The GI Act introduces a unique concept of "Authorised User" distinct from the "Registered Proprietor." Which of the following correctly explains this distinction and the key rule on assignability of a GI?

Solution

Under the GI Act, 1999, the Registered Proprietor (under Section 11) is any association of persons, producers, or any organisation representing the interest of producers such as a cooperative, statutory body, or government authority who files for GI registration on behalf of the producing community. The Authorised User (under Section 17) is a separate category an actual producer of the goods who applies specifically to be registered as an authorised user of the GI, and only an Authorised User has the exclusive right to use the GI in relation to those goods. The most conceptually critical feature distinguishing GIs from trademarks is that a GI cannot be assigned, licensed, transmitted, or mortgaged because it belongs collectively to the entire community of producers it is treated as public property rooted in geography, not individual commercial property. Further, under Section 25, a GI cannot be registered as a trademark, preventing any single commercial entity from privatising a geographical indication.