Casa Tradición S.A. de C.V. v. Casa Azul Spirits, LLC

Casa Tradición S.A. de C.V. v. Casa Azul Spirits, LLC

Opinion

MEMORANDUM AND OPINION ENTERING FINDINGS OF FACT AND CONCLUSIONS OF LAW

This is a trademark-infringement case involving tequila. The allegedly infringed product is a brand of expensive, high-quality tequila sold in a handmade, ceramic decanter. The allegedly infringing product is a brand of inexpensive, canned tequila-based soda. The court held a hearing on the plaintiff's motion for a preliminary injunction on December 2, 2022. Based on the pleadings; the motion, response, and reply; the survey and other evidence in the record; and the applicable law, the court finds and concludes that the plaintiff has failed to show a substantial likelihood of success on the merits. Specifically, the plaintiff has not shown [*2]  the likelihood of consumer confusion between the products, their ownership, sponsorship, or affiliation, necessary to secure the relief sought. The findings and conclusions are set out below.

FINDINGS OF FACT

I. The Parties

Plaintiff Casa Tradición S.A. de C.V. is a sociedad anóma de capital variable formed under the laws of Mexico, with its principal place of business in Zapopan, Jalisco, Mexico. (Docket Entry No. 1, Compl., ¶ 2).

Defendant Casa Azul Spirits, LLC is a limited liability company organized under the laws of Delaware, with a registered address in Wilmington, Delaware. (Id. ¶ 3).

II. The Relevant Trademarks and Products

A. The Plaintiff's Trademark and Product

1. The Plaintiff's CLASE AZUL Trademark

In the 1990s, the plaintiff's founder decided to name his new tequila brand "Clase Azul." (Docket Entry No. 23-10, Declaration of Younga J. Kwon (Nov. 16, 2022) ("Kwon Decl.") ¶ 109, Ex. 107¹ ). The plaintiff applied to the United States Patent and Trademark Office to register CLASE AZUL as a tradename for its tequila in August 2006 and obtained its trademark registration in March 2008 (Reg. No. 3,403,628). (Compl. ¶ 12).

The plaintiff has used its CLASE AZUL mark to sell tequila in [*3]  the United States since approximately February 2003. (Docket Entry No. 17-1, Declaration of Juan José Sánchez (Oct. 19, 2022) ("Sánchez Decl.") ¶ 16).

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