Top EU court backs Greece against Denmark in closure of feta export saga

The European Court of Justice (ECJ) confirmed on Thursday (14 July) that the EU’s protection for Greek feta cheese also applies outside the bloc’s borders, in a ruling that settles a long-standing cheese legal fight between Greece and Denmark.

In the ruling, the Luxembourg-based tribunal concluded that protected foodstuff produced in the EU, even if intended for export to third countries, still has to follow the relevant geographical indications (GIs) protection legislation.

Product names registered with the protected designation of origin (PDO) highlight the strongest links to the place where they are manufactured and are included in the EU system of intellectual property rights, which brings them legal protection against imitation and misuse.

Greece’s white gold feta obtained PDO protection in 2002, meaning that the name ‘feta’ cannot be used for any other cheese that is not produced in some specific areas of the country.

However, some Danish producers kept selling their own feta outside the EU, capitalising on a loophole in the 2011 regulation on geographical indications which did not specify explicitly whether these rules apply to exports.

According to Denmark, the regulation does not prevent or stop the producers on its territory from using the name ‘feta’ if their products are intended to be exported to third countries where the EU has not yet concluded an international agreement guaranteeing the protection of that name.

The system of GIs may also be supported by the bilateral agreements between the EU and third countries, for instance, by introducing the same regulation for them. But there is no legislative framework when it comes to trading with third countries without such agreements.

The feta cheese produced by Denmark differs from the Greek one in the technology and products used during the production process as Greek feta is made from ewe’s and goat’s milk, while the Denmark one is mainly from cow milk.

The Commission, supported by Greece and Cyprus, opened an infringement procedure against Denmark, fearing that this could have set a precedent with the potential of undermining the EU’s entire GI system – which has an estimated sales value of almost €75 billion and represents 15.5% of the total EU agri-food exports.

The EU judges concluded that Denmark’s feta production within the EU territory undermines the objectives of the regulation “even if those products are intended for export to third countries,” adding that such conduct is prohibited from the wording of the regulation as well as from its context.

The use of GIs to designate a product produced in the territory of the EU which does not comply with the applicable product specification “impairs, within the European Union, the intellectual property right constituted by that PDO or PGI, even if that product is intended for export to third countries,” the Court continued.

The system of GIs is intended “to help producers of products linked to a geographical area by securing fair returns for the qualities of their products, by ensuring uniform protection of the names as an intellectual property right in the territory of the European Union, and by providing clear information on the value-adding attributes of the product to consumers”, the Court’s decision stated

However, according to the ECJ, Denmark has not infringed its obligation under the principle of sincere cooperation, namely the failure to prevent or stop Danish producers from using PDO ‘feta’ to designate cheese which does not comply with the applicable product specification.

This clarification serves to clear Denmark of the allegations made by the Commission of weakening the EU’s position in international negotiations aimed at ensuring the protection of the EU quality scheme.

Geographical indications found to double value of agri-food products

Agri-food and drink products whose names are protected by the EU as geographical indications (GIs) offer a “clear economic benefit” for producers in terms of marketing and increased sales, according to a study published by the European Commission on Monday (20 April).

[Edited by Gerardo Fortuna/Zoran Radosavljevic]

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