ALERT 3rd Quarter 2015 Chairman's Message Heads Up: U.S. Market Under Target If you're a U.S. company - or a company that does business in the United States - and think that this is one place where common food names remain safe and sound, think again. We already know about restrictions in EU trade deals that are impacting U.S. food exporters - think of restrictions on generic terms that have sprung from EU deals with Costa Rica, Canada and Korea, among others. And of course the EU would be happy to insert similar restrictions in the Transatlantic Trade and Investment Partnership (TTIP), though to date the U.S. government has emphatically pushed back on these attempts. But there is other evidence that the battle over generic food terms has reached U.S. soil. European GI holders particularly those in Italy - have made it clear that they want to take away what we all have worked so hard to develop in the U.S. and elsewhere: great products with a great variety of uses. Their goal is to obtain a larger share of the U.S. market for cheeses, meats, wines and specialty products that bear generic names of foods that originated in Europe - such as "asiago" and "bologna". We must vigorously fight for ownership of these generic names to show once and for all that the U.S. will not hesitate in defending our markets and our rights. One avenue some GI holders are taking is through aggressive trademark claims. Last year the U.S. Patent & Trademark Office (USPTO) rejected a certification mark for "asiago" that Italian asiago GI holders had filed in order to seek exclusive use of that term in the U.S. market. Nevertheless, some CCFN members and other U.S. companies reportedly received threatening letters from the Italian GI holders' organization suggesting that U.S asiago producers are at risk of being sued. One U.S. company has for several years had a trademark for "Cello Asiago", but the Italian Asiago Consortium is working to strip that away from [Continued next page] Support and Successes WIPO Feels Push-Back from Flawed Lisbon Agreement: U.S. Congress Chastises WIPO on Lisbon Agreement - CCFN commended U.S. Congressional leaders in July for urging fixes to a treaty that could limit the use of generic food names in export markets and impact the sales of cheeses, meats, wines and a wide range of other products. Recent revisions to the Lisbon Agreement for the Protection of Appellations of Origin expand it to also encompass geographical indications (GI) protections and likely impose greater limitations on certain common food names by granting their use exclusively to a specific region or country. "Because of the flawed process and outcome, we believe that the result of the Agreement cannot be viewed as a legitimate international agreement," a bi-partisan group of Congressional committee leaders wrote in a strongly worded letter to the Director of the World Intellectual Property Organization (WIPO). [Continued next page] Page 2 [Chairman’s Message, continued…] them and simultaneously arguing via its own certification mark application that no one else should be able to use the name "asiago". Some U.S. cheese companies recently received temporary, negative replies to their trademark application requests from the USPTO in light of continued Italian efforts to register "asiago" for their sole use. Separately, multiple U.S. companies have also received notices threatening action if they don't stop labeling their cheeses as "gruyere", even though this, too, has long been a generic term in the United States. CCFN encourages any U.S. companies receiving such letters to have their legal experts review the situation, and to contact CCFN to alert us and to coordinate a response. The EU GI interests appear to be using legal threats to try to convince generic users of various common names to voluntarily abandon use of these terms. Meanwhile, expect to see TV ads, social media and other publicity break soon in the United States for the "Made in Italy" campaign, in which the Italian Trade Commission decries the "piracy" of the Italian heritage in food products. The vast majority of the products decried as "fake Italian" employ legal names, terms, colors and images that are in common usage, and that celebrate the Italian heritage that has naturally spread throughout the world as Italians immigrated to the U.S. and other countries. The most common "fake" products cited by the Italians include cheeses - especially asiago and parmesan, boxed and fresh pasta, pasta sauces, canned tomatoes and preserved tomatoes, olive oil, vinegars, meats and cold cuts. To address their concerns, some Italian officials are calling for actions that include stronger international GI protections, as well as legal remedies through