Canopy Growth Denies Cointreau's Accusations In Trademark Battle Over Quatreau Brand Name

In July, the French alcohol maker Remy Cointreau REMYF sued Canopy Growth Corporation CGC WEED for alleged trademark infringement over its CBD-infused sparkling water brand dubbed Quatreau.

At the time, Cointreau (pronounced KWAN'troh) accused Canopy of using Quatreau, (KWA'troh) to "trade-off the market dominance and fame of the Cointreau mark," arguing that 'only the "n" sound' differentiated the two brands, Spirits Business reported.

Canopy Growth and its U.S. subsidiary denied fully or partially 112 of the 115 claims Cointreau and its U.S. subsidiary made in the complaint and jury demand, the Canadian Press reported Tuesday.

Litigation Details

Cointreau accused Canopy of using Quatreau, "in order to unfairly capitalize on the goodwill and reputation of the Cointreau mark," adding that "(The) defendants' wilful actions will not only confuse consumers as to their affiliation with plaintiffs and the Cointreau brand but will blur the exclusive association plaintiff enjoys between Cointreau and a single source of orange liqueurs."

The Smiths Falls, Ontario cannabis giant said in a New York court filing made on Sept. 21 that its Quatreau brand has "not infringed any applicable trademarks under federal or state law," and is not "confusingly similar to" Cointreau's trademarks and name and has not diluted it.

Cointreau sought a permanent injunction to prevent Canopy from infringing on its trademarks and using any word, term, name, symbol or device on any product, which is likely to cause confusion.

The orange liqueur brand also asked for profits that Canopy has made on products with the allegedly infringing trademarks, including court costs and attorneys' fees. Canopy responded that Cointreau is "not entitled to punitive or exemplary damages under any federal or state law at issue."

Quatreau debuted in the U.S. in March, months after its launch in Canada. Shortly after the Canadian cannabis producer partnered with Southern Glazer's Wine & Spirits to distribute its CBD-infused beverages in the U.S.

Another Cannabis Beverage Partnership

On Monday, Canopy revealed yet another cannabis beverage partnership.

The collaboration with Karma Water, a company with a portfolio of wellness and probiotic water beverages, will soon launch a new brand of CBD beverages dubbed Karma CBD Water.

In addition, both Karma and Canopy Growth are strategic partners of Constellation Brands STZ, which currently holds a 38.6% stake in Canopy.

Price Action

Canopy Growth's shares traded 1.57% lower at $13.19 per share during the pre-market session on Wednesday morning.

Photo: Courtey of Tingey Injury Law Firm on Unsplash