Leading liquor producer, Ginebra San Miguel Inc., part of San Miguel Corp., has claimed an initial victory in its legal battle with rival spirits producer, Tanduay Distillers Inc. The Regional Trial Court of Mandaluyong City has granted a temporary restraining order against Tanduay prohibiting the company from manufacturing and selling Ginebra Kapitan, its new gin brand, while the case is being heard.

In addition the court heard and denied Tanduay’s attempt to dismiss the San Miguel suit. San Miguel is suing Tanduay, which is owned by beer and tobacco magnate Lucio Tan, for alleged unfair competition and infringement.

Tanduay Distillers Inc. later said that it was preparing legal action to reverse the court order stopping it from producing and selling Ginebra Kapitan.

Wilson Young, Tanduay’s chief operating officer of Tanduay Distillers, described the order as a “clear victory of monopoly over free market competition.”

San Miguel is contending in its suit that gin drinkers identify the term “Ginebra” with its Ginebra San Miguel, San Miguel and La Tondena brands.

Referring to research, San Miguel’s counsel, Gilbert Reyes, said: “This shows that the public has indeed identified the mark Ginebra with GSMI and its gin products. The extensive and continuous use of Ginebra as the dominant feature of its trademarks and gin products since 1834 has resulted in the mark becoming exclusively identified by the public with GSMI products.”

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Tanduay has countered by saying that “ginebra” is a generic term which San Miguel cannot claim for its own.