Friday, May 02, 2008

Red Bull makes a killing.

If you haven't heard about the $708,250 settlement that Red Bull won you should read about it on the Chicago Tribune site. Click THIS

So here's the low down in case you don't know. Red Bull has associates that go into bars and clubs and they actually pay these people to hang out and drink. (Well, they don't tell them to drink but what else are they going to do with the drink?.) Here's the stipulation. You have to order drinks that have Red Bull in them. You order the drink, ask if they use Red Bull and then ask to see the can. Here's the different problems.

Let's say you ask if they use Red Bull and these possible things happen.
  • The bartender says "We use something that's like Red Bull." WRONG!
Here's the problem. Red Bull is trademarked. If you give something out other than Red Bull your infringing on the trademark and falsely providing something else. Even though Red Bull does taste like a lot of other energy drinks when mixed with vodka or any other alcoholic beverage.
  • The bartender says "Yea" because it's easier than explaining and the club is packed and super busy. WRONG!
Bars and clubs get busy. Bartenders rely on tips. They get better tips from faster service. There isn't a single person that walks up and says "Give me a vodka and energy." People do say "Give me a whiskey an coke." So, should bartenders stop every customer and make them specify exactly what they want?
  • The bartender says "Yes" and then uses the gun. WRONG! Red Bull does not produce a product that comes out of a gun.
Any of these could be big problem. Trademark infringement could be used in any of these cases. When a certain product is offered and another is used in it's place.

So what happens if the bartender won't show the can to the associate?

Technically. Nothing. You see, no one is supposed to know that the associate works for Red Bull. It's a covert operation, they're sent to spy on the businesses that actually buy the overpriced product. However, the associate is supposed to take note that the can wasn't shown. Which can bring up paranoia that it's not actually Red Bull being used. Thus giving Red Bull a reason to want to investigate.

But what about these associates? They get paid to go to bars and clubs and order drinks. What do they do with these drinks? I wouldn't assume that Red Bull would want their employees to drink while on the clock. I'm sure Red Bull would want an accurate description of the night. I'm sure they would need to know what the bartenders wearing, what music is playing and even what night or any other specific details. Can this all be 100% guaranteed if the associate has any liquor content?

What if these associates were driving the fancy Red Bull cars? Wouldn't they be driving inebriated? I can't see an associate ordering the drink and then just tossing it out. That would be a waste of money and alcohol.

Red Bull isn't the first company to have a product who's name is synonymous for a certain product. How many people use a facial tissue to blow their nose rather than a Kleenex? Do you use an elastic bandage or a Band-aid? Have you ever ordered a soda and received a Coke? Have you ever said coke and meant cocaine?

Red Bull, you can fight it but it's the truth. Your not going to change how people think of you unless you want them to think badly of you. You've become a part of the English Slang Dictionary. You are now the fastest way to order a mixed alcoholic beverage that contains an energy drink.

People in bars and clubs everywhere will use your trademarked name because it's easier than asking the bartender what kind of energy drink they have. Honestly, I'd say 85% or more of the people don't care if it's Red Bull or Red Rooster or Monster or Rock Star. It's an energy drink and nothing more.

Trademark laws are more focused on the well being of the consumers and not the creators. To protect the consumers from purchasing something that isn't what it's advertised as. So will Red Bull use this settlement to give back to the consumers? I'll say doubtful. Unless they use it to get more lawyers to sue more clubs. Then more clubs quit using Red Bull and they're company slowly starts to go under, also doubtful.

One can imagine though.

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