What Happens to Cuban Brands Post-Embargo?
Filed under: Cigars
The biggest problem with access to Cuba may not be production capacity, as many suspect. Trademark and copyright issues have the potential to be a greater problem, and there is no easy solution.
You've probably noticed that brands such as Partagas, Montecristo and Cohiba occupy your local tobacconist's humidor. A saunter through a duty free store at any airport outside the United States will put the same names under your nose. Of course, these cigars have nothing to do with each other. The latter are Cuban, the former are not and the companies have no relationships. Cohibas in the United States are not the "non-Cuban" or "legal" versions of a single company's product.
General Cigar Co. Inc., for example, sells Cohiba cigars in the United States. Cohiba is also a prominent Cuban brand. Unfortunately, Habanos S.A. never registered the name up here. Habanos sued General Cigar, and a nine-year battle followed. In 2006, the U.S. Supreme Court ruled against Habanos (shocking, right?), reasoning that the embargo barred a challenge to General Cigar's claim.
When the embargo is lifted, there will be more legal challenges, and several companies will have to change their names and labels – ultimately requiring the reconstruction of brand identities from scratch. Winning the brand battles will have profound consequences. For this reason, General Cigar has "invested" close to $3.5 million on lobbyists over the past 10 years.
As with all other Cuba-related speculation, there is no way to forecast where this issue will go in a post-embargo market. Even if we assume that the Cuban brands will lose their claims, the impact on the market would be nearly impossible to predict. What we do know, however, is that the transition will be far from easy.
That's An Interesting Look, Madge
The List #0147: Escape a Car Underwater
16 Pasta Dishes Worse Than Yours
Visit the Maldive Islands Before It's Too Late
Reptiles Make Home in UK Man's Cable Box
Charlie Sheen Gets Back To His Roots
Springtime Budget-Busters -- Savings Experiment
Distraught Mom Becomes Face of Oklahoma Storm
WHOOPS! Obama Makes Big Gaffe
Is This Woman Too Pretty To Work?
Mariah Carey Suffers Wardrobe Malfunction on Good Morning America
Ryan Gosling Almost Didn't Star In His Signature Movie
The Story Behind Hairspray
Carrie Underwood Donates $1 Million to Oklahoma Tornado Victims
Mariah Carey Curses And Busts Out Of Dress On Live TV
Watch a rocket-powered bicycle set a new land speed record
Candid Portraits Of Strippers After Hours
Teens' Plot To Murder Classmate Shocks Town
Amanda Bynes Speaks Out After Arrest
Abercrombie Announces Plummeting Sales Amid Controversy
LOOK: This Is The Perfect Job Application
Killed Soldier In London Attack Identified
AMAZING PHOTO: UFO Spotted Over San Diego
Fox News Host's Outrageous Comment
What It's Like To Talk To A 2-Year-Old
Joe Arpaio Violated Latinos' Rights, Judge Rules
Luke Wilson Caught Staring At Fan's Chest
Jennifer Aniston And Brad Pitt Are ... Friends?
PHOTO: Amanda Bynes' Mugshot Revealed
Rapper Accused Of Faking His Own Death To Escape Payments
Jodi Arias Jury DEADLOCKED
Teenager's 'Awww'-Inspiring Drawing Wins Big At Google