Scottish whisky distillers, sensitive to the distinctive origins of the amber liquid, are well accustomed to fighting their corner against Far Eastern companies, particularly the Japanese, who purchase raw spirit, blend, market and label the finished product with a spurious Scottish ethos. Scottish distillers are now alleging sharp practice nearer to home, claiming that a company from the Welsh valleys is falsely passing off the amber scotch liquid as Welsh. A court this week gave companies producing The Famous Grouse and Chivas Regal permission to sue Welsh Distillers Ltd under EU legislation governing the description and labelling of spirits over the marketing of its "Swn y Mor" whisky (Sound of the Sea) in an action to determine whether the flavour of the Red Dragon brand owes more to the Scottish highlands than the Welsh valleys.

While none of the parties dispute that the product was scotch, the Welsh confusingly argue that it is not promoting scotch as Welsh but it is merely calling a Scottish product Welsh. The court found the inference that the product is Welsh was "not in accordance with any normal use of the English language". and that the geographical designation "misleads customers".