On January 22, 2025, Kosovo signed a Free
Trade Agreement with the EFTA countries consisting of Iceland, Liechtenstein,
Norway, and Switzerland. The agreement addresses several essential areas
impacting trade between the two regions, including the protection and
enforcement of IP rights.
Kosovo has already aligned much of its
legislation with the EU acquis, and in some areas, it provides even higher
standards of IP protection. However, in addition to the requirement to comply
with general international standards, the EFTA Agreement includes a specific
appendix to the EFTA IP Annex that ensures the mutual recognition and
protection of geographical indications, appellations of origin, and indications
of source between Kosovo on the one side and Switzerland and Lichtenstein on
the other side. The recognition and protection of indications of source for
goods and services must have been a central focus during the negotiations,
given Switzerland's strict stance on this issue.
Indications of source for goods may be
confused to geographical indications and appellations or origin; however,
indications of source for goods are not GIs as defined under Article 22.1 of
the TRIPS Agreement nor as defined by Kosovo Law on Geographical Indications
and Appellations of Origin.
According to WIPO, indications of source
only require that the product or service on which the indication of source is
used originate in a certain geographical area without implying the presence of any
quality or reputation. The same difference between a source indicator and a GI
is made in Article 1 of the Appendix to the EFTA IP Annex. For instance, “Swiss”
as an adjective is considered a source indicator. While “Swiss watch” is
protected as a GI given the high quality and reputation of watches being
produced in Switzerland. This means that the name "Switzerland",
designations such as "Swiss", "Swiss Quality", "Made
in Switzerland", "Swiss Made" and other
designations containing Swiss or Switzerland as well as their
translation into other languages can only be used exclusively for products
manufactured in Switzerland and for services supplied in Switzerland.
Given close connections between the two
countries and the significant Kosovar diaspora in Switzerland, many businesses
misleadingly incorporate Swiss and other source indications into their business
names and trademarks. While Kosovo's Law on Trademarks provides some legal
mechanisms for interested parties to challenge the use of indications of source
and other symbols in trademarks, it lacks clear provisions to prevent the
registration of indications of source as part of a trade name or company name.
The EFTA Agreement provides a
comprehensive framework to address the misuse of source indications that could
mislead consumers or provide unfair advantages to businesses. This would not
only promote fairer competition among Kosovo's businesses but also ensure the
protection of the integrity of source-related trademarks. By preventing the
unauthorized use of these source indications in trade names, company names, and
trademarks, Kosovo’s market would become more transparent and trustworthy. As a
result, both businesses and consumers would benefit, as this would enhance
confidence in the origin and quality of the products and services being
offered.
For further information you can contact us at info@ip-legals.com.
