Belgian Anheuser-Busch Bud Beer Loses Trademark Battle With Czech Brewer Budejovicky Budvar In EU Court

December 17, 2008 8:59 a.m. EST

Luxembourg, Luxembourg (AHN) - Belgian beer manufacturer Anheuser-Busch lost its EU-wide hold on the Bud brand name after the European Court of First Instance in Luxembourg ruled on Tuesday in favor of Czech brewer Budejovicky Budvar.

In its ruling, the ECFI said EU's trademark registry, the Office for Harmonization in the Internal Market, erred when it rejected Budvar's complaint against Anheuser-Busch's listing.

The two beer companies have been locked in a legal battle over the Budweiser trademark for more than 100 years, which prevented Anheuser from expanding its operations in Europe.

Budvar is the last beer manufacturer in the Czech Republic owned by the state. Prime Minister Mirek Topolanek tried to sell the company due to the prolonged legal battle. He admitted the privatization will not take place before his term ends in 2010.

Budvar claimed it registered the trademark Bud under a 1958 agreement, which protected the brand in France, Austria and the then Czechoslovakia. With the ruling Anheuser-Busch could only use the Bud trademark in European countries where it has made separate brand registrations ahead of its Czech rival.

Anheuser-Busch, which was purchased by Belgian brewer InBev in 2008, had filed several trademark applications only from 1996 to 2000 to use the words Bud and Budweiser on signs, beer labels and promotional goods throughout the 27-member regional bloc.

InBev spokeswoman Gwendoline Ornigg, in an email statement, said the ECFI ruling has no impact on its operations in the EU because it enjoys trademark protection for Budweiser in 23 of 27 EU member-nations. She added InBev is studying if it will appeal the court's decision.