Cuban goods forbidden, but names not

Cohiba cigars made in the Dominican Republic sit on display in a humidor at Swedish Match North America’s headquarters in Richmond, Va. Swedish Match owns General Cigar Co., which has sold a version of Cohiba cigars in the United States since 1997. In Cuba, Cohiba was founded in 1966 to make cigars for Fidel Castro and visiting dignitaries, and today is the flagship of Cuba’s premium brands.

? Cuban rum maestro Jose Navarro’s taste buds sing when he sips Havana Club, the sweet spirit distilled in this farming town south of the capital.

“It has to be Cuban,” said Navarro, the oldest of the island’s nine certified rum experts. “Havana Club can’t exist anywhere else.”

But another Havana Club does exist, one made by Bermuda-based rum giant Bacardi Ltd.

A variety of Cohiba cigars, once rolled exclusively for Fidel Castro, is produced by Swedish Match North America of Virginia, and a Miami firm offers its own version of Cubita, a top Cuban coffee.

Washington’s 47-year-old trade embargo has kept Cuban products out of the United States — but hasn’t prevented companies from using the communist island’s brand names.

As the U.S. and Cuba consider better ties, such trademark issues would have to be settled before any easing of the embargo. The fight between Bacardi and the Cuban government for the Havana Club name already has played out in the U.S. courts and Congress for more than a decade — and is now before Spain’s high court.

But the battles are about much more than brand names. They are charged with 50 years of emotion over Fidel Castro’s 1959 revolution and expropriation of private companies as he implemented socialism. They are also rooted in the future as U.S. corporations face the specter of new competition from Cuban products, which may carry a special allure after being banned for nearly a half century.

“There are U.S. interests thinking about how they are going to be affected by an influx of Cuban products, and the outlook is not always positive,” said Jake Colvin, director of the Washington-based USA Engage, which opposes the embargo.

Bacardi’s Havana Club is an 80-proof rum that has sold in Florida since 2006, and sales have been so strong, it’s thinking of expanding the label to other states, said spokeswoman Patricia M. Neal.

Even though Cuba’s Havana Club rum can’t be sold in the U.S., the Cuban government still sued Bacardi for using the name.

Bacardi argues it owns the name because the original Havana Club was expropriated by Castro from its Cuban producers, the Arechabala family, who went into exile. Bacardi bought the name and recipe from the Arechabalas in 1997.

More than 3,000 U.S. brands continue to hold trademarks in Cuba, with everything from McDonald’s to Macy’s to Mr. Peanut paying periodic registration fees in case the island one day embraces the free market, according to a 2002 list compiled by U.S.-Cuba Trade and Economic Council, Inc. in New York.

Experts worried the 2006 decision to nullify Cuba’s Havana Club trademark in the U.S. would prompt Cuba to stop respecting American brand names on the island — especially after Castro famously threatened to produce Cuban Coca-Cola.

So far, there has been no retaliation.

Colvin said Cuban leaders know that violating U.S. trademarks will weaken the island’s case before the World Trade Organization and other groups, where it claims American laws have allowed multinational companies to trample its trademarks.

“They’ve always made the case that they are right on this issue and they are the victims,” he said. “If they start violating trademarks, they lose the moral high ground.”