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who was a member of the Consorzio. The ham was sliced and hermetically
sealed by Hygrade in packets bearing the wording 'ASDA A taste of Italy
PARMA HAM Genuine Italian Parma Ham'. The Consorzio brought pro-
ceedings by writ in the UK against Asda and Hygrade seeking various injunc-
tions against them, essentially requiring them to cease their activities, on the
ground that they were contrary to the rules applicable to Parma ham.
3.59
The House of Lords sought a ruling from the ECJ as to whether the Italian
legislation read with Commission Regulation (EC) No 1107/96 and the
specification for the PDO 'PROSCIUTTO DI PARMA' created a valid
Community right, directly enforceable in the court of a Member State, to
restrain the retail sale as Parma ham of sliced and packaged ham derived from
hams duly exported from Parma in compliance with the conditions of the PDO
but which have not been thereafter sliced, packaged and labelled in accordance
with the specification.
49
3.60
The ECJ, applying the 'Rioja' case,
50
ruled that Regulation No 2081/92 must be
interpreted as not precluding the use of a PDO from being subject to the
condition that operations such as the slicing and packaging of the product take
place in the region of production, where such a condition was laid down in the
specification. Although this was a measure having equivalent effect to a
quantitative restriction on exports, the Court accepted that it was justified for
the purpose of guaranteeing the authenticity and quality of the product, noting
that Community legislation displayed a general tendency to enhance the quality
of products within the framework of the common agricultural policy, in order to
promote the reputation of those products through inter alia the use of designa-
tions of origin, which enjoy special protection. Designations of origin, as
industrial and commercial property rights, protected those entitled to use them
against improper use of those designations by third parties seeking to profit
from the reputation which they have acquired. It ruled that the specification of
the PDO 'PROSCIUTTO DI PARMA', by requiring the slicing and packag-
ing to be carried out in the region of production, was intended to allow the
persons entitled to use the PDO to keep under their control one of the ways in
which the product appears on the market. This condition was justified as
safeguarding the quality and authenticity of the product, and consequently the
reputation of the PDO, for which those who are entitled to use it.
3.61
The Court noted that the slicing and packaging of Parma ham constituted
important operations which may harm the quality and hence the reputation of
49
Consorzio del Prosciutto di Parma v Asda Stores Limited and Others
[2001] UKHL 7.
50
Case C-388/95
Belgium v Spain
[2000] ECR I-3123.
