The UK Court of Appeals have ruled in favour of Dairy UK in its case against Oatly, the Swedish Oat alternative drink company, regarding the trademark of the term ‘milk’ in its marketing campaigns.
This is the latest decision in a long-standing legal dispute with the milk alternative brand, which has culminated in the prohibition of Oatly’s trademark of the slogan, ‘Post Milk Generation’.
The trademark was first registered by the company in April 2021, before Dairy UK filed against it with the Intellectual Property Office back in November 2021, on the grounds that it was “deceptive because it contains the word ‘milk’ in respect of goods which do not comprise or contain milk or milk products”.
The Registrar of Trade Marks subsequently ruled that the trademark was indeed “invalid” in all circumstances bar its deployment in the sale of Oatly merchandise, including t-shirts.
This decision was overturned in UK courts on December 2023, following a successful counter-appeal by Oatly.
This triggered Dairy UK to undertake a second appeal, citing 2013 regulations pertaining to the marketing standards for milk and milk products, and the circumstance in which exemptions can be made, which resulted in the latest judgment handed down by judge Lord Justice Arnold on November 29, 2024.
Justice Arnold maintained that the word milk and the various designations in use for milk-based products and derivatives, should be reserved for the exclusive use of the dairy industry, including its use in marketing campaigns.
The judge concluded that ‘Post Milk Generation’ was not inherently deceptive in nature, as Dairy UK had initially argued, “because the average consumer would view the Trade Mark as an ironic way of saying that [Oatly’s] goods have moved on from conventional milk and are for consumers who no longer consume dairy milk”.
Trademark
However, he did prohibit the use of the trademark from henceforth as he ruled it’s use of the term ‘milk’ was in breach of the 2013 legislation.
Responding to the ruling, general manager for Oatly UK & Ireland, Bryan Carroll, said:
“Disappointingly, this ruling overturns the common sense we saw from the High Court earlier this year when they ruled in our favour.
“Be under no illusion that making it harder to label and find dairy alternatives benefits the interests of Big Dairy and Big Dairy alone.
“Their cynical attempts to stifle competition through legal action contradicts the interests of the British consumer, creates an uneven playing field for plant-based products and worst of all – it delays progress in shifting the public towards more sustainable diets.”
This ruling clarifies the legal protection of dairy terms, according to which the term “milk” is reserved for dairy milk, except in defined circumstances.
At the heart of the legal matter was whether these rules extend to trade marks, and the Court of Appeal has now confirmed this to be the case.
Dr. Judith Bryans, chief executive of Dairy UK said:
“We’re delighted that the Court of Appeal has ruled in favour of Dairy UK in the case regarding the trademark ‘Post Milk Generation’.
“This unanimous decision reinstates the Intellectual Property Office’s original decision, which declared the trade mark invalid for oat-based products.”
