Champagne Law on Vodka Facts

In Diageo North America Inc v Intercontinental Brands (ICB) Ltd [2010] EWCA Civ 920, the UK Court of Appeal has developed the law of passing off on some intoxicating facts.

This Brief Counsel looks at the case, and whether the New Zealand Courts would reach the same conclusion if the same point was argued here.

Vodka v VODKAT

At issue was VODKAT: a mixture of vodka and fermented alcohol with an overall alcohol by volume of 22% (as opposed to the minimum 37.5% required under EC regulations for vodka). The lower alcohol meant VODKAT qualified for a lower duty so could be retailed for less than standard vodkas.

The case, taken by a large vodka company, involved what is known as "extended" passing off. Why extended? Because the vodka people weren't seeking protection for their product's brand (the name, logo, style of bottle); they were seeking to protect the goodwill associated with vodka itself.