The UK’s Court of Appeal has delivered a landmark judgment against Oatly, prohibiting the use of its provocative tagline “Post Milk Generation” on its product packaging, amid an ongoing legal battle. A British court’s 2023 ruling that permitted the brand to employ this phrase on merchandise like oat-based beverages and apparel has been overturned.
The dispute originated in 2019 with Oatly’s registration of the distinctive “Post Milk Generation” trademark. Dairy UK, a leading trade association representing the British dairy sector, disputed the trademark application on grounds that it contravened EU regulations prohibiting the misuse of dairy-related terminology to promote plant-based alternatives.
The UK’s Intellectual Property Office (IPO) had initially approved Oatly’s application to register a trademark for T-shirts, while denying it for food and beverage products. The High Court ultimately ruled in favour of Oatly, allowing it to utilize the phrase across its product range, as the judges determined that the term “milk” in the slogan wouldn’t lead to consumer confusion. The Court of Appeal ultimately rejected the argument, concurring with Dairy UK’s stance that the term “milk” must remain exclusive to dairy-based products in line with existing EU and UK regulatory frameworks.
Oatly’s UK & Ireland general manager, Bryan Carroll, expressed disappointment in the ruling, suggesting that it benefits “Big Dairy” and creates an unfair market for plant-based alternatives. Oatly has indicated a willingness to appeal its case to the Supreme Court, although a final decision remains pending.
The CEO of Dairy UK, Judith Bryans, expressed support for the court’s decision, emphasizing that it safeguards dairy industry terminology in the competitive market landscape. The ruling explicitly reaffirms the prevailing legal understanding that the term “milk” unequivocally denotes dairy milk, unless otherwise stipulated by law or regulation.
EU regulations, such as this one, are woefully outdated, observed ProVeg International’s CEO, Jasmijn de Boo, highlighting the stark contrast between these outdated rules and the surging demand for plant-based dairy alternatives. DeBoo contends that plant-based milks boast a substantially reduced carbon footprint compared to traditional dairy products, advocating for increased promotion rather than regulation.
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