Fifth Circuit Vacates Ruling for Casa Azul in Clase Azul Tequila Trademark Fight
The U.S. Court of Appeals for the Fifth Circuit issued a published opinion on November 4 vacating a federal district court's judgment in a tequila trademark dispute and remanding the case for further proceedings. Casa Tradición, whose brand is Clase Azul, sued Casa Azul Spirits under the Lanham Act and Texas law, alleging that the defendant's "Casa Azul" tequila infringes its "Clase Azul" mark and is likely to confuse consumers.
According to the opinion, Clase Azul was developed by Arturo Lomelí around 1999 and entered the U.S. market in 2003; it is now sold in more than 85 countries. The brand is known for hand-painted ceramic decanters and luxury pricing, from $130 a bottle to more than $30,000 for limited releases, and registered its mark in the United States in 2008. The Casa Azul mark was first applied for in 2006 in connection with wine and was extended in 2019 to alcoholic beverages including tequila.
After a bench trial, the U.S. District Court for the Southern District of Texas ruled for Casa Azul, finding that Clase Azul had failed to establish a likelihood of consumer confusion. The Fifth Circuit panel, in an opinion by Chief Judge Jennifer Walker Elrod, held that some of the district court's factual findings were clearly erroneous, vacated the judgment and remanded for proceedings consistent with the opinion. Judge Kurt D. Engelhardt concurred in part and dissented in part.
The two brands have been used simultaneously in the U.S. alcohol market for nearly a decade. On remand, the district court will revisit the likelihood-of-confusion question, and whether Casa Azul may keep selling tequila under its name remains to be decided.
Source: U.S. Court of Appeals for the Fifth Circuit
Published by GSM · USA (original Chinese edition)
Photo: 图：位于新奥尔良的美国联邦第五巡回上诉法院所在地John Minor Wisdom法院大楼。（Ktkvtsh 摄，CC BY 4.0，经 Wikimedia Commons） / Photo: The John Minor Wisdom U.S. Courthouse in New Orleans, home of the U.S. Court of Appeals for the Fifth Circuit. (by Ktkvtsh, CC BY 4.0, via Wikimedia Commons)
