What a Beer Trademark Fight Actually Costs

A jury once awarded a craft brewery $56 million because a multinational beer company redesigned a label. That's not a typo. Fifty-six million dollars over how a word looked on a can.

The case was Stone Brewing v. Molson Coors. Stone alleged that Molson Coors had redesigned its Keystone Light packaging to emphasize "Stone" in a way that could confuse consumers. A jury agreed. The case went to appeal after that, but the initial beer trademark verdict tells you what these disputes can be worth.

The Naming Minefield

Coming up with beer names is one of the fun parts of running a brewery. It's also where most beer trademark problems start.

With over 9,500 craft breweries in the U.S., thousands of people are inventing clever names at the same time. Clever people think alike more often than they'd like to admit. You come up with something you're sure is original, and someone in another state has been selling a beer by that name for three years. See this post.

Then there's the legal side of creativity. A name like "Double IPA" is descriptive — you probably can't register it. A name referencing a famous brand or public figure might get you a letter from someone's lawyer. And names built on pop culture references or inside jokes, while fun on the taproom chalkboard, often can't qualify for protection at all.

What It Actually Costs

Not every beer trademark fight involves $56 million. Most don't make the news. But even the quiet ones are expensive.

A cease-and-desist letter means you need a lawyer. If you lose the argument, or decide it's not worth fighting, you're looking at a name change. New labels, new packaging, new tap handles, an updated website, new merchandise. Depending on how far you went with the original name, a forced rebrand can run low six figures. And that doesn't count the recognition you lose when customers who knew you by one name have to learn another.

Stone Brewing could afford to fight. Most craft breweries can't.

And Yes, Slogans Count

Taglines and slogans can be trademarked too, if they're distinctive enough. "Drink Local" is probably too generic. But a brewery-specific tagline tied to your regional identity might qualify. If the phrase identifies your brewery as the source, it's protectable. If anyone could say it, it's not.

The Short Version

A trademark clearance search before you name a beer costs almost nothing compared to what happens when you skip it. You don't need to register every beer name, but you should at least check whether someone else already owns it.

The creative part of brewing is supposed to be fun. A little trademark diligence (/blog/hops-barley-brewery-trademark) up front keeps it that way.