Brewing Success: Trademark Law in the Craft Beer Industry

Craft beer sales are serious business. As the beer market grows in the United States, so do legal issues associated with the intellectual property rights of craft breweries, including how to decide on a memorable name for a registered trademark and brand name.  

Common Trademark and Branding Issues in the Brewing Industry

“One of the big issues we run into is that alcoholic beverages are considered—under the law and by the U.S. Patent and Trademark Office (USPTO)—to be a related good, which makes it very difficult for a small brewery to find a brand,” says Thomas J. Romano, an intellectual property attorney at Kolitch Romano Dascenzo Gates in Portland, Oregon. A related good is a product that can infringe another product’s trademark because it seems to come from the same source.

“Often,” Romano continues, “I deal with bootstrapped individuals with a dollar and a dream. We try to work with people to make sure they don’t make a branding mistake early that they will pay for later; a stitch in time saves nine.”

Romano states that, in Oregon’s market, it’s very important to do the correct thing concerning beer names and brewery names up front. “When I’m counseling a craft brewer, I always say that your branding is just as important as your beer recipe,” he says. “That’s the way folks are going to latch onto your product. You may have the best IPA or lager in the world, but if consumers don’t know the source of that IPA or lager, then you’ve got nothing. You have to protect your brand. If someone in New York starts using your brand, you could get locked out of other markets.”

How a New Brewery Can Protect Its Brand: Trademark Searches

For Romano, pragmatism is key: “Don’t fall in love with your brand until you’ve talked to all the different interested parties to ensure they’re all getting the same buy-in. Whether it’s your marketing team or your lawyers, be pragmatic and be flexible up front.”

He further warns that craft brewers should do some trademark searching on their own prior to trademark registration. “It’s not foolproof, but they can do what I call a ‘knockout search,’” he says. “Look for a direct hit.”

In order to do so, you’ll want to use the USPTO’s searchable database to find marks that are pending or registered as active. There is also the Alcohol and Tobacco Tax and Trade Bureau (TTB) database, which has all U.S. government-registered alcohol labels. If you do want to sell alcohol across state lines, you must obtain label approval to do so.

“I would say that some of the best resources out there are the consumer-based websites and rating systems, like ratebeer.com,” says Romano. “The aficionado in the craft brew world wants to be the first to do things; they want to be the first to write a review of a new brew. Because of that, there is a huge searchable database of brands on these sites.”

Find an Intellectual Property Lawyer for Trademark Help

As you focus on the craft brewing process, a reputable and experienced attorney can help you through the more formal trademark clearance process. All aspiring or seasoned craft brewers can benefit from this legal service; it will protect them early and avoid costly issues down the line.

For more information on this area of law, see our intellectual property overview.