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BRAND PROTECTION
THROUGH TRADEMARKS
       Why Craft Beer Needs the ®
                                                     Brian P. Gregg
                                     McNees Wallace & Nurick LLC
                                     100 Pine Street, P.O. Box 1166
                                        Harrisburg, PA 17108-1166
                                          Telephone: 717.237.5456
                                                 Fax: 717.260.1769
                                                       717 260 1769
                                                bgregg@mwn.com
© 2012 McNees Wallace & Nurick LLC
ABOUT ME
                                 Brian P. Gregg
                                    I provide practical advice for
                                 businesses to help protect their
                                 intellectual property.

                                   I'm passionate about working
                                 with the craft brewing industry.

                                     Brewers Association member.

                                     Home brewer.



© 2012 McNees Wallace & Nurick LLC
WHAT YOU ARE ABOUT TO
        LEARN
 What trademarks are (and what not
 trademarks).
 trademarks)
 Why early clearance and registration of a
 trademarks is critical for craft brewers
                                  brewers.
 Why the Craft Beer Industry is fertile
 ground for trademarks disputes
                          disputes.
 How to avoid spending time and money on
 trademark disputes
           disputes.



© 2012 McNees Wallace & Nurick LLC
A HISTORY LESSON
    Connect Product to Source:
•     Early symbols on clay pots
•     Indicates where the pot came from - the
      “manufacturer”
       manufacturer
•     Better pots worth more money – “good will”




© 2012 McNees Wallace & Nurick LLC
HOW TO SPOT A TRADEMARK
     Connect Product to
     Source:
 •     Name
 •     Design
 •     Color
 •     Slogan
 •     Other




© 2012 McNees Wallace & Nurick LLC
WHAT ARE NOT TRADEMARKS
     Domain Name
 •     greendragonales.com
     Corporate Name
 •     Green Dragon Brewing Co.
     Descriptive term
 •     Ale, Stout, Lager, IPA




 © 2012 McNees Wallace & Nurick LLC
WHY REGISTER TRADEMARKS
     Nationwide Rights
 •     Critical for a brewer that
       starts local, ensure you can expand
     Principal Register at USPTO
                            S O
 •     Your mark shows up in searches
     You Can Use the ®
 •     Signal to others that you own your mark
     Mark is Presumed Valid
     Treble D
     T bl Damages and Attorney’s Fees
                    d Att     ’ F
© 2012 McNees Wallace & Nurick LLC
TRADEMARK CLEARANCE
  Conduct a Trademark Search


  Get the Opinion of Counsel
           p


  Ensure You Search Common Law
  Sources Not Just the Trademark
  Office


© 2012 McNees Wallace & Nurick LLC
CLEARANCE/REGISTRATION
COSTS COMPARED TO LAWSUIT

$300,000




$1,500-3,000
                  Clearance/               Infringement
                  Registration               Lawsuit
      © 2012 McNees Wallace & Nurick LLC
CRAFT BEER
ALL THE RIGHT INGREDIENTS FOR TRADEMARK DISPUTES




    © 2012 McNees Wallace & Nurick LLC
CRAFT BEER
TRADEMARK DISPUTE – MAIN INGREDIENTS


      Exponential Growth


      Local/Regional Distribution with
      Delayed or Slow Expansion


      Other Industries view Craft
      Beer's Success as a Threat


© 2012 McNees Wallace & Nurick LLC
INGREDIENT 1 - CRAFT BEER
    INDUSTRY GROWTH
The number of U.S. breweries rose
from under 100 to over 1700 in the
last 30 years. – Brewers Association
        y




© 2012 McNees Wallace & Nurick LLC
INGREDIENT 2 - BREWERIES
START LOCAL THEN EXPAND
  Nationwide trademark rights are
  critical to long term viability of a
  brand




© 2012 McNees Wallace & Nurick LLC
INGREDIENT 3 - OTHER
          INDUSTRIES
  And they are taking aim at craft beer
                                   beer.




