Nestlé lose legal battle to trademark KitKats

Nestlé (VTX:NESN) has lost its latest legal battle to trademark the KitKat bars in the UK.

The confectionary giant claimed the shape of the bar was unique and therefore should be protected by law.

“Nestlé is disappointed by the court of appeal judgment and is considering next steps.” said a spokesperson from the company.

“KitKat is much loved around the world and its four-finger shape is well known by consumers. Nestlé’s four-finger shape has been granted trademark registration in many countries of the world, for instance Germany, France, Australia, South Africa and Canada, further protecting it from imitations.”

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This is the latest legal case the the series of long running court battles with rival Cadbury’s. Nestlé managed to sucessfully block Cadbury’s attempts to trademark the shade of purple they used for the packaging of Dairy Milk.

“We are pleased with the court of appeal’s decision today and welcome their conclusion. As we have previously stated, we do not believe the shape of the KitKat bar should be protected as a trademark in the UK.” said A spokesperson for Cadbury’s.

Tania Clark, a partner and trade mark attorney at the intellectual property firm, Withers & Rogers, said:  “This decision is a blow for Nestlé and means rival manufacturers such as Cadbury can make and sell products that look similar, with a reduced risk of litigation.

“The case highlights the difficulties that often accompany attempts to obtain commercial protection for the shape of a product. To secure trademark protection, it would be necessary to prove that the shape of a product alone is enough to denote a brand in the mind of the consumer.

“Despite today’s ruling, this may not be the end of the matter. Nestlé feels strongly about the matter and depending on whether there are legal grounds, could apply for leave to file an appeal to the Supreme Court.”

The confectionary brand has faced multiple controversies, including its forced labour in Thailand and in Brazil.