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Cuban Embargo Prevents Renewal Of Trademark Registration
U.S. presidents have power under the 1917 Trading with the Enemy Act to impose embargoes on trade with foreign countries. In 1963, President Kennedy acted under that statute to embargo trade with Cuba and, pursuant to that embargo, the Treasury Department issued the Cuban Assets Control Regulations (“CACR”). The CACR prohibit most transactions between Americans and Cubans. The regulations contain certain exceptions that can be amended, modified or revoked at any time. One such exception allowed Cuban-affiliated entities to register and renew U.S. trademarks.
A Long-Running Case
The Cuban trade embargo has been at issue for more than a decade in the long-running case between Bacardi and Pernod Ricard over the U.S. rights to the HAVANA CLUB trademark for rum. HAVANA CLUB rum was created in Cuba in the 1930s by the Arechabala family, who registered the trademark in the United States in 1935 and sold their rum under that trademark in the United States for the next 20 years. In 1960, when Fidel Castro came to power in Cuba, the Arechabala family's manufacturing plant and trademark were seized by the Cuban government, which began producing rum under the HAVANA CLUB name.
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