Bud Beats Bit

Europe's second-highest court, the Court of First Instance, on Thursday dismissed Bitburger's appeal against a German court ruling in favor of Budweiser.

Bitburger had argued that its US rival's use of "Bud" was too close to its own "Bit" trademark and that its consumers were likely to be confused.

Budweiser, brewed by US giant Anheuser-Busch, is sold under the Bud name in Germany. That's because its Czech rival and near namesake, Budweiser Budvar, owns the copyright to the full name in Germany.

Bitburger also claimed that Budweiser's use of "Bud" violated its German trademark for its slogan "Bitte ein Bit" or German for "a Bit please."

The EU court however said that the trademarks, though slightly similar in appearance, were clearly different.

"Considered as a whole, the marks at issue are not similar and there is no likelihood of confusion," the court said in a statement.

Bitburger could appeal again

Anheuser-Busch welcomed Thursday's court ruling. Bitburger now has to decide whether to appeal again to Europe's highest court, the European court of justice.

The present dispute is separate from a long-running courtroom battle between Anheuser-Busch and Budweiser Budvar over the use of the Budweiser brand name. Both companies claim a historical right to its use.

Anheuser-Busch's Budweiser has to be called "Bud" in a number of European countries, while in the US, Budweiser Budvar's brew is called Czechvar. Britain remains one of the few countries that allows both companies to use the Budweiser brand name.