Cubatabaco’s Press Release

[El Presidente]

Cubatabaco’s Press Release

December 15, 2009

Cohiba: A new positive decision in USA in favor of CUBATABACO

The Cuban cigar company Cubatabaco has won a court order enjoining General Cigar from continuing to use the COHIBA trademark in the United States.

Federal judge Robert W. Sweet, of the United States District Court for the Southern District of New York, issued the injunction on December 14, 2009.

COHIBA is the world’s most famous and coveted cigar. It is sold everywhere except the United States, where the U.S. embargo on trade with Cuba prevents its sale. General Cigar, a major U.S. cigar company, sells a Dominican-made cigar under the COHIBA name in the United States.

In issuing the injunction, Judge Sweet found that, at the beginning of the cigar boom in the United States in 1992, “General Cigar selected COHIBA for a new product in order to exploit the reputation and goodwill of the Cuban COHIBA” in the United States. Judge Sweet additionally found that General Cigar “continues to profit from the Cuban COHIBA’s goodwill” in the U.S.

General Cigar has stated that it will appeal Judge Sweet’s decision. Under the terms of the injunction, General Cigar is permitted to sell its Dominican-made cigars under the COHIBA name until its appeal is decided.

Judge Sweet still has before him Cubatabaco’s claim to recover the profits General Cigar has obtained since 1992 by exploiting the COHIBA´s reputation. No date has been set yet for proceedings on Cubatabaco´s claim

Michael Krinsky and David Goldstein, of the New York law firm Rabinowitz, Boudin, Standard, Krinsky & Lieberman, P.C., the U.S. attorneys for Cubatabaco, said today that “Judge Sweet’s decision fully vindicates the fundamental principle that a company cannot be permitted to reap what it has not sowed, that it cannot be permitted to exploit the goodwill and reputation of another company’s product.”

Judge Sweet found that the COHIBA’s unique reputation for excellence is so strong that the U.S. consumer “primarily associates the designation COHIBA with the Cuban COHIBA,” even though the

COHIBA cannot be sold in the United States. Judge Sweet found that this lead General Cigar “to plagiarize the mark” by “intentional copying.”

Judge Sweet’s decision is the latest round in a 12 year litigation over the COHIBA trademark in the United States.

For further information please contact:

Sr. Adargelio Garrido

Cuban Attorney for Cubatabaco

Mr. Michael Krinsky, Esq.

Rabinowitz Boudin Standard Krinsky & Lieberman P.C.

212 254 1111 Extension 102

[email protected]

U.S. Attorneys for Cubatabaco

[phxkev]

If the legal ruling holds as a precedent, looks like General Cigar may have to change the name of many of their plagarized brands in the US.

Cuban Company Wins Ruling on Cohiba Cigars

By JONATHAN PERLOW

(CN) - A Cuban government-owned tobacco company won its 12-year legal battle to stop a U.S. cigar producer from using the Cohiba name and trademark in the United States. A federal judge in Manhattan once again backed up Cubatabaco, which accused General Cigar of "exploiting the reputation and goodwill of the Cuban Cohiba."

Cohibas are among the world's most famous and sought-after cigars, and were originally produced exclusively for Fidel Castro.

U.S. District Judge Robert W. Sweet barred General Cigar from using the Cohiba name in the United States, but allowed it to keep using the name on its Dominican-made cigars, pending appeal.

Judge Sweet said his most recent opinion was "nearly identical" to his previous finding that General Cigar Holdings had tried "to plagiarize the mark" and engaged in "intentional copying."

His decision was reversed by the 2nd Circuit, which dismissed the federal claims, saying the embargo between the two countries barred the Cuban company from acquiring property in the United States, including trademarks.

The U.S. Supreme Court declined to hear the case.

But when New York's highest court clarified its position on what constituted unfair competition, Cubatabaco's state law case was back on. The New York Court of Appeals found that "bad faith" wasn't necessary to prove unfair competition by appropriation, only that "deliberate copying" had taken place.

Cubatabaco argued that on the cusp of the 1992 cigar boom, General Cigar selected the "Cohiba" name for a new line of premium cigars "in order to exploit the reputation and goodwill of the Cuban Cohiba," according to the ruling.

