The name Kilkenny Brewing Company Ltd could suggest a connection with the Guinness Group which was behind the brewing of "Kilkenny" beer, counsel for Guinness told the High Court yesterday.
Mr Rory Brady SC said his clients were not saying names such as "Kilkenny Design" or "Kilkenny Springwater" could not be used. But the situation was different when the name concerned beer or brewing, he submitted.
Mr Brady was making submissions on the second day of an action brought by Guinness Ireland Group Ltd and E Smithwick and Sons of Kilkenny.
Both companies claim they have acquired a valuable goodwill in the name "Kilkenny" in relation to brewing beer.
The directors of Kilkenny Brewing Co Ltd with registered offices at Adelaide Road, Dublin, deny the company's name could jeopardise the businesses of Guinness or Smithwick. The latter company was bought by Guinness in 1965.
Yesterday, the court was told that Kilkenny Brewing Co Ltd, under the name of O'Sullivan Brewing Company Ltd, had plans to develop a micro-brewery producing a natural ale under the brand name O'Sullivan. It was hoped to expand around the State.
Ms Justice Laffoy heard the Kilkenny Brewing Company had not engaged in business since its incorporation in December 1995. Its directors were Mr Paul and Mr John Smithwick.
Yesterday, Mr Andrew McMeekan, former Guinness Ireland marketing and sales director, said that in 1995 Mr Paul Smithwick talked to him about micro-breweries. Mr McMeekan said he became a consultant to the new project.
He had not been associated with the Kilkenny Brewing Company, but became the chairman and director, although not a shareholder, in O'Sullivan Brewing Company which was now involved in litigation because of the alleged failure of one director to deliver his part of a contract.
Mr McMeekan said this related to the Martello Tower in Sandy mount, Dublin, which it had been intended to develop. The Maltings in Kilkenny had also been earmarked for a micro-brewery.
The proposal for the Martello Tower was to have a micro-brewery on the premises with a restaurant and possibly a disco and pub.
At the time the directors were Mr Paul Smithwick, Mr David Orr, Mr Michael Doyle, Mr Jorg von Gitz and himself. Proceedings had commenced in relation to Mr Doyle. Under the intended arrangement Mr Doyle would have received a shareholding on delivery of a lease on the Martello Tower.
Mr McMeekan denied that he, in a conversation with Mr Paddy Gallagher, secretary of Guinness Ireland, asked Guinness to pay £30,000 for the name Kilkenny Brewing Co Ltd. He said he had telephoned Mr Gallagher on behalf of Mr Paul Smithwick to find out what the problem was in relation to the name of the company.
Mr McMeekan said he asked questions, as did Mr Gallagher, about how they could resolve the problem. Mr Gallagher had confirmed that Guinness equity in the brand name "Kilkenny" was important to him.
The hearing continues today.