When we started brainstorming ideas for a press release with our client Coats and Bennett, a leading intellectual property law firm in the Southeast, the FWV team had just watched a moving YouTube video from Matt Nadeau of Rock Art Brewery in Vermont.
Nadeau faced a trademark dispute with the maker of Monster energy drinks over his “Vermonster” beer. Corporate giant Hansen Beverage Co. demanded that the small brewery stop selling, promoting and advertising their beer because of trademark issues. Specifically, Hansen Beverage claimed that the brewer’s use of “monster” as part of its trademark would confuse consumers into thinking their beer originated from or was somehow affiliated with Hansen Beverage. This situation is increasingly common as more companies aggressively protect their perceived intellectual property rights. The resulting high cost of legal battles can bankrupt a small company. Check out the YouTube video with the brewery’s side of the story:
The case provides a reminder to start thinking about the intellectual property aspects of a brand before it is introduced to market. I met with Anthony Biller, an attorney and member of Coats and Bennett who leads the firm’s litigation practice and chairs the Trademark Litigation committee of the American Bar Association’s Intellectual Property law section, to get his take on the issue. He explained that the firm “often sees marketers and business owners who may not fully appreciate the intellectual property implications of the creative choices behind adopting and marketing their brand.”
“Business owners can easily find themselves fending off brand bullies who want to challenge their right to use words, images and even colors in their marketing. In other cases, business owners walk face first into legitimate trademark infringement claims because they failed to take the necessary precautions up front,” Biller continued.
The concept of “Brand Bullies” resonated with our team. We worked with the firm on a press release outlining the consequences businesses could face with this situation and some important questions to consider:
What to do at the concept stage?
Who really owns the content?
How strong is this brand?
How can I protect myself against brand bullies?
You can read the full press release with tips to protect your small business online.
In the end, the small Vermont brewery was able to keep its Vermonster brand by broadcasting the injustice of Hansen Beverage’s demands via YouTube, brewery blogs and news coverage. Consumers and stores then began boycotting the Monster drink and a settlement agreement was quickly reached. This case was a remarkable victory for the little guy, but the vast majority of infringement disputes are resolved through expensive litigation, not publicity. What many businesses don’t realize is the cost of avoiding those fights at the initial stage of brand formation is a fraction of what it costs to resolve a charge of infringement.
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