ARTICLE
14 May 2025

Brewed In San Diego: Trademark Lessons From America's Craft Beer Capital And Beyond

FH
Foley Hoag LLP

Contributor

Foley Hoag provides innovative, strategic legal services to public, private and government clients. We have premier capabilities in the life sciences, healthcare, technology, energy, professional services and private funds fields, and in cross-border disputes. The diverse experiences of our lawyers contribute to the exceptional senior-level service we deliver to clients.
This year, the INTA Annual Meeting lands in sunny San Diego, California—a city known not only for its breathtaking coastline, laid-back vibe, and rich cultural diversity...
United States Intellectual Property

This year, the INTA Annual Meeting lands in sunny San Diego, California—a city known not only for its breathtaking coastline, laid-back vibe, and rich cultural diversity, but also for its dynamic landscape of iconic brands and trademark activity. From the world-famous San Diego Zoo to the fiercely protected Comic-Con International brand, San Diego offers a case study in how intellectual property shapes local industry and culture. It is also proudly hailed as the "Craft Beer Capital of the U.S.," with over 150 independent breweries cultivating brands beloved around the globe. As thousands of trademark professionals gather here, it is the perfect opportunity to explore how San Diego's celebrated craft beer industry highlights some of the unique challenges trademark owners face today.

Trademark Challenges for Craft Breweries: A Crowded Field

The craft beer industry has exploded over the last two decades, and with that boom has come fierce competition—not just for shelf space, but also for trademarks. One of the core issues facing breweries is the limited pool of available and registrable names. Beer, wine, spirits, and other alcoholic beverages are broadly considered to be related goods from a trademark perspective, which means breweries are in direct competition not only with each other, but also with wineries and distilleries, when it comes to securing exclusive rights to a brand name.

This naming crunch is further complicated by the rising trend of creative, quirky, or location-based brand identities, which can unintentionally overlap. Similarities between names or logos can lead to legal disputes or denied registrations, where the USPTO finds a likelihood of confusion with a previously registered mark.

The Interstate Commerce Barrier

Federal trademark registration through the USPTO requires proof of use in interstate commerce, meaning that the product must be sold across state lines. For many small or hyper-local breweries, this requirement can be a hurdle. Without qualifying for federal protection, purely in-state breweries may settle for state-level registrations or simply rely on "common law" (unregistered) use, which provide limited enforcement rights, and which typically cannot be wielded to stop infringing use outside the home state.

Stone Brewing v. Molson Coors: A San Diego Case with National Ripples

The high-profile legal battle between San Diego-based Stone Brewing and industry giant Molson Coors underscores the stakes involved in trademark protection in the beer industry. In 2018, Stone Brewing filed suit against Molson Coors, claiming that Molson Coors' rebranding of Keystone Light—which visually emphasized the word "STONE" on cans and promotional materials—was a deliberate infringement of the STONE trademark that Stone Brewing had registered and used since 1998.

Stone Brewing argued that Molson Coors' marketing not only infringed Stone's trademark, creating consumer confusion, but also diluted their well-known brand, especially given Stone's strong presence and brand recognition in Southern California and beyond.

After a three-week trial, a federal jury in San Diego ruled in March 2022 in favor of Stone Brewing, awarding $56 million in damages. Though the jury did not find the infringement to be willful, it affirmed that Molson Coors' use of "Stone" on packaging was likely to cause confusion. The verdict was one of the largest ever in a trademark case involving alcoholic beverages. In December 2024, the Ninth Circuit Court of Appeals upheld the award, cementing the case as a landmark in the field of beverage branding and trademark law.

This case was not only a victory for independent breweries, but also a powerful reminder of how vital clear and consistent branding is in the beverage industry. From a trademark perspective, it's also a notable reminder – for both brand protection and risk-mitigation purposes – that changes to existing branding, such as adopting new logos for established brands, can open a company up to new potential trademark claims. For this reason, companies rebranding existing assets should be sure to appropriately clear new logos and other variations on trademarks, and brand owners should otherwise engage in marketplace vigilance, monitor reports of actual consumer confusion, and be ready to enforce their valuable trademark rights should the need arise.

Exploring San Diego's Craft Beer Scene and Beyond

While in San Diego for the INTA Annual Meeting, there are countless opportunities to experience the city's legendary craft beer culture firsthand. Whether visiting iconic breweries like Stone Brewing World Bistro & Gardens, Ballast Point Brewing Company, or Modern Times Beer, attendees can witness how strong branding plays a central role in shaping consumer loyalty. San Diego's craft breweries offer an impressive showcase of creative brand identities, highlighting how a well-planned trademark strategy is critical to building and protecting business value.

Beyond the breweries, visitors can explore other local IP landmarks, from the renowned San Diego Zoo, a masterclass in licensing and merchandising, to the historic Gaslamp Quarter, where heritage branding meets modern reinvention, and to the world-famous Comic-Con International, which is a powerhouse example of event branding and trademark enforcement.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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