It already happens, and new names change, or a different region creates their own regional name. Champagne is already limited to a region in Europe, but that h

It already happens, and new names change, or a different region creates their own regional name. Champagne is already limited to a region in Europe, but that hasn't stopped, say, Catalonia from making Cava: their own regional brand for what is, in essence, the same thing. If anything, this also allowed local producers to band against the old name, which now indicates it's a product made in France. So in practice, its not a big deal for good competitors.