Cuba and Bacardi’s longstanding conflict over the Havana Club brand has intensified due to a new U.S. law that prohibits recognition of trademarks deemed “illegally confiscated” by the Cuban government. Signed by President Biden, this legislation impacts Cuba’s efforts to renew its trademark for Havana Club, which has a significant global presence. Bacardi supports the law, while Pernod-Ricard, Cuba’s partner, fears it jeopardizes their rights. The situation raises concerns about future U.S.-Cuba relations and market dynamics.
The Ongoing Legal Battle Over Havana Club Rum
The long-standing feud between Cuba and Bacardi, the American rum giant, has been reignited, centering around the iconic Havana Club brand. This conflict has resurfaced following the implementation of a newly enacted American law that has drawn sharp criticism from Havana. Dubbed “the law on unrecognized stolen trademarks in the United States,” this legislation was signed by President Joe Biden on December 1, 2023, and was pushed through Congress by a bipartisan group of lawmakers, including Marco Rubio, a vocal opponent of the Cuban government.
Implications of the New Legislation
This new law specifically prohibits U.S. courts and federal agencies from acknowledging trademarks deemed “illegally confiscated” by the Cuban government during the nationalization efforts that took place post-1959 revolution, unless the original owners have granted permission for their use. Lawmakers highlighted the Havana Club case during the bill’s presentation, emphasizing the decades-long legal struggle between Cuba and Bacardi. Cuba Ron, the Cuban company behind Havana Club, has been in a partnership with the French conglomerate Pernod-Ricard since 1993, while Bacardi, which lost its assets in Santiago de Cuba, began marketing its own version of Havana Club rum in the United States after contesting Cuba’s trademark registration.
The stakes in this dispute are substantial, as the global rum market is on an upward trajectory, projected to grow at an average annual rate of 7.7% from 2024 to 2031. Despite the ongoing embargo preventing Havana Club from being sold in the U.S., the brand boasts a strong international presence in 125 countries. The recent legislation could complicate CubaExport’s trademark renewal for Havana Club, originally granted in the U.S. in 1976 and renewed by the American Patent and Trademark Office in 2016.
In response to the law’s passage, Bacardi expressed satisfaction, while Pernod-Ricard voiced disappointment, fearing it undermines their established rights to the Havana Club brand. The future remains uncertain, especially if U.S. sanctions are eventually lifted, which would pose a significant risk for Pernod-Ricard if Bacardi’s version of the rum dominates the market.
Experts like John Kavulich, director of the Cuba-U.S. Economic and Trade Council, suggest that Bacardi’s triumph in this legislative effort has come at a minimal cost, highlighting the lack of debate among lawmakers on this issue. The shift in U.S. policy towards Cuba, following the brief thaw under Obama and the subsequent hardline approach during Trump’s presidency, raises questions about the Biden administration’s stance and the potential for further tightening of sanctions. Meanwhile, the Cuban government has strongly condemned the new law, asserting that it facilitates the continued appropriation of their trademarks in the U.S. market, accusing the American government of catering to aggressive anti-Cuban interests.