© 2012 McNees Wallace & Nurick LLC
ROLE PLAYING




© 2012 McNees Wallace & Nurick LLC
ONCE UPON A TIME THERE WERE
   TWO LITTLE BREWERIES




  © 2012 McNees Wallace & Nurick LLC
THE GREEN DRAGON BREWING
        COMPANY




© 2012 McNees Wallace & Nurick LLC
GREEN DRAGON SOUGHT SAGE
        ADVICE
        ADVICE…




 © 2012 McNees Wallace & Nurick LLC
AND SO HE DID…




© 2012 McNees Wallace & Nurick LLC
THE GREEN DRAGON BREWING
 COMPANY WAS SUCCESSFUL
   The brewery
   created a magical
                g
   beer that everyone
   loved.
   It was the best beer
   I         h b    b
   in the whole Realm.
 © 2012 McNees Wallace & Nurick LLC
GREEN DRAGON ALE WAS SO
        POPULAR
Word spread
about this
wonderful beer.
Knights k d
K i h asked
for it by name.


© 2012 McNees Wallace & Nurick LLC
BUT ALL WAS NOT WELL IN THE
         REALM…
         REALM
 The Green Dragon was
 not the only dragon
                 g
 making beer
 in h R l
 i the Realm.



 © 2012 McNees Wallace & Nurick LLC
RED DRAGON BREWERY WAS
FAR FAR AWAY FROM GREEN
  DRAGON BREWING CO.
Red Dragon made his beer way on the
other side of the Realm.
  h         f h R
He didn't think about using
"RED DRAGON"
 RED DRAGON
as part of his
trademark, he didn't
           h
check to see if that
could be a problem.
           p

 © 2012 McNees Wallace & Nurick LLC
RED DRAGON BREWERY ALSO
       MADE BEER
   Red D
   R d Dragon Ale wasn't
                 Al    't
   very good but Red
   Dragon Brewery made a
   lot of it.
   Soon the same taverns              Ale


   were serving both Green
   and Red Dragon Ales

 © 2012 McNees Wallace & Nurick LLC
NOT ALL BEERS ARE EQUAL
  Knights liked GREEN DRAGON ALE
  but thought RED DRAGON ALE
  tasted evil.




© 2012 McNees Wallace & Nurick LLC
THINGS ALSO GOT CONFUSING
   AT THE LOCAL TAVERNS




                                      ale




 © 2012 McNees Wallace & Nurick LLC
GREEN DRAGON WAS
          CONCERNED




© 2012 McNees Wallace & Nurick LLC
SO GREEN DRAGON SENT RED
    DRAGON A LETTER…
             LETTER




 © 2012 McNees Wallace & Nurick LLC
RED DRAGON WAS NOT HAPPY
    BUT HAD TO CHANGE
               CHANGE.




 © 2012 McNees Wallace & Nurick LLC
AND SO GREEN DRAGON KEPT
    HIS BRAND STRONG




 © 2012 McNees Wallace & Nurick LLC
THE MORAL OF THE STORY IS…
   Choose distinctive marks you can
   defend.
   Screen and clear trademarks to avoid
   unnecessary conflicts.
   Register trademarks early.
   You
   Y are th "trademark police."
         the "t d    k   li "
   Be proactive - others are more likely
   to change if contacted before making
   a significant investment in a brand.

 © 2012 McNees Wallace & Nurick LLC
RECENT NON-BREWERY
         DISPUTES




© 2012 McNees Wallace & Nurick LLC
RECENT NON-BREWERY
         DISPUTES


                          THE BALD EAGLE
                         BREWING COMPANY



© 2012 McNees Wallace & Nurick LLC
TRADEMARK DISPUTES
  Gordon Biersch v Oskar Blues (GORDON)
                    v.
•    Forced Oskar to change to GORDON > G-KNIGHT
  Franciscan Vineyards v Black Raven Brewing
                           v.
  Company
•    Franciscan blocked registration of BLACK RAVEN
     BREWING COMPANY based on RAVEN for wine.
  Hansen Beverage v. Rock Art Brewery
•    Hansen (MONSTER energy Drinks) challenged
     H                              D i k ) h ll d
     Rock Art (VERMONSTER beer ) - case settled
  Bell s
  Bell's Brewery v The Winery Exchange
                  v.
•    Bells opposed Winery Exchange's applications to
     register COPPER BELL (with beer) and filed
     federal law suit (use vs. registration)
 © 2012 McNees Wallace & Nurick LLC
TRADEMARK DISPUTES




© 2012 McNees Wallace & Nurick LLC
DISCUSSION & QUESTIONS

                     Brian P. Gregg
             McNees Wallace & Nurick LLC
             100 Pine Street, P.O. Box 1166
               Harrisburg, PA 17108-1166


