The suit, filed by DPS subsidiary Dr Pepper/Seven Up in US District Court in the Eastern District of Texas, charges that the Dublin bottling company is selling Dr Pepper beyond the six-county territory designated in its licence agreement.
The suit also seeks to end the bottler’s unauthorised use of the term ‘Dublin Dr Pepper’ on product packaging and on other merchandise.
DPSG owns the Dr Pepper brand, and through its subsidiaries licences it to more than 170 bottlers across the US and Canada. Dr Pepper Bottling Co of Dublin’s licence territory includes Comanche County, Texas, and parts of five nearby counties in Central Texas.
However, the bottler is violating its agreement by selling Dr Pepper beyond its territory via its website, a toll-free telephone number and to retailers and restaurants in areas licensed to other Dr Pepper bottlers.
The Dublin bottler is one of several Dr Pepper bottlers in the US to use cane sugar as the sweetener in its product, but it’s the only one to use the Dr Pepper trademark in an unauthorised manner.
According to the lawsuit, marketing the product as ‘Dublin Dr Pepper’ undermines the integrity of the Dr Pepper trademark, creates a misconception among consumers that the product is different from other Dr Pepper made with cane sugar, and is unfair to bottlers who have the exclusive rights to sell Dr Pepper in bottles and cans to consumers in their territories.
The company has tried in good faith to resolve these issues directly with the Dublin bottler, providing new packaging graphics that are consistent with Dr Pepper brand standards and guidelines. But the bottler’s continued refusal to sell only within its territory and its unwillingness to end the unauthorised use of the term ‘Dublin Dr Pepper’ unless it is compensated have left DPSG no other option but to pursue legal remedies.
DPSG isn’t currently seeking financial damages with the lawsuit. It’s simply asking the court to require Dr Pepper Bottling Co of Dublin to honour the terms of its licence agreement or forfeit its licence.
Source: Dr Pepper Snapple Group
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