The EU Advocate General Léger proposed this week that the Court should allow the Italian Republic to prohibit the production in Italy of "Parmesan" cheese that does not have the characteristics of real "Parmigiano Reggiano".
A producer of cheese may not, in the Advocate General's view, exploit its geographical proximity to the place of production of a cheese having a Protected Designation of Origin even if the cheese is intended to be marketed exclusively in another Member State.
Under Community law, where the characteristics of agricultural products and foodstuffs have a particular connection with their geographical origin, it is possible to register geographical indications and designations of origin at Community level.
The purpose of such registration is to protect consumers and to ensure fair competition.
"Parmigiano Reggiano" has been registered as a Protected Designation of Origin (PDO) since 1996.
According to the Advocate General the protection attaching to the PDO, "Parmigiano Reggiano" , therefore, extends to its translation, "Parmesan" .
The regulation, however, provides a transitional scheme of exemption , which - in certain circumstances - allows producers to use registered names for products which do not have the characteristics of the PDO for a limited period and provided that the true origin of the product is clearly marked on the label .
The intention is to grant producers an adjustment period, without causing them loss, whilst protecting consumers and ensuring free competition.
The Advocate General, none the less, takes the view that the Member State that applied for registration of a PDO may prohibit the commercial use of that designation in respect of a product manufactured in its territory, which is not covered by registration, but which is comparable to the registered product, even if the product in question is intended to be marketed exclusively abroad.
The Advocate General considers that the requirements of consumer protection and ensuring fair competition are met where a producer situated in the State of registration of the PDO is not permitted to exploit its geographical proximity to the place of production of the PDO.