Anheuiser Busch Vs. Budvar

Czech Budweiser have never really competed with each other. However, in the 1990’s with increased global competition in the beer market, this dispute over who actually owns the Budweiser name takes on increased importance. According to a 1958 agreement signed by the Czech government, brand names that denote geographic origin are protected. So the Czech government which owns Budweiser believes that they should be the only ones allowed to carry that name in Europe. However the United States did not sign that treaty in 1958, so they do not agree with this. They have decided that it was no longer necessary for them to have a trademark settlement to develop the American Budweiser business in Europe. They decided to sue the Czechs on a country-by-country basis to win that right. What Anhauser-Busch does with this offer and if and when the trademark dispute is settled is the focus of our paper. This is a very interesting case, because there are two different companies with different beliefs. Because, they are from different countries they follow different sets of laws. In this case we will try to come up with a resolution that will benefit both the American and Czech Budweiser. Key Issues Anheuser-Busch is the world’s largest brewing company. Budweiser is a popular trademark of Anheuser-Busch. A problem is that Anheuser-Busch can’t use it trademark Budweiser name in every country of the world. This goes back to European brewing industry, which dates back to the 14th century. Back then Bohemia, now the Czech Republic was famous for its beers. One particular town called Budwies was the center of this brewing history and activity. A person from Budweis would be know as a Budweiser; the same would be true of the town’s beer. In 1985, the Budejovicky Budvar brewery was established in Budweis, and its beer was officially named Budweiser, the beer of kings. (Budweiser Case 202). So Anheuser-Busch had to find a way to market the Budweiser name in European countries. So in 1911 they signed an agreement with Budvar that allowed them to sell Budweiser beer in continental Europe. This would help end the trademark issue. There were many responses to the Anheuser-Busch and Budejovicky Budvar agreement. The Czech consider the name Budweiser to be more than just a brand name. In United States, a name brand is just a name brand. It doesn’t represent anything. Americans try to sell the name brand in the United States. Americans are just trying to sell the name brand image. The Czech Budweiser meant a geographic name that indicates a product’s origin and is a source of Czech national pride. In 1958 the Czech Republic signed a European agreement that denotes that brand names that come from a particular region are protected trademarks. The US never signed this agreement, leaving Anhauser-Busch able to continue to legally use the Budweiser trademark. The Czechs believe that their beer is the only beer that should be allowed to care the name Budweiser. This means that the name Budweiser should be allowed to only Czechs. The Czechs feel strongly about their beer name. Also, the issue of privatization comes up. The Czechs don’t like to sell part of their share or company to Western companies. This is like giving something away. This Budvar beer is well- known, and signing this agreement with Anheuser-Busch made the people mad. Why did they sign with

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