The Scotch Whisky Association (SWA) has secured a favourable verdict from the Delhi High Court in a case it filed against a local spirits producer selling a brand called Red Scot. The High Court upheld the SWA's contention that the use of the word Scot implied a Scottish origin, which went against the World Trade Organisation (WTO) rules that prohibit misleading geographical indications on goods.

Industry body the Scotch Whisky Association (SWA) won a case in New Delhi to prevent spirits producer Golden Bottling from using the word Scot in its brand, claiming that the reference implies a Scottish origin. World Trade Organization (WTO) rules state that geographical indications on goods must not be misleading.

As a result of the ruling, Jaipur-based Golden Bottling will have to cough up Rs 5,00,000 (GBP6,200 approx.) in compensation to the SWA.

"Scotch whisky by law must be produced in Scotland and is protected as a geographical indication under WTO rules," the SWA says. "In this case, use of the word 'Scot' on the bottle label was an attempt to mislead consumers into thinking they were buying Scotch whisky rather than locally produced spirit."

India is an important emerging market for imported Scottish whisky, but the SWA, in a media release, estimates the number of fake bottles in circulation to be as high as that of genuine products. Part of the problem is the import duty levied on Scotch -- between 212% to 525% of the landed price. The European Commission is investigating India's import regime for EU spirits and wine.