Tequila Startup Beats Casa Tradicion’s Trademark Damages Claims

Luxury brand tequila company Casa Tradicion S.A. de C.V. can’t pursue claims for damages or disgorgement in its trademark infringement suit against Casa Azul Spirits LLC, a federal trial court ruled.

Casa Tradicion alleges Casa Azul—a recent entrant into the tequila market—is infringing on its CLASE AZUL trademark, and that it is likely to cause confusion or deceive consumers.

Casa Tradicion’s claim for disgorgement of profits fails because Casa Azul’s production costs have exceeded its revenues, Judge Lee H. Rosenthal, of the US District Court for the Southern District of Texas, said Nov. 3.

“The testimony and declaration of Casa ...