French Champagne under the protection of the European Union.

A European Court of Justice has ruled in favor of French champagne producers, arguing that the protection of their product under European law should go far beyond banning competing sparkling wine companies from using the word "champagne" in their bottles.

The goal of the CIVC champagne association is to ban a tapas bar chain in Spain from using the word "campanile" or "little champagne" in Spanish on billboards and social media.

The competent Court in Barcelona rejected the claims of the CIVC as an indication Champanillo was not intended to identify an alcoholic beverage. Still, in restaurants where champagne is not sold, products other than protected and aimed at a different market are available.

The CIVC appealed to a district court in Barcelona.

In turn, it sought the opinion of the Court of Justice of the European Union on whether protected designations of origin (PDOs), such as champagne, cover additional products and services.

- Protected designation of origin (PDO) identifies products produced, processed, and prepared in a specific geographical area, using the recognized know-how of local producers and ingredients from the region concerned. 

The EU Court of Justice has said they cover services designed to guarantee quality due to geographical indication and prevent third parties from benefiting from such products' reputation.

An essential element in judging whether a disputed term or indication violates the PDO regime is a good relationship between the two.

The Court said that this is evidenced if the use of a name creates a sufficiently direct and unambiguous connection to the perception of the average European consumer who has "the usual information and is reasonably careful and informed."

The EU judges ruled that it was up to the Barcelona Regional Court to make the final decision on the case, taking into account the clarifications of the EU Court of Justice.

The champagne association also challenges a new Russian law forcing foreign producers to use "sparkling wine" in their bottles. In contrast, Russian "champanskoye" producers can continue to use only the term.