(Photo: Hennessy)
On Tuesday, the U.S. appeals court revived a trademark suit filed by French spirits makers against hip-hop label Cologne & Cognac Entertainment. The 24-page ruling sets the stage for a legal battle over the word "cognac," which can legally only be used in reference to spirits produced in the eponymous region of France.
A three-judge Federal Circuit panel sent the case back to the U.S. Patent and Trademark Office, which had previously ruled in favor of the music label's request for a trademark covering its name in March 2019. The application was opposed by the Bureau National Interprofessionnel du Cognac, a trade union representing thousands of French grape growers and distillers.
BNIC argued that use of the word "cognac" would cause undue confusion in the market. The PTO disagreed, arguing that the phrase wasn't famous enough to distinguish between cognac, the legally protected spirit, and Cognac, the region.
The U.S. appeals court took a different stance. In addition to a high likelihood of confusion, the court found that the music label — which has been using the phrase since as early as 2017 — may have benefited financially from the illegitimate association.
"The record shows that Applicant’s mark 'projects an image of sophistication and elegance' precisely because of its use of COGNAC," the court wrote. "Indeed, to the extent that Applicant’s mark evokes a lifestyle of leisure or high living, the materials show that it is the term COGNAC alone that projects this image.”
[caption id="attachment_79857" align="aligncenter" width="600"] (Photo: Cologne & Cognac Entertainment)[/caption]
The PTO is now compelled to reassess its ruling in light of the U.S. appeals court's finding.
Just as true feta cheese can only be made in Greece and Iberico ham in Spain, cognac can only be called "cognac" if it's distilled in its namesake region in France. Many would-be spirits brands have fallen astray of similar technicalities. Mexican and French regulators frequently send cease-and-desist orders to international brands touting themselves as tequila and champagne.
Sometimes, the results are especially punchy. Last year, the European Union destroyed 2,000 cans of Miller High Life, famously subtitled "The Champagne of Beers." A few weeks later, regulators destroyed 35,000 bottles of Cola Couronne "Fruit Champagne" soda imported from Haiti.
As Cologne & Cognac Entertainment has now learned, knock-off liquors aren't the only products that can run afoul of strictly enforced protected destination-of-origin laws.
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