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Apothic Brew – Wine + Coffee for Real?

I most definitely did not see this one coming. I can imagine a lot of oddball combinations, but I would not have expected anyone to combine red wine and coffee.

The news of this product just came in a few minutes ago via Wine & Spirits Daily. Though the combination does not sound like the best, to me, I wouldn’t mind trying it, especially since the graphic design is so nice. The wine aspects are very much downplayed, on the main display panel. The UPC-side label makes it clear that the product is RED WINE INFUSED WITH COLD BREW COFFEE. E. & J. Gallo’s approval for this wine is here.

Gallo’s press release says the product is rolling out April 1st, and it’s no joke; Apothic’s winemaker said:

Last year during the long hours of harvest, I joined the cold brew craze myself. … Quickly, I realized that many of the characteristics in cold brew coffee and red wine naturally complement each other. This led us to experiment with a few blends, eventually leading to the seamless creation of Apothic Brew, which brings together red fruit notes and subtle mocha essences of cold brew.

Trumpy Libations

This is not quite the Trump Vodka of yore, but it is quite Trumpy nonetheless. Don’t you think so?

The whiskey on the left is America First Whiskey, approved for a DSP in San Marcos, California. I believe I see some sharks and monster trucks to go along with the tanks, jets, and deltoids. I found a discussion about the goals for this label, and it appears that the designer nailed it:  “We want people who love Donald Trump and the idea of “Make America Great Again” to look at this logo and say ‘Hell yes! That’s the whiskey I want!'” They also considered throwing in some fanny packs, and a T-Rex — but perhaps that would go too far. The bottler proclaimed:  “We’re [making a whiskey for Americans]  interested in Freedom, beards, rifles, explosions, The US Constitution, military/veterans, and reflecting on how badass Donald Trump is.”

The wine, on the right, is branded as Make America Grape Again, American Red Wine. It is bottled by Azari Winery of Petaluma, California.

And then there is Covfefe, with no less than six related label approvals:

  1. Artisanal Covfefe Stout
  2. Imperialist Pig Covfefe Stout
  3. Covfefe Merlot
  4. Covfefe Red
  5. Saugatuck Covfefe Ale
  6. ………………….and…………………………..the first one out of the gate is Surly Covfefe Beer (approved June 7, 2017, just a few days after the infamous tweet of May 31, 2017)

In addition, there are no less than 38 trademark applications including the term COVFEFE.

Branding Your Marijuana Business

One of the predominant ways businesses protect their brands is through Federal trademark registration at the United States Patent and Trademark Office (USPTO). In order to federally register a trademark, the trademark must be used in interstate commerce—lawfully. Because marijuana is federally illegal, it is impossible for a marijuana business to lawfully use a trademark in connection with marijuana and/or marijuana-specific goods and services in interstate commerce. Since Federal trademark registration is not an option, marijuana businesses need to get creative in how they protect their brands. Here are some alternative options for how a marijuana business can protect its brands.

Obtaining Federal Registration for Analogous Goods and Services

One tactic marijuana businesses have used to try and protect their brands is to obtain federal trademark registration for goods and services analogous to marijuana goods and services. These businesses might apply for trademark registration in connection with goods and services like tobacco, smoking devices, rolling papers, vaporizers, clothing, hats, and retail tobacco stores or services. The idea behind this tactic is rooted in trademark law which recognizes that similar marks used on related goods/services can cause consumer confusion as to the origin of those goods/services. By obtaining a federal registration for related goods and services, these businesses believe that they will be able to prevent third parties from using or obtaining registrations for confusingly similar trademarks in connection with marijuana goods and services if and when marijuana is legalized. They’re taking a gamble that their rights to, for example, a tobacco-related trademark will keep others from using that name in connection with marijuana.  

The logic is, at least in theory, sound, and we see this type of thing quite often with alcohol beverage trademarks. The USPTO routinely refuses trademark applications for beer that are similar to existing registrations for wine or spirits. Alcohol beverage trademarks are also commonly refused in light of similar prior registrations for restaurants and bars, or even glassware.

There are, of course, some caveats with this approach. First, to apply for a trademark for analogous goods/services, you must have a bona fide intent to use the trademark in connection with those analogous goods/services, and/or (ultimately) actually use the trademark in connection with those analogous goods/services in order for the trademark to register. Someone who is merely trying to reserve a right in a name for marijuana is likely vulnerable to opposition or cancellation. Second, we don’t know whether (or the degree to which) the USPTO or courts will treat tobacco and tobacco-related goods/services and marijuana and marijuana-related goods/services as related goods. We can predict that these bodies will treat them as related goods, but this has not yet been tested. Finally, there are other factors at play, too, such as the difference in the trade channels in which tobacco and marijuana do (or will) travel, and possibly differences in consumer sophistication.

Due to this uncertainty, marijuana businesses should consider additional tactics to protect their brands.

