E-Malt.com News article: Austria: Czech brewer's Bud trademark at risk in EU

Europe's highest court issued on September 8th a ruling that could end attempts by Czech state brewer Budejovicky Budvar to stop Belgian beer giant Anheuser-Busch InBev (ABI.BT) - the brewer of the iconic Budweiser brand - using the brand name "Bud" in Austria, Dow Jones Newswires communicated.

It could also open the doors for AB InBev to challenge Budvar's trademarks in other countries.

Budvar, which has brewed Czech Budweiser beer since 1895, has registered the "Bud" or "Budweiser" trademarks in 37 countries, including Austria.

The Czech company brought a case before the Austrian court against the distributor of AB InBev's Budweiser beer, which was marketing "American Bud" in Austria.

The Austrian court sought advice from Europe's highest court, the European Court of Justice. In its ruling Tuesday, the ECJ said the Austrian court must determine what sort of protection the Czech company's Austrian trademark accorded to "Bud."

If the trademark just relates the beer to the Czech Republic then its trademark can be protected, it said. But if the protection includes specific characteristics, like brewing conditions, ingredients or taste, then it will have no protection under Austrian law as this sort of protection is now provided under E.U.-wide law, it said.

Should the Austrian court find that the Czech Budweiser protection does apply to wider characteristics - as the court has hinted is likely - it would set a legal precedent, opening the door for AB InBev to make legal challenges against Budvar's other Budweiser or Bud trademarks and appellations of origin in other countries.

AB InBev welcomed the ruling as a clear win. "The ruling provides Anheuser-Busch with a clear and decisive victory in Austria and improves our trademark rights in other European markets," spokeswoman Karen Couck told Dow Jones Newswires in an e-mailed statement.

"AB InBev anticipates the Austrian Courts will issue a judgment consistent with the ECJ," she said.

The decision will lead to the lifting of an injunction preventing AB InBev from selling our brand and exercising our trademark rights in Austria and could lead to the elimination of protection for Bud in a few other E.U. countries, she added.

Budvar - based in the southern Czech city of Ceske Budejovice, called Budweis in German - has been engaged in a century-long intellectual property struggle over the "Budweiser" and "Bud" trademarks and appellations of origin with U.S. brewer Anheuser-Busch Inc., now part of AB InBev.

Legal battles involving Budvar and AB have intensified since the demise of the Czech communist government, when Budvar's exports grew substantially.


09 September, 2009