Lifting of the Cuba embargo by the United States could
create disputes over rights to the Cohiba brand. Cohiba is one of the biggest brands for Cuban
cigar. There is another Cohiba brand
made in the Dominican Republic which is the one which finds its way to American
retailers. The owner of the Dominican
Republic brand is Scandinavian Tobacco Group ("STG"). STG recently won a trademark dispute with the
owner of the Cohiba brand in Cuba, Cubatabaco, in the United States. It took STG 16 years, but it finally
succeeded in obtaining the rights to the brand, Cohiba, in the United
States. As a result, the distributor for
Cubatabaco (a state tobacco company of Cuba), must sell its "Cohiba"
cigars in the United States under other brands.
A similar issue arises in the rum arena. Bacardi & Co. ("Bacardi") began
as a Cuban company, but left Cuba after the Castro government nationalized its
operations. The rights to the brand in
Cuba (and elsewhere) belonged to the Havana Club. Following its departure from Cuba, Bacardi
fought with Cuban and French spirits maker, Pernard Ricard SA over the rum
brand owned by Havana Club. In 1997,
Bacardi purchased Havana Club and then obtained a series of rulings in United
States courts giving it the rights to the Bacardi brand in the United
States. Pernard Ricard will distribute
rum to the United States under a different brand--and will market its new brand
as the "genuine" Cuban rum in Cuba for those who visit Cuba and wish
to bring some home. Meanwhile, Bacardi indicated
that it may consider a return to Cuba if there is improvement in the relations
between Cuba and the United States and an improvement in human rights in Cuba.
