Texas Wine & Beer Attorneys

The three-tier system provides for the safe delivery of malt beverages from a manufacturer or supplier to a wholesaler.

Texas TABC Three-Tier System Breakdown

Common Texas Beer Questions

  • Can I self-distribute to retailers? No
  • Can I ship direct to customers? No

Licensing Beer in Texas:

  • What license is required? Nonresident brewer’s license allows sales of all malt beverages
  • How much does the license cost? Nonresident brewer’s license is $1,500 for 2 years
  • Do I need to have money held in bond? No
  • Is there a representative license? No

Registration Of Beer Products:

  • Do I need to register products first? Yes, the brand needs to be registered
  • Do I need to post prices? No
  • Do I need to file my distributor agreement with the state? Yes
  • Do I need to file my territory assignments with the state? Yes 

Distribution Process For Beer Products: 

  • How can I get samples of products to retailers? Wholesalers may only provide retailers with samples; 1 six pack of product that has not been purchased previously
  • Do I need to be aware of franchise rules? Yes
  • Are there primary American source rules on distributor’s purchases? Yes

Filings For Beer Products:

  • What’s the state’s excise tax? Beer- $6.00 a barrel; Malt liquor- $6.138 per barrel
  • As an out of state supplier, am I responsible for paying excise taxes? No
  • Do I need to file a report with the state on what I’ve sold? Yes- a monthly C-231 nonresident brewer’s report 

Inner Workings of Texas's TABC Three Tier System

Licensed Brewery:

  • Make product
  • Package product
  • Prepare product for delivery or pick-up


Licensed Distributor:

  • contract for delivery or pick-up of product
  • collect & remit state excise tax
  • market product for sale to retail outlets
  • manage product received from manufacturer
  • maintain quality of products to be delivered to retail outlets
  • prepare product for delivery to retail outlets
  • deliver & stock product for sale to retail customers
  • maintain quality of stocked product at retail
  • maintain operation & functioning of dispensing equipment


Licensed Retailer:

  • provide shelf-space for delivery of products from distributors
  • ensure appropriate storage for delivery of products from distributors
  • ensure product is maintained in a controlled environment
  • collect & remit sales tax and/or mixed beverage tax 
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Additional TABC License Focus 

Steps For Licensing Beer & Wine In The State of Texas

Licensing a beer business in Texas involves several key steps, primarily regulated by the Texas Alcoholic Beverage Commission (TABC). Here's a general outline of the process to obtain a beer license in Texas:


  1. Determine the Type of License or Permit: Texas offers various types of licenses and permits depending on the nature of the business (e.g., brewpub, brewery, distributor, retailer). Determine which specific license or permit fits your business model.
  2. Prepare Your Business: Before applying for a license, ensure your business location complies with local zoning laws. You might also need to set up your business structure, like forming an LLC or a corporation.
  3. TABC Prequalification Packet: Download and complete the prequalification packet from the TABC website. This packet includes forms that cover personal information, business details, and other necessary disclosures.
  4. Local and State Clearances: Obtain required clearances and certificates from local and state authorities. This may include health permits, sales tax permits from the Texas Comptroller, and clearance from the city or county clerk.
  5. Federal Permit: Depending on your operation (especially if manufacturing or distributing), you may need to obtain a Brewer’s Notice from the Alcohol and Tobacco Tax and Trade Bureau (TTB).
  6. Submit Your Application: Submit your application to the TABC along with the necessary fees. This can often be done online via the TABC website. Ensure all parts of your application are complete to avoid delays.
  7. TABC Review: The TABC will review your application, which may include background checks and a review of the moral character of the business owners. They will also ensure compliance with state laws and regulations.
  8. Inspection of Premises: A TABC inspector might visit your premises to ensure it meets all the necessary requirements for the type of license you are applying for.
  9. Approval and Issuance of License: Once your application is approved, and all inspections are passed, TABC will issue your license. This process can take several weeks or months, depending on the complexity of your application.
  10. Maintain Compliance: After receiving your license, maintain compliance with TABC regulations. This includes renewing your license annually, keeping records, and adhering to advertising and sales regulations.


