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Cuba fights 'Bacardi
bill'
In a rare intervention
in the American legislative process, the
Cuban government is lobbying against legislation
pending before Congress, saying lawmakers
must act to repeal controversial trademark
legislation and expressing its opposition
to the so-called Bacardi bill, according
to a document provided to The Hill.
By Klaus Marre,. The
Hill, Washington D.C., September 28,
2004.
The World Trade Organization (WTO) has
held that Section 211 of the 1999 omnibus
appropriations legislation violates international
trademark rights. Congress is contemplating
legislative fixes that would bring the United
States in compliance with the ruling.
But one legislative proposal only benefits
Bahamas-based rum maker Bacardi, according
to lawmakers and U.S.-based companies that
oppose this approach.
They say passing the Bacardi bill (S. 2373),
which the Senate Judiciary Committee hopes
to take up this week, would only amend Section
211 and open the door for Cuba to retaliate
legally against U.S. trademarks in Cuba,
which could cost American companies millions.
Many U.S. companies favor S. 2002, introduced
by Sen. Larry Craig (R-Idaho), which would
repeal Section 211.
In a letter to Senate Judiciary Committee
members, Dagoberto Rodriguez Barrera, chief
of the Cuban Interest Section in Washington,
D.C., said Cuba opposes S. 2373. Barrera
said his country's courts have protected
the thousands of U.S. trademarks currently
registered in Cuba, adding that Cuba has
"waited with considerable patience
on effective U.S. action to cure Section
211's violations" of the Inter-American
Convention and the TRIPS agreement.
Many U.S. companies fear that Cuban leader
Fidel Castro would initiate legal retaliation
against their trademarks. National Foreign
Trade Council (NFTC) President Bill Reinsch
said he believes Cuba is "waiting to
see what Congress does" but would retaliate
if Section 211 were not appealed outright.
When the Judiciary Committee marks up S.
2373, Craig or an ally will introduce a
substitute that would repeal Section 211,
according to a source close to the issue.
A Senate source said there appears to be
more support for a straight-up repeal than
for either S. 2373 or S. 2002.
A Craig aide said, "Opponents of repealing
Section 211 want everybody to believe it
has something to do with Castro. It doesn't.
It has everything to do with protecting
U.S. companies."
"Find me 10 U.S. companies out of
5,000 U.S.-registered trademarks in Cuba
that support keeping Section 211 in place
and we'll talk," the aide said, adding,
"Simply put, this law is crazy, and
one has to wonder why it was snuck in 40
years post-embargo."
Sen. Pete Domenici (R-N.M.), author of
the bipartisan S. 2373, said his bill would
protect the owners of trademarks Cuba has
confiscated and not favor a particular company.
Reinsch said anybody who expects Cuba not
to retaliate if S. 2373 were signed into
law is "being awfully cavalier with
other people's money."
Cuba's minister of foreign affairs said
in an address to the United Nations General
Assembly last year: "The United States
must prevent the Bacardi company from stealing
the Havana Club rum brand name. Its government
should not be interested - and I want to
state this clearly here - in a conflict
of trademarks and patents with Cuba."
Earlier this year, Cuba issued a statement
attacking the United States' "total
indifference and lack of willingness"
to address the issue.
The International AntiCounterfeiting Coalition
(IACC), a group consisting of about 140
members that represent total revenues of
more than $650 billion, appealed to Judiciary
Committee Chairman Sen. Orrin Hatch (R-Utah)
and ranking Democrat Sen. Patrick Leahy
(Vt.) not to pass the Bacardi bill, instead
lobbying for an all-out repeal of Section
211.
IACC President Timothy Trainer argued that
without such a repeal, Cuba could withdraw
legally "protections of the Inter-American
Convention from the U.S.-owned trademarks
registered in Cuba."
That, Trainer added, "would create
an environment conducive to trademark counterfeiting
and, at the very least, subject American
companies to time-consuming and expensive
litigation to regain their marks when Congress
decides to restore normal commercial relations
with Cuba."
Bacardi could not be reached for comment.
The Cuban Interest Section did not return
calls seeking comment.
© 2004
The Hill
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