Big news in the legal tussle between cider heavyweight Thatchers
and supermarket chain Aldi! The Court of Appeal has overturned the
High Court's earlier dismissal of Thatchers' trade mark
infringement claim. This is a big win for brand owners trying to
shield their intellectual property from copycat competitors.
If you caught my previous article,
you'll remember that the High Court initially sided with Aldi,
deciding that shoppers were unlikely to mix up Aldi's Taurus
Cloudy Lemon Cider with Thatchers' Cloudy Lemon Cider. That
decision leaned heavily on evidence around consumer perception. But
now, the Court of Appeal has taken a different view, ruling that
Aldi's design did infringe on Thatchers' trade mark by
taking unfair advantage of its reputation.
What the Court of Appeal said
Lord Justice Arnold found that Aldi's packaging was just too
similar to Thatchers'. He concluded that Aldi deliberately
designed its product to evoke a link with Thatchers, aiming to give
shoppers the impression that Taurus was a similar but cheaper
alternative. This, according to the court, allowed Aldi to ride on
the coat-tails of Thatchers' hard work in building its
brand.
The key takeaway? Competition is great, but there's a line -
and Aldi crossed it.
Lessons for brand owners
This case is a reminder of why it's so important for brands to
go beyond registering just their names or logos. Thatchers'
case was bolstered by the fact that their packaging, its overall
"get-up", was distinctive and carried significant
goodwill. Investing in a robust trade mark strategy that includes
key design elements can be a game-changer.
Another interesting point was Aldi's departure from its usual
packaging style. The Court of Appeal saw this as a red flag,
reinforcing the idea that mimicking a single product's design
can backfire. For competitors, the lesson is clear: stick to your
house style or be ready to explain your choices.
Shifting focus in trade mark law
One of the big shifts here is how the Court of Appeal focused less
on consumer confusion and more on Aldi's intentions and the
broader impact on Thatchers' reputation. This signals growing
attention to brand reputation and the concept of "unfair
advantage" in trade mark law.
What's next for copycat packaging?
This ruling could mark a turning point in how the UK handles
copycat packaging. The message is loud and clear: deliberately
riding on the coat-tails of established brands won't fly,
especially when it's a calculated move to cash in on someone
else's success.
As my esteemed old tutor, Peter Vaughan from Nottingham Law School,
commented, this kind of decision might just encourage brands to
rethink their benchmarking practices and get more creative with
their product designs.
"The scale and proximity of lookalike packaging in the UK is far worse than anywhere else in Europe. Armed with the correct packaging trademark registrations, UK brand owners can now sound the death knell on the practice of supermarket own-brands free-riding on their brand IP."
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