The Issue
This issue involves United States of America and the Czech Republic. For past hundred years, an international legal dispute continued between the American brewer Anheuser-Busch and the Czech beer producer Budejovicky Budvar over the right to use the trademark name Budweiser on their products. Currently, both of the brewers produce beer beverage labeled Budweiser, and battle over who does have the legal right to the commercial use of this name. Both the brews have a long history of existence. The disagreements over the right to use the trademark started in late 1870s, when the brewers began to export their like-named products to markets beyond their national borders. Attempting to legally win the exclusive right to the trademark use, the dispute has been taken to courts in different countries. The results so far did not provide either party the exclusive right to the name, but rather resulted in the division of market. |
|
Description
The American and the Czech beer companies both claim to have the right to the name Budweiser. Currently, there are two different beer brands both named Budweiser being brewed by different producers, and such situation is a source of obvious disagreements. At the begining, the reasoning behind the dispute was that two beer beverages of similar type with the same name would be a source of confusion in the markets that both the brewers wished to target, and therefore only one should have the right to use it. Later, each of them, of course, believing in authenticity and better quality of its own product, expressed the "fear" of one party taking advantage of the other one's prestige. Lastly, since neither one managed to win the exclusive right to the use of name in general, respective law suits were filed in respective countries, markets of which were of interest to the brewers. The rulings differ, and each of the parties were able to gain trademark rights in only some cases – thus the dispute did not win them exclusive rights, but led to the division of market.
Anheuser-Busch was founded by German immigrants, the American brewers say. Adolphus Busch (a German-born American beer brewer) adopted the name Budweiser in 1876. He is said to had thought it was a great idea to give the beer distinct and evocative name --Budweiser - that reminded him of his old country which already was well-known for its high quality beer products, and was also to be brewed in the same style the Czech/German lager-style beers were.5.
The (then Czechoslovak) company named Budejovicky Budvar was founded in the town of Ceske Budejovice in 1895. The beer, however has been brewed in Budejovice ever since the 14th century. The disputed "Budeweiser" name is an adjective originating from the German name of the Czech town Ceske Budejovice – Budweis- where the beer was born in the Middle Ages and thus describing the origin of the brew. Budweiser means the beer of the Budweis region, same as Champaign in France describes the wine of the Champaign wineries. Logically then, the Czechs claim to have the right to the name from long before the Americans even started the beer brewing.6.
The Czech brewer wished to start exporting its then already existing Budvar into the markets beyond those of the Old Continent but found out another Budweiser existed. Since Anheuser-Busch has already had the trademark registered in the United States, Budvar was temporarily sold in the US under a different name - Crystal. Similarly, the American brewer, also interested in expanding its market, but now aware of the other Budweiser's existence [and due to the disputes] would use the name -Bud –abroad to get around the issue. The disagreement, however, grew larger and later included also the right to the variations of the name Budweiser which includes the name Bud (which is, now , already produced by both brewers). Teoretically, the two companies were to honor agreements about avoiding the market dominated by the other party, but they have eventually engaged in a legal dispute over who should have the right to use the trademark.
|
|
