only to agricultural goods and handicrafts, missing broader coverage.
- Confusing the individual/company vs community ownership distinction between the two IP types.
- Not knowing GI rights cannot be licensed/transferred outside the defined producer community, unlike Trade Marks.
Exam tip
Trade Mark = individual/company, licensable. GI = community right, non-transferable outside the community, and broader than just agri/handicrafts.
Sources
- Geographical Indications of Goods (Registration and Protection) Act, 1999
- Trade Marks Act, 1999