Judge Sweet agreed, and said the U.S. company's choice was "in part to capitalize on the success of the Cuban Cohiba brand and especially the good ratings and notoriety that it had received in Cigar Aficionado," a magazine for cigar enthusiasts.

The debut issue of the magazine proclaimed Cohibas to be Cuba's finest cigars, in an article called "The Legend of Cohiba."

Cubatabaco further claimed that the Cohiba name was protected under the Lanham Act by the "well-known marks" doctrine, even though the company held no U.S. trademarks.

Judge Sweet agreed that this was the case, but said Cubatabaco's challenge of the Cuban Asset Control Regulations was obsolete after the state court's ruling.

"The New York Court of Appeals held that plaintiff could be entitled to relief against use of its foreign mark if it could establish deliberate copying and secondary meaning, even though the plaintiff had no U.S. trademark rights," Sweet wrote.

"For certain kinds of cases ... goodwill can, and does, cross state and national boundary lines."

[Ken Gargett]

i'm intrigued that under the embargo, a united states law firm could act for a cuban company.

anyone any thoughts or info?

[sepp]

i'm intrigued that under the embargo, a united states law firm could act for a cuban company.

anyone any thoughts or info?

Wouldn't Cubatobaco need (and deserve) an attorney who is liscenced to work at the federal level in the US?

[laficion]

The day that they get rid of General's Cohiba or Red Dot stuff, I'll drink Champagne ALL DAY.

I've smoked them and I find that they are the worst NC cigars on the market.

How in the world can General be soo two faced ?? They sued TATUAJE for using the FdL and they

have the nerve to copy cuban brands as they want, I don't get these guys? They are

acting as if they are making REAL cigars. every true cigar smoker knows that they are still

very far from doing just that

[anacostiakat]

The day that they get rid of General's Cohiba or Red Dot stuff, I'll drink Champagne ALL DAY.

I've smoked them and I find that they are the worst NC cigars on the market.

How in the world can General be soo two faced ?? They sued TATUAJE for using the FdL and they

have the nerve to copy cuban brands as they want, I don't get these guys? They are

acting as if they are making REAL cigars. every true cigar smoker knows that they are still

very far from doing just that

Wake up! They are whores.

[laficion]

Wake up! They are whores.

I'm sorry Jim, I can't agree on that.

A ***** gives you pleasure, where would this concern General Cigars ???

[Kangaroo495]

Off the topic a little, has anyone actually smoked the non-Cuban Cohiba?

I smoked it earlier this year as part of a NC-CC trade. I'd have to say, out of the 15 NCs which I received, this stick was one of the tastiest.

Obviously nothing like the real thing, but rather pleasant. Fairly light bodied as I remember.

Was quite surprised by that

[kilroy]

i'm intrigued that under the embargo, a united states law firm could act for a cuban company.

anyone any thoughts or info?

I think they should put an injunction on the Monte Open line.

[anacostiakat]

I'm sorry Jim, I can't agree on that.

A ***** gives you pleasure, where would this concern General Cigars ???

You have a point there birthday boy!

[jawofboston]

I applaud this ruling, since this was nothing more than ripping off a brand that was built post-revolution. However, we should never forget how the Cuban government came to "own" the other brands; they stole them from the people who built them.

If the legal ruling holds as a precedent, looks like General Cigar may have to change the name of many of their plagarized brands in the US.

Cuban Company Wins Ruling on Cohiba Cigars

By JONATHAN PERLOW

(CN) - A Cuban government-owned tobacco company won its 12-year legal battle to stop a U.S. cigar producer from using the Cohiba name and trademark in the United States. A federal judge in Manhattan once again backed up Cubatabaco, which accused General Cigar of "exploiting the reputation and goodwill of the Cuban Cohiba."

Cohibas are among the world's most famous and sought-after cigars, and were originally produced exclusively for Fidel Castro.

U.S. District Judge Robert W. Sweet barred General Cigar from using the Cohiba name in the United States, but allowed it to keep using the name on its Dominican-made cigars, pending appeal.

Judge Sweet said his most recent opinion was "nearly identical" to his previous finding that General Cigar Holdings had tried "to plagiarize the mark" and engaged in "intentional copying."