use of trademark and unfair competition laws, which could potentially be wielded against products that don't even possess GIs. But most examples cited so far seem well within the bounds of standard and lawful marketing techniques! Let's be clear: These efforts to claim generic terms are not about widespread abuse of GIs or trademarks, but rather an attempt to eliminate competition and gain market share. The battle for generic names has landed in the U.S., with more drama sure to come. U.S. food manufacturers would be wise to pay attention! [Support and Successes, continued…] "We are very concerned that parties to this agreement will implement it in a manner inconsistent with existing international trade obligations, including under the World Trade Organization's Agreement on TradeRelated Aspects of International Property Rights." The letter urged WIPO to "take appropriate steps to rectify the funding situation and to implement the agreement in a fair and balanced way that adequately protects the interests of trademark owners and users of generic names." "We know the agreement is aimed at limiting global competition," said CCFN Executive Director Jaime Castaneda, "and we applaud these Congressional leaders for speaking up and seeking a fair deal that protects the interests of food producers and consumers around the world." Read more. Lisbon Fall-Out Stalls WIPO Budget Talks - That same week, according to the IP-Watch news service, representatives from the U.S., Korea and other nations raised concerns during a meeting of the WIPO budget committee meeting in July about the practice of combining the budgets of the Lisbon and Madrid systems. The U.S. argued that the Lisbon Agreement program has never paid for itself and is subsidized by other WIPO instruments, even though Lisbon only benefits a small number of WIPO members. The issue clearly surfaced as a result of recent Lisbon revisions regarding GIs, "a divisive issue among WIPO members." The U.S. said it would not be able to agree to the biennial budget until this concern is addressed. Errico Auricchio CCFN Chairman [Continued next page] Page 3 Current Threats and New Restrictions Made in Italy Campaign Comes to the U.S. - The Italian Trade Commission is launching a $25 million campaign in the United States attacking "Italiansounding" products that it claims are misrepresenting their actual non-Italian nature - from pasta sauce to wines. The campaign (www.ItalianMade.com) includes television ads, social media, public relations and trade show participation. The campaign is an outgrowth of an earlier Italian government report fingering products such as Wishbone Italian salad dressing and Chef Boyardee Spaghetti & Meatballs for usurping rightful Italian market share. Through the campaign, the very action of evoking the Italian heritage is attacked by the campaign as somehow illegitimate, drawing the line further away from actual GI protections for unique terms and making clearer that the real driver here is to try to inappropriately discredit the competition. In CCFN's view, the campaign also assumes consumers are very easily misled and unable to read labels. Just as most consumers don't assume all "parmesan" comes from Italy, it seems highly doubtful that most consumers believe all pasta sauce is imported from Italy. The "Made in Italy" campaign has been running in Canada since the beginning of the year. Read more. CCFN Comments on Philippines' New Draft of GI Regulations - CCFN filed comments in June with the Philippine government expressing concern that its latest round of draft GI regulations falls short of adequately protecting common food names. A CCFN representative spoke at a government hearing on the proposed guidelines, pointing out that an unbalanced approach to implementing the regulations would risk negatively impacting trading partners and certain domestic food sectors in the Philippines. Representatives from Australia, Chile and Switzerland also expressed concerns at the hearing that the proposed regulations would inappropriately benefit EU exporters over other suppliers and local companies. CCFN Asks South Africa for Clarification on GIs: In August CCFN filed comments with the Office of the U.S. Trade Representative (USTR) underscoring the importance of having full clarity from South Africa on the scope of protection that nation will grant to [Continued next page] [Support and Successes, continued…] CCFN Members Meet with WIPO Director General Shortly prior to these developments, CCFN members met with the WIPO Director General Francis Gurry on his GI-focused visit to Washington, D.C., to express concerns about problems with the process surrounding adoption of the new Lisbon Agreement revisions on GIs and the