Case Explained: BACARDI & COMPANY LIMITED; BACARDI USA, INC. Plaintiffs – v. JOHN A. SQUIRES

Court: United States Court of Appeals for the Fourth Circuit Filed: 2026-06-16 The Fourth Circuit affirmed the district court’s grant of summary judgment in favor of the United States Patent and Trademark Office (PTO) and its Director, holding that the PTO acted within its statutory authority under the Lanham Act and did not act arbitrarily or capriciously when renewing a Cuban entity’s trademark registration ten years after the original deadline. The court applied the Administrative Procedure Act standard of review, examining whether the agency exceeded its statutory authority (a question of law reviewed de novo) and whether its decision was arbitrary or capricious (requiring a rational connection between facts found and choices made). The court determined that while Cubaexport’s 2005 renewal payment was initially invalid due to a lack of authorization from the Office of Foreign Assets Control (OFAC), a specific license issued by OFAC in 2016 retroactively validated the December 2005 transaction. Citing 31 C.F.R. § 515.502(a) and § 515.203(c), the court found that because the license “specifically so provided” for the authorization of a prior transaction, it rendered the 2005 payment effective as of the original filing date. Consequently, the PTO Director correctly concluded that the statutory fee requirement was satisfied at the time of the initial submission, removing the sole legal obstacle to renewal. The court further rejected arguments regarding the delay in processing the petition, noting that much of the delay was due to a stay pending OFAC litigation and that Bacardi failed to timely challenge the timing or lack of explanation for such delays. As a practical consequence, Cubaexport’s “HAVANA CLUB” trademark registration remains valid and effective from its original 2005 renewal date, and the PTO’s decision to grant the renewal is upheld against challenges brought by Bacardi & Company Limited under the Administrative Procedure Act. Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.