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----- Original Message ----- 
From: NY Transfer News <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Sunday, July 08, 2001 3:30 AM
Subject: [CubaNews] Complex WTO Ruling in Barcardi Case Due Aug 6


Via NY Transfer News * All the News That Doesn't Fit

Friday July 6, 12:45 pm Eastern Time (via Yahoo)

EU says won a key point in WTO Cuban rum dispute

BRUSSELS, July 6 (Reuters) - The European Commission said on Friday that a
World Trade Organisation (WTO) panel had ruled in its favour on a key legal
point in a dispute with the United States over trademark rights to a brand
of Cuban rum.

While disputing reports that the European Union had lost the high-profile
WTO case, a Commission official indicated that other legal arguments in the
case may have gone against the EU in the WTO dispute panel's ruling.

The panel's confidential final ruling, sent to Brussels and Washington this
week, is due to be published on August 6.

The EU's complaint against the United States at the WTO stems from a legal
tussle between two world famous drinks makers, Bacardi and France's Pernod
Ricard SA , over which has the rights to the "Havana Club" trade mark in
the United States.

"The WTO found in favour of the EU's complaint on one of the principal
points," European Commission trade spokesman Anthony Gooch told reporters.

He said the panel had ruled that Section 211, a U.S. law barring
registration of confiscated Cuban trade marks, violated a WTO agreement on
intellectual property rights by denying effective access to U.S. courts for
Pernod Ricard to pursue its claim against Bacardi.

"For us obviously this is a key point. You could argue that there are
certain other elements in the report that do not go in our favour, but that
is an extremely important point in the whole case," he said.

"I don't think it is quite correct to say one side has won and one side has
lost," he said, reacting to a Financial Times report that the WTO panel had
found against the EU on all but one of the 12 legal arguments it had used.

Gooch said the EU would have to "weigh the merits" of an appeal. Once the
WTO panel's report is made public on August 6, "we'll have a couple of
months to decide (whether to appeal) as will the U.S.," he said.

Pernod Ricard, which helps manufacture Havana Club rum in Cuba under a joint
venture agreement with the Cuban government, has been seeking to register
the trademark in the United States without success.

RUM AND REVOLUTION

In 1999, a U.S. court ruled that the Bermuda-based Bacardi company could
distribute its own rum under the Havana Club label because the original
distilleries that produced it were nationalised after the 1959 revolution on
the island.

Bacardi is owned by a Cuban exile family, and the U.S. court found that it
could benefit under a section of a 1998 act extending the 40-year U.S. trade
embargo against the communist-ruled island to the area of intellectual
property.

The law was aimed at protecting trademarks owned before 1959 by companies
that were taken over by the state when revolutionary leader Fidel Castro
came to power.

Pernod-Ricard, which markets Havana Club around the world including in
Canada and Mexico, had hoped to register the name ready for launch on the
huge U.S. market if and when the embargo was lifted.

The European Union, which acts in the WTO for all 15 member countries, took
the case to the organisation's dispute settlement body at the request of the
French government, arguing that the law was a violation of the WTO's accord
on trade-related intellectual property (TRIPS).

Sources told Reuters in Geneva last month that an earlier preliminary ruling
found that part of Section 211 of the 1998 U.S. law -- used to justify
refusal to grant Pernod Ricard a trademark licence for Havana Club -- did
violate TRIPS, and should be revised.

But it rejected EU arguments that all of Section 211 was in violation of the
accord and should be rescinded, the sources said.

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