Fate Brewing Co. licenses trademark to Arizona rival

BOULDER — Fate Brewing Co., the Boulder brewpub that filed for Chapter 11 bankruptcy protection in November, has found a new way to bring in some cash. The company has reached a trademark-licensing agreement with its Arizona rival.

Fate in March filed a motion in U.S. Bankruptcy Court in Denver seeking approval for it to enter into a trademark-licensing agreement with Southern Brewing Co. LLC, based in Scottsdale.

Southern previously operated as Fate Brewing Co. but was forced to change its name in 2016, after Boulder’s Fate Brewing Co. filed suit, alleging trademark infringement. Scottsdale’s Fate Brewing eventually changed its name to McFate Brewing Co., after owner Steve McFate’s name.

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But Boulder’s Fate Brewing Co. continues to struggle financially as it seeks to reorganize in bankruptcy. The March motion sought approval for the company to license its trademark to Southern, allowing the company to use the Fate Brewing Co. name in Arizona, and bringing in some much-needed cash for Fate.

“Southern desires to adopt and use and the Debtor is willing to license Southern to use the name “Fate Brewing Company” for beer, breweries and brew pubs of Southern and/or any of Southern’s affiliates in Arizona,” the motion stated.

That doesn’t mean that Boulder’s Fate has lost the trademark, however. The company “retains the right to use the Registered Marks anywhere in the world except in Arizona.”

Fate received $20,000 cash in exchange for the license, which was authorized by the court April 5.

“Debtor has no intention of operating in Arizona and the $20,000 paid to it can be used to assist in its reorganization efforts,” the initial motion stated.

In an announcement posted on its website, April 22, McFate heralded the news.

““Fate is who we are, and we are thrilled to be called by our true name again,” Steve Ellefson, general manager at Scottsdale’s Fate Brewing Co., said in a written statement. “To our fans and loyalists, we were always Fate.”

McFate’s press release described the legal battle with Boulder’s Fate and the decision in 2016 to change its name to end the squabble.

“Three years later in a karmic twist of fate, McFate Brewing was given a chance to reclaim its original name, and the growing Scottsdale brewery jumped at the opportunity,” the press release said.

Meanwhile, Boulder’s Fate continues to struggle. The company’s latest monthly operating report, filed with U.S. Bankruptcy Court, reported a loss of $8,079 on net operating revenue of $189,312.