Bacardi loses Havana Club trademark fight

In a significant legal development, a U.S. appeals court has ruled against Bacardi in the protracted legal battle over the "Havana Club" rum trademark in the United States. The 4th U.S. Circuit Court of Appeals in Richmond, Virginia, rejected Bacardi's challenge, affirming the U.S. Patent and Trademark Office's 2016 renewal of the trademark belonging to Cubaexport, a state-owned Cuban entity. This decision marks a pivotal moment in the decades-long dispute concerning the ownership of the celebrated rum brand.

Bacardi, which acquired the brand from Jose Arechabala S.A. after leaving Cuba following the 1959 revolution, argued that the Cuban government had unlawfully seized the "Havana Club" name and assets. The company began selling its own version of Havana Club rum in the U.S. in 1995. Cubaexport had initially registered its trademark in the U.S. in 1976, but faced obstacles in renewing it due to U.S. Treasury Department regulations.

However, the U.S. Office of Foreign Assets Control (OFAC) issued a license near the end of the Obama administration, paving the way for the trademark's renewal in 2016. Bacardi subsequently sued, contending the trademark should have expired in 2006. Lower courts dismissed the case, but the appeals court revived it. Despite a later law enacted in 2024 by President Biden barring U.S. courts from recognizing trademarks confiscated by the Cuban government, the appeals court upheld the dismissal of Bacardi's lawsuit, stating the OFAC license resolved the issue.