Out-Law / Your Daily Need-To-Know

Out-Law News 1 min. read

US beer giant loses Bud trade mark battle


US-based beer giant Anheuser-Busch, maker of Budweiser and Bud Light beers, yesterday lost its long-running legal battle to stop Budejovicky Budvar, a smaller state-owned Czech rival, from selling its products under the 'Bud' and 'Budweiser' marks in the UK, according to Reuters and BBC News Online.

The dispute between the two companies arose because the Czech city of Ceske Budejovice, where Budvar is located, has also been known through history by its German name, Budweis. The Czech brewer, which claims it has been brewing a Budweiser beer since 1876, owns UK trade marks for the brands Bud and Budweiser.

The two marks are also the flagship brands for Anheuser-Busch, which was founded by German emigrants, and the two companies have fought over the use of the marks since the beginning of 20th century. The UK dispute dates back to the 1970s, when the US giant originally applied to the UK Patent Office for both Budvar trade marks to be cancelled.

The Patent Office rejected Anheuser-Busch's claims, and so did the High Court. The company made further attempts to revoke the Czech brewer's marks in the UK, but without success. In 2002, the Court of Appeal dismissed the US brewer's applications to cancel both marks, reasoning that Budvar had made legitimate use of them.

Eventually, Anheuser-Busch requested permission to appeal the prior decisions against it, claiming that Budvar had failed to use the marks.

On Monday, the House of Lords, the UK's highest court, rejected the request. The Lords apparently gave no reason for the decision. The ruling prevents any further action by Anheuser-Bush in British courts, closing the final chapter of the dispute.

The UK is Anheuser-Busch's second largest market after the US. Following Monday's ruling, the UK is also the only country where both brewers currently retain the right to use the Budweiser and Bud marks to market their products.

The US giant has successfully prevented Budvar from registering or using the Budweiser mark in Spain, Denmark, Finland, New Zealand, Australia and Argentina.

We are processing your request. \n Thank you for your patience. An error occurred. This could be due to inactivity on the page - please try again.