In a January 27, 2011 decision by Justice Lowe, the court found that defendant Tequila Cuervo was liable for breaching a 1997 agreement with Jim Beam which resolved a dispute pending before the U.S. Patent and Trademark Office concerning Tequila Cuervo’s unauthorized use of Jim Beam’s trademarked “crow” design. The court granted summary judgment on liability upon finding that Tequila Cuervo admitted to using certain designs beyond the limitations set forth in the 1997 agreement. The court rejected Tequila Cuervo’s contention, that Jim Beam is not entitled to damages because any breach was not material because Jim Beam did not lose any sales as a result of any Tequila Cuervo’s use of the designs, finding that New York law permits an aggrieved party to seek damages for both material and minor immaterial breaches.
Jim Beam Brands Co. v Tequila Cuervo La Rojena S.A. De C.V., Sup Ct, New York County, January 27, 2011, Lowe, J, Index No. 600122/08