In Pepsico Inc. v. Sweets and Foods United Co., Pepsico, owner of the trademark MOUNTAIN DEW for carbonated
beverages (Class 32), filed an opposition against an application
for the same trademark in Class 32 by Sweets, a Jordanian company.
Sweets had been manufacturing and selling a variety of concentrated
fruit juices under this mark for a number of years in Jordan,
and had acquired a reputation with local consumers. Pepsico had
registered the MOUNTAIN DEW mark in several countries worldwide,
but had no registration or use of this mark in Jordan.
The Registrar rejected the opposition on the ground that, although
Pepsico's MOUNTAIN DEW mark was famous outside Jordan, it was
not registered or used by Pepsico in that country, whereas Sweets
had prior and extensive use of the mark in Jordan. The Registrar
also took the position that fruit juices and carbonated beverages
were distinguishable goods and that there was therefore no likelihood
of confusion among consumers.
On appeal by Pepsico, the High Court of Justice reversed the Registrar's
decision and held that Pepsico's MOUNTAIN DEW mark was a famous
trademark and that, under the Paris Convention, the original owner
of the mark enjoyed prior right protection in Jordan, notwithstanding
the absence of a registration in that country. The Court further
held that the registration of the MOUNTAIN DEW mark by a third
party would lead to confusion among consumers and Sweets was ordered
to abandon their application.

