Molson Coors wins injunction in spat with Miller

They may be partners with Coors in the U.S., but this did not prevent SABMiller from terminating a licensing agreement with Molson Coors in Canada, to which Molson Coors responded by dragging SABMiller to court.

On 20 June 2013 Molson Coors scored a temporary victory: the Ontario Superior Court granted Molson Coors an injunction that prevents Miller Brewing, SABMiller’s U.S. unit, from ending the agreement before the trial begins, which is scheduled for December this year.

In February 2013, Miller announced that it planned to end the deal with Molson Coors’ Canadian arm as it believed its partner was not doing enough to promote the Miller brands in Canada. Molson Coors in turn filed a lawsuit seeking to prevent the termination of the license agreement, saying it plans to “strongly defends” its rights to market and sell Miller brands in Canada.

If the Canadian laws on licensing agreements are anywhere near as tough as those in the U.S., it is very hard for licensors – such as Miller – to terminate them, even if the licensor obeys them fully.

Miller had provided Molson with a six-month notice of termination in January, and it had been aiming to end the agreement on 22 July 2013, it was reported.

Canadian media say that Miller is disappointed with the court’s decision, but said it remains confident in its position ahead of the trial.

“We remain firm in our expectation that the Court will agree that we adhered to the terms of our Canadian license agreement when we exercised our right to terminate,” Stephen Rogers, Miller’s legal counsel was quoted as saying.

Miller said it is committed to the Canadian market and that Miller’s trademark beers will continue to be available in Canada.

The company also said it will continue to prepare for a seamless transition, in the event that it wins the trial on the matter.