The Guinness Group has begun a High Court attempt to prevent a company, which plans to develop micro-breweries across the country, from using the name Kilkenny Brewing Company Ltd.
Mr Rory Brady SC, for Guinness Ireland Group Ltd and E. Smithwick and Sons Ltd, of Kilkenny, said his clients brewed Kilkenny Irish Beer, which had sold 75 million pints in 53 countries since 1987.
In their statement of claim, Guinness Group and Smithwick, which was bought by Guinness in 1965, claim that they have acquired a valuable goodwill in the name "Kilkenny".
Kilkenny Brewing Company Ltd, with registered offices at Adelaide Road, Dublin, denied the claim that Guinness and Smithwick owned the goodwill of "Kilkenny" or that the name of their company could jeopardise the businesses of Guinness or Smithwicks.
Mr Brady told Ms Justice Laffoy that Kilkenny Brewing Company Ltd had not engaged in any business since it was incorporated in December 1995. Two of its directors were named as Mr Paul and Mr John Smithwick.
Mr Brady said there would be evidence that, on February 25th 1996, an article in the Sunday Independent referred to a project in relation to the Martello Tower at Sandymount, Dublin.
It was intended to open a restaurant there and introduce a new brand of beer "O'Sullivans Beer", under the imprimatur of the Kilkenny Beer Company, counsel said.
Mr Brady said contact was made with Mr Colin Storm, who at the time was the most senior executive of Guinness Ireland, and a meeting took place to discuss the project.
Mr Brady said that in September, 1997, a telephone call was made to the Guinness Ireland secretary, Mr Paddy Gallagher, by Mr Andrew McMeekan, who had been a marketing and sales director in Guinness and who had said he worked in a non-executive capacity for the Kilkenny Brewing Co.
Mr McMeekan had asked how much Guinness would pay for the name of Kilkenny Brewing Ltd and had suggested £30,000, counsel said. Mr McMeekan had also said they might be setting up a brewing operation in Kilkenny.
Mr Gallagher had indicated that Guinness would be willing to pay £1,000 as a goodwill gesture.
The hearing continues today.