His decision was reversed by the 2nd Circuit, which dismissed the federal claims, saying the embargo between the two countries barred the Cuban company from acquiring property in the United States, including trademarks.

The U.S. Supreme Court declined to hear the case.

But when New York's highest court clarified its position on what constituted unfair competition, Cubatabaco's state law case was back on. The New York Court of Appeals found that "bad faith" wasn't necessary to prove unfair competition by appropriation, only that "deliberate copying" had taken place.

Cubatabaco argued that on the cusp of the 1992 cigar boom, General Cigar selected the "Cohiba" name for a new line of premium cigars "in order to exploit the reputation and goodwill of the Cuban Cohiba," according to the ruling.

Judge Sweet agreed, and said the U.S. company's choice was "in part to capitalize on the success of the Cuban Cohiba brand and especially the good ratings and notoriety that it had received in Cigar Aficionado," a magazine for cigar enthusiasts.

The debut issue of the magazine proclaimed Cohibas to be Cuba's finest cigars, in an article called "The Legend of Cohiba."

Cubatabaco further claimed that the Cohiba name was protected under the Lanham Act by the "well-known marks" doctrine, even though the company held no U.S. trademarks.

Judge Sweet agreed that this was the case, but said Cubatabaco's challenge of the Cuban Asset Control Regulations was obsolete after the state court's ruling.

"The New York Court of Appeals held that plaintiff could be entitled to relief against use of its foreign mark if it could establish deliberate copying and secondary meaning, even though the plaintiff had no U.S. trademark rights," Sweet wrote.

"For certain kinds of cases ... goodwill can, and does, cross state and national boundary lines."

[OZCUBAN]

Sounds to me like Habanos is gearing up for its entry into the US market place once the embargo is over (one cannot have competing brands of the same name ).

Even though this lawsuit has probably been going on for some time,the out come has surprised many

Cheers Oz

[thechenman]

Off the topic a little, has anyone actually smoked the non-Cuban Cohiba?

I smoked it earlier this year as part of a NC-CC trade. I'd have to say, out of the 15 NCs which I received, this stick was one of the tastiest.

Obviously nothing like the real thing, but rather pleasant. Fairly light bodied as I remember.

Was quite surprised by that

Kanga...I've smoked the NC Cohibas as well. As a stand alone cigar...by that I mean not comparing it to a real Cohiba...I find that the cigar is pretty decent. Not very strong for a NC, but like you said...tasty. Though for what they deliver in terms of flavor...they are way overpriced.

[samb]

Never had the NC version, never will. I cant justify spending that amount of money on something thats Cuban knockoff.

[bassman]

No action will be taken until after the appeal.

Anyone familiar with the US legal system knows a company with deep pockets & lawyers on retainer can keep an appeal going quite a long time. I wouldn't expect to see NC Cohibas disappear soon.

Oh, I tried a couple NC Cohibas. They're not offensive, but certainly not memorable either. Wouldn't buy one other than for the original curiosity.

[sloth]

How in the world can General be soo two faced ?? They sued TATUAJE for using the FdL and they

That was Altaldis USA

quote i saw on FB:

there shouldn't be a domino effect. most cuban brands were privately owned, so if there's a settlement between the orginal brand owner and its current manufacturer that is all that is needed.

cohiba was a brand created and owned by the cuban government, so it is a different situation.

[reigndrop]

The day that they get rid of General's Cohiba or Red Dot stuff, I'll drink Champagne ALL DAY.

I've smoked them and I find that they are the worst NC cigars on the market.

How in the world can General be soo two faced ?? They sued TATUAJE for using the FdL and they

have the nerve to copy cuban brands as they want, I don't get these guys? They are

acting as if they are making REAL cigars. every true cigar smoker knows that they are still

very far from doing just that

They're not that bad. It's just plain tobacco flavor until the final third when you get a rush of sweetness.

Regardless, as an American, I hope the embargo doesn't go down. CC prices will skyrocket.

[SamuraiJack]

Man, I REALLY hope this holds. Ripping off the classic brand names is a farce, travesty, etc. It infuriates me to see it.

That said, the Red Dots are not bad. One dimensional, not engaging at all, but tasty. The price is simply outrageous tho.