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Luxembourg: A top European Union lawyer left the world's largest brewer, Anheuser-Busch, and a state-owned Czech rival in limbo on June 29 over which has the right to the "Budweiser" trademark, one of the best known beer brands, according to Reuters. EU advocate-general Antonio Tizzano said the Czech brewer Budejovicky Budvar's use of "Budweiser Budvar" in Finland could infringe on Anheuser-Busch's trademark "Budweiser" and confuse consumers.

However, the Luxembourg-based lawyer also said the Czech company's trade name, which is derived from the place of origin of the beer in the Czech Republic, could have an "existing prior right" if it had been used to market goods before the trademark was registered. The two companies have frequently clashed over the brand around the world. Anheuser-Busch's product refers to the famous German name of the beer's place of origin.

The Czech company, meanwhile, is trying to hold on to the brand that it argues in the Finnish case is the English translation of Budejovicky Budvar. Anheuser-Busch, which sells beer in more than 80 countries, has rights to the "Budweiser" and "Bud" names in most of the world.

The U.S. company has already stopped Budvar from using or registering Budweiser in Argentina, Australia, Brazil, Denmark, Italy, New Zealand and Spain. But it lost a long-running legal battle in Britain in February 2003 to block the Czech brewery using the trademark "Bud."

Now the EU's stance on the Finnish case could determine who keeps the name in the 25-nation bloc, which includes heavy beer drinking countries such as the UK and Germany. "Where there is conflict between a trade name and a trademark this is to be resolved on the basis of who has the oldest right to the sign," said an EU court official, summarizing the advocate-general's opinion. Tizzano's opinion is not legally binding but the EU court of justice, whose advice the Finnish Supreme Court has asked for, will use his view as the basis for its future ruling, which applies across the bloc.

Budvar registered its company name, both the Czech and English version in 1967 and argues that under an international treaty on intellectual property, a registered name is protected in all countries that sign up. The Czech brewer also registered Budvar and Budweiser Budvar as trademarks in Finland in the 1960s and 1970s. But it was struck off the Finnish commercial register in 1984 for lack of use. Anheuser-Busch then registered the "Budweiser" trademark in Finland in the mid-1980s.


30 June, 2004