American giant Anheuser-Busch, which brews and sells the American favourite Budweiser and Czech firm Budejovicky Budvar which also brews Budweiser in Europe have decided to end their century-long legal battle over the Budweiser brand name and formed a historic trade alliance.

For over a hundred years the two beer makers have been locked in a fight to control the ownership of the Budweiser brand, based on claims of "historical rights".

While Budejovicky Budvar says that its Budweiser is simply named after its hometown of Ceske Budejovice, which is called Budweis in German, Anheuser-Busch says it has the right to the name as it first started brewing Budweiser in 1876, 19 years before Budejovicky Budvar was founded in 1895. Beer has been brewed in the Czech town since 1265.

In proof of the fact that profits turn ardent foes in to willing bedfellows, Anheuser-Busch, largest brewer in the US, will now distribute its Czech rival's Budweiser, owned by the Czech government, in the US.

However, the European Budweiser would be sold under the Czechvar name in the US, due to the ongoing trademark dispute — though Budvar has called it a "historical turning point", the two companies have vowed to continue their global legal fight over the Budweiser trademark.

Jiri Bocek, head of Budejovicky Budvar, says, "We have managed to move away from discussions between lawyers toward a practical dialogue, which is going to be beneficial to both sides."

For the Czech company the deal means that it will have access to Anheuser-Busch's network of 600 independent wholesalers, who sell the two best selling brands, Bud Light and Budweiser, in the US.