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Copyright and Translated Content: Who Owns the Creative Rights? Understanding Copyright Law and Translation Copyright law protects creative work and bestows sole authority over the work upon the creators. For example, the owner of the work of a novel has the right over the work under the concept of the right under the copyright. Courts have found that “the degree of protection afforded by the copyright is measured by what is actually copyrightable in the publication and not by the entire publication.” See, e.g., Dorsey v. Old Sur. Life Ins. Co., 98 F.2d 872, 873 (10th Cir. 1938) (emphasis added). For translations, the situation is not very clear. Translations involve creative judgments over word translation and not the translation of mere words. Hence the knowledge about the applicability of the concept of the right over the work is essential for establishing the right over the work. For example, a Court in the Northern District of California stated that: “ the determinative question is whether Plaintiff holds a valid copyright. ” Signo Trading Intern. Ltd. v. Gordon, 535 F. Supp. 362, 363 (N.D. Cal. 1981). The Signo Trading Court dismissed Plaintiff’s infringement claims because plaintiff did not have a valid copyright as a matter of law in the translations and transliterations at issue because they lacked the “requisite originality.” Id. at 365. Can Translation Be Considered a Creative Process? The Practice of Translating Translation goes beyond the replacement of one word by the equivalent word from the source text. Translating literary work, poetry, and fiction with deeper meanings beyond the surface text is a complex, artistic process. Translating books like The Iliad, for instance, requires the practice of artistic translation to translate the emotions, thoughts, and the culture correctly. Technical Translations and Legal Translations Conversely, technical writing and texts for the law need less creativity and instead value correctness over all else. These writing forms require strict adherence to the original sense, leaving very little room for artistic interpretation. Translations for these writing forms thus typically involve less creative contribution and less potential for the work being protected by copyright. Why Is Creativity Important for Translations for Copyright? Originality when translating For a work to be subject to copyright, some creativity, however slight, is essential. Even when the translation is taken from the work, the translation also includes some creative work by the translator. This creativity can make the translation subject to copyright. A derivative work must “recast, transform[], or adapt[]” a preexisting work and “consist[] of editorial revisions, annotations, elaborations, or other modifications which, as a whole, represent an original work of authorship.” Id. In other words, it must change or alter the pre-existing work’s content and must itself be an original work of authorship. The Supreme Court stated that “ [t]he sine qua non of copyright is originality ” and that “ [t]o qualify for copyright protection, a work must be original to the author. ” Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., Inc., 499 U.S. 340, 361 (1991) at 345. “Original, as the term is used in copyright, means only that the work was independently created by the author (as opposed to copied from other works), and that it possesses at least some minimal degree of creativity.” Id. (citing 1 M. Nimmer & D. Nimmer, Copyright §§ 2.01[A], [B] (1990)). In granting a Rule 12 motion to dismiss, the Signo Trading Court held that: " It is inconceivable that anyone could copyright a single word or a commonly used short phrase, in any language. It is also inconceivable that a valid copyright could be obtained for a phonetic spelling, using standard Roman letters, of such words or phrases. Although lists of words and translations of larger works may be copyrightable, Plaintiff cannot claim credit for any of the elements which make those things copyrightable. For these reasons, Plaintiff does not hold a valid copyright on the translations or transliterations ... " Signo Trading, 535 F. Supp. at 365. The Problem of the Derivative Work However, translations are generally "derivative works" - derived from the work of another. Because of this, the owner or author of the work is generally required to agree to the translation. Translations made illegally can be held under the classification of copyright violations, even when the translator has added creative elements. Who Has the Right over the Translated Work? Employer-Commissioned Translations Ownership of the copyright for the translation work varies. If the translation is commissioned by the owner of the original work, the owner will retain the right. Even when the translator adds creativity by passing over the original emotions and thoughts, the owner will not necessarily lose the right over the translation work. In some circumstances, the translation work can be accredited by the translator without them holding the right over the work. Independent Translations If a translation is performed independently by the translator, the translator can even be identified as the co-author of the translation. Nevertheless, the author typically has the underlying copyright, restricting the translator’s right over the work. Creative Translations from the Public Domain In certain cases, a translation may be creative enough to warrant its own copyright. For example, a translator adapting a classic work or a book in the public domain into modern language may introduce enough originality to qualify for copyright protection. However, direct, word-for-word translations are typically not considered original enough to receive new copyright protection. What About Machine Translations? The Human Creativity Copyright Requirement Machine-generated translations, including those produced by platforms like OpenAI , operate through advanced algorithms that replicate language patterns rather than capture the human touch. Unlike translations crafted by human translators who often infuse cultural insight and genuine emotion into the work, OpenAI's output is rooted in statistical patterns and data. Consequently, while these translations are impressively efficient and accurate, they typically fall short of the originality required for copyright protection. This distinction underscores the human creativity requirement needed to secure a valid copyright . Ultimately, although machine-generated translations serve as powerful tools, they do not offer the same legal and creative protections as those provided by human translators. The Bottom Line: Navigating Copyright in Translations Translations occupy the middle ground under the law of the copyright. Albeit the right of the original author generally has the right under the copyright, the right under the copyright can also be claimed by the translator provided the translation is creative enough. Central considerations here include the creativity the translator has added, the nature of the work being translated, and whether the work is under the public domain. These considerations establish the right of the owner under the copyright for the translation. Why Wilson Whitaker Rynell for Your Copyright Work? At Wilson Whitaker Rynell, our professional lawyers specialize in the practice of copyright law and copyright litigation , including the complex subject matter of translation work. We can provide you with advice about the ownership of your work under the provisions of the copyright, and protect your creative property. If you are the author, the publisher, or the translator, you can rely upon the advice from our firm. Copyright Translation FAQS
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