Supreme Court Rules Against Oatly in 'Milk' Marketing Dispute
The Supreme Court has delivered a landmark ruling that prohibits the Swedish-based drinks manufacturer Oatly from using the word 'milk' to market its plant-based products. This decision concludes a protracted legal battle with the trade association Dairy UK, which challenged Oatly's trademark applications related to dairy industry terms.
Legal Battle Over Trademark Phrases
Oatly had previously trademarked the phrase 'Post Milk Generation' with the UK's Intellectual Property Office in 2021, arguing that the use of 'milk' within a trademark did not breach regulations if it was not descriptive. However, Dairy UK objected, leading the IPO to deem the usage 'deceptive' in 2024. Although Oatly successfully appealed this initial decision, the Court of Appeal overturned it, ultimately bringing the case to the Supreme Court for a final verdict.
Laurie Bray, a senior associate and trademark attorney at the European intellectual property firm Withers & Roger, commented on the significance of the ruling. 'It has taken the highest court in the land to decide once and for all whether a plant-based milk alternative can be branded as ‘milk’ and marketed as such,' Bray said. 'And the outcome is not what Oatly was hoping for.'
Industry Reactions and Implications
Judith Bryans, Chief Executive of Dairy UK, welcomed the decision, stating that it provides clarity on the use of dairy terms in branding. 'This ruling is an important decision for the sector as it finally provides clarity on how dairy terms can – and cannot – be used in branding and marketing,' Bryans explained. 'It brings greater certainty for businesses and helps ensure that long-established dairy terms continue to carry clear meaning for consumers.'
In response, Bryan Carroll, Oatly's General Manager for the UK and Ireland, expressed disappointment, arguing that the ruling stifles competition. 'This decision creates unnecessary confusion and an uneven playing field for plant-based products that solely benefits Big Dairy,' Carroll said. 'In our view, prohibiting the trademarking of the slogan ‘Post Milk Generation’ for use on our products in the UK is a way to stifle competition and is not in the interests of the British public.' He added that Oatly is exploring ways to distribute its 'Post Milk Generation' merchandise despite the ban.
Background on Marketing Regulations
The ruling underscores existing regulations that restrict marketing terms to describe only the actual products they represent. For instance, the term 'milk' is legally defined as a product derived from animals within the dairy industry. This case highlights the ongoing tensions between traditional dairy sectors and the growing plant-based alternatives market, with implications for future branding and consumer communication strategies.
