Casa Azul, the creator of the award-winning certified Organic Tequila and natural Tequila Soda products, won its trademark trial on April 15, 2024, in Houston, Texas, against plaintiff Casa Tradicion, the makers of luxury tequila brand Clase Azul. Following a bench trial and comprehensive review of the evidence, United States District Judge Lee H. Rosenthal denied Casa Tradicion’s complaint seeking a permanent injunction, affirming Casa Azul’s right to continue marketing and selling its tequila products under its trademark name.
The court found and concluded that, because of the dissimilarity between the two brands at issue as well as other evidence, the plaintiff failed to establish a likelihood of confusion; trademark infringement; unfair competition; or trademark dilution. Casa Azul was represented at trial by a team at Debevoise & Plimpton, led by David H. Bernstein, Jared I. Kagan, Marissa P. Baron and Nicole M. Flores, and by Adam D. Mandell of Millen, White, Zelano & Branigan.
“We are grateful that the judge so clearly decided in Casa Azul’s favor. This outcome reaffirms our confidence in the distinctiveness of Casa Azul’s brand name, [our] world-class products, and our commitment to upholding its integrity with USDA Certified Organic Tequila,” said Lance Collins, founder of Casa Azul. “We will continue to focus on delivering high-quality tequila products and serving our customers with excellence.”
“This is a decisive legal victory after a hard-fought trial. Although there are some superficial similarities in the sound of the Casa Azul and Clase Azul names, the Court quite properly found after a review of the voluminous evidence that confusion is not likely,” said Bernstein. “The names have different meanings; the trade dress is radically different; the products are different (in that Casa Azul is an organic, additive-free tequila and Clase Azul is not organic and is made with additives like glycerin and artificial sweeteners); they are marketed differently and at different price points; and the Casa Azul name was adopted in good faith. Although Clase Azul submitted evidence of fleeting errors and mix-ups, that was largely a problem of Clase Azul’s own making since its product is more well known by its distinctive bottles and not by its name (which, the Court found, is not strong or well known). We are thrilled to have obtained this complete defense victory for Casa Azul that confirms it can continue to grow its brand under the Casa Azul name.”
Casa Azul launched its Tequila Soda in August 2022, followed by the acclaimed Casa Azul Organic Tequila in May 2023. In addition to the Tequila Sodas, the Organic Tequila is produced using time-honored traditions by a multigenerational family of distillers and agave farmers. Created by serial entrepreneurs in the beverage industry who have consistently delivered better-for-you products, Casa Azul is bringing that ethos to spirits and disrupting the tequila and RTD markets at retailers across the country.
