Bacardi Wins Appeal of Havana Club Trademark Litigation; U.S. Court Rules in Bacardi's Favor For Third Time.

Business Editors/Legal Writers

HAMILTON, Bermuda--(BUSINESS WIRE)--Feb. 4, 2000

Note to Editors: The United States Court of Appeals for the Second Circuit today unanimously affirmed the New York District Court decision in the &uot;Havana Club&uot; case, dismissing the federal trademark and trade name, and false advertising claims brought against Bacardi by Havana Club Holding, S.A. (HCH) and Havana Club International, S.A. (HCI), two joint ventures between French distiller Pernod Ricard, S.A. and the Cuban government. The ruling also confirmed the cancellation of the interest claimed by the joint ventures in the U.S. registration of the HAVANA CLUB mark.

The Arechabala family has been working with Bacardi to regain the trademark rights to sell rum under the Havana Club name. In connection with these efforts, Bacardi filed for a trademark registration for Havana Club rum in the United States in 1994 and began distributing Havana Club rum in New York in 1995. The Cuban government and Pernod Ricard, through HCH, brought suit claiming that the Cuban government had assigned the Havana Club trademark to HCH and that HCH was the rightful owner of the mark. HCH therefore claimed that the sales by Bacardi infringed its mark. During the course of the litigation, the Court found the law in the U.S. to be the same as the laws generally existing in Europe and many other countries, which do not recognize any entity as the owner of rights in trademarks or trade names if that entity confiscated the trademarks or trade names without the payment of just compensation.

BACARDI LIMITED ISSUED THE FOLLOWING STATEMENT REGARDING THE COURT DECISION:

&uot;For the third time this issue has been brought before the courts, and for the third time the court has found in favor of the rightful owners of an important trademark. But beyond this particular trademark, this Court decision, like those that have preceded it, sends a clear message that the commitment of a company and its founders to establishing and building a name should be recognized and respected. We thank the court for upholding this principle of fairness that is at the heart of not only U.S., but also international law.

While clearly this decision benefits the Arechabala family and its partners at Bacardi, it also should provide the rightful owners of other important trademarks a degree of comfort that any misappropriation of a brand name will not be permitted.&uot;