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Oatly Prevails: High Court Upholds 'POST MILK GENERATION' Trademark

Source: The DairyNews
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In a recent legal battle, Oatly emerged victorious as the High Court overturned a decision by the Intellectual Property Office (IPO) regarding the validity of its trademark 'POST MILK GENERATION' in the UK.
Oatly Prevails: High Court Upholds 'POST MILK GENERATION' Trademark
The IPO had initially deemed the trademark invalid, citing concerns of deception in relation to oat-based products. However, the High Court's ruling declared Oatly's trademark to be valid, dismissing claims of deception and affirming its rightful registration.

Background:
Oatly filed for the trademark 'POST MILK GENERATION' in November 2019, intending to cover various oat-based products. Dairy UK raised objections, arguing that the use of the term 'milk' was deceptive under EU law, given that Oatly's products were not derived from mammary secretions. Despite initial challenges, the IPO waived objections in April 2021. However, Dairy UK persisted, seeking a declaration of invalidity, leading to the appeal.

Legal Framework:
The case centered on Section 3(4) of the Trade Marks Act 1994 and EU regulations, particularly the Common Market Organisation Regulation (EU) No 1308/2013. This regulation delineates restrictions on the use of terms like 'milk' in non-dairy products, aiming to prevent consumer deception. The Court's decision hinged on whether Oatly's use of 'milk' in the trademark violated these restrictions.

Court's Findings:
The High Court rejected Dairy UK's arguments, criticizing the IPO's interpretation of the regulation. Justice Richard Smith emphasized that the term 'milk' in Oatly's trademark referred to the source of the products, not their characteristics. The Court ruled that the trademark did not designate Oatly's products as dairy items, thus not falling under the regulation's prohibitions.

Conclusion:
The High Court's decision in favor of Oatly marks a victory for innovative branding in the food industry. By upholding the 'POST MILK GENERATION' trademark, the ruling sets a precedent for creative branding of non-traditional food products. However, it also underscores the need for vigilance in adhering to regulatory frameworks to maintain consumer trust and legal compliance in branding endeavors.

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