USA & EU: European Union upholds Anheuser-Busch's right to "Bud"

Anheuser-Busch Cos. Inc. announced another legal victory June 26 in an ongoing fight to trademark its top-selling Budweiser beer in Europe, Associated Press communicated June 26.

The Board of Appeal for the European Union's Office for Harmonization in the Internal Market ruled that Anheuser-Busch can register its trademark "Bud" beer throughout Europe, the company announced.

The ruling is just one piece of a massive legal fight in several European courts between Anheuser-Busch and the Czech brewer Budejovicky Budvar. At issue is the famous Budweiser brand, which both companies claim an historical right to use.

The Czech brewery was founded in 1895 in a town called "Budweis" by the German immigrants who founded it - a beer brewed there would have been known as a Budweiser. Anheuser-Busch launched its own U.S. Budweiser brand in 1876, picking the name because it evoked German brewers but was still easy for U.S. consumers to pronounce.

The European court's ruling is subject to appeal, but is a major step forward in Anheuser-Busch's effort to market Budweiser in Europe, according to the company.

"We are making solid progress in our battle to protect the brand names we've developed," Stephen Burrows, president and chief executive officer of Anheuser-Busch International, said in a news release. "As a result, Anheuser-Busch can sell its flagship brand under the Budweiser or Bud brand in 30 European countries."

The legal dispute between the two brewers is being played out in dozens of courts throughout Europe.

The Czech company has argued that the name "Budweiser" should only refer to beer brewed in a certain area, in the same way Greek Feta cheese can only be produced in certain regions.

Anheuser-Busch has argued that the term Budweiser is simply slang used by German immigrants - the Czech company's hometown is officially named Ceske Budejovice.

"Bud is not and never has been a city in the Czech Republic," Burrows said in the release. An Anheuser-Busch spokesman did not answer questions on the ruling Monday.

The Budvar brewery did not post comments about the ruling on the company's Web site Monday and did not immediately return an e-mail seeking comment on the decision.

The European appeal board agreed the term Budweiser isn't a special label, or "appellation" in legal-speak, according to Anheuser-Busch.

"It is difficult to imagine that beer drinkers in France, Italy, Portugal, Austria or the Czech Republic could think of BUD as an appellation of origin, i.e. as an indication that the beer was brewed in a specific geographic location ..." the court ruling said, according to an excerpt provided by Anheuser-Busch.

Owning the trademark to Budweiser - Anheuser-Busch's most popular brand - is important as the biggest U.S. brewer tries to boost market share in the profitable European market, said Eric Shepard, executive editor of the industry publication Beer Marketer's Insights.

"It's hard to be an international brand if you can't use their name," Shepard said. Countries in Eastern Europe are particularly hot markets because beer consumption is growing and consumers have more income than other developing countries like China, Shepard said.

Shepard said the legal fight with Budvar isn't likely to wrap up anytime soon - but Anheuser-Busch might consider the legal bills a good investment to win a valuable trademark in a brand-driven business.

"I guess from their point of view it's worth fighting for, but geez, it's arduous and strenuous," Shepard said.

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