Final answer:
France was the first country to legally restrict the use of place names for wine regions, establishing the AOC system to protect the authenticity of regional wines, such as Champagne.
Step-by-step explanation:
The country that was first to legally restrict the use of place names for wine regions was France. This legal restriction is part of a system known as appellation d'origine contrôlée (AOC), which translates to "controlled designation of origin."
The AOC system was established in the early 20th century, with its roots tracing back to the 15th century when regulations regarding the production of Roquefort cheese were passed. In the realm of wine, such legal restrictions ensure that only the products actually produced in a particular region can bear the name of that region, such as Champagne, which must originate from the Champagne region of France to legally use the name.
By protecting regional names, France set a precedent for the protection of geographical indications, not just in the wine industry but in various fields involving agricultural products and foodstuffs with unique qualities deriving from their place of origin. This concept was later adopted and implemented internationally through agreements such as the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement. The establishment of AOC laws has been instrumental in preserving the unique identity and quality associated with certain regional products.