Czech brewer wins Korean battle
legal victory over global beer giant Anheuser-Busch after it was
granted sole use of its trademark by a South Korean high court,
following an appeal.
The latest court ruling in South Korea uphold the previous decision that Budvar can use its famous trade mark in the country, alongside its other name Budweiser Budvar N.C., the Czech brewer confirmed.
"The court has finally recognised Anheuser-Busch's unfair lawsuit." a Budejovicky Budvar press statement said on the subject.
The move is the latest in a series of high court battles across the globe whereby Budejovicky has been challenged by Anheuser-Busch over its sole use of the Budvar brand name.
In January this year the courts in Seoul decreed that the state-owned Czech beer maker was not infringing the Budweiser trademark of its US rival and that the Budejovicky Budvar trade name could be registered in South Korea. Anheuser-Busch appealed against this decision, but the courts have this week thrown out that appeal.
Anheuser-Busch has always argued that the use of the Budvar trademark and company name was a conflict with its own trademark. BeverageDaily.com reported earlier this year that while the two companies have been at loggerheads over the trademark issue in South Korea since the late 1990s, the 'David and Goliath' tussle between the two firms has been going for decades worldwide.
Budvar claims the sole rights to the Budweiser name because only it makes its beer in Budweis (the German name for Ceske Budejovice) after which the brew is named. A-B refutes the claim, saying it was the first to register the trademark worldwide and that the Czechs are simply trying to benefit from its years of building up the brand.
While many countries have backed the Czech brewer against its US rival, many more have supported A-B's right to the name, including most of North and South America and virtually all of Asia. Some (such as the UK) allow both brands to exist side-by-side using the Budweiser and Budweiser Budvar names, while others oblige Anheuser-Busch to call its beer American Bud to distinguish it from the Czech brew. In yet others (such as the US), Budvar has to use the name Czechvar.
Budejovicky Budvar beers are marketed as a premium brand on the South Korean market, where its distribution is centred around major urban areas. On the other hand Anheuser-Busch's beer distribution is extensive throughout the country.
Anheuser-Busch is currently also battling with rival global brewing giant to win a controlling stake in leading Chinese brewer Harbin. SABMiller last week made a successful hostile bid to equal Anheuser-Busch's 29 per cent stake in the China brewer.
