WTO name ruling: who really won?

The headline of an Associated Press article that ran in March read, "Both Sides Claim Victory in WTO Fight over Food Names." Now, if you've been following this battle between the European Union and the United States over what they call GIs (geographical indicators), or if you simply care about

wine, you'll know that the wine industry has a lot invested in the issue of place. Given the issue's importance, the headline was perplexing: A ruling in which both sides claim victory is clearly different from a compromise, which leaves no one claiming victory and everyone feeling a little bit burned. No, when both sides claim victory you know that something is messed up. And when the World Trade Organization (WTO) is involved, you know it's going to be an untidy melange of international trade legalese and confusing acronyms (CAs).

The ultimate question is: What did this ruling mean for wine? "The answer is going to be very short," says David Thual from his home in Belgium. Thual is general secretary of the Geneva-based ORIGIN, the Organization for an International Geographical Indications Network, comprised of, according to its Web site, "more than 100 producers from 24 countries (that) have decided to create an international network to protect and promote geographical indications."

Thual says, "The answer is going to be very short, because this case doesn't relate to the wine sector. This case was launched by the U.S. and Australia against the EU regulations, but outside the wine and spirits sector. There is a big problem with Budweiser. That's what this was about."

The Budweiser case, the most high profile of a host of naming issues, is instructive. Here's how it works: From the European perspective, geography protection bests trademark rights. Europe wants to reclaim names that relate to specific places, everything from Parmesan cheese to Bologna to Budweiser. But in the U.S., these names have become what trade wonks call "semi-generic." Being forced to change such names here could mean billions of dollars in repackaging and rebranding costs for American companies.

In the case of the "king of beers," Anheuser-Busch could be stripped of Budweiser, the brand name of the world's top-selling beer. But Budweis happens to be the name of a Czech town that has been brewing beer for more than 700 years. Naturally a Czech brewer, Budweiser Budvar, claims it is the rightful owner of the name. Anheuser-Busch, however, sees the name as having value only through the massive work it has done to build the brand, and believes it's the Czechs who ought to stop making Bud. A USA Today article quoted an Anheuser-Busch lawyer as saying, "The situation is intolerable. It allows the Czech company to free ride on the reputation of our brand." Not to mention anyone from the Czech town who might call themselves a Budweiser.