Nepal Supreme Court rules in favour of Scotch Whisky Association in GI dispute

On August 19, 2025, the Supreme Court of Nepal decided in favour of Scotch Whisky Association (SWA) in a case it had filed against Mohini Hygiene Products, based in Madhya Pradesh, India. The decision upheld previous rulings by the Department of Industry and the High Court over the dispute, which had ran for eight years.

“The ruling affirmed the protection of geographical indication (GI) rights for Scotch whisky, preventing Mohini Hygiene Products from using the term ‘Scotch’ on its products. This case sets a crucial precedent for respecting and enforcing GI protections in Nepal,” said Ram Chandra Subedi, founding and managing partner of Apex Law Chamber in Kathmandu.

On October 18, 2017, SWA filed a complaint against Mohini Hygiene Products concerning its trademark application for the brand name “Vision” for one of its products. Included in the name was the phrase ‘Finest Rare Scotch Whisky’ under Class 33. According to SWA, the wording will mislead consumers, leading them to believe that the product is associated with SWA’s genuine Scotch whisky. SWA’s reputation and GI rights will then be harmed. The group also claimed that Scotch whisky is a globally recognized GI, certification trademark and collective trademark with an established presence and reputation in Nepal.

On November 26, 2017, the Department of Industry ruled in favour of SWA. Aside from ordering the Indian company to stop using “Scotch” on its labels, the department issued a broader perspective: to avoid future legal issues, the Industrial Property Section would reject any new trademark applications containing the terms “Scotch” or “Scottish.”

Mohini appealed the ruling to the High Court, which upheld the Department of Industry’s ruling. The company then brought the case to the Supreme Court.

“The Supreme Court explicitly acknowledged that the terms ‘Scotch’ and ‘Scottish’ are directly linked to Scotland and that their use by Mohini Hygiene Products would confuse consumers and harm the reputation of Scotch whisky. The verdict is a landmark decision for the enforcement of GI rights in Nepal. It firmly establishes that national courts are committed to respecting and upholding international agreements like the TRIPS (Trade-Related Aspects of Intellectual Property Rights) Agreement. The ruling sets a precedent that companies cannot use GIs for their products, thus protecting the integrity and value of goods with a specific geographic origin,” said Subedi.

He added that the decision represents a crucial recognition of the protection of GI rights, differentiating them from standard trademark rights.