Swedish dairy alternatives maker Oatly has lost a court battle against trade body Dairy UK regarding the use of the term ‘milk’ in its trademark ‘Post Milk Generation’ in the UK.
The Court of Appeal in London has ruled Oatly cannot use ‘Post Milk Generation’ on the packaging of its products, as the term ‘milk’ is associated with dairy.
The dispute centred on whether it was legally permissible for the plant-based milk producer to use the term in a trademark for products not derived dairy mammals.
Dairy UK argued that Oatly’s use of “milk” in its trademark violated an EU regulation from 2013, which restricted the use of the term in marketing and packaging of non-dairy products.
The EU’s Article 78(2) of Regulation No 1308/2013, granted protected status to certain agricultural products, including dairy.
Dairy UK CEO Judith Bryans said: “This unanimous decision reinstates the Intellectual Property Office’s original decision, which declared the trade mark invalid for oat-based products.”
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By GlobalData
Bryan Carroll, the general manager for Oatly’s UK and Ireland branch, noted the decision makes it “harder to label and find dairy alternatives,” benefiting “the interests of Big Dairy and Big Dairy alone.”
Carroll said the case was an attempt to reduce “competition through legal action” and “creates an uneven playing field for plant-based products”.
Oatly’s legal battle began in 2019 when it secured a trademark for the ‘Post Milk Generation’ slogan.
Dairy UK objected to the trademark, seeing the inclusion of the term “milk” as “deceptive”.
Oatly contested Dairy UK’s objections, asserting that the slogan did not describe the product but rather the likely consumer.
In January 2023, the Intellectual Property Office (IPO) granted the trademark for T-shirts but refused it for food and drink, arguing that the term ‘milk’ could not be used for non-dairy products, even in a trademark context.
This decision was challenged and successfully overturned by High Court Justics Richard Smith in December 2023.
Carroll concluded that the latest result from the Court of Appeal “delays progress in shifting the public towards more sustainable diets. We will always stand up for what is right and we are considering our options”.
In February, investors suing Oatly requested a federal judge’s approval for a $9.25m settlement for a lawsuit, which began in July 2021 and accused the oat-based dairy alternative company of greenwashing.
The lawsuit claimed Oatly inflated demand for its products and misrepresented its environmental impact, leading to artificially boosted share prices.
