• Menu
  • Skip to right header navigation
  • Skip to primary navigation
  • Skip to secondary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Before Header

Call us now  07 4688 2188

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Clifford Gouldson Lawyers

  • About
    • Our Origin Story
    • Our Future
    • Toowoomba
    • Brisbane
    • Sunshine Coast
    • What our clients say!
  • Careers
  • Supporting our Community
    • Bringing art to the business world
  • Contact Us
  • Search
  • About
    • Our Origin Story
    • Our Future
    • Toowoomba
    • Brisbane
    • Sunshine Coast
    • What our clients say!
  • Careers
  • Supporting our Community
    • Bringing art to the business world
  • Contact Us
  • Search

Mobile Menu

  • Our Team
  • Practice Areas
  • Knowledge
  • Events
  • Industries
  • For Individuals
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube
  • Our Team
  • Practice Areas
  • Knowledge
  • Events
  • Industries
  • For Individuals

Kraft v Bega – never oily, never dry

You are here: Home / News / Kraft v Bega – never oily, never dry

Kraft Peanut Butter is a family favourite across Australia.  Many of us have it in the pantry at home.  Smooth, or nutty, we each have our favourite.  But is it that special taste or the unique yellow lid that prompts you to pick it up in the shopping aisle? 

The familiar brand is currently in Australian hands after Australian food cooperative Bega bought it from a world food giant a few years ago but the two have been involved in litigation over who can use the yellow lid and labelling. 

The Federal Court recently decided Bega had the exclusive right to use the familiar yellow lid and labelling on its peanut butter jars. The main controversy in the litigation instigated by Kraft was that it alleged Bega was engaging in misleading and deceptive conduct because Kraft claimed to still own the “get-up” or “trade dress” of the peanut butter jars.   

Bega Cheese Limited purchased the business from Mondelez Australia (Foods) Ltd, who prior to Kraft’s restructuring in 2012 were known as Kraft Foods Limited.  One of the assets Bega acquired in the purchase was the Kraft peanut butter factory in Port Melbourne including the peanut butter recipe, workers and product labelling.  Kraft decided it wanted to continue selling peanut butter in Australia in 2018 alleging the use of its labelling by Bega was only under a limited license period which had expired under Mondelez’ watch and did not extend to Bega under the terms of the sale agreement. 

O’Callaghan J confirmed “The stakes are high, because it is common ground that upon Bega entering the market using the Peanut Butter Trade Dress, it obtained the whole, or almost the whole, of Kraft’s peanut butter market share, which is worth more than $60 million in annual sales”.   

The principal issue about the ownership of the trade dress was to be resolved by addressing six inter-related issues concerning the nature of any goodwill in the trade dress and the transfer of goodwill upon the sale to Bega. The trade dress constituting the yellow lid and label were not specifically registered as trade marks.  

Kraft Foods Ltd asserted that any use of the trade dress was under licence from the global parent company and therefore not part of the sale to Bega.  O’Callaghan J did not find any evidence of Kraft’s use of the trade dress to be as a licensee, and accordingly that the trade dress and associated goodwill benefited Kraft Foods Ltd, and after restructuring, Mondelez Australia (Foods) Ltd.  Any assignment of the goodwill to the parent company was not effective as a matter of Australian law. The trade dress and goodwill were purchased fairly and squarely by Bega.   

This case is a reminder to ensure all aspects of your branding are properly protected by registered intellectual property rights, and that structuring of companies and use of IP and goodwill is adequately protected through clear terms in written licensing agreements.  If you don’t adequately describe what is included in a license arrangement, you could struggle to enforce rights against infringers down the track.   

Licensing agreements and their terms and conditions, just like your peanut butter, needs to be never oily or dry, and easy to spread! 

For further advice on this topic please contact our Intellectual Property team. 

Previous Post: « An historic day for Queensland – human rights act 2019 (QLD)
Next Post: Ignore close scrutiny of contractor arrangements at your peril »

Primary Sidebar

We can help

Ben Gouldson

Managing Director and Trade Marks Attorney*

Melanie Sharpe

Lawyer

Nicola Hayden

Lawyer and Trade Marks Attorney*

Brooke