ECNETNews, February 3, 2025: A recently enacted law is posing significant challenges to Cuba’s rum industry, particularly its longstanding claim over the “Havana Club” trademark, following its introduction during the final days of the previous U.S. administration.
The ‘No Stolen Trademarks Honored in America Act of 2023,’ commonly referred to as the “Bacardi Law,” prohibits U.S. courts and agencies from recognizing trademarks that have been expropriated by the Cuban government without the original owners’ consent. This legislation strengthens the legal stance of companies impacted by the nationalization of assets after the Cuban Revolution, with Bacardi at the forefront, involved in a long-term legal dispute over the “Havana Club” brand.
Impact on the Havana Club Dispute
This new legislation intensifies the ongoing trademark dispute involving Bacardi, the Cuban government, and its French business partner, Pernod Ricard. Bacardi acquired the U.S. rights to “Havana Club” in 1995 from the Arechabala family, the original Cuban owners, while Cubaexport, a state-run entity, also asserts rights to the brand based on its U.S. registration in 1976.
The trademark has been a focal point of legal contention for years. In 2016, the U.S. Patent and Trademark Office renewed Cubaexport’s trademark registration, inciting a lawsuit from Bacardi. A recent ruling by the Fourth Circuit Court of Appeals favored Bacardi, undermining Cuba’s attempts to assert control over the brand in the U.S.
Now, with the enactment of this new law, federal agencies have limited authority to validate trademarks associated with properties that have been confiscated, complicating Cubaexport’s ability to maintain its rights to “Havana Club” in the U.S. marketplace.
Cuba’s Reaction to the New Law
The Cuban government has vehemently denounced the law, labeling it an infringement of international regulations.
In response, Cuban officials argue that the legislation is specifically designed to undermine Cubaexport’s rights to the brand, aiming to block its trademark renewal in 2026.
Despite the U.S. embargo barring Cuban-made “Havana Club” from being sold in the United States, the brand remains a leading alcoholic export for Cuba, available in over 120 countries and generating substantial revenue.
A Blow to Cuba, A Victory for Bacardi
Founded in 1862 in Santiago de Cuba, Bacardi was among many businesses expropriated by the revolutionary government. Now based in Bermuda, the company has battled for decades to restore its rights to the Havana Club brand.
With the enforcement of the “Bacardi Law,” Cuba is confronted with new legal obstacles in its quest to reclaim ownership of one of its most recognized brands, while Bacardi solidifies its position as the prevailing entity in this protracted trademark conflict.
