I always saw the similarity between the cigar, wine and coffee industries -
fierce competitors, yet able to sit down and 'break bread' with each other and
socialize. It seems, however; that when the market heats up; much of the
cordiality evaporates, and as Jose Blanco, Vice President of
La Aurora,
said, "It gets very aggressive."
I should point out, that was an observation, not an indictment of anyone or
any company.
In the boom of the '90s, it was the poaching of rollers.
In the past several months, Pepin Garcia parted company with Ernesto
Padilla with a simple, amicable, straightforward Press Release. Padilla,
followed suit by enrolling on the Cigar Family (Fuente-Newman)
and posting a screed that, not so subtly, suggested he had quality problems with
the product being produced by Pepin.
Sam Dribben, of The
Black Cat Cigar Company, was informed that Pepin could no longer produce
his "Rey Miguel." A simple business decision, based on the fact that
Pepin's business model had changed drastically since those early days, when
Dribben asked him to make the house cigar. Dribben wrote some very rough copy
and slashed the prices of all the cigars in his catalogue made by " ... my
friend ..." Pepin Garcia!
Then there was the scathing remarks made in copy in the Holt's catalogue
about Ernie Padilla. These "slipped by" Sathye Levin, who is in charge of the
catalogue. What a field day the forums had with that. And sadly, in the forums,
it was suggested that Holt's was carrying water for either the Fuentes or Pepin
Garcia, or both. That is certainly a little too Machiavellian.
Aside from the ongoing lawsuit claiming trademark infringement, by Habanos SA
against Jose Montagne's
Guantanamera Cigars Co. Many, in the industry and outside it, we smokers,
are focused on the lawsuit between Fuente and Beach Cigar Group over the
trade dress, a tin that both are using and logos.
Cigar-Review had a brief conversation with Kaizad Hansotia, the owner of
Beach (Gurkha cigars) as well as Carlitos Fuente. Each had their point of
view.
The hassle is over a tin that each is using, basic black, gold trim and their
respective logos.
Carlitos suggested to Cigar-Review that he would like us to see certain material
involving the suit. On his instructions, a call was made to Karl Herzog, in
Tampa. He had, apparently, heard from Carlitos, and indicated he would get back
to me. That was Thursday, and, of course, the holiday ensued. No call from him
on Monday. A call to him by me on Tuesday elicited the information that a woman,
apparently from the Intellectual Property attorneys representing Fuente, would
call us. 8:45 PM Tuesday; no call. So, we have to go with what we know.
Do
the crossed swords of the Gurkha logo look like the X in the Opus X logo ...
a tough case to make? The crossed swords have been the symbol of the Gurkha
Regiment since the late 1800s. It is not a logo, not a trade mark, so Beach was
free to use it. And, did register it in 1990 when the cigar was created. Opus
was introduced in 1996.
On the other hand, as I understand from Fuente, without further information, as
noted above, Fuente actually paid for the molds or forms for the tins. Perhaps,
they should have acquired exclusive rights to the use of the tins from the
company that has them made in China.
The flack is still flying. Among the back and forth, we have learned the
following:
• Fuente sued for trademark infringement
• Fuente tried to trademark their tin and the claim was rejected by the Patent
and Trademark Office of the Commerce Department.
Recent information would indicate that Fuente lost their suit and settled with
Beach and Hansotia. The Court information is not yet available.
Beach Cigar Groups' suit for tortuous interference is yet to be adjudicated.
If I can be permitted our two cents; law suits enrich lawyers that win, lose or
draw, get paid. Can't we all be friends, sit down and work these things out, and
focus on making the great cigars that both Gurkha and Opus X make.
Efforts to get comments from other industry figures, while not futile, were not
for attribution. I will not write anything that is without attribution, nor will
Cigar Review publish it.
I intend to follow this story closely, and keep our readers informed.
- Gary J. Arzt for Cigar Review
