Greenspoon Marder Hospitality, Alcohol & Leisure Blog: Class/Type and Origin Matter when Introducing a Brand

Aug 19, 2019 Miami, FL

Overheard the other day at a restaurant…”can we have a bottle of your best Italian Champagne?”

Only a few of our readers may not know that these diners were actually ordering prosecco. But the misidentification of alcohol beverage products has greater ramifications than confusion at the dinner table. Origin and identity of a drinks products has legal significance (as well as class/type designation under federal regulation).

To wit, the federal code regulations define champagne as (yes, the definition of champagne is codified in law):

(2) Champagne is a type of sparkling light wine which derives its effervescence solely from the secondary fermentation of the wine within glass containers of not greater than one gallon capacity, and which possesses the taste, aroma, and other characteristics attributed to champagne as made in the champagne district of France.

Parse the language of the above out and make note of the various requirements. If any one of the characteristics is not present, the drinker is ordering and drinking something other than Champagne.

Another example found in federal law for distilled spirits (and there are many) include:

1) “Cachaça” is rum that is a distinctive product of Brazil, manufactured in Brazil in compliance with the laws of Brazil regulating the manufacture of Cachaça for consumption in that country. The word “Cachaça” may be spelled with or without the diacritic mark (i.e., “Cachaça” or “Cachaca”).

Precise definition and country of origin define a particular product and are required to be held out to the public precisely and accurately. The use of such terms are known as “standards of identity” and are strictly enforced by the US Government (Tax and Trade Bureau) and the countries from which these terms of identity (and product(s)) originate. They are unique, a special commodity found only in the place of its true origin and, perhaps obviously, have significant economic value to the place from which they come. They must also fit neatly into TTB’s class/type categories.

Enter this lawsuit.

Not long ago, the Scotch Whisky Association (SWA) filed a lawsuit in Federal District Court against the Virginia Distillery Company that is using the term “Highland” on its whiskey label. The SWA is claiming the use of such term is improper and should be used only on whiskey produced in Scotland.

The SWA stated (as quoted in the “Drinks Business”) “the defendant’s labeling of its products intentionally misidentifies the true geographic origin of its products in an effort to trade in on the good will and prestige of Scotch whisky.

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 240 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has upheld a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

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This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.

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