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Legal Trouble Brewing

By Rebekah Page-Gourley posted 10-12-2015 07:24

  

Michigan is a pretty hospitable place for beer lovers these days. Our state ranks #5 in the nation for sheer number of breweries, microbreweries, and brewpubs (166 at last count). It’s not a case of quantity over quality, either: Michigan consistently ranks among the top 10 U.S. states for caliber of beer, and national and international rating sources unfailingly place individual Michigan breweries and beers at the top of their lists.

The Michigan craft beer industry's exponential growth is bringing seemingly boundless small business opportunities with it. But of course, with all of this new business comes the usual array of legal scuffles and headaches. Lucky for us (and by us I mean lawyers who like a good, meaty legal issue and/or like to wash such issues down with a beer), beer-related legal disputes are a little bit more entertaining than your average corporate trademark showdown. Here are some of my favorite recent examples:

  • Nobody puts a baby on a beer label. For about a decade, Founders Brewing Company’s Breakfast Stout label has depicted a Norman Rockwell-esque drawing of a baby eating a bowl of oatmeal. As it turns out, the Michigan Liquor Control Commission administrative rules prohibit alcohol containers to “depict or make reference in any manner to minors.” The MLCC found out that Founders never registered the label, fined the brewery, and removed the bottles from the Grand Rapids taproom. Rather than objecting, Founders created a new label for use in Michigan only featuring a bowl of oatmeal and an empty chair. A note on the refrigerator behind the chair reads: “left the crib for a bit, call me if you need me, 616-522-2720.” Go ahead and call the number for a laugh.
  • LMFAO. Speaking of laughing, Pigeon Hill Brewing Co. in Muskegon, MI, sells a beer affectionately termed “Let Me Fetch an Oatmeal Stout,” or LMFAO Stout for short. The “defunct electronic music duo” LMFAO recently sent the brewery a cease-and-desist letter alleging likelihood of confusion and dilution of their brand. The scrappy Pigeon Hill Brewing Co. decided to fight, hiring a lawyer who argued that the name merely suggests “‘laughing’ one’s derriere off out of the sheer enjoyment that arises while imbibing in exceptional beer.” Check out more excerpts from the playful letter here. The parties ultimately reached a resolution, and Pigeon Hill got the last laugh: LMFAO Stout is here to stay.
  • David vs. Goliath? Bell’s Brewing Co. out of Kalamazoo, MI, uses the slogans “bottling innovation since 1985” and “inspired brewing.” Bells recently asked a much smaller Sylva, NC, brewery to withdraw its trademark application for the name “Innovation Brewing” due to likelihood of confusion. Although the legal issues are still up in the air, the Bell’s decision has caused a good deal of animosity, including some boycotts of Bell’s beers, a petition against Bell’s, and a lot of social media chatter. In the wake of similar uproar, Lagunitas Brewing recently withdrew a trademark suit against Sierra Nevada over their IPA label.

The Founders and Bell’s issues are still pending. We’ll have to wait and see if Founders will get its baby back in Michigan, and, of course, for whom the Bell(‘s) tolls (sorry). At least we can all share a cold one while we wait it out.

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10-16-2015 14:46

Great piece. Thanks for posting it.