DRC Congratulates its Client Debevoise & Plimpton LLP on their Total Victory on Behalf of Their Client, Casa Azul Spirits LLC

 

 DRC congratulates David H. Bernstein, Jared Kagan, Nicole Flores, Kendra Berry, Jacob Hochberger, Jose Jesus Martinez III, Naomi Perla, Victoria Reis and the entire Debevoise & Plimpton team on its victory on behalf of Casa Azul Spirits LLC, the maker of Casa Azul tequila and Casa Azul tequila soda.  The team successfully defended against a trademark lawsuit brought by a rival tequila maker, Plaintiff Casa Tradición S.A. de C.V.  The verdict in favor of Casa Azul found the company not liable for trademark infringement, unfair competition, or dilution of the Plaintiff’s mark, and was issued nearly two and a half months after the close of a five-day bench trial before the Honorable Lee Rosenthal of the United States Federal District Court for the Southern District of Texas.  Please click here to view Judge Rosenthal’s order.

In the lawsuit, the Plaintiff, Casa Tradición, a Mexican company that began selling tequila in the U.S. in 2003 in blue-and-white ceramic bottles, under the brand name “Clase Azul,” alleged that the Defendant, Casa Azul, a U.S. startup that started selling blue-and-white cans of organic tequila-infused soda in 2022 and organic and additive-free bottled tequila in 2023 under the brand name “Casa Azul,” infringed on the Plaintiff’s trademark.  The Plaintiff claimed that the Defendant’s products created a likelihood of confusion and sought a permanent injunction against the Defendant’s use of its trademarked name, “Casa Azul.”   

At trial, the Defendant Casa Azul presented evidence that the parties’ names have distinct meanings, that the there are dozens of tequila brands that use the words “Casa” and “Azul” in their names, and that the parties’ products have distinctive trade dress.  It also presented evidence that the parties’ products do not directly compete given their different price points, marketing, and target consumers—with the Defendant’s products targeted at younger consumers and those interested in organic or additive free products.  While the Plaintiff offered evidence that their products appear in popular culture targeted at young people, they ultimately admitted that their marketing targets older, more affluent, consumers and focuses on their distinctive packaging, not their name.

DRC assisted the trial team with demonstrative aids.