Thursday, May 03, 2007

Gallo Wine is Cock Sure about its Trademark

The ANNOTICO Report

 

Gallo of course means Rooster in Italian. It's no sin to use Rooster in your product in the US, but  may the Lord protect you,  because, the Law will not . IF you use GALLO on "anything"  in the US.

 

Gallo may seem petty or mean spirited, but the Law maintains if you do not vigorously defend your Trademark, then you have presumed to have "waived" your rights. So if someone can prove you have not been diligent, then they can "steal" your name!!!

 

What bothers me most, is whenever I hear about a very successful Italian entrepreneur, I am unaware of any Foundation they have established to Further the Knowledge of the  Italian Heritage and Culture, or the Defense thereof.  Sad!!!!!

 

 

The Importance of Being Ernest Gallo


Rocky Mountain News

Jennifer Rosen

May 2, 2007

 

The neon-green-and-pink striped socks I'm wearing are all the rage in Italy, England and Paris.

 

BUT, You can't buy them here, though, because the manufacturer's name is Gallo.

The Gallo Wine Co. is serious about protecting its brand. Salsa, beer, rice, T- shirts, poker chips and race horses have all been blocked from using the Gallo name.

The winery, so big it's often mistaken for an oil refinery from the air, offers no tours or tastings. But the company makes or imports one of each four bottles of wine Americans drink, along with exporting to 90 countries. Eighty million cases a year, or 2.64 million bottles a day, roll off Gallo's lines. In 2005, sales of $980 million netted a $44 million profit. When Ernest Gallo died last month at 97, he was worth about $1.2 billion.

He and his brother Julio, who died in 1993, came from a winemaking family that profited during Prohibition by sending grapes back East for private winemaking. But repeal left them in debt. One morning their father went into the kitchen and shot and killed his wife and himself, leaving brothers Ernest, Julio and Joseph orphans.

Ernest and Julio borrowed money and started a winery. Julio made wine, while Ernest took care of business. From the beginning, Ernest was driven. His goal: to be "the Campbell's Soup of the wine industry." He often worked 16-hour days and at one point was hospitalized for six months for exhaustion.

A ruthless salesman, he aggressively underpriced the competition. "We don't want most of the business," he once said. "We want it all."

Their first big success was in 1957: Thunderbird, a cheap, fortified wine and an instant hit in the "misery market." Next came the jug sensation Hearty Burgundy, which the Los Angeles Times called "the best wine value in the country today."

It was followed by Carlo Rossi, Bartles & Jaymes coolers and others. Gallo later moved into upscale wines with its Gallo of Sonoma brand as well as competitors it bought.

Ernest liked to control every step. By the mid-'60s, Gallo owned glass factories for bottles, aluminum plants for caps and a trucking company for distribution. The Federal Trade Commission stepped in, however, when the Gallos strongly suggested that their wholesalers drop all non-Gallo brands.

Most of the time, though, generous political contributions to both parties kept things smooth. A custom-tailored 1978 California amendment saved them millions by allowing them to spread inheritance-tax payments over several years. Later, Congress delayed an increase in Chilean wine imports while passing increased funding for a program netting Gallo millions of dollars to promote its wines overseas.

Gallo has been a huge boon to the California wine industry, funding masses of vineyard and winemaking research as well as lesser-known projects, like a research center on the effects of alcohol on the brain. More than anything, the company is credited with getting Americans to drink wine.

But it does guard that brand. The "Gallo Nero," or black rooster, has been the symbol of Italy's Chianti Classico region for 800 years, but its use is blocked in the United States. Gallo sued a part-time mom who sold Italian ceramics using the terms gallo verde, gallo rosso and gallo blu, charging her with trademark infringement, dilution and unjust enrichment.

"I understand that gallo means 'rooster' in Italian," Gallo lawyers explained. "However, Italian is not the official language in the United States."

Perhaps Gallo's finest litigation hour was in 1986, when it sued younger brother Joseph for using the family name on a line of cheeses.

Joseph's countersuit claimed he'd been deprived of his rightful third of the winery. His claim was dismissed, and the brothers died estranged.

Perhaps by now Ernest has discovered you can't take it with you.

 

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