You might not have noticed, but we are in the midst of an American beer renaissance. Craft breweries are one of the fastest growing industries in the country, and the industry is expanding at a rate faster than any other time since Prohibition ended, especially in states like Michigan, where Michigan microbreweries have boomed. At over 9,000 years old, beer is one of the oldest drinks on the planet, and it is the third most popular drink in the world after water and tea. But what caused the rise of the craft brewing industry in the United States?
To discover the cause, we have to take a step back in time to the late 1970s. Back then, there were only 50 breweries in the United States, and most of them produced the same style of beer — a pilsner lager. However, the stage was about to be set for the craft brewing explosion leading to the over 2,300 breweries that we have in the United States today (and many more now).
It all started when the U.S. Brewers Association successfully lobbied Congress for a decrease on excise taxes for small brewers. Through the lobbying efforts of the U.S. Brewers Association, President Gerald Ford signed H.R. 3605 into law that reduced the federal excise tax from $9 to $7 a barrel on the first 60,000 barrels produced. This tax break started the craft beer explosion that we are seeing today.
While the tax break certainly helped the rise of the craft brewing industry, many craft brewers today get their start in home brewing. However, until February 1979, home brewing was still illegal on a federal level. The ban persisted due to an oversight after the repeal of Prohibition that allowed home wine making but not home brewing. A push from home brewing activists led the federal government to legalize home brewing operations up to 200 gallons a year per household.
The craft brewing industry has seen explosive growth in recent years. Had it not been for the lobbying efforts of a few dedicated beer advocates in the late 1970s, it might never have happened.
The tax policy story of craft brewing did not end with President Ford. In 2017, Congress passed the Tax Cuts and Jobs Act, which included provisions that significantly reduced the federal excise tax on beer, wine, and spirits for small and mid-size domestic producers. For craft brewers producing fewer than 60,000 barrels annually, the federal excise tax dropped from $7 per barrel to $3.50 per barrel on the first 60,000 barrels — a 50% reduction that many industry groups credited with enabling investment in equipment, facility expansion, and new employee hiring.
For brewers producing between 60,000 and 2 million barrels, the tax rate dropped from $18 to $16 per barrel. These provisions were initially set to expire, but Congress has repeatedly extended them, recognizing the craft brewing industry’s role as an economic development driver in communities across the country — including Michigan, which consistently ranks among the top states for craft brewery density relative to population.
Michigan craft breweries face a distinctive set of legal challenges that reflect both their status as small manufacturers and their role as consumer-facing brands. Key legal areas include:
As the craft brewing market has grown more crowded, trademark disputes between breweries have become increasingly common. With thousands of active breweries choosing from a limited universe of evocative beer and brewery names, the probability of naming conflicts has increased dramatically. Revision Legal has represented craft breweries in trademark registration, cease-and-desist disputes, and trademark infringement litigation. Whether you are a new brewery looking to clear your name before launch, an established brewery defending your brand against an imitator, or a brewery seeking to resolve a naming dispute efficiently and cost-effectively, Revision Legal’s trademark attorneys can help.
The next time you head to the store and pick up a six pack of your favorite craft brew, remember the beer advocates of the late 1970s whose hard work led to the industry we enjoy today. For legal assistance with your brewery’s trademark, distribution, or compliance needs, contact Revision Legal at 855-473-8474 or through our online contact form.
Michigan’s Liquor Control Code governs the distribution of beer within the state and creates a three-tier system — producer, distributor, and retailer — that restricts direct sales and vertical integration between tiers. For Michigan craft breweries, understanding the distribution framework is essential. The franchise protections in the Michigan beer distribution law make it difficult to terminate or change distributors once a relationship is established, which means that selecting the right distribution partner from the start is a critical business decision. Revision Legal advises Michigan breweries on distribution agreement negotiation, franchise law compliance, and distributor transition issues.
For craft breweries with a taproom operation, the rules governing on-premises sales, food requirements, and self-distribution limits create additional compliance obligations that vary depending on the type of license held. Revision Legal’s attorneys are familiar with the Michigan Liquor Control Commission’s licensing framework and can advise on structure, compliance, and expansion planning as your brewery grows.
For legal assistance with your brewery’s trademark, distribution, or regulatory compliance needs, contact Revision Legal at 855-473-8474 or through our online contact form.
Revision Legal is a national intellectual property and internet law firm that represents clients across the United States in trademark, copyright, trade secret, and internet law matters. We are a firm of specialists — not general practitioners who handle IP work as one component of a broad practice, but attorneys whose entire professional focus is on the intersection of technology, creativity, and commerce.
Our attorneys have handled cases at every level of the federal court system, including the United States Court of Appeals for the Federal Circuit, the Sixth Circuit, the Ninth Circuit, and before the Trademark Trial and Appeal Board. We manage trademark portfolios for hundreds of clients, ranging from individual entrepreneurs registering their first mark to publicly traded companies maintaining global trademark portfolios across dozens of countries.
We believe that access to expert legal counsel should not depend on the size of your organization. Revision Legal’s flat-fee service model for routine IP matters — trademark registration, copyright registration, DMCA notices, and standard licensing agreements — allows small businesses, startups, and individual creators to access the same quality of legal representation that larger companies receive, at a price that is predictable and fair. For complex litigation and contested proceedings, we work efficiently to achieve the best possible outcome for our clients while managing costs responsibly.
Whatever your intellectual property or internet law need — whether you are protecting a new brand, enforcing your rights against an infringer, defending against a legal demand, or navigating a complex licensing transaction — Revision Legal has the expertise to help. Contact us today at 855-473-8474 or through our online contact form to discuss your matter.
A federal court upheld the FCC’s net neutrality rules, requiring ISPs to treat all internet traffic equally. Here’s what the ruling means for consumers and online businesses.
Read more about DC Court Protects Net Neutrality: What It Means
The FTC brought an enforcement action against a company making false representations about potential employers. Here’s what the case teaches about FTC compliance.
Read more about FTC Claim: False Representations to Employers
Legislative and judicial developments have strengthened trade secret protections for businesses. Here’s what those changes mean for protecting your confidential information.
Read more about Stronger Trade Secret Protections in View