A view of Havana Club rum in Trinidad, Cuba, on January 21, 2020. (Photo: Manuel Romano/NurPhoto via AP Images)
International spirits giant Bacardi is doubling down on its long-standing feud with the American government over the brand name "Havana Club."
On Thursday, Reuters reported that Bacardi has convinced an appeals court to revive the liquor company's 2021 lawsuit against the U.S. Patent and Trademark Office. The complaint alleges that Cuban company Cubaexport and French spirits firm Pernod Ricard wrongfully obtained the trademark for Havana Club Rum in international markets. Pernod Ricard's version of Havana Club — produced in Cuba — competes against Bacardi's Havana Club, which is distilled in Puerto Rico.
Understanding the densely plotted details of the suit requires a quick trip through revolutionary history.
Havana Club was created in 1934 by the Cuba-based José Arechabala S.A. company. When the Cuban Revolution swept the country in 1959, the brand was among hundreds nationalized and subsequently operated by the local government. In 1993, Pernod Ricard inked a 50:50 joint deal with Cuban officials to begin exporting Havana Club Rum abroad. Bottles began shipping to global markets with the notable exception of the U.S., which has a trade embargo against Cuban products.
A year later, Bacardi made a separate deal with Ramón Arechabala, the descendant of José Arechabala, to acquire the original Havana Club recipe. The spirits company now produces its own version of the rum at its distillery in Cataño, Puerto Rico. Bacardi's Havana Club is readily available within the U.S.
Here is where the lawsuit lays its foundation. According to Bacardi, Cubaexport failed to renew its trademark for the brand name in 2006. Despite this, the USPTO eventually allowed the Cuba state-owned company to retain international rights to Havana Club in 2016.
"Bacardi will continue to pursue all the necessary legal and other actions regarding its rights and ownership of Havana Club rum. As the company has maintained all along, Bacardi is the legitimate owner of the brand," the company wrote in a 2016 statement.
Bacardi's suit coincides with an ongoing debate fighting to lift the U.S. trade embargo against Cuba. If Pernod's version of Havana Club eventually makes its way to the American market, we imagine that spirited lawsuits over the contest brand will begin flying left and right.
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