The court prohibited Carlsberg from terminating licensing agreements with Baltika

The Baltika brewing company obtained interim measures against Carlsberg Breweries A/S in the Arbitration Court of St. Petersburg and the Leningrad Region, as follows from the file of arbitration cases. The company’s request was granted on October 19, and the lawsuit itself was filed on October 17.

Baltika requested interim measures in the form of a ban on Rospatent registering any changes in the controversial licensing agreements that relate to the brands Tuborg, Kronenbourg, Seth & Riley’s Garage, Holsten and LAV. This measure “is aimed at protecting production, preserving property and protects the plaintiff from unjustified, if recognized, termination of rights to trademarks as a result of any unfair actions,” the court said.

In the lawsuit, Baltika also challenges Carlsberg’s unilateral refusal on September 29 of the framework agreement on supplies and licenses. A hearing on the merits of the case is scheduled for November 15.

A Baltika representative declined to comment. The representative of Rospatent (the agency is stated in the Baltika lawsuit as a third party) has not yet received the statement of claim. Carlsberg and the Federal Property Management Agency did not provide a prompt response to Vedomosti’s request.

On October 4, the Danish holding Carlsberg Group announced that it had notified Baltika of the termination of licensing agreements for the production and sale of products under the group’s international and regional brands. It followed from the company’s statement that this was a response to the decree of Russian President Vladimir Putin dated July 16, 2023, according to which Baltika was transferred to the temporary management of the Federal Property Management Agency.

Taimuraz Bolloev, who led the company from 1991 to 2004, became the president of Baltika. The Carlsberg Group reported that the change of management at the Russian enterprise occurred without the knowledge or approval of the holding.

Also in the October release from Carlsberg it was stated that the Russian brewing company has the right to sell existing stocks and materials under the Carlsberg brands until April 1, 2024.

Baltika was founded in 1990 and is currently 100% owned by the Carlsberg Group. The company produces beer under the brands Baltika, Tuborg, Zatecky Gus, Kronenbourg 1664 and others. In 2022, its revenue increased by 22% to 101 billion rubles, net profit for this period amounted to 10 billion rubles.

The ban will last until the interim measures are lifted at the request of the defendant or at the end of the dispute, Yuri Fedyukin, managing partner of the law firm Enterprise Legal Solutions, explained to Vedomosti. In the meantime, while the measures are in effect, Baltika can de jure use the controversial trademarks in Russian jurisdiction, he points out.