The main objective of this book is to examine the role of origin-protection from an economic point of view; to find and characterize any connection between geographical indications and the competitiveness of products. Since both qualitative and quantitative research is needed in order to analyze the topic, a description of the legislative background and careful calculations of competitiveness were both provided. The main aim of the research is to analyse the economic influence of the geographical indications on agriculture and food production in the 21th century, especially in the case of Hungary. The primary focus is on the EU’s geographical indications system, as the Hungarian products are part of this system. The subject of the quantitative research is the pálinka, the only Hungarian spirit with geographical indication, a product that realises significant success during the first decade of the 21st century, partly due to its legislative protection.