Oatly Loses Supreme Court Battle Over 'Milk' Trademark in Landmark Ruling
The UK Supreme Court has delivered a unanimous verdict against Oatly, the prominent plant-based food company, in a high-profile legal dispute over its use of the trademark "Post Milk Generation." The ruling sides with Dairy UK, the trade association representing the dairy industry, and marks the culmination of a long-running battle that has progressed through multiple judicial levels.
Legal Journey Through the Courts
The case centred on whether the term "milk" could legitimately be applied to oat-based alternatives in trademark contexts. It began when the Intellectual Property Office initially deemed Oatly's trademark invalid, citing concerns over descriptive accuracy. This decision was later overturned by the High Court, which found in favour of Oatly, only to be reinstated by the Court of Appeal on appeal from Dairy UK.
In the final appeal, a panel of five Supreme Court justices confirmed the trademark's invalidity. They argued that "Post Milk Generation" primarily describes targeted consumers—those who choose plant-based alternatives over dairy—rather than clearly defining a characteristic quality of the product itself. This interpretation aligns with existing trademark laws that require distinctiveness and avoid generic or descriptive terms.
Oatly's Response and Market Implications
Oatly expressed deep disappointment with the ruling, releasing a statement that criticised the decision for creating an uneven playing field in the competitive food market. The company argued that the verdict stifles innovation and competition by limiting how plant-based products can be marketed and labelled, potentially hindering consumer awareness and choice.
This case highlights broader tensions between traditional dairy industries and the growing plant-based sector, as companies like Oatly seek to position their products as viable alternatives. The ruling may set a precedent for future trademark disputes involving similar terms, influencing how other plant-based brands navigate labelling and advertising regulations in the UK.
Industry analysts suggest that while this decision is a setback for Oatly, it underscores the importance of precise trademark strategies in the evolving food landscape. Consumers and businesses alike will be watching closely to see how this affects market dynamics and regulatory approaches moving forward.
