- 1 BUD From Our House to Yours: A Russian Success Story

- 2 Background Anheuser-Busch was founded in 1852 In 1876, Anheuser-Busch begins making BUDWEISER Anheuser-Busch is currently engaged in a long- running trademark dispute with the Czech brewer, Budejovicky Budvar Budejovicky Budvar was founded in years after Anheuser-Busch began making BUDWEISER in the United States Registration of BUDWEISER -First registered by Anheuser-Busch in First registered by Budejovicky Budvar in mid-1930’s The dispute is centered in Europe

- 3 BUD – History of Dispute in Russia Anheuser-Busch files trademark application for BUD on 16 June 1989 Budejovicky Budvar files trademark application for BUD on 3 October 1989 Budejovicky Budvar’s BUD trademark is registered Anheuser-Busch files to cancel Budejovicky Budvar’s BUD registration; registration is cancelled –First impediment to registration removed Rospatent refuses registration of Anheuser-Busch’s BUD trademark on a variety of grounds Anheuser-Busch files response to refusal and successfully argues for the withdrawal of refusal –Second impediment to registration overcome Budejovicky Budvar applies to register BUD as an appellation of origin

- 4 Appellation of Origin--Background Definition: An Appellation of Origin is: A geographic term; Which designates the origin of a product; and Where the nature or quality of the product is due exclusively to the geographic origin of the product. Example: Bourdeaux for wine.

- 5 BUD – History of Dispute in Russia Anheuser-Busch files trademark application for BUD on 19 June 1989 Budejovicky Budvar files trademark application for BUD on 3 October 1989 Budejovicky Budvar’s BUD trademark is registered Anheuser-Busch files to cancel Budejovicky Budvar’s BUD registration; registration is cancelled –First impediment to registration removed Rospatent refuses registration of Anheuser-Busch’s BUD trademark on a variety of grounds Anheuser-Busch files response to refusal and successfully argues for the withdrawal of refusal –Second impediment to registration overcome Budejovicky Budvar applies to register BUD as an appellation of origin

- 6 BUD – History of Dispute in Russia Anheuser-Busch files trademark application for BUD on 16 June 1989 Budejovicky Budvar files trademark application for BUD on 3 October 1989 Budejovicky Budvar’s BUD trademark is registered Anheuser-Busch files to cancel Budejovicky Budvar’s BUD registration; registration is cancelled –First impediment to registration removed Rospatent refuses registration of Anheuser-Busch’s BUD trademark on a variety of grounds Anheuser-Busch files response to refusal and successfully argues for the withdrawal of refusal –Second impediment to registration overcome Budejovicky Budvar applies to register BUD as an appellation of origin BUD appellation of origin is registered

- 7 BUD – History of Dispute in Russia Rospatent issues a refusal to register Anheuser-Busch’s BUD trademark on the grounds that it conflicts with the later appellation of origin registration of BUD issued to Budejovicky Budvar Anheuser-Busch files cancellation action against Budejovicky Budvar’s BUD appellation of origin.

- 8 BUD – History of Dispute in Russia Grounds for cancellation of BUD as an apellation of origin are twofold: First ground: BUD is not a geographic location –The town where the Czech brewer is located is Ceske Budejovice –The town is not nor has it ever been called or referred to as BUD Second ground: Beer does not qualify for appellation of origin protection because the quality of the beer is in no way dictated or controlled by the geographic location where it is brewed –Beer with the same exact qualities can be made any where in the world

- 9 BUD – History of Dispute in Russia Rospatent issues a refusal to register Anheuser-Busch’s BUD trademark on the grounds that it conflicts with the later appellation of origin registration of BUD issued to Budejovicky Budvar Anheuser-Busch files cancellation action against Budejovicky Budvar’s BUD appellation of origin.

- 10 BUD – History of Dispute in Russia Rospatent issues a refusal to register Anheuser-Busch’s BUD trademark on the grounds that it conflicts with the later appellation of origin registration of BUD issued to Budejovicky Budvar Anheuser-Busch files cancellation action against Budejovicky Budvar’s BUD appellation of origin. Rospatent then cancels the appellation of origin for BUD –Rules that BUD is not a geographic location

- 11 BUD – History of Dispute in Russia Rospatent issues a refusal to register Anheuser-Busch’s BUD trademark on the grounds that it conflicts with the later appellation of origin registration of BUD issued to Budejovicky Budvar Anheuser-Busch files cancellation action against Budejovicky Budvar’s BUD appellation of origin. Rospatent then cancels the appellation of origin for BUD –Rules that BUD is not a geographic location –Third impediment to registration overcome

- 12 BUD – History of Dispute in Russia Rospatent issues a refusal to register Anheuser-Busch’s BUD trademark on the grounds that it conflicts with the later appellation of origin registration of BUD issued to Budejovicky Budvar Anheuser-Busch files cancellation action against Budejovicky Budvar’s BUD appellation of origin. Rospatent then cancels the appellation of origin for BUD –Rules that BUD is not a geographic location –Third impediment to registration overcome Rospatent issues BUD trademark registration to Anheuser-Busch on 15 May 2001!!!

- 13 Recipe for Success—Brewing a Winner What are the keys to achieving success Patience Diligence Establish credibility -This is more difficult when you are not on the market -There are ways to deal with the issue, however -One example: membership and participation in the Coalition of Intellectual Property Rights (CIPR) Develop and prepare the necessary evidence and arguments -Be creative -Work hard Engage top-notch legal and government relations team -We had a good story to tell; but we had to find the right people to tell it It was in this way that we were able to achieve our success of registering BUD!

- 14 What Does This Mean? For Anheuser-Busch, it opens up the Russian market For Rospatent and the Russian government, an indication that Russia is ready for WTO (Similar decisions were issued by both Moldova and Kazakhstan) For the other trademark owners, it is a signal that your intellectual property rights can be dealt with fairly and effectively

- 15 What Next? Defend the appeal to the Supreme Patent Chamber –While we cannot let up, we are confident, given the strength of the decision issued by Rospatent, that our victory will be upheld Continue to push for “first in time, first in right” -First in time/first in right is the doctrine that the right that is protected first, whether it be a trademark or an appellation, takes precedence over the later protected right -This doctrine is required by TRIPs -Protects trademark owners from losing their rights to later filed appellations of origin Introduce the product

- 16 Conclusion For All You Do, This BUD’s For You!!!