The update of Ukraine’s legislative framework regarding organic production (Law of Ukraine “On State Regulation of Organic Production, Circulation, and Labeling of Organic Products”) directly impacts corporate intangible assets, product labeling, and consumer protection against unfair competition.

Given that the majority of domestic eco-friendly products are targeted for export to the EU, ensuring that labeling and brand identity comply with European standards is critically important.

1. Labeling, Trademarks, and Rights to DesignationsLabeling a product as “organic” serves as an information tool for consumers and a key component of marketing strategy. In the context of intellectual property law, this involves several aspects:a) Use of Trademarks and Terminology. The use of designations such as “organic,” “eco,” “bio,” or corresponding graphic logos on packaging is permitted exclusively upon holding a valid certificate. Unauthorized use of such terms in trademarks or on packaging constitutes a violation of consumer rights and may be qualified as unfair competition.

   b) Scope Restrictions and Exemptions. Mandatory certification rules do not apply to cosmetics, perfumery, pharmaceuticals, fishery/hunting products, or the catering industry. Furthermore, processed non-food agricultural products (such as industrial bio-fats, bioethanol, etc.) have been exempted from mandatory certification requirements.

2. Certification as a Legal Basis for Brand UsageA certificate of conformity grants a business entity the legal right to label its products and display green conformity marks.a) New Categories of Entities. Certification is now also mandatory for entities selling organic products directly to final consumers. An exception applies to the sale of pre-packaged goods in the presence of the consumer, provided the entity does not engage in import, manufacturing, or storage outside the point of sale.

   b) Validity Period and Risks to Intangible Assets. Certificates are issued for a 15-month period. In the event of material non-compliance or obstruction of inspection activities, the certificate may be suspended or revoked by the State Service of Ukraine for Food Safety and Consumer Protection. Revocation immediately deprives the company of the right to market products under the eco-brand, posing significant risks of intangible asset devaluation.

   c) Collective Solutions. The concept of a “group of operators” has been introduced, enabling small-scale producers to undergo collective certification and jointly enter the market under a single brand or cooperative trademark.

3. Intellectual Property Protection and Enforcementa) Registers as a Source of Legal Certainty. All authorized operators, accredited certification bodies, and certified livestock/aquaculture are registered in centralized state electronic registries. This allows brand owners to substantiate the legitimacy of their eco-labeling and safeguard their designations against copying or infringement.b) Sanctions for Misleading Practices. Unlawful use of organic labeling or non-compliance with statutory requirements carries substantial financial penalties. Fines for legal entities can reach up to 8 minimum monthly wages (up to 14 for repeated violations within a year), and up to 10 minimum monthly wages for individual entrepreneurs / sole traders (up to 16 for repeated violations).

Summary for Business Owners

Adapting to the new regulatory requirements demands not only operational adjustments from companies but also a thorough legal audit of brands, packaging, and trademarks. Timely certification and registration in official state databases guarantee the protection of intellectual property rights and corporate reputation across Ukrainian and EU markets.