Canada’s Intellectual Property Firm

No More “Canadian Champagne”?

In June, 2003, Canada and the European Union announced that they had entered into an agreement that will commit the parties into protecting each others’ geographical indications for wines and spirits. The agreement has yet to be ratified by the European Council and the Canadian Parliament, and it is not known when ratification will occur.  However, the main effect of the agreement appears to be to phase out the generic use in Canada of a number of European geographical indications for wines. While the terms of the agreement and how they will dovetail with Canada’s existing laws regarding the protection of geographical indications, which are incorporated into the Canadian Trademarks Act, remains unclear, the intent appears to be that Canadian wine makers will cease use of certain French geographical indications in three stages. In the first stage, the use by Canadians of Bordeaux, Chianti, Claret, Madeira, Malaga, Marsala, Medoc, and Mosel will cease as soon as the agreement comes into force. Since these indications are not presently used by Canadian wine makers, this particular provision is of no more than academic interest. The use of Bourgogne/Burgundy, Rhin/Rhine and Sauterne/Sauternes will cease by December 31, 2008. Since the use of these geographical indications by Canadians is today virtually unknown, this provision is also of no great significance. Finally, the use of Chablis, Champagne, Port/Porto and Sherry will cease after December 31, 2013. These geographical indications are currently in widespread use by Canadians as part of generic wine terms like “Canadian Chablis” and “Canadian Champagne”. This therefore appears to be the principal real effect of the agreement.

The agreement also creates a mechanism for the protection of certain Canadian geographical indications in Europe, and provides for certain reciprocal agreements regarding production and quality standards for wines and spirits.

The Canadian wine industry has been moving toward its own system of protected geographical indications, together with a voluntary quality control system, and its use of foreign geographical indications has been diminishing over time. This agreement will impose a legal framework over these existing trends.

Presumably, the Canadian legislation putting the agreement into effect will have the effect of prohibiting the sale in Canada of wines from other countries that use the European geographical indications as generic or semi-generic terms, for example, California Burgundy or New York Champagne.

A. David Morrow, Ottawa