According to a statement by the Czech brewer, Budejovicky Budvar (BB), the EU has granted protection to geographically defined designations of beer brewed in the city of Ceske Budejovice, Budejovicky Pivo and Ceskobudejovicky Pivo, as part of the Czech Republic's accession agreement with the EU.

Budejovicky Budvar said the decision will mean the brewer will have the right to use these trademarks in EU countries in the future.

Two breweries in Ceske Budejovice, the state-controlled Budejovicky Budvar brewery and the privately-owned Budejovicky Mestansky Pivovar, have the right to the Budejovicky Pivo name, but Budvar is the only company with the right to use the Ceskobudejovicky Pivo designation.

In response the statement, Anheuser-Busch, the US brewing group which has contested numerous legal battles with Budejovicky Budvar over the use of the Bud and Budweiser names, said: "We are pleased that the accession treaty between the Czech Republic and the EU contains specific and unprecedented language that protects our established rights to the Budweiser and Bud brand names in EU countries. Importantly, the EU also rejected BB's request to recognize 'Budweiser,' as a geographic indication. This treaty is the result of BB's attempts to use political means to try to gain protections that they have been unable to achieve through fair and open legal proceedings. However, we are pleased that the rights allowed in this treaty are narrow and will have no impact on us."