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The second important legal decision of recent days placed the protection of geographic identity above commercial property rights. All wineries using geographic brand names should take an interest in this result, and its possible implications for you.
The case revolved around two brand names, Napa Ridge and Napa Creek, which Bronco Wine Company had purchased from other producers. Because the brands had been used on approved COLA's prior to July 7, 1986, an exception in federal regulations allowed Bronco to use these viticulturally significant brands on non-Napa County wines. But the wines' huge success raised fears that consumers were being misled about their origin. The required appellation statements on the labels obviously did not correct the confusion.
In 2000, at the urging of a vintner's group, the California legislature passed a law designed to close the federal loophole and specifically STOP the use of Bronco's Napa brand names on wines made from grapes grown outside Napa County. Bronco fought back in court, but following three separate appeals, including a failed US Supreme Court bid, the State has prevailed. Bronco's use of the Napa brand names on non-Napa wines has been ruled misleading, and not entitled to any free speech or property rights protection.
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Why this case is important
We have reported the trend toward increased protection of geographical names for several years. Federal regulations limiting the use of brand names with viticultural significance have been in place over fifteen years, and every year more geographical names are affected. Now TTB is even rejecting COLA applications for previously approved labels with geographic brand names.
This court case invites states to create even stricter controls. Some besides California already regulate geographic references on labels. Oregon, for example, requires higher percentages for labeling claims than federal regulations do. Encouraged by the Bronco decision, many more states may now decide to regulate the use of viticulturally significant names to protect "the valuable reputation of a wine growing region" within their borders.
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