EU Court Issues Ruling on “Bavaria” Beer Designation
Responding to questions referred to it by an Italian court, the European Court of Justice (ECJ) has determined that (i) the term “Bavaria,” when used in conjunction with beer, is not a generic term, but rather is a protected geographical indication (PGI) recognized in valid proceedings by the European Commission in 2001; and (ii) beer makers outside the German region, using this designation for their products, may do so if they can prove their trademarks were registered in good faith before 2001 and will not likely confuse consumers as to product identity, “having regard to that mark’s reputation, renown and the length of time for which it has been used.” Bavaria NV v. Bayerischer Brauerbund eV, No. C-343/07 (decided July 2, 2009).
German brewers have apparently been challenging Dutch brewer Bavaria NV in courts throughout the continent, including in Italy where the case has been returned for the Dutch brewer to prove that it applied for its trademark in good faith in 1971. Both parties reportedly claimed victory. A spokesperson for the German brewers was quoted as saying, “The European court has strengthened our designation and we see this as the optimal starting point for the cases that are still running in Italy and Germany. We’re also now considering whether to pursue legal action against those free-riders selling beer using our good Bavarian name in other European countries.”
The Dutch brewer apparently believes it can prevail in Italy on behalf of its subsidiary, Bavaria Italia; a member of Bavaria NV’s board cited similar litigation in Spain that it won in June 2009 at the culmination of 10-year dispute. According to the ECJ’s ruling, the Dutch company began using the term “Bavaria” in 1925 in reference to the process used to make the beer and registered the name periodically between 1947 and 1995. See Financial Times, July 3, 2009.
