Victory! Oatly Finally Wins Court Battle to Keep “Milk” on Its Packaging

Oatly, the Swedish plant-based milk brand, has successfully defended its right to use the term ‘milk’ on its packaging, overcoming a four-year legal challenge by Dairy UK Ltd, the trade association representing the British dairy industry.

The dispute centered around Oatly’s use of the slogan ‘Post Milk Generation’ on its food and drink products. Dairy UK argued that the use of ‘milk’ in the trademark was unlawful, citing pre-Brexit European Court regulations that restricted the use of the term ‘milk’ on non-dairy product packaging.

High Court Judge Mr. Justice Richard Smith, however, ruled in favor of Oatly, asserting that the trademark is valid for use on the company’s plant-based products. He rejected the notion that the term ‘milk’ should be banned on non-milk food packaging, emphasizing that the average consumer would understand Oatly’s slogan to signify products intended for those who no longer consume dairy milk.

Oatly, known for its oat-based milk substitute and a range of vegan products, initially secured the trademark for the ‘Post Milk Generation’ slogan in 2019. However, Dairy UK successfully challenged the registration, leading to a protracted legal battle.

Dairy UK, representing major players in the national dairy industry, contended that European regulations, specifically Article 78(2) of Regulation (EU) No 1308/2013, restricted the use of the term ‘milk’ on food packaging and granted protected status to dairy products.

Oatly’s legal team argued that the slogan sidestepped these regulations as it referred to the likely consumer rather than describing the product itself. The court ruling highlighted that the trademark did not claim or imply that Oatly‘s products were dairy products.

The Intellectual Property Office (IPO) initially granted Oatly the trademark for the slogan on T-shirts only, citing potential consumer confusion regarding food products. However, this decision was overturned by Judge Smith in the High Court, emphasizing that the trademark did not describe the product and was unlikely to lead to consumer confusion.

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