The Power of Trademarks

Bacardi rum is one of the most well known brands in the world. Consumers are familiar with the name, the “bat” logo on the bottles, and the inscription that it is “ Puerto Rican Rum”. The label also indicates that the brand was established in 1862. But few know that in 1862, the brand originated in Cuba. The Bacardi family started its rum business in Santiago , Cuba. The business flourished and distribution became worldwide. The Bacardi's acquired trademark registrations in the United States and other countries. The family was known for its patriotism as Cuba became a nation. They resisted Spanish tyranny as well as the dictatorship that followed. When Fidel Castro launched a revolution near Santiago, he was supported by the Bacardi's. However, the winds of revolution began to blow against capitalist business ownership. The Barcardi's took steps that saved their business and famous brand. They opened a distillery in Puerto Rico that began producing the same quality rum. But, perhaps more significantly, they transferred ownership of the trademarks to a reconstituted Bacardi corporation in New York. Thus, when Castro nationalized the Bacardi distillery in Santiago, he acquired the physical plant only, not the Bacardi trademarks and brand. The Bacardi's fled Cuba with their rum business and trademarks intact. The nationalized Cuban “Bacardi” distillery was effectively shut out of the U.S. and international market. The renamed “Havana Club” rum never posed a threat to the Bacardi brand. The moral to the story: Trademarks are powerful assets and, perhaps, Fidel needed better I.P. legal advice!