Rename, but do not mix – Newspaper Kommersant No. 5 (7450) dated 01/13/2023

The Kaluga distillery “Kristall” (“KLVZ Kristall”), which released a replacement for Jagermeister – Alter Heiler liquor, encountered problems when registering a product designation. Rospatent considered it confusingly similar to Jagermeister, which may lead to a change in design. “KLVZ Crystal” is ready to challenge the conclusions of the service.

Rospatent considered the combined designation of the Alter Heiler liquor “KLVZ Crystal” to be confusingly similar to the registrations of the German Mast-Jagermeister SE – the manufacturer of Jagermeister. This is stated in the results of checking the designation, which Kommersant got acquainted with. As Rospatent notes, as a result, the designation cannot be registered as a trademark for the class of alcoholic beverages. KLVZ Crystal is invited to submit its arguments regarding the examination within six months.

KLVZ Kristall began supplying Alter Heiler and Konig Heiler herbal liqueurs in the fall of 2022, positioning the product as a replacement for Jagermeister and intending to produce 300–360 thousand decalitres of drinks per year. Then it became known about the suspension of new deliveries of German liquor to the Russian Federation. The distributor of the Rust Group brand informed customers that shipments would be made based on actual availability. Also, Jagermeister was included in the list of goods allowed for parallel import.

In December, KLVZ Kristall said that Mast-Jagermeister was blocking the sale of Alter Heiler and Konig Heiler, demanding that the chains take the products out of circulation, calling them “counterfeit”. KLVZ Crystal applied to the Federal Antimonopoly Service (FAS) with a request to check the actions of Mast-Jagermeister representatives, indicating that Alter Heiler liquor is the result of its own three-year development. The FAS said that the application is still being considered. Mast-Jagermeister told Kommersant that they had taken legal action against KLVZ Crystal to protect their rights.

KLVZ Crystal disagrees with the position of Rospatent. They noted that they are preparing objections, and if necessary, they will appeal against the decision to refuse registration in the Chamber for Patent Disputes and in court. The right to the word trademark Alter Heiler “KLVZ Kristall” has been owned since April 2021, the company specified.

Semenov & Pevzner partner Yulia Yarnykh believes that KLVZ Kristall will most likely focus on differences from Jagermeister, for example, in the name and visual elements. The company may also submit several consumer surveys that indicate that they do not perceive its products as Jagermeister, adds Yakovlev & Partners lawyer Stanislav Kozlov. According to him, the use of a designation confusingly similar to Jagermeister may result in refusals to purchase from distributors, and Mast-Jagermeister has the right to file a complaint with the FAS and demand the seizure and destruction of products, as well as the recovery of damages or compensation.

This is not the first dispute with competitors over trademarks for KLVZ Crystal. In 2021, the structures of Rust Group of Companies turned to the FAS because of the launch of KLVZ Kristall of Teika vodka, in which they saw an imitation of their Talka vodka. The Federal Antimonopoly Service issued an order to KLVZ Kristall to stop the introduction of the disputed products, the courts of two instances supported the position. Rust Group of Companies stated that KLVZ Kristall subsequently changed the design of Teika.

Igor Kosarev, President of the Union of Producers of Alcoholic Products, points out that manufacturers today do not have effective mechanisms for protecting intellectual property: proving violations stretches for years, and controversial products are produced and sold. According to him, fines for violations should be comparable to the damage, for example, in the amount of proceeds from the sale of goods.

CIFRRA director Vadim Drobiz points out that the need to change the design is unlikely to affect sales of Alter Heiler, since the consumers of this product and Jagermeister do not intersect. As the expert notes, today such disputes remain isolated, and alcohol companies rather use visual images for entire categories, such as whiskey and gin, rather than the design of individual brands.

Anatoly Kostyrev