Jump to full article: AP, 2009-08-29
Author: WILL WEISSERT and MICHAEL FELBERBAUM (AP)
Intro: Washington's 47-year-old trade embargo has kept Cuban products out of the U.S. — but hasn't prevented companies from using the communist island's brand names.
As the U.S. and Cuba consider better ties, such trademark issues would have be settled before any easing of the embargo. The fight between Bacardi and the Cuban government for the Havana Club name already has played out in the U.S. courts and Congress for more than a decade — and is now before Spain's high court.
. . .
The thought of competing with Cuba is already keeping executives at Swedish Match North America up nights. The Richmond, Virginia-based company owns General Cigar Inc., which has sold Dominican Republic-made Cohiba cigars in the U.S. since 1997.
"It's not the brand that's going to make the difference, it's whether it's Cuban or not," said Gerry Roerty, the company's vice president and general counsel. And smokers are willing to pay a premium for Cuban, he said.
Cohiba was founded in Cuba to make cigars for Castro and visiting dignitaries. Today it is the flagship of 27 premium brands produced by Habanos, equally owned by the government and Madrid-based Altadis SA, which was acquired last year by Britain's Imperial Tobacco Group PLC.
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