The dispute between the two companies arose because the Czech
city of Ceske Budejovice, where Budvar is located, has also been
known through history by its German name, Budweis. The Czech
brewer, which claims it has been brewing a Budweiser beer since
1876, owns UK trade marks for the brands Bud and Budweiser.
The two marks are also the flagship brands for Anheuser-Busch,
which was founded by German emigrants, and the two companies have
fought over the use of the marks since the beginning of 20th
century. The UK dispute dates back to the 1970s, when the US giant
originally applied to the UK Patent Office for both Budvar trade
marks to be cancelled.
The Patent Office rejected Anheuser-Busch's claims, and so did
the High Court. The company made further attempts to revoke the
Czech brewer's marks in the UK, but without success. In 2002, the
Court of Appeal dismissed the US brewer's applications to cancel
both marks, reasoning that Budvar had made legitimate use of
them.
Eventually, Anheuser-Busch requested permission to appeal the
prior decisions against it, claiming that Budvar had failed to use
the marks.
On Monday, the House of Lords, the UK's highest court, rejected
the request. The Lords apparently gave no reason for the decision.
The ruling prevents any further action by Anheuser-Bush in British
courts, closing the final chapter of the dispute.
The UK is Anheuser-Busch's second largest market after the US.
Following Monday's ruling, the UK is also the only country where
both brewers currently retain the right to use the Budweiser and
Bud marks to market their products.
The US giant has successfully prevented Budvar from registering
or using the Budweiser mark in Spain, Denmark, Finland, New
Zealand, Australia and Argentina.
