010328 Mcdonalds Mexico Loses Dispute Over Slogan

Monterrey, Mexico - The Mexican affiliate of McDonalds Corp. has lost a court challenge of its use of an advertising slogan claimed by another business, a company spokeswoman said.

Cabin Danuts, in the northern state of Chihuahua, filed the formal complaint against the fast-food giant in 1999 over its use of the slogan, “The first hamburger with Mexican flavor” to publicize the McMexicana burger featuring avocado sauce, or guacamole.

Cabin Danuts, a chain of 13 restaurants operating in Chihuahua, argued that it had registered the same slogan with the Mexican Intellectual Property Institute in 1994.

“We recognize that we lost and are awaiting the judge's order,” Julio Portales, director of corporate communications, said.

Marilu Herrera, director of McDonalds' legal section, said that so far no penalty has been ordered by the court, though that process is still under way.

McDonalds plans to invest $80 million in Mexico this year to open 52 new restaurants, Portales said. Sales are expected to increase by 30,5% in the country this year as a result of the expansion and rising consumption.

The company has 208 restaurants in Mexico, of which 70% are franchises.

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