NotCo is Officially Not Guilty
Source: The DairyNews
NotCo Triumphs Over Dairy Union in Legal Battle: Court Upholds 'NotGuilty' Verdict, Permits 'Milk' Label on NotMilk Products
Santiago, Chile – In a significant legal victory, Chilean unicorn NotCo has successfully overturned a prior court ruling that barred the use of the NotMilk trademark. The Court of Appeals of Valdivia reversed the initial judgment and dismissed the lawsuit brought by the Association of Milk Producers of the Los Ríos Region, which had alleged unfair competition against NotCo for employing the term 'milk' in its plant-based beverages.
Matias Muchnick, the founder and CEO of NotCo, announced the positive outcome on social media, stating, "We're officially NotGuilty."
The legal dispute initiated in 2020, and in May of the previous year, the court had ruled in favor of the dairy union, directing NotCo to cease all branding associated with the dairy industry. Undeterred, NotCo presented a study by Cadem, the leading market research and public opinion company in Chile, during the appeal. The study revealed that 99% of consumers understood that NotMilk is not dairy milk, despite the presence of the word 'milk' on its packaging.
In its ruling favoring the food tech company, the court of appeals emphasized that NotCo's advertising explicitly communicates that the product is not traditional milk, even though there may be visual similarities. The court also noted that consumers of cow's milk may prefer natural products and might not opt for a beverage made from vegetables and artificial intelligence, such as Not Milk.
The victory for NotCo comes amidst a broader trend in the plant-based industry, with recent legal developments in disputes over labeling terms traditionally associated with animal products. Oatly secured a triumph in a four-year legal battle with Dairy UK Ltd over the use of the term "milk." Additionally, the Belgian government recently permitted plant-based products to use terms like 'vegan burger' and 'vegan steak,' effectively ending the so-called 'veggie war.' ProVeg International clarified that the government has not changed label guidelines but deferred decisions to the next term.
Adding to the momentum, the French Supreme Court ruled in favor of the Nutrition & Santé Group after a five-year legal battle against accusations by the meat lobby Interbev. The case involved alleged consumer confusion stemming from labels like 'veggie steak.'
Muchnick expressed his satisfaction on social media, stating, "Today we celebrate a significant victory—a crucial milestone not just for NotCo but for all entrepreneurs facing similar challenges. I am prouder than ever to belong to this community striving to change the world by offering a fresh perspective."
Matias Muchnick, the founder and CEO of NotCo, announced the positive outcome on social media, stating, "We're officially NotGuilty."
The legal dispute initiated in 2020, and in May of the previous year, the court had ruled in favor of the dairy union, directing NotCo to cease all branding associated with the dairy industry. Undeterred, NotCo presented a study by Cadem, the leading market research and public opinion company in Chile, during the appeal. The study revealed that 99% of consumers understood that NotMilk is not dairy milk, despite the presence of the word 'milk' on its packaging.
In its ruling favoring the food tech company, the court of appeals emphasized that NotCo's advertising explicitly communicates that the product is not traditional milk, even though there may be visual similarities. The court also noted that consumers of cow's milk may prefer natural products and might not opt for a beverage made from vegetables and artificial intelligence, such as Not Milk.
The victory for NotCo comes amidst a broader trend in the plant-based industry, with recent legal developments in disputes over labeling terms traditionally associated with animal products. Oatly secured a triumph in a four-year legal battle with Dairy UK Ltd over the use of the term "milk." Additionally, the Belgian government recently permitted plant-based products to use terms like 'vegan burger' and 'vegan steak,' effectively ending the so-called 'veggie war.' ProVeg International clarified that the government has not changed label guidelines but deferred decisions to the next term.
Adding to the momentum, the French Supreme Court ruled in favor of the Nutrition & Santé Group after a five-year legal battle against accusations by the meat lobby Interbev. The case involved alleged consumer confusion stemming from labels like 'veggie steak.'
Muchnick expressed his satisfaction on social media, stating, "Today we celebrate a significant victory—a crucial milestone not just for NotCo but for all entrepreneurs facing similar challenges. I am prouder than ever to belong to this community striving to change the world by offering a fresh perspective."
