Polmos is fighting Agros for right to vodka brand names

The Sejm has decided that Agros, which had been the only company allowed to promote Polish vodkas abroad prior to 1989, is to lose the right to promote Polmos' vodkas abroad. Polmos has demanded taking back that right from Agros as it complicates its privatization process. Analysts say if Agros is to still own the Zubrowka and Wyborowa brand names, the State Treasury would lose about $500 million, because Polmos would not be worth as much without the international promotion rights to these brands. Labor unions are backing Polmos, because they are afraid that employee-owned shares would lose value. Agros has registered the brand names abroad and Polmos has been trying to get back the rights to the vodkas for 10 years. The only way to reach an agreement is through the Sejm, as the courts say they are unable to make such a decision. Agros, which is mostly owned by Pernod Ricard, says if the Sejm decides in favor of Polmos, this would violate the constitution and it would demand compensation from the treasury. President Aleksander Kwasniewski now has 21 days to make a final decision to sign or reject the bill. "The problem is connected with the political transformation 10 years ago, so it can be seen not only as a legal matter, but also as an historical one. We also have to consider the economic aspect of the whole situation," said a spokesperson on behalf of of President Kwasniewski. (Gazeta Wyborcza, July 1-2, page 27) M.M.