Appeals Court Vacates Clase Azul Tequila Ruling
The Fifth Circuit sent the trademark dispute with Casa Azul Spirits back to a Texas district court for reconsideration.
Updated on Nov. 6, 2026 in Cocktails
The US Court of Appeals for the Fifth Circuit vacated a Texas district court judgment in the Clase Azul trademark case against Casa Azul Spirits. The case has been sent back to the district court to be reconsidered.
Why it matters
The ruling reopens a dispute over two tequila brands with similar names that has been litigated since Casa Azul launched a canned tequila soda in 2022. The appeals court classified the Clase Azul mark as suggestive rather than descriptive while upholding the finding that the two marks are dissimilar in sight and meaning.
Both brands' bottled tequila is 40% ABV, and Clase Azul's sales were US$205 million in 2021, US$280 million in 2022 and US$250 million in 2023. About 80% of Clase Azul's sales come from the United States, and the litigation has not yet produced a final outcome on remand.
The players
Clase Azul
Clase Azul is a premium tequila brand owned by Mexican company Casa Tradición, known for its distinctive ceramic decanters.
Casa Azul Spirits
Casa Azul Spirits is a company founded by Lance Collins that sells tequila and a canned tequila soda under the Casa Azul name.
The details
Clase Azul, owned by Mexican company Casa Tradición, sued after Casa Azul launched a canned tequila soda in June 2022. A 2024 district court ruling had dismissed Clase Azul's claims for failing to establish a likelihood of consumer confusion, and Clase Azul appealed that decision.
Timeline
2006: Lance Collins filed the Casa Azul trademark application for wine.
2008: The Clase Azul tequila trademark was registered with the US Patent and Trademark Office.
June 2022: Casa Azul launched its canned tequila soda.
September 2022: Clase Azul filed its initial trademark infringement lawsuit.
4 November 2026: The Fifth Circuit vacated the Texas district court judgment.
Legal Context
The appeals court vacated the 2024 Texas district court decision that let both tequilas keep their names, sending the dispute back for reconsideration. The ruling turns on whether consumers are likely to confuse the two brands, a standard that courts apply to all trademark infringement claims.
Shoppers who buy tequila in the United States may see both brands remain on shelves while the case proceeds. Consumers choosing between similarly named bottles should check the producer name on the label, since the court has not yet decided whether the names are confusing.
The takeaway
The Fifth Circuit's decision shows that trademark disputes over similar names can take years to resolve and may reach several rounds of court review. Readers who follow the spirits industry should watch whether the district court's remand changes how the two brands are sold.
Further reading
For more on spirits and the drinks industry, browse Cocktails.
Source note: This article includes information reported by The Spirits Business.
