The Indian government has lost its bid to trademark the well-known "basmati" rice variety in New Zealand.
India had argued for exclusive rights over the term due to its historical associations with the country.
In late June, however, the Intellectual Property Office of New Zealand (IPONZ) ruled that the rice variety was not exclusive to India, declaring that rice growers outside of the South Asian nation also used the term in reference to their products.
Rob Garret, national manager of IPONZ, said India's bid for exclusivity fell short of meeting requirements in the Trade Marks Act 2002.
"The trademark is purely descriptive of this type of rice and does not fulfill the criteria for a certification mark in New Zealand," Garret said.
Rebecca Jones, a lawyer specialising in intellectual property at LegalVision, said the ruling would be welcomed by basmati rice producers outside of India.
If the petition hadn't been rejected, rice growers from other nations would be prevented from selling rice under that name in New Zealand, Jones said.
Kashish Gupta, business head of leading basmati importer MG International, warned the decision could hurt ongoing free-trade negotiations between India and New Zealand.
"This is a setback in terms of establishing an FTA between NZ and India," Gupta said. "An FTA with India could mean significant increase in trade both ways, especially given India's rise in trade globally."
Jones said there had been an increase in international disputes regarding rights to geographical indications.
"The ability to control the use of geographical indications is a very valuable right in international trade and is fiercely debated," Jones said.
"This played out relatively recently in the long-running battle between the New Zealand Manuka Honey Appellation Society and the Australian Manuka Honey Association over rights to the term 'mānuka honey' as a geographical indication."
Elsewhere, France's top Champagne producer recently won a trademark protection case in China over the use of the region's name.
India has been involved in disputes over the ownership of basmati rice in other jurisdictions worldwide for more than two decades.
India filed a legal challenge in 2000 in the United States against a Texas company that had been granted a patent on the rice variety.
In 2018, India failed to be granted exclusive rights to the term in the European Union.
In 2022, Intellectual Property Australia dismissed another attempt to trademark the term.
India is currently the world's largest producer of basmati rice, accounting for almost 40 percent of total rice exports globally.
New Zealand has tried to negotiate a free-trade deal with India but have yet to agree on how much agricultural produce would be included.
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