Oatly loses trademark infringement case against UK family firm

06 Aug 2021 --- Swedish oat drink maker Oatly has lost a trademark case against a UK-based family farm that sells “PureOaty” drink. 

Glebe Farm was recently taken to court by the multinational in a matter relating to the name and branding of its PureOaty oat milk, which Oatly claimed was too similar to its own brand.

But in a judgment yesterday, the judge dismissed all of Oatly’s claims of trademark infringement and passing off.

Glebe Farm’s owner Phillip Rayner described the conclusion of the case as “enormously gratifying” and a demonstration that “smaller independent companies can fight back and win” over large firms.

“We have had the threat of this court case – which has pitched our challenger brand against Oatly’s multinational business – looming over us for more than a year. We have always felt certain that we have done nothing wrong, and we were determined to fight Oatly’s claims that our brands were similar – something that is now proven to be wrong,” Rayner says.

“You only need to look at the two products and packaging side by side to appreciate how different these brands are, and how unnecessary this legal action was.”

Oatly maintains this case was about protecting its trademark and has no plans to appeal.Trademark protection
In a statement sent to FoodIngredientsFirst, Oatly maintains this case was about protecting its trademark and has no plans to appeal.

“The verdict is in, and we lost,” says Erica Wigge, head of PR, EMEA. “And while to some, this might be seen as vindication for small oat drink companies over big oat drink companies, we actually never saw it that way.”

“For us, this case has always been about protecting our trademark and how the single letter Y creates too much of a similarity between OATY and OATLY. If we were to let one company pass because they, like Glebe Farm, seem to be one of the good guys, that might leave the door open for the bad ones,” she explains.

“The truth is, we love all oat drink companies and never brought this case to damage Glebe Farm. In fact, we want them to thrive and help bring products into the world that are good for the planet. We just think they should do so in their own unique voice, just like we do. And, while we would have preferred a different result, we fully accept the court’s decision and will not make an appeal. We wish Glebe Farm total success in their plant-based journey forward.”

Oatly is backed by high-profile investors including, Oprah Winfrey, Jay Z, Natalie Portman and Starbucks Corp head Howard Schultz.

Popularity of oat milk 
Rayner continues that Oatly has claimed that it first tried to engage Glebe Farm in “constructive conversation” but stressed: “that a threat of legal action never felt ‘constructive’ and we felt there was no compromise or dialogue offered.”

“The facts are that we have never wanted to be an Oatly clone,” continues Rayner.

“Our brand name is PureOaty because our oat milk is made from pure gluten-free oats and just three other ingredients. The claimant has tried to cast our name incorrectly as ‘Oaty’ as an attempt to include that common word in their brand portfolio. However, even if it were Oaty, would you expect everyone to be prevented from using the word ‘milky’ if a large multinational had trademarked ‘Milk-ly’?”

“There is room in a growing category for alternatives. We’d like to think growth opportunities come from positivity in broadening sector choice, rather than from trying to shut things down and limiting consumer options,” he concludes. 

By Gaynor Selby