Clase Azul loses trademark case against Casa Azul

A judge has dismissed Clase Azul’s trademark infringement claims against Casa Azul and ruled both Tequilas can continue operating under their respective names.

The maker of Clase Azul, Casa Tradición, sued the maker of Casa Azul, Casa Azul Spirits, arguing the similarity of the brand names would cause confusion. Clase Azul sought a permanent injunction against the trademarked name Casa Azul.

However, US district judge Lee Rosenthal at the court for the Southern District of Texas, decided that while both parties sold bottled Tequila, the products were different, the packaging was different, the trade names have different meanings, and the products targeted different consumer audiences.

The judge noted that Clase Azul Tequila’s sales in the past three years totalled US$205 million, US$280m and US$250m respectively, and there was no evidence sales declined due to Casa Azul entering the market.

Furthermore, the judged noted differences between the two Tequilas. He cited Clase Azul’s use of additives, including vanilla, artificial sweeteners, caramel colouring and glycerin.

Meanwhile, he noted how Casa Azul is a single estate, organic and additive-free Tequila.

“The court finds and concludes that because of the dissimilarities between the two brands at issue, as well as other record evidence, the plaintiff fails to establish a likelihood of confusion, and fails to establish trademark infringement, unfair competition, or trademark dilution,” the court document said.

“The application for an injunction is denied.”

In March this year, supermarket Aldi lost its appeal to dismiss a lawsuit that claimed it had infringed Marks & Spencer’s design for its gin liqueur range.

Also in March, European officials rejected a bid by Bacardi to register ‘Freepour’ as the name of an app for bartenders.