New U.S. Law Threatens Cuba’s Claim To Havana Club Rum Trademark

News Americas, New York, NY, February 3, 2025: A little-publicized law signed by former U.S. President Joe Biden in his final days in the White House is now threatening Cuba’s rum industry, particularly its long-standing claim over the “Havana Club” trademark.

The ‘No Stolen Trademarks Honored in America Act of 2023,’ known as the “Bacardi Law,” prohibits U.S. courts and agencies from recognizing trademarks expropriated by the Cuban government without the consent of their original owners. This legislation strengthens the legal position of companies whose assets were nationalized following the Cuban Revolution, particularly Bacardi, which has been locked in a decades-long legal battle over the “Havana Club” brand.

A worker checks quality on the production line of Havana Club rum at the San Jose de las Lajas distillery, Mayabeque province, Cuba on January 30, 2025. One rum and two owners: the battle that Cuba and the American giant Bacardi have been waging for decades over the Havana Club rum brand has just been rekindled with the promulgation of a US law criticized by Havana. The new rule prohibits US federal courts and agencies from recognizing trademarks deemed “illegally confiscated” by the Cuban government during the nationalizations that followed the 1959 revolution, “unless the original owner” has consented to their use. (Photo by YAMIL LAGE/AFP via Getty Images)

Impact On the Havana Club Dispute

The new law directly affects the ongoing dispute between Bacardi, the Cuban regime, and its French business partner, Pernod Ricard. In 1995, Bacardi acquired the U.S. rights to “Havana Club” from the Arechabala family, the original Cuban owners. However, Cubaexport, a Cuban state entity, also claims rights to the brand, having first registered it in the U.S. in 1976.

For years, the trademark has been at the center of legal battles. In 2016, the U.S. Patent and Trademark Office (PTO) renewed Cubaexport’s registration, prompting a lawsuit from Bacardi. Last year, the Fourth Circuit Court of Appeals ruled in Bacardi’s favor, dealing a blow to Cuba’s efforts to maintain control over the brand in the U.S.

With this new legislation, federal agencies now have limited authority to validate trademarks associated with confiscated properties, making it even more difficult for Cubaexport to retain rights to “Havana Club” in the U.S. market.

Cuba Reacts To The New Law

The Cuban government has strongly condemned the law, calling it an aggressive measure that violates international regulations.

Cuban Foreign Minister Bruno Rodríguez Parrilla argued that the legislation is an attempt to strip Cubaexport of its rights to the brand. Meanwhile, Johana Tablada de la Torre, a senior Cuban official, claimed that the law is specifically designed to block Cubaexport’s renewal of the Havana Club trademark in 2026.

Although the U.S. embargo prevents Cuban-made “Havana Club” from being sold in the United States, the brand remains one of Cuba’s top alcoholic exports, sold in over 120 countries and generating millions in revenue.

A Blow to Cuba, A Victory for Bacardi

Founded in Santiago de Cuba in 1862, Bacardi was one of the many foreign and Cuban-owned businesses that were expropriated by the revolutionary government. Now headquartered in Bermuda, the company has fought for decades to reclaim its rights to the Havana Club brand.

With the “Bacardi Law” now in place, Cuba faces a new legal hurdle in its efforts to assert ownership over one of its most famous brands. Meanwhile, Bacardi emerges as the clear winner in this long-running battle, as the U.S. government reinforces its stance against recognizing trademarks tied to confiscated assets.