United States Court ruled in favour of the Bermuda-based drinks giant for the third time.

The United States Court of Appeals affirmed this week the New York District Court decision in the case, dismissing the federal trademark and trade name and false advertising claims brought against Bacardi by Havana Club Holding, S.A. and Havana Club International, S.A..

The companies are both joint ventures between French distiller Pernod Ricard, S.A. and the Cuban government. The ruling also confirmed the cancellation of the interest claimed by the joint ventures in the US registration of the HAVANA CLUB mark.

The Arechabala family has been working with Bacardi to regain the trademark rights to sell rum under the Havana Club name. In connection with these efforts, Bacardi filed for a trademark registration for Havana Club rum in the United States in 1994 and began distributing Havana Club rum in New York in 1995.

The Cuban government and Pernod Ricard, through HCH, brought a suit claiming that the Cuban government had assigned the Havana Club trademark to Havana Club Holding and that it was the rightful owner of the mark. Havana Club Holding, therefore, claimed that the sales by Bacardi infringed its mark.

During the course of the litigation, the Court found the law in the US to be the same as the laws generally existing in Europe and many other countries, which do not recognise any entity as the owner of rights in trademarks or trade names if that entity confiscated the trademarks or trade names without the payment of just compensation.

A spokesperson for Bacardi said: "For the third time this issue has been brought before the courts, and for the third time the court has found in favour of the rightful owners of an important trademark. "But beyond this particular trademark, this court decision, like those that have preceded it, sends a clear message that the commitment of a company and its founders to establishing and building a name should be recognised and respected.

"We thank the court for upholding this principle of fairness that is at the heart of not only US, but also international law.

"While clearly this decision benefits the Arechabala family and its partners at Bacardi, it also should provide the rightful owners of other important trademarks a degree of comfort that any misappropriation of a brand name will not be permitted.'' BUSINESS BUC