The UK Supreme Court has ruled that Oatly can no longer use the word 'milk' to market its plant-based products, prohibiting the trademark 'Post Milk Generation'. The decision, which was unanimous, ends a long-running legal battle between the Swedish company and Dairy UK, a trade association representing the dairy sector.
Oatly had argued that the use of 'milk' in its trademark was not descriptive and therefore did not breach regulations. However, the court upheld earlier rulings that the term was deceptive, as UK law defines milk as coming from animals. The Intellectual Property Office had originally rejected the trademark in 2023 after a complaint from Dairy UK, a decision that was briefly overturned on appeal before being reinstated by the Court of Appeal.
Dairy UK welcomed the ruling, with chief executive Judith Bryans stating it provides clarity for the sector and ensures dairy terms carry clear meaning for consumers. In contrast, Oatly's general manager for the UK and Ireland, Bryan Carroll, called the decision anti-competitive, claiming it 'solely benefits Big Dairy' and stifles competition. He added that the company would seek alternative ways to engage its community.
The ruling has broader implications for plant-based producers, as similar regulations apply to terms like cream, butter, cheese, and yoghurt. Legal experts advise using clearly descriptive alternatives such as 'oat drink' to avoid challenges. The decision also signals a robust approach to 'category borrowing' across regulated sectors, potentially affecting other industries.