                Telephone: 717 237 5456
                Telephone 717.237.5456
                     Fax: 717.260.1769
                    bgregg@mwn.com
                    bgregg@mwn com
              http://www.mwn.com/bgregg/



© 2012 McNees Wallace & Nurick LLC

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Craft beer trademark webinar

  • 1. BRAND PROTECTION THROUGH TRADEMARKS Why Craft Beer Needs the ® Brian P. Gregg McNees Wallace & Nurick LLC 100 Pine Street, P.O. Box 1166 Harrisburg, PA 17108-1166 Telephone: 717.237.5456 Fax: 717.260.1769 717 260 1769 bgregg@mwn.com © 2012 McNees Wallace & Nurick LLC
  • 2. ABOUT ME Brian P. Gregg I provide practical advice for businesses to help protect their intellectual property. I'm passionate about working with the craft brewing industry. Brewers Association member. Home brewer. © 2012 McNees Wallace & Nurick LLC
  • 3. WHAT YOU ARE ABOUT TO LEARN What trademarks are (and what not trademarks). trademarks) Why early clearance and registration of a trademarks is critical for craft brewers brewers. Why the Craft Beer Industry is fertile ground for trademarks disputes disputes. How to avoid spending time and money on trademark disputes disputes. © 2012 McNees Wallace & Nurick LLC
  • 4. A HISTORY LESSON Connect Product to Source: • Early symbols on clay pots • Indicates where the pot came from - the “manufacturer” manufacturer • Better pots worth more money – “good will” © 2012 McNees Wallace & Nurick LLC
  • 5. HOW TO SPOT A TRADEMARK Connect Product to Source: • Name • Design • Color • Slogan • Other © 2012 McNees Wallace & Nurick LLC
  • 6. WHAT ARE NOT TRADEMARKS Domain Name • greendragonales.com Corporate Name • Green Dragon Brewing Co. Descriptive term • Ale, Stout, Lager, IPA © 2012 McNees Wallace & Nurick LLC
  • 7. WHY REGISTER TRADEMARKS Nationwide Rights • Critical for a brewer that starts local, ensure you can expand Principal Register at USPTO S O • Your mark shows up in searches You Can Use the ® • Signal to others that you own your mark Mark is Presumed Valid Treble D T bl Damages and Attorney’s Fees d Att ’ F © 2012 McNees Wallace & Nurick LLC
  • 8. TRADEMARK CLEARANCE Conduct a Trademark Search Get the Opinion of Counsel p Ensure You Search Common Law Sources Not Just the Trademark Office © 2012 McNees Wallace & Nurick LLC
  • 9. CLEARANCE/REGISTRATION COSTS COMPARED TO LAWSUIT $300,000 $1,500-3,000 Clearance/ Infringement Registration Lawsuit © 2012 McNees Wallace & Nurick LLC
  • 10. CRAFT BEER ALL THE RIGHT INGREDIENTS FOR TRADEMARK DISPUTES © 2012 McNees Wallace & Nurick LLC
  • 11. CRAFT BEER TRADEMARK DISPUTE – MAIN INGREDIENTS Exponential Growth Local/Regional Distribution with Delayed or Slow Expansion Other Industries view Craft Beer's Success as a Threat © 2012 McNees Wallace & Nurick LLC
  • 12. INGREDIENT 1 - CRAFT BEER INDUSTRY GROWTH The number of U.S. breweries rose from under 100 to over 1700 in the last 30 years. – Brewers Association y © 2012 McNees Wallace & Nurick LLC
  • 13. INGREDIENT 2 - BREWERIES START LOCAL THEN EXPAND Nationwide trademark rights are critical to long term viability of a brand © 2012 McNees Wallace & Nurick LLC
  • 14. INGREDIENT 3 - OTHER INDUSTRIES And they are taking aim at craft beer beer. © 2012 McNees Wallace & Nurick LLC
  • 15. ROLE PLAYING © 2012 McNees Wallace & Nurick LLC