resulting outcomes. CCFN also critiqued WIPO's GI-related commentary and events as being biased towards GI holders. "This was a good discussion, and we're hopeful for a more balanced process in future, especially in terms of WIPO activities and communications on these topics," said CCFN Senior Director Shawna Morris. CCFN Thanks U.S. Government CCFN also sent a letter to the Office of the U.S. Trade Representative, Department of Commerce and the State Department in appreciation for the extensive work the U.S. government undertook in connection with the Lisbon Agreement revisions debate. "[T]his battle is one we view as critical," wrote CCFN Executive Director Jaime Castaneda. We remain deeply concerned that the revised Lisbon Agreement will give GI holders an unfair commercial advantage in markets around the world at the expense of common name users such as the many U.S. companies relying on these terms. It is to the credit of the devoted and talented staff at USTR and DOC, operating in concert with the State Department, that the U.S. government recognized this threat and took extensive steps to do everything possible to combat this challenge." [Continued next page] Page 4 [Current Threats and New Restrictions, continued…] [Support and Successes, continued…] certain geographical indications (GIs) as part of its EU trade agreement. CCFN stressed the importance of avoiding the creation of new barriers to trade. Last year, South Africa moved quietly to propose new restrictions on the use of a number of food names in connection with a list of GIs as part of its EU trade deal. CCFN would like the U.S. government to help secure "a clear and final decision" on whether GI restrictions would impact the use of common terms such as "bologna", "gouda" and "parmesan" that form part of a multiword GI or are similar to elements of the GI. CCFN also asked USTR to seek explicit protection of some generic names such as feta, which "has been widely produced in South Africa for decades, making it a pervasively generic term in that country," CCFN notes. CCFN Helps Keep "Greek yogurt" Generic in El Salvador: In July CCFN achieved success in El Salvador on an objection it filed last summer against a company seeking to register a trademark for the name "Greek yogurt". We remain vigilant in monitoring for other such activities in key markets around the globe. Costa Rica Maintains Restrictions - CCFN's appeals on restrictions for using the terms "manchego" and "fontina" have been rejected. This latest news comes on the heels of Costa Rica's decision earlier this year to uphold its decision to block generic use of "parmesan" and "provolone". CCFN continues to evaluate further legal options on these names, as well as ongoing effort to secure generic assurances regarding "mozzarella" and "romano". Items of Interest EU Leaked Talking Points Reflect Continuing Disconnect in GI Discussion - A leaked document laying out EU talking points on the geographical indications (GI) issue for negotiations on the Transatlantic Trade and Investment Partnership (TTIP) reflects a continuing disconnect between EU statements and actions. It also helps demonstrate the effectiveness of CCFN in articulating problems with the EU's attempted encroachment on generic names. For example, in the document the EU once again insists that certain names such as "cheddar", "bologna" and "provolone" are "not protected", yet the EU's actions demonstrate that its list of names and scope of protection is ever-expanding. In the case of "provolone", for example, the EU claims it is generic yet filed legal materials trying to block usage of the term for both local companies in -- and exporters to -- Costa Rica. And who would have predicted that the EU would give Greece the exclusive right to use the term "feta"? That [Continued next page.] APEC Panel Features CCFN Member Jeff Schwager, president of Sartori Foods and CCFN Member, participated on a panel of the Asia-Pacific Economic Cooperation (APEC) organization June 8 in Atlanta, specifically looking at the topic of non-tariff barriers that are labeling issues, including the abuse of geographical indications (GI). Schwager's comments focused on the escalating nature of the problem throughout the APEC region and the need for a measured approach to GI protections in order to avoid running afoul of existing international commitments. CCFN Member Comments on TTIP in Brussels - The U.S. Dairy Export Council (USDEC), a CCFN member and leading funder, spoke during the stakeholders session of the July round of the Transatlantic Trade and Investment Partnership (TTIP) negotiations. A key part of USDEC's comments focused on the importance of preserving rights to use common food names. U.S. and EU