Pernod Ricard USA, LLC v. Bacardi U.S.A., Inc.

Bacardi (defendant) began selling 'Havana Club' branded rum in Florida after acquiring rights to the recipe and name from the original Arechabala family, labeling the bottle 'Havana Club Brand Puerto Rican Rum' and explaining on the label that the rum was based on the Arechabala recipe and made in Puerto Rico. Pernod Ricard (plaintiff), a rival with its own history in the Havana Club trademark, sued for false advertising, arguing the packaging misleadingly suggested Cuban origin, and offered survey evidence showing 18% of consumers who viewed the label believed the rum was made in Cuba or with Cuban ingredients; the district court rejected the survey evidence and ruled the packaging wasn't misleading, and Pernod appealed.