Texas Judge Finds Prohibition on Brand Rights Payments Unconstitutional

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A provision in the Texas beer franchise law prohibiting a brewer from accepting a payment in exchange for a grant of territorial distribution rights has been struck down as the result of a 2014 suit brought against the Texas Alcoholic Beverage Commission (TABC) by Live Oak Brewing Company, Revolver Brewing and Peticolas Brewing Company. The District Court found that the prohibition violated the Texas Constitution’s Due Course of Law provision which is akin to the US Constitution’s Due Process Clause.