Relying on Common Law Rights

Are you currently (and lawfully) selling marijuana under a brand name in a state in which marijuana has been legalized? If so, chances are you already have some “common law” trademark rights to that brand name. Common law trademark rights require no registration–they arise out of, and rely on continued and substantially exclusive use of, a trademark in connection with the sale of goods or services. These rights are limited to the goods/services in connection with which the trademark is used, and the geographic areas in which the mark is used (including the areas of “reasonable expansion”). So long as you maintain these common law rights by continuing to use your trademark, you can enforce these rights against junior users of confusingly similar marks on confusingly similar goods/services within your geographic area. If you have a mark you are selling products under, you should  put third parties on notice of your claim to a the mark by placing the letters TM (e.g. HANGRY BUDS™) next to the mark everywhere you use it (on packaging, advertising, etc.). Also, you should take care to use your mark in a consistent manner (same spelling, same capitalization, etc.) to strengthen your claim to the mark.

Relying on common-law trademark rights can be a good fallback solution for preventing third parties in your geographic area from using confusingly similar marijuana trademarks. But, common-law rights have limitations, and require excellent recordkeeping and proof to substantiate a claim to a mark, as of a certain date.

Obtaining State Trademark Registration

As illustrated above, common-law rights provide some fallback rights to a mark, but are somewhat limited. A much better solution is to seek a state trademark registration. Generally speaking, a state trademark registration provides you with the exclusive right to use a mark in connection with the described goods as of the date of filing. Each state has their own requirements for registration, but in general, they can be obtained by applying, paying a fee, and showing use of a trademark in connection with certain goods in the particular state. Here is a list of states where marijuana trademark registration is possible, as of late 2017 (the list is growing):

  • Alaska
  • Arizona
  • Arkansas
  • California (January 1, 2018)
  • Colorado
  • Florida
  • Hawaii
  • Indiana
  • Louisiana
  • Maine
  • Maryland
  • Michigan
  • Montana
  • Nevada
  • New York
  • North Dakota
  • Oregon
  • Vermont
  • Washington

As mentioned above, state trademark registrations entitle the registrant to the exclusive right to use the trademark within the entire state, and are prima facie evidence of the validity of the registration and the registrant’s ownership of the registration. Extending the example from above, a state trademark registrant based in San Francisco could rely on her state trademark registration to go after a junior user of a confusingly similar trademark in Los Angeles (or anywhere else that may be outside the registrant’s geographic area).

Conclusion

Just like other businesses, Marijuana businesses should prioritize protecting their brands, but due to various restrictions, must get creative in doing so. While federal trademark registration for marijuana and marijuana-specific goods/services is unavailable currently, obtaining federal registration for analogous goods may allow you to prevent others from using or registering the trademark in connection with marijuana. Relying on common law rights alone provides limited rights but might cause headaches down the road if you plan to expand beyond your initial territory, or if you have a difficult time substantiating your rights to an early sale date. Obtaining a state trademark registration is likely the best bet for most Marijuana businesses, at least until federal law changes and federal registration becomes a possibility.

Perspective from a Pernod Lawyer

There is lots of focus on what the craft people are up to, and certainly there is much movement in that regard. But here we turn back to the big companies, and how they see things. Artisan Spirit magazine recently published my email interview with Tom Lalla. Tom was the head lawyer at Pernod for many years. An excerpt is below, and you can find the full article at the link.

Who were the legendary beverage lawyers before you, and what made them so?

The outstanding, legendary beverage lawyer of the past few generations was Abe Buchman. I worked with Abe and his firm for 10 years and then continued to work with him when I joined Pernod Ricard. Abe was a mentor and a role model for tireless devotion to the industry. Abe taught me the necessity of finding practical solutions for our clients’ issues.  Sometimes, as lawyers, we lose sight of being practical. We get hung up in the legal niceties of an issue. What Abe stressed was that we find a solution that was practical for the client and accomplished the client’s goals without running afoul of the legal requirements. Another legend was Bill Schreiber.  I had the pleasure of working with both Bill and Abe when the Buchman and Schreiber firms merged in 1986. Having both Abe and Bill together in the same office was a beverage alcohol lawyer’s dream come true. With so much shared knowledge about the law, the industry, and its players and so many exciting projects being worked on by them, it was a unique moment in my career.

Very few other people have a vantage point as good as Tom’s, after many decades building Pernod, and working at a top law firm specializing in alcohol beverage matters.

Crafty, In a Good Way

I heard about this on the radio this morning, on the way in. Apparently it’s illegal to allow farms, or picking fruit for free, on New York City lands — so these guys put it on a barge. It struck me as pretty crafty. That is, crafty in a good way.

The rules say:

Public foraging and policy
According to the New York City Parks Department

No person shall deface, write upon, injure, sever, mutilate, kill or remove from the ground any trees under the jurisdiction of the Department without permission of the Commissioner.

No person shall deface, write upon, sever, mutilate, kill or remove from the ground any plants, flowers, shrubs or other vegetation under the jurisdiction of the Department without permission of the Commissioner.

Swale says:

Because of the common laws of New York City’s waterways, Swale is able to act as a test case as an edible public food forest. Swale is built atop a barge that was once used for hauling sand to construction sites before it was re-purposed for growing food.

We are always on the lookout for what is crafty, in a good way. A CBS story on this is here. I wonder how well an alcohol beverage operation would fare with a similar sleight of hand.

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