Texas Craft Brewers Win Court Victory In Regaining Territorial Rights

AUSTIN, TX -- a county judge in Austin handed craft breweries a victory on Thursday, ruling in favor of of the industry in deeming that a law making it illegal for them them to sell their distribution rights is illegal.

Three Texas craft breweries -- Live Oak, Peticolas and Reveolver -- filed suit two years ago in claiming SB 639 violated the Texas constitution. The 2013 law prohibited members of the craft beer cottage industry from selling distribution rights.

Essentially, as of 2o13, breweries became unable to accept payment for their "territorial rights," or their right to distribute their beer outside their territory. Until passage of the law that forbade that, beer distributors would pay craft breweries to sell their product.

Craft brewers toasted to the District Judge Karin Crump's ruling on Thursday, calling it a victory for the industry.

“The Texas Constitution prohibits the Legislature from passing laws that enrich one business at the expense of another,” Institute for Justice senior attorney Matt Miller, who represented the brewers in court, told KXAN-TV. “This ruling is a victory for every Texas craft brewery and the customers who love their beer.”

The state is still able to appeal the ruling withing 30 days. Assuming no appeal emerges, craft breweries will have the ability to start selling their distribution rights like they did prior to 2013.

Read the full story at KXAN >>

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