The Great Dr. Pepper Feud (Trademark)

From Jeff Tucker, at the Mises Blog:

A number of stories online chronicle the fight between headquarters and the Dr. Pepper plant in Dublin, Texas, over whether this local plant can market its own drink made not with corn syrup but sugar. See this story, for example. But correspondent David Blackstone gets it right: this is really a story of the injustice of “intellectual property”; it is threatening the way of life of people in this small town (I’ve driven through many times). It is also an interesting and unusual case. Usually the issue with trademark is how a company can beat back impersonators. But what happens when the company itself becomes the impersonator and its franchises want to stick to the real thing?

One of the most beautiful treasures of Texas is being threatened. I’m talking about Dublin Dr Pepper, the national soda of Texas, made in tiny little Dublin, TX, a beautiful town of Texas heritage. Dublin’s main industry is its 120-year-old Dr Pepper bottling plant.

Thanks to government intervention, like a steep tariff on sugar, almost all soda in America is now sweetened with high fructose corn syrup instead of cane sugar. A side by side comparison shows that the taste is absolutely not the same. Corn syrup “burns”; sugar is “smooth.” Old-timers remember sodas tasting different in years gone by because the sodas were different. And devoted aficionados know how to get “the real thing”: you can purchase Mexican or Passover Coke to get cane sugar Coca-Cola; PepsiCo recently created “Mountain Dew Throwback” and “Pepsi Throwback,” and for years the Dr Pepper bottling plant of Dublin, TX has built a devoted following.

When all other bottlers were switching to high fructose corn syrup due to cost, the owners of the Dublin Dr Pepper plant stubbornly stuck by cane sugar. It meant they would make less money on each can or bottle sold, but they felt that the way forward was to not compromise quality. Unfortunately the century-old agreement for the Dublin plant limited their distribution to a small area of just a few counties, but for years retailers from outside of the territory would acquire the product and sell it to their customers. Even the Dr Pepper main company itself promoted Dublin Dr Pepper, as the original formula.

The town of Dublin throws a blowout party for Dublin Dr Pepper every year in June. For a week the town’s name is legally changed to “Dr Pepper, TX” and road signs are changed to read “Dr Pepper, Texas Population: 1024? This year the plant observed its 120th birthday at the party.

But shortly afterward, the main Dr Pepper corporation filed a lawsuit against Dublin Dr Pepper. They seek to use the courts to force the Dublin plant to: stop selling outside of their six county territory, accept corporate labeling and packaging for their product, and cease use of the name “Dublin Dr Pepper” (even though corporate Dr Pepper has been using and promoting this name for years!).

Of course, were it not for the ridiculous and immoral idea of “intellectual property,” the Dublin Dr Pepper bottling plant would have the right to make whatever they want, call it whatever they want, package it however they want, and sell it wherever they want.

My family adores Dublin Dr Pepper and are incensed to see its producers aggressed against. Just one more beautiful treasure whose existence is threatened by government intervention.