History of the Budweiser Budvar:

The Czech Joint-Stock Brewery in České Budějovice was established in 1895 in the city of České Budějovice (historically known as Budweis) as the predecessor of the Budweiser Budvar National Corporation. Its founders were Czech residents of the city, who had been granted the historical right to brew beer by King Přemysl Otakar II in the 13th century. Therefore, the Czech Joint-Stock Brewery became the direct successor of the long-standing tradition of Budweiser beer brewing in the city of České Budějovice. The name "Budweiser" is derived from the city's German name, "Budweis," reflecting the town's rich brewing heritage dating back to the 13th century.

The dispute over the use of the term "Budweiser" is part of a long-standing legal conflict that began when Anheuser-Busch, an American brewery, started brewing its own beer under the name Budweiser Lager Beer in the United States at the end of the 19th century. The name "Budweiser" was chosen to capitalize on the long history of the Czech brewery and the established global reputation of the original Czech Budweiser beer, as was confirmed in testimony by Adolphus Busch, the founder of Anheuser-Busch, in U.S. courts.

This led to a trademark dispute that has been going for many years, in numerous territories and has generated countless pages of legal and historical debate.

In Romania, Budweiser Budvar's legal rights to the BUDWEISER trademark date back to the 1950s, further underlining the long-standing protection of its brand in international markets. This trademark dispute is a unique example of how the brewing world’s history and commercial success have intertwined, shaping both legal and cultural landscapes across different countries.

The story of Budweiser is one of tradition, competition, and a deep connection to regional identity, making it a fascinating chapter in the broader history of beer.

Background of the recent Romanian case:

In 2024, the Czech beer manufacturer Budweiser Budvar discovered on the Romanian market beers offered for sale bearing the trademark BUDWEISER without authorization and imported by various entities. Such beers were advertised and sold on the Romanian market both via traditional points of sale (i.e. supermarket, hypermarket chains), as well as online, by means of various online marketplaces.

Budweiser Budvar is the only entity that holds rights on the Romanian territory protecting the trademark “Budweiser” for beer in class 32.

In exercising such rights, Budweiser Budvar, has notified such entities of the unauthorized commercial activity by which they were selling equivalent products – beer – affixed with the Budweiser name, without such products being produced or in any way authorized by Budweiser Budvar, and therefore, infringing its rights.

Most notified entities complied with the company’s request and removed the unauthorized products from the market. However, this outcome was not reached with the importer of the goods, which replied to Budweiser Budvar stating that they are legitimately selling products purchased from the EU market, manufactured and sold by a third-party entity in the EU and further introduced into the Romanian market circuits while exercising their rights within the provisions relating to the free movement of goods. Given that the importer refused to cease the sale and distribution of the imported products and, even more so, was identified to be selling the same goods also online, on a website operated by an affiliated entity, Budweiser Budvar was forced/decided to pursue the resolution of this conflict before the Romanian competent courts.

In this context, on December 24, 2024, Budweiser Budvar filed with the Bucharest Tribunal an interim injunction claim against the importer and the company operating the website where the infringing goods were sold, shortly followed by the filing of a trademark infringement action.

Outcome of the proceedings:

The decision rendered by Bucharest Tribunal followed shortly and ruled in favor of Budweiser Budvar in its trademark dispute with the two entities that were importing, distributing and selling beer under the “Budweiser” name on the Romanian market without Budweiser Budvar’s authorization. A comparative table between Budweiser Budvar’s trademarks and the imported goods can be consulted below:

The court granted the provisional measures requested by means of the preliminary injunction claim and ordered that all commercial activities — including the unauthorized sale, import, distribution, and online marketing of beer products under the “Budweiser” sign – should be temporarily ceased until the trademark infringement claim is finalized, given that such market actions could be found to infringe Budweiser Budvar's valid trademark rights protected in Romania.

Key Takeaways from the Ruling:

  • On Budweiser Budvar’s Trademark Rights: The court reinforced that Budweiser Budvar holds valid trademarks for “beers” in Nice class 32 in Romania, recognizing its right to protect the brand from any unlawful commercial activities involving similar products bearing the name “Budweiser” by means of interim measures. On this occasion, the court acknowledged the legal appearance in favor of Budweiser Budvar, placing significant weight in its decision on the fact that the trademarks bearing the name “Budweiser” relied upon by the Defendants and protected in the portfolio of the producer in other jurisdictions are not validly protected in Romania.
  • On the Risk of Trademark Infringement: The court ruled that the sale by the Defendants of beer products bearing the sign “Budweiser”, for which the Plaintiff is the sole entity which owns trademark protection in Romania, could be liable to lead to a consumer confusion, thus potentially  damaging the reputation and integrity of Budweiser Budvar’s trademark and therefore, justifying the provisional measures ordered in the case with the purpose of avoiding the consequences potentially arising from said infringing actions
  • On the Urgency: Stressing the urgency, the court pointed out that the continued distribution of the analyzed beer products could cause significant damages to Budweiser Budvar. In this context, the court specifically considered the reputational harm resulting from the commercial distribution of products that falsely create the impression of originating from Budweiser Budvar, noting that the ongoing sale of such products could undermine consumer perception of the true origin of the beer over time.  Since the potential dilution of Budweiser Budvar's trademark would be difficult to be repaired in the future, the court emphasized the need for immediate action;
  • On the Enforcement of the Provisional Measures: The court’s ruling ensures that the defendants, which were importing, distributing and selling unauthorized Budweiser beer on the Romanian market must cease all such activities, including any online sale and promotion of the infringing products, until a final judgment on the merits is rendered the case;
  • What’s Next?

    The court’s decision is final, as no appeal was filed within the term provided by law. The provisional measures will remain in effect until the final settlement of the ongoing lawsuit regarding the trademark infringement claim.

    Considering the lack of res judicata regarding the court's reasoning in the interim injunction proceedings, it remains to be seen whether the court addressing the merits of the case will adopt the same view on the infringement of the Budweiser trademarks and the need for definitive cessation measures.

Conclusion:

This decision sends a strong message about the importance of protecting trademark rights in Romania, especially for internationally recognized brands. The ruling reinforces the need for prompt legal action to prevent unauthorized use and market confusion, safeguarding brand integrity and consumer trust. Furthermore, it sends a message to importers and distributors that it is their responsibility to check if the products they place on the market infringe, in any way, intellectual property rights of third parties.

BACIU PARTNERS, with a team led by Andreea Bende and including Oana- Cătălina Matei Ionescu and George – Mihai Irimescu, was proud to represent Budweiser Budvar in this conflict and to support the company in ensuring that its trademark rights are protected on the Romanian market.