Hungarian Court Rules In Budweiser Dispute

by Ulrika Lomas, for LawAndTax-News.com, Brussels

26 May 2006

It emerged this week that the Metropolitan Court of Appeals in Hungary has ruled in Anheuser-Busch's favor, canceling the Czech 'Bud', 'Budweiser Budvar' and 'Budweiser Bier­Budvar' appellations of origin. The judgment affirms earlier rulings by both the Metropolitan Court in 2005 and the Hungarian Patent and Trademark Office in 2002.

The case is just one of several that St Louis-based Anheuser-Busch and its Czech rival, Budejovicky Budvar are embroiled in across Europe over who has the right to use the Budweiser trademark.

Both firms claim a historical right to the name, as the US Budweiser brand was launched in 1876, whilst German immigrants founded the Czech brewing firm in the beer's namesake town in 1895.

In canceling the appellations of origin, the Metropolitan Court of Appeals agreed that the term 'Bud' was not geographical and was in no way a reference to the city where Budejovicky Budvar is located, Ceske Budejovice.

However, the decision is subject to appeal.

Explaining the reasoning behind the latest case, Stephen J. Burrows, president and chief executive officer of Anheuser-Busch International, Inc. observed that:

"This is the third Hungarian court to conclude that 'Bud' does not qualify for appellation of origin protection. This decision provides us with the legal backing to launch our flagship brand under the 'Bud' name in Hungary and reinforces our commitment to protect our famous trademarks throughout the world."

The decision by the Hungarian court follows a ruling in April in Austria where the Vienna Commercial Court ruled also that "Bud" is not a geographical indication in the Czech Republic when applied specifically to beer.

"We are making solid progress in our battle to protect the brand names we've developed," said Burrows. "As a result, we can now sell 'Bud' in Hungary and are one giant step closer to winning the same legal battle in Austria."

The Supreme Court of Sweden also found no reason to hear an appeal filed by the Czech brewer which could have resulted in the repeal of a ruling which stated that it couldn't use the name "Budweiser Budvar" in Sweden.

The Spanish Supreme Court has affirmed a lower court ruling allowing the Czech brewer to register the trademark Budejovicky Budvar, although it remains under a court order not to sell Budweiser in Spain.

Burrows argued, however, that:

"This decision in Spain has no impact on our business and does not weaken our very strong and exclusive 'Budweiser' and 'Bud' trademark rights in this country."

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