  • 16. ONCE UPON A TIME THERE WERE TWO LITTLE BREWERIES © 2012 McNees Wallace & Nurick LLC
  • 17. THE GREEN DRAGON BREWING COMPANY © 2012 McNees Wallace & Nurick LLC
  • 18. GREEN DRAGON SOUGHT SAGE ADVICE ADVICE… © 2012 McNees Wallace & Nurick LLC
  • 19. AND SO HE DID… © 2012 McNees Wallace & Nurick LLC
  • 20. THE GREEN DRAGON BREWING COMPANY WAS SUCCESSFUL The brewery created a magical g beer that everyone loved. It was the best beer I h b b in the whole Realm. © 2012 McNees Wallace & Nurick LLC
  • 21. GREEN DRAGON ALE WAS SO POPULAR Word spread about this wonderful beer. Knights k d K i h asked for it by name. © 2012 McNees Wallace & Nurick LLC
  • 22. BUT ALL WAS NOT WELL IN THE REALM… REALM The Green Dragon was not the only dragon g making beer in h R l i the Realm. © 2012 McNees Wallace & Nurick LLC
  • 23. RED DRAGON BREWERY WAS FAR FAR AWAY FROM GREEN DRAGON BREWING CO. Red Dragon made his beer way on the other side of the Realm. h f h R He didn't think about using "RED DRAGON" RED DRAGON as part of his trademark, he didn't h check to see if that could be a problem. p © 2012 McNees Wallace & Nurick LLC
  • 24. RED DRAGON BREWERY ALSO MADE BEER Red D R d Dragon Ale wasn't Al 't very good but Red Dragon Brewery made a lot of it. Soon the same taverns Ale were serving both Green and Red Dragon Ales © 2012 McNees Wallace & Nurick LLC
  • 25. NOT ALL BEERS ARE EQUAL Knights liked GREEN DRAGON ALE but thought RED DRAGON ALE tasted evil. © 2012 McNees Wallace & Nurick LLC
  • 26. THINGS ALSO GOT CONFUSING AT THE LOCAL TAVERNS ale © 2012 McNees Wallace & Nurick LLC
  • 27. GREEN DRAGON WAS CONCERNED © 2012 McNees Wallace & Nurick LLC
  • 28. SO GREEN DRAGON SENT RED DRAGON A LETTER… LETTER © 2012 McNees Wallace & Nurick LLC
  • 29. RED DRAGON WAS NOT HAPPY BUT HAD TO CHANGE CHANGE. © 2012 McNees Wallace & Nurick LLC
  • 30. AND SO GREEN DRAGON KEPT HIS BRAND STRONG © 2012 McNees Wallace & Nurick LLC
  • 31. THE MORAL OF THE STORY IS… Choose distinctive marks you can defend. Screen and clear trademarks to avoid unnecessary conflicts. Register trademarks early. You Y are th "trademark police." the "t d k li " Be proactive - others are more likely to change if contacted before making a significant investment in a brand. © 2012 McNees Wallace & Nurick LLC
  • 32. RECENT NON-BREWERY DISPUTES © 2012 McNees Wallace & Nurick LLC
  • 33. RECENT NON-BREWERY DISPUTES THE BALD EAGLE BREWING COMPANY © 2012 McNees Wallace & Nurick LLC
  • 34. TRADEMARK DISPUTES Gordon Biersch v Oskar Blues (GORDON) v. • Forced Oskar to change to GORDON > G-KNIGHT Franciscan Vineyards v Black Raven Brewing v. Company • Franciscan blocked registration of BLACK RAVEN BREWING COMPANY based on RAVEN for wine. Hansen Beverage v. Rock Art Brewery • Hansen (MONSTER energy Drinks) challenged H D i k ) h ll d Rock Art (VERMONSTER beer ) - case settled Bell s Bell's Brewery v The Winery Exchange v. • Bells opposed Winery Exchange's applications to register COPPER BELL (with beer) and filed federal law suit (use vs. registration) © 2012 McNees Wallace & Nurick LLC
  • 35. TRADEMARK DISPUTES © 2012 McNees Wallace & Nurick LLC
  • 36. DISCUSSION & QUESTIONS Brian P. Gregg McNees Wallace & Nurick LLC 100 Pine Street, P.O. Box 1166 Harrisburg, PA 17108-1166 Telephone: 717 237 5456 Telephone 717.237.5456 Fax: 717.260.1769 bgregg@mwn.com bgregg@mwn com http://www.mwn.com/bgregg/ © 2012 McNees Wallace & Nurick LLC