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Malaysia Legal First: Coffee Firm Charged for Misusing Geographical Label

Credit: New Straits Times
Credit: New Straits Times
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Landmark case tests Geographical Indications Act with accusations of falsely branding Tenom coffee.

A Malaysian coffee producer and its director have become the first to be prosecuted under the country’s Geographical Indications Act 2022, in a case highlighting the protection of local heritage products.

First Case Under New Law

The Sessions Court in Johor Bahru charged Lim Sen Thiam, 53, director of KK Tanom Coffee Sdn Bhd, with two counts of misusing a registered geographical indication. Both Lim and his company pleaded not guilty before Judge Datuk Che Wan Zaidi Che Wan Ibrahim. This marks the first prosecution under the Geographical Indications Act 2022, which came into effect on March 18, 2022.

Misuse of Tenom Coffee Label

According to prosecutors, Lim’s company misapplied the label “KK Tanom Coffee” on 1,368 packets of Uncang Kopi-O 2-in-1 Kopi-O Kow (240g), indirectly referring to the protected designation “Tenom Coffee.” The name is registered exclusively for coffee produced from beans grown in Tenom, Sabah, and cannot be used without the consent of the rightful proprietor.

Lim (right) leaving the Sessions Court here in Johor Baru after posting bail. He claimed trial for allegedly falsely applying a registered GI on coffee packaging without consent.

Legal Penalties at Stake

Lim was charged under Section 67(1)(b) of the Act, punishable by fines up to RM10,000 per mislabelled item, a maximum three-year prison term, or both. The company faces even steeper penalties—up to RM15,000 per mislabelled item if convicted.

Prosecution and Defense Arguments

Deputy public prosecutors Muhammad Hakiim Izani and Nur Sulehan Abd Rahman from the Ministry of Domestic Trade and Cost of Living proposed bail of RM20,000, alongside conditions such as surrendering Lim’s passport and monthly reporting requirements. Defense counsel YX Ching countered with a request for lower bail, stressing that Lim was the sole breadwinner for his wife, three children, and 79-year-old mother recovering from a stroke.

Court’s Bail Decision

The court granted bail of RM10,000 with one local surety, without imposing further conditions. Lim posted bail immediately. The case is set for mention and submission of documents on October 8.

Lim Sen Thiam is seen outside the Johor Bahru Sessions Court. Credit: Ben Tan

Protecting Heritage and Authenticity

The Geographical Indications Act aims to prevent unauthorized producers from exploiting labels tied to regional identity. Authorities say the legislation safeguards consumers while preserving the authenticity of Malaysia’s cultural and heritage products such as Tenom Coffee, which is widely recognized as a symbol of Sabah’s agricultural tradition.

This case underscores Malaysia’s growing efforts to defend its heritage products against misrepresentation in the marketplace. For consumers and businesses in neighboring Indonesia and Singapore, the prosecution signals that Southeast Asia is taking stronger legal steps to protect authenticity and fair trade in food and beverage branding.

Sources: Malay Mail (2025) , The Star (2025)

Keywords: Tenom Coffee, Geographical Indications Act, Malaysia Court Case, Coffee Label Misuse, KK Tanom Coffee, Lim Sen Thiam

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