negotiators are trying to wrap up the complex TTIP deal in the coming months, with geographical indications cited as currently being one of the stumbling blocks. USDEC pointed out that a continued creep in EU limitations on common names -- both within the EU and in export markets -- is the core factor driving this troubling dynamic. [Continued next page] Page 5 [Support and Successes, continued…] [Items of Interest, continued…] More Great Media Coverage: What's in a name? U.S, EU battle over 'feta' in trade talks - EU Reuters (7/24/15) Reuters notes that negotiators talk of "accelerated progress and hope to thrash out a skeleton agreement on a Transatlantic Trade and Investment Partnership (TTIP) within a year, aiming for a major boost to growth in the advanced Western economies. But geographical indications (GIs), a 1,200-long list ranging from champagne to Parma ham, present a major headache."... "Show me on the map where feta is?" asked one U.S. trade negotiator... "There's nothing wrong with GIs, but is something a true GI or just a method of production?" said CCFN executive director Jaime Castaneda. Ron Buholzer, president of CCFN member Klondike Cheese Co., which makes award-winning feta and muenster cheeses, is also quoted, deeming it outrageous that anyone would claim sole ownership of these names. "This is an economic issue for us, certainly, but it's also personal - it's about what's right and fair," Buholzer said. The article went on to point out that, "The United States says the EU system is unfair because many American producers of traditional products are immigrants from Europe or their descendants, such as the Buholzer family. It also notes that EU members have had doubts [about the system]." Denmark would try to gain exclusive right to use the term "havarti", despite supporting an international Codex standard for the name just a decade ago? That registration of the name Parmigiano Reggiano would be interpreted as preventing the use of the term "parmesan"? Or that the EU would try to monopolize the use of common wine terms such as "classic" or "vintage"? Unfortunately the EU continues to miss the point. The issue is not philosophical opposition to GIs, but the fact that generic terms cannot be owned by the EU and that the EU is consistently pushing the envelope through its GI system and free trade agreements to stamp out more and more commonly used food terms. The scope of protection for EU registrations is often unclear, and the EU routinely seeks trade agreement language that can result in an even broader scope of protection from its trading partners. UnCommon Hero A profile of one of the heroes who protect and promote common food names Ed Townley CEO, Agri-Mark www.agrimark.coop One of the best-known and wellloved cheese names in the United States is "Cabot," a brand that evokes the farm families and rich cheesemaking traditions of Vermont and the rolling rural countryside of the Northeast. While Cabot is best known as award-winning cheddar cheese, the Agri-Mark cooperative also offers a full array of cheeses, butter, yogurt and other dairy products using both the Cabot and McCadam brands. Agri-Mark, which just celebrated its 100-year anniversary in 2013, markets milk from 1,200 dairy farm families in New England and New York and has annual sales of $1.1 billion. Agri-Mark is the first dairy cooperative in the U.S. to gain BCorp Certification. B Corps are certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability and transparency. When it comes to protecting generic terms, high on Cabot's list is its ability to use the common names "cheddar," "muenster" and "Greek yogurt". It has won numerous awards for its high-quality products in all three categories. While so far "cheddar" has not been directly threatened by the [Continued next page] [Continued next page] Page 6 [UnCommon Hero, continued…] European Union's (EU) efforts to over-extend geographical indication protections, Agri-Mark is well aware that the line keeps moving and, for now, no term with roots in Europe can be deemed safe. The name "muenster," which Cabot produces out of its Chateaugay, N.Y., plant, was targeted for new restrictions by the EU in its free trade agreement with Canada, and countries are banned from shipping muenster to the EU. [Support and Successes, continued…] Don't move my cheese - Politico (7/20/15) The article, in the wellread Washington, D.C., publication, captures the debate around GIs and common names and how it's playing out in the Trans-Pacific Partnership (TPP) trade negotiations, where "Washington is pressing for language that would allow countries in the Asia-Pacific deal to reject protections for European regional food names if they could be confused with trademarks or common names." The article reflects the strong U.S. position in line with CCFN's goals, and the ongoing public exposure on our issue. Special Feature: Differences Over GIs Threaten 2016/2017 WIPO Budget Approval Intellectual Property Watch 7/30/15. Extensive analysis of fallout from the controversial WIPO Lisbon Agreement revisions, and the pressure by the U.S. and other nations to effect changes in the WIPO budget concerning Lisbon Agreement activities moving forward. "We've seen how the EU is pursuing ownership of the words 'muenster,' 'parmesan,', 'feta,' 'asiago' and 'havarti', among many other names. At this point there doesn't seem to be a clear line of where they will stop," said Ed Townley, Agri-Mark CEO. "Fortunately, we know the CCFN is working very hard to expose these abuses and push back - that's vitally important for the future of our business here in the U.S. and also for our trade interests. Dairy exports are becoming increasingly important for the entire U.S. dairy industry." Many food names - from "cheddar" to "pizza," originated in Europe, but have long since become generic. "Our hard-working dairy farm families have made millions of dollars in investments in products that everyone knows by these names," said Townley. "We're proud of our cheddar, muenster and other products, and look forward to sharing them for generations to come." Strange But True Gin company loses bid to call its product "Portobello Road" because of wine GI "Porto" - Take a quick glance...could this bottle of "Portobello Road" London gin be confused with a bottle of "port" wine? Apparently so, according to the European Union's trademark office, as recounted in a recent article in the International Trademark Association Bulletin. "Porto" is a type of GI registered for wine. The Institute of Douro and Port Wines opposed the application by the British gin producer seeking to trademark "Portobello Road" for London dry gin. The office ruled that because the applicant's mark contained the word "porto" some consumers may assume the applicant's label is a subdenomination of the appellation of origin. Really? After how many glasses of the beverage, one wonders, would a consumer inadvertently reach for the wrong "porto"? The case is yet another example of the unexpected [Continued next page] Page 7 [Strange But True, continued…] consequences of a geographical indication program that permits such overreach - stunting commerce in this case on a dissimilar product that carries a name very different from the GI itself. The article's authors add, "It will be interesting to see whether this ruling will lead to an increase in oppositions being taken by organisations seeking to protect their PDOs and PGIs." Portobello mushroom growers, watch out! "Adult" Site Goes Too Far with Parmigiano-Reggiano Britain's The Guardian news source reports that the Parmigiano-Reggiano Cheese Consortium is weighing legal action against the website Pornhub, accusing it of "vulgar" use of the cheese in its new ad. Pornhub recently launched its subscription service with a video of a couple shopping at the supermarket. "Why don't we get this aged ParmigianoReggiano ... They say it's the Pornhub Premium of cheeses," a man tells his partner. The ad is aimed at convincing people in the U.S. to subscribe to the company's video service. In an interesting statement to the Guardian, a ParmigianoReggiano consortium spokesman says, "In the advert they've used the term Parmigiano-Reggiano, not the term parmesan which can be used generically in the U.S." Pass It Along! Welcome New CCFN Members! CCFN welcomes the North American Meat Institute (NAMI) and Select Milk Producers, Inc., as new members: NAMI is the leading voice for the North American meat and poultry industry. Formed from the 2015 merger of the American Meat Institute (AMI) and North American Meat Association (NAMA), the institute provides essential member services including legislative, regulatory, scientific, international and public affairs representation. Select Milk Producers, Inc. is a U.S. cooperative of 87 familyowned dairies in Texas, New Mexico, and the Midwest, formed in 1994 and representing innovative, efficient farm operations and high quality milk. Select produces and markets over 6 billion pounds of milk annually. Help spread the word by passing this newsletter on to other companies affected by the attack on common food names! Join Our Mailing List About CCFN The Consortium for Common Food Names (CCFN) is an independent, international non-profit alliance that represents the interests of consumers, farmers, food producers and retailers. We are working to protect worldwide the right to use common food names. For more information: www.CommonFoodNames.com