First GI Misuse Case in Malaysia : Tenom Coffee Mislabeling

First GI Misuse Case in Malaysia: Tenom Coffee Mislabeling -Coffee Director Faces Charges

Johor Bahru, Sept 9, 2025 — Malaysia has entered a new legal chapter under the Geographical Indications Act 2022. Authorities charged a coffee company director for allegedly misusing the protected label “Tenom Coffee.” This development marks the first GI misuse case in the country (First GI Misuse Case in Malaysia!), and therefore, it has attracted significant public and industry attention.

The Case

First GI Misuse Case in Malaysia – Lim Sen Thiam, 53, director of KK Tanom Coffee Sdn Bhd, appeared in the Johor Bahru Sessions Court and pleaded not guilty to two charges of falsely applying a GI label. According to prosecutors, Lim mislabelled 1,368 coffee bags with the name “KK Tanom Coffee.” As a result, the branding could mislead consumers into believing the products originated from Tenom, Sabah, which holds the official GI status.

The alleged incident occurred on March 25, 2025, at Lagenda Industrial Park, Kulai, around 12.10pm. Moreover, investigators confirmed that Lim used the label without authorization from the rightful GI holder of Tenom Coffee. Consequently, officials stressed that the misuse threatened consumer trust, while it also risked damaging the reputation of authentic regional products.

Legal Implications

The Geographical Indications Act 2022 outlines strict penalties. For instance, individuals who misuse a GI may face fines of up to RM10,000 per item, imprisonment of up to three years, or both. In addition, companies can receive fines as high as RM15,000 per mislabelled product.

First GI Misuse Case in Malaysia – This case is particularly important because it represents the first enforcement test of the GI law. Therefore, the outcome will not only determine Lim’s legal liability but also establish how Malaysian courts handle similar cases in the future. Furthermore, the trial will likely influence how businesses approach branding practices, especially when dealing with heritage-linked products.

Bail and Next Steps

Prosecutors initially requested RM20,000 bail with conditions such as passport surrender and monthly reporting. However, Lim’s lawyer asked for leniency, emphasizing his role as sole provider for his family. After weighing both arguments, Judge Zainal L. Salleh granted RM10,000 bail with one local surety and did not impose further restrictions.

The court scheduled the case for mention on October 8, 2025. Meanwhile, stakeholders in the food and beverage industry continue to monitor developments closely, since the decision could reshape enforcement standards.

Why It Matters

This landmark case demonstrates Malaysia’s growing commitment to protecting intellectual property rights. By prosecuting the misuse of Tenom Coffee, the authorities send a clear message that exploitation of GI labels will not be tolerated. At the same time, the case strengthens consumer confidence in authentic products while safeguarding the heritage of Malaysia’s regional brands.

What is a Geographical Indication (GI)?

A Geographical Indication (GI) is a special sign that identifies products with a quality, reputation, or characteristic tied to a specific origin.

• Legal Protection: The law protects GIs even without formal registration and prevents misleading claims about origin.
• Exclusions: Authorities will not protect a GI if it violates public order, loses recognition in its home country, or falls out of use.
• Right of Use: Only producers within the registered region may use the GI, and they must comply with defined quality standards.
• Duration: A registered GI receives 10 years of protection, renewable every decade.

Examples of Malaysian GIs include Langkawi Cheese, Bentong Ginger, Sarawak Pepper, Sabah Tea, Harumanis Mangoes, Tenom Coffee, and Tenom Pomelo.

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