New Delhi, Sept. 12 -- It's not often that two countries slug it out in Indian courts. Peru and Chile have been having a go at each other over a geographical indication (GI), which lets a product use a specified name only if it comes from a country or region deemed to be its authentic producer.

The idea is to keep pretenders out. Their fight is over Pisco, a grape-based spirit that both claim as part of their heritage. Peru had first asked for it to be registered as its exclusive GI, but since Chile objected, its product was given the tag Peruvian Pisco. Viewing this as a dilution of its brand, Peru has been fighting for exclusivity, even as Indian adjudication has gone back and forth at various levels.

On Thursday, Peru took a blow as ...