Anheiser-Busch Inc. v. Budejovicky Budvar [1984] F.S.R. 413 (CA) (U.K.)
FACTS:
- Anheuser-Busch Inc. was a large American brewing company that produced Budweiser beer.
- Budejovicky Budvar was a Czech brewing company that also produced Budweiser beer.
- Budejovicky Budvar had been brewing Budweiser beer since 1895.
- Anheuser-Busch Inc. had been brewing Budweiser beer in the United States since 1876.
- The two companies had been engaged in a trademark dispute over the use of the name “Budweiser” since the early 1900s.
- In 1984, Anheuser-Busch Inc. sued Budejovicky Budvar in the United Kingdom for trademark infringement. Anheuser-Busch Inc. argued that Budejovicky Budvar’s use of the name “Budweiser” in the United Kingdom was likely to cause confusion among consumers.
- The use of the same trademark by two different companies may not be considered trademark infringement if the two companies’ products are marketed to different segments of the population and if the two companies have different reputations.
ISSUE:
- Whether BB and AB were entitled to use the name “Budweiser”?
- Whether the exercise of the judge’s discretion under s12(2) can be impugned?
- Whether the Court of Appeal decision has disposed of AB’s Section 11 objection to BB’s application?
- Whether the Court ought to exercise the discretion conferred by Section 12(2) in favour of BB?
HELD:
- In Anheuser-Busch Inc. v. Budejovicky Budvar the court held that the two companies are allowed to use the name “Budweiser” in different geographic markets.
- The English High Court and the House of Lords ruled that the use of the name “Budweiser” by the two companies was not likely to cause confusion in the United Kingdom.
- The European Court of Justice ruled that the use of the name “Budweiser” by the two companies was not likely to cause confusion in the European Union.
- As a result of these rulings, Anheuser-Busch Inc. was allowed to use the name “Budweiser” in the United States and Canada, while Budejovicky Budvar was allowed to use the name “Budweiser” in most of Europe.
- This case is important because it illustrates the principle of trademark territoriality.
- Trademark territoriality means that a trademark is only protected in the geographic territory where it is registered. In this case, Anheuser-Busch Inc.’s trademark for “Budweiser” was registered in the United States and Canada, while Budejovicky Budvar’s trademark for “Budweiser” was registered in most of Europe.