"Aceto Balsamico di Modena, Champagne, Scotch Whisky, Proscuitto di Parma are examples of goods with ‘Protected designation of origin’ (PDO). In force within the European Union and the United Kingdom since 1992, the purpose of these regulations is to identify those products that are produced, processed and prepared in a specific geographical region which also adhere to traditional production techniques.
Earlier this year, the German authorities passed a law
that legally protects the designation of origin for watches made in
Glashütte. Similar to Champagne, the designation ‘Glashütte I/SA’ on the
dial of a watch indicates the product has been manufactured within the
region to a minimum standard. Within this watchmaking enclave of Saxony,
‘more than 50 per cent of the added value must be generated in the
region of origin’. Furthermore, the regulations specify that ‘essential
stages of manufacture’ must take place in Glashütte, eg manufacturing or
finishing of movement parts."