Sweden & USA: Anheuser-Busch blocks Czech brewer from using Budweiser in Sweden

The Supreme Court of Sweden found no reason to hear an appeal filed by Czech brewer Budejovicky Budvar, ending a seven-year-old trademark dispute with Anheuser-Busch, the American brewer released May 16.

The decision preserves the lower court ruling providing for Anheuser-Busch's exclusive "Budweiser" trademark rights in Sweden.

In January, the Svea Court of Appeals, guided by a 2005 World Trade Organization panel's decision, ruled that geographic indications protected in Europe cannot be used in translation if they interfere with prior or existing trademarks. The court ordered Budejovicky Budvar to stop using "Budweiser Budvar" on its labels, packaging and advertising.

"Since Anheuser-Busch first began brewing Budweiser in 1876, we have made significant investments in developing the brand throughout the world," said Stephen J. Burrows, president and chief executive officer, Anheuser-Busch International, Inc.

"The final outcome in Sweden is significant because it recognizes Anheuser-Busch as the rightful owner of the Budweiser name, one we first registered 17 years before Budejovicky Budvar was founded."

The trademark dispute in Sweden began in 1999 after Anheuser-Busch successfully registered "Budweiser." Anheuser-Busch has national registrations for "Budweiser" or "Bud" in 21 of 25 European Union countries and sells 31 percent of its international beer volume in that European region.

"This dispute isn't about the beer being sold, it's about the name the Czech brewer uses," said Burrows. "Anheuser-Busch believes that Budvar is trying to capitalize on our world-famous brand and we owe it to our shareholders and employees to aggressively protect our famous trademarks from this and any kind of infringement."

Based in St. Louis, Anheuser-Busch is the leading American brewer, holding nearly 50 percent share of U.S. beer sales. The company brews the world's largest-selling beers, Budweiser and Bud Light. Anheuser-Busch also owns a 50 percent share in Grupo Modelo, Mexico's leading brewer, and a 27 percent share in Tsingtao, the No. 1 brewer in China.

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