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Et une arnaque de plus de Bacardi Un article du Financial Times de septembre 1999 The battle for control of the fastest growing international spirit brand will move to Geneva next week when the World Trade Organisation begins hearing the European Union's complaint against US legislation that sparked the dispute. The EU started proceedings in July after a US court rejected an attempt by Havana Club International, a joint venture between a Cuban distiller and Pernod Ricard of France, to stop Bacardi-Martini using the Havana Club name in the US. Bacardi, maker of the white rum that is the biggest international spirits brand, says the US court's verdict has restored the disputed name to the Arechabala family which owned it until its seizure in 1960 by Fidel Castro's government. Pernod, the world's fifth largest drinks group, says Havana Club is a brand the previous owners had all but abandoned and that Bacardi's move to seize control of it is an attempt to see off a small but fast-growing rival. At the centre of the EU's complaint is section 211 of the US Budget law approved by Congress in October 1998. This provides that no Cuban- origin trademarks or trade names can be protected legally in the US if they were previously used in connection with businesses confiscated by the Castro government. It was this legislation which led a New York court to throw out in April Havana Club International's attempt - launched in 1996 - to stop Bacardi using the Havana Club name to sell its own rum in the US. The Pernod-backed joint venture has been selling its own Cuban-produced Havana Club brand around the world since 1994 - with annual growth of 25 per cent taking the white rum into the elite group of millionaire spirits that sell more than 1m nine-litre cases a year. Bacardi, a private company owned by more than 200 descendants of the company's founder, has bought the Havana Club trademark from the Arechabalas. It says its aim is to help the family regain control of the brand and that the section 211 legislation is similar to legal rights in Europe covering property expropriated by communist an Nazi regimes. But Pernod says the Arechabalas had done nothing to maintain ownership of the trademarks or names, having allowed rights in some countries to lapse before the Cuban revolution. The family also failed to renew its registration in the US in 1974, a process that cost only Dollars 25. "They haven't sold a drop of Cuban rum since 1960," said Pierre-Marie Chateauneuf, Pernod's legal director. "This is retrospective legislation which changed the rules two years after we brought our case." "Saying that the Arechabala family abandoned its rights is like a mugger trying to justify his crime by saying the victim has abandoned his wallet," says Doug Gibson, Bacardi's counsel. Pernod has appealed against the New York verdict and is likely to hear the result by the end of the year. If it loses its appeal, everything will depend on the WTO complaint which could take two years to reach its conclusion. |