American court rejects P.A. Smirnov descendants_ suit against Smirnoff vodka.
Published:
25 May 1999 y., Tuesday
American federal circuit court in Wilmington (Delaware) turned down without consideration the suit filed by Russian Smirnov vodka producers against the owners of Pierre Smirnoff. However, according to reliable sources, the Russians intend continue the lawsuit and already decided to appeal against the court_s decision. According to the law they can file an appeal within 30 days. The main goal of the suit was to prohibit British transnational corporation Diageo and its American branch Heublein from using the brands, awards and regalia of the primordial Russian vodka named after its creator, Piotr Arsenievich Smirnoff. Descendants of the famous businessman, who opened their own trading house in Russia, demanded that the defendants should pay a fee and compensation of 2% from gross sales volume since 1939. According to their calculations total amount of these payments should equal $1.3 billion. In addition to this, they demanded another $125 million for an advertising campaign that would explain who really owns the famous brand. Consideration of the appeal may take 10-12 months. Lawyers from the Russian side believe that their chances are minimum 50/50. If again Heublein wins, theoretically an opportunity to appeal to the US Supreme Court remains. If the original court decision is upheld, this would mean for the "Trading house of the descendants of His Majesty Court supplier P.A. Smirnov" that their product would have no access to the American market - at least in its present form.
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