24 March, 2011

Kremlin misses Georgian wine brands

To evade Russian trade embargo on Georgian wines a Dagestan-based company, one of the key providers of the Kremlin, seeks for patent right on trademarks of top ten Georgian wine brands within the Russian territory.
Georgia can do nothing but warn Russian patent organization not to make such an outrageous illegal act; it can only hope that Russian side will not make such scandalous move, which may cause negative international acclaim.

Central Kizlari Scientific-research Institute (CKSRI)

that is focused on producing wines, beer, and non-alcohol drinks as well as on market research and monitoring, submitted a scandalous application at Rospatent, Russian state patent body in March. It requested to register 10 most well-known Georgian wine brands including Kindzmarauli, Khvanchkara, Alaznis Valley, Akhasheni, Tsinandali, Gurjaani, Gareji, Mukuzani, Napareuli, and Vazisubani as trademarks of CKSRI, Russian on-line edition ‘Marker’ informed on March 9, 2011.
According to Irakli Gvaladze, Head of Geopatent, Georgian patent body, about ten years ago Russian companies tried twice to register Georgian brands but Rospatent turned down their claims as contradicting the Russian law.
“But political situation was different then, we had no trade embargo,” Gvaladze told GJ. What makes alert Georgian side this time is uncertainty of Rospatent’s position for it does not rule out to make exceptions for the Kremlin connected company.
The point is that owner and director general of the questioned Kizlari company Dimitri Shevelyev, is a counselor of Guild of caterers providing the Kremlin. Moreover, he is a head of representation Kizlari cognac factory in Moscow. In the interview with Marker he stressed his organization will be handling with certification issues of products as well as market research and monitoring. But why the scientific-research institute needs its own wine brands Shevelyev refused to elaborate. Viktor Cherbishyev, Head of Rospatent, thinks they need official registration of Georgian brands to evade trade embargo imposed on Georgian wine due to alleged quality problems.
If Russian patent body approves this application the newly fledged company based in the Republic of Dagestan, a federal subject of Russia located in the North Caucasus region, will be able to skip embargo restrictions and enjoy profit from sale of popular Georgian wine brands still in demand at Russian market.
Georgian product including wines, mineral water, fruit and vegetable, banned by Russian sanitary service starting 2006 is reported [by Russian media] sneaking to Russian market through contraband, counterfeit as well as re-export implemented through third-countries.  Very likely the Kremlin is annoyed of illegal trade and decided to legalize it. If all Georgian branded wines were banned initially now Russian experts assure that brands are innocent in fact  and the problem is with the wine produced in Georgia.
According to Dmitri Fedorov, Director of Independent Wine Club of Russia, there are a lot of Georgian wines sold at Russian market that are not produced in Georgia but have Georgian names. He finds this not illegal as far as Russia prohibited not Georgian wine brands but wines produced in Georgia.
Assertion looks unserious to Georgian wine-experts as far as brands internationally are acknowledged to be based on certain geographic appellations including the soil, climate, harvest and wine-making technologies.


Andro Aslanishvili, a legal expert with Samtresti, vine and wine department of Agriculture ministry, thinks selling of so called Georgian wines produced and bottled in Russia is a violation of law on intellectual property on the one hand, and deceit of consumer on the other.
“The wine produced and bottled in Russia cannot be assumed as Georgian because it is not harvested in Georgia and made based on specific Georgian technology, and when you stick a Georgian name to it you deceive consumer for the content in the bottle does not respond to the appellation of brand put on the bottle. But protection of its consumer’s right is up to Russia itself. What troubles us is violation of our intellectual property rights, for they can use our brands to enjoy economic profit. You know it takes a lot of time and huge finances to create a brand and make it popular, and now it comes out that Russian company will be enjoying profit through the ready-made brands without much effort,” Aslanishvili told Georgian Journal.
According to Gvaladze, Russian-based “Georgian” brands cannot create problems to Georgian export to EU and US, for Georgia has already registered 18 geographical appellations of Georgian wines in EU and registration procedures are on in the US. But it may stymie Georgian companies at Russian market if Russia lifts embargo.
“In this case Georgian wine companies will have to compete with Russian-based Georgian brands and this looks absurd,” he said.
Tbilisi and Moscow are recommended to solve embargo problem in frames of negotiations over Russian entry at the World Trade Organization (WTO). Russia, been seeking for WTO membership for 17 years, already secured consent of all WTO member-countries except Georgia that withholds its pro unless Russia lifts trade embargo and acknowledges officially established economic border of Georgia including Georgian breakaway republics of Abkhazia and South Osetia [that Russia acclaimed as sovereign republics in 2008].
Russia is supposed to join WTO thanks to the US and EU support even if it misses Georgia’s consent [by the end of this year], and experts advise Georgian government to bargain lifting embargo with Russia rather than extend unrealistic political demands.
However the recent endeavourer of the Kremlin to grant Russian company with Georgian branded product producing right may affect Russia’s yet notorious image of a country ignoring intellectual property rights. One of the key problems Russia is hailed [by international community] to solve on its way to the WTO is violations of intellectual property rights. It is an open secret that Russia misuses international brands including Adidas and is recommended to solve this problem prior it joins the WTO.
Georgian government plans to appeal to the World Intellectual Property Organization [that includes Russia] if Russia officially registers Georgian wine brands to Russian company. Sakpatent sent a warning letter to Rospatent past week. Rospatent made no response as of yet. But Georgian side hopes it will not make illegal decision. A new international scandal seems not handy to Russia if it really wants to join WTO, Aslanishvili thinks although acknowledges that Russia is unpredictable.


Other Stories
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Head Speaker List featuring Circle, and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equivalent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Exchange Rates
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30