AmCham Macedonia Winter 2018 (Issue 56) - Page 14

COVER STORY Winter 2018 / Issue 56 Sustainable system of Geographical indications (GI)- Recognizable domestic wine and Quality assurance for the Consumers Geographical indications (GI) are a special form of intellectual property rights (IPR) and at the same time part of the instruments of the European Agricultural Pol- icy for the protection and sustain- ability of the quality of agricultural products. The main difference between GIs and other IPR rights is that GIs represent a collective protection system in which par- ticipants can be horizontally and vertically integrated. Their usage creates benefits for consumers and manufacturers by display- ing information and guaranteeing quality; stable profit margins for producers; improved recognition; access to new domestic and / or export markets; promotion and brand building. The reasons for the use of geographical indica- tions are primarily economic and are needed because of unregu- lated markets. One of the incen- tives for manufacturers to protect GIs should be to overcome a weak market position through standard- ized quality, based on the prod- uct’s specificity and type. These features enable the achievement of a price premium, which con- sumers pay for high quality, as well as avoiding asymmetry of information. The asymmetry of information can be overcome by creating a reputation, which is very important in conditions of imperfect information. This is a particularly important aspect for markets in countries with develop- ing economies, where insufficiently developed knowledge and the preferences of consumers are due to the socio-economic conditions in the country. The advantage of marketing investments for guar- anteeing a certain level of quality and improving the level of informa- tion can result in a timely recogni- tion of the quality of the product by the consumer, which reduces 14 AmCham Macedonia Magazine Marina Nacka, PhD, Assistant Professor, University “Ss. Cyril and Methodius”, Skopje, Faculty of Agricultural Sciences and Food Institute of Agricultural Economics the difference between the marginal costs and the realized price premium. The information theory lists the asymmetry of information between the manufacturer and the consumer as a reason for market failure. This stems from the manufacturer’s knowledge of the characteristics of the product and the consumer’s insufficient knowledge and perception of the lack of easy access to informa- tion. Accordingly, the existence of an asymmetry of info X][ۈۂHX\]ܙX]\\\\[ۜ܈X[YX\\ۜ[Y\[܈H[[ۚ[وHX\] HHۜ[Y\\XB]KHۜ\]Y[\X^HHH\]HX\YY]Hۜ[Y\&\^X][ۜ[\YܙHH[[Hœ^HHY\XH\[[X]܈و]X[]KHH\XقX\][[ۚ[Hۜ\]Y[\وH\[[Y]Hو[܋BX][ۈ[XYHYX[ۈ[H]X[]Hو\KH]YY^B[]وY \]X[]HXHHX\] [YX[B\X[]Y\وۜ[Y\YY]Z\YY˂H[\[Y[][ۈوH\Z[XHH\[H\H۝YX[\H܈\Z[XHX]X[]H[ۜ[Y\X\B[YK\XHݙ\Z[H\[[Y]Hو[ܛX][ۋB\XXوXXYۚXHX\H[[Hو[\[Y[[BH\[H[HYܛYX܋\]HH\X[\H[\ܝ B[H[H[HXX܈YHH[X[܈X[šY \]X[]H[H\H\[و]ܘXH[X]X[YX[ۙ][ۜ˂[]][ۈ[^܈H\Hو[ܘ\X[[X][ۜH\X\ۈHY\XX\][YH[]\܂HX[ۈو\[[ۙY\X[\Y\ []YX[[\Y\X][H\XYH]YH܈XY\[X][ۂYHܛX][ۈو[\X][ۈ܈HX[ۈوB'\\]\[^x'HY[ۊHH\][[[^و[]][ۈقHY[Y[[ۜو[ܘ\X[[X][ۜˈHXZ[[]\™܈X[[ܘ\X[[X][ۜ\H][HZ\\B[[Z]][ۈوX[Z[[[]YX[܈X]B\]][ۋ[ݚYHHX\[YHۜ[Y\