22/12/2024
Oatly Overruled in Landmark Dairy Decision
By Simran Gill (As part of the Winter Writer Scheme)
This week’s key terms/concepts:
• Trade Marks Act 1994: The current UK law that governs trade marks, including the registration and protection of trade marks.
• UK Intellectual Property Office: The UK’s governing body for intellectual property rights, including patents, trade marks and copyrights.
• EU Regulation No. 1308/2013: The EU Regulation that establishes an organisation of markets and relevant indications for agricultural products, including milk.
The Court of Appeal recently held that Swedish food company Oatly can no longer use the word ‘milk’. The UK Intellectual Property Office stated that the use of the word in Oatly’s ‘POST MILK GENERATION’ slogan had been invalidly registered, and in reinstating this declaration the Court’s decision overrules a previous High Court decision in favour of Oatly.
Why is this important?
Although held that the slogan had not been deceptive to consumers as per the Trade Marks Act 1994, the EU Regulation No. 1308/2013 defines ‘milk’ exclusively for ‘normal mammary’ products, excluding Oatly from trademarking milk for non-dairy products.
The case has been ongoing since 2019, and the decision poses issues for alternative-based companies. Oatly’s slogan was a key part of educating the public about the advantages of plant-based alternatives, and Dairy UK’s successful appeal puts pressure on Oatly and the industry. Changing the slogan will also create a financial burden for Oatly, as the company must alter its marketing to comply with the decision.
What impact does this have on the legal sector?
This case is likely to impact both advisory and contentious intellectual property practices. Oatly and similar sustainable practices are prone to legal challenges under increasingly stringent marketing regulations, prompting greater caution in their branding strategies. While Oatly has the option to appeal the decision to the Supreme Court, this appears improbable given that both the Court of Appeal and the UKIPO ruled against them. However, the growing popularity of plant-based products could pave the way for legal developments that provide protections in the future, such as the UK revoking the EU regulation that restricts milk to animal-derived products. Law firm DWF LLP advised Dairy UK, stating that the judgement was a ‘significant case’ and a landmark decision for the dairy industry.
Oatly has stated that they have not ruled out future legal action, and further developments may follow.
Lex Weekly 