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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2010/12/diageo-settles-over-vodkat-dispute.jpg"><img class="alignnone size-full" title="Diageo says it has settled a two-year dispute with the makers of Vodkat" src="http://londonglossy.com/wp-content/uploads/2010/12/min-diageo-settles-over-vodkat-dispute.jpg" alt="Diageo says it has settled a two-year dispute with the makers of Vodkat"/></a></p>
<p>The UK arm of Smirnoff producer Diageo says it has settled a two-year dispute with a rival firm over the name of a &#8220;confusing&#8221; vodka-based drink.</p>
<p>Diageo, which also produces Guinness and Johnnie Walker whisky, won a High Court case against Intercontinental Brands (ICB) earlier this year over Vodkat, a blend of fermented alcohol and vodka.</p>
<p>Vodkat has a strength of 22% alcohol by volume rather than the minimum 37.5% of vodka.</p>
<p>A judge ruled that a brand name derived from the word vodka, which was not real vodka was likely to confuse consumers.</p>
<p>Diageo said it had agreed a final settlement of an undisclosed sum with ICB, ending two years of litigation between the companies.</p>
<p>Simon Litherland, managing director of Diageo, said: &#8220;We are pleased to have finally reached a final settlement with ICB and that ICB has recognised that the use of the name Vodkat, or indeed any &#8220;vod&#8221; prefixed brand name, on a product that is not vodka is likely to confuse customers.&#8221;</p>
<p>Mr Litherland added the court ruling earlier this year ensured vodka was protected from &#8220;vodka lookalike&#8221; products.</p>
<p>The High Court ruling in January saw vodka join champagne, whisky and sherry as a drinks name protected by law from lookalike brands. Mr Justice Arnold ruled that ICB had passed off Vodkat as vodka.</p>
<p>He told the High Court: &#8220;The evidence clearly establishes that the alcohol-consuming public in the UK, and in particular the vodka-consuming public, have come to regard the term &#8216;vodka&#8217; as denoting a particular class of alcoholic beverage.&#8221;</p>
<p>A spokeswoman for ICB would not disclose the figure paid out to Diageo. She said: &#8220;ICB has agreed to change the Vodkat brand name and packaging and will launch a new product from January/February 2011.&#8221;</p>
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