UK Supreme Court Rules Against Oatly in Trademark Dispute Over 'Milk'

The UK Supreme Court delivered a ruling in the case of Oatly versus Dairy UK on February 11, unanimously dismissing Oatly's appeal. This decision signifies that Oatly's trademark for 'POST MILK GENERATION' is invalid when applied to oat-based food and drink products.

Laurie Bray, senior associate and trade mark attorney at Withers & Rogers, commented on the case, stating, "It has taken the highest court in the land to decide once and for all whether a plant-based milk alternative can be branded as ‘milk’ and marketed as such. And the outcome is not what Oatly was hoping for."

The ruling reaffirms existing EU regulations, which are still applicable in the UK as 'assimilated law'. These regulations stipulate that terms like 'milk' can only describe the actual mammary secretion from milking, without any additions or extractions.

Oatly had argued that using the term 'milk' within a trademark context does not contravene these regulations if it is not used descriptively. However, the Supreme Court's decision means that the UK Intellectual Property Office's (UKIPO) original judgement is reinstated, leading to the cancellation of Oatly's trademark for 'POST MILK GENERATION'.

This decision could prompt Dairy UK to seek the cancellation of Oatly's other trademark registrations concerning milk alternatives in the UK. It remains uncertain how this will affect Oatly's EU trademark registrations.

The ruling serves as a warning to brand owners in the plant-based sector, reminding them that plant-based milk alternatives should not be labeled or marketed as 'milk'. Alternative terms like 'oat drinks' remain permissible under EU law.