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Section 24 of The Geographical Indications of Goods (Registration and Protection) Act, 1999

Notwithstanding anything contained in any law for the time being in force, any right to a registered geographical indication shall not be the subject matter of assignment, transmission, licensing, pledge, mortgage or any such other agreement: Provided that on the death of an authorised user his right in a registered geographical indication shall devolve on his successor in title under the law for the time being in force.

Summary

This provision strictly prohibits the assignment of a registered geographical indication, which means you cannot legally sell the right to the name to someone else.
It also forbids the transmission, licensing, pledging, or mortgaging of these rights.
A geographical indication cannot be used as collateral for a loan or be rented out to another business through a license agreement.
The only exception to these rules is when an authorised user dies.
Upon death, the right to use the registered geographical indication passes to the person's legal successor.

Practical examples

1In 2026, a registered producer of "Malabar Pepper" tries to take out a business loan by using their GI registration as a "pledge" or security. The bank refuses, citing Section 24 of the 1999 Act, which says these rights cannot be pledged or mortgaged.

2Mrs. Gupta is a registered authorised user of a famous shawl name. When she passes away in 2027, her daughter, who is her legal heir and also a producer, takes over the business. Under Section 24 of the Geographical Indications Act, the right to use the name passes legally to the daughter.

FAQ

1. Can I sell my right to use a geographical indication under Section 24 of the Geographical Indications Act?

No, Section 24 of the Act prohibits the assignment or sale of any right to a registered geographical indication.

2. Does Section 24 of The Geographical Indications of Goods (Registration and Protection) Act, 1999 allow for licensing?

No, Section 24 specifically states that these rights shall not be the subject of licensing.

3. What happens to a GI right if the owner dies according to Section 24 of the Geographical Indications Act?

Section 24 provides that the right shall pass to the successor in title according to the law.

Test yourself

Q1.Under Section 24 of The Geographical Indications of Goods (Registration and Protection) Act, 1999, which of the following is prohibited?

Q2.According to Section 24 of the Geographical Indications Act, how can a right be legally transferred?

Q3.Under Section 24 of The Geographical Indications of Goods (Registration and Protection) Act, 1999, what does "assignment" mean?

Q4.If a producer is an authorised user under Section 21, how does Section 24 limit their business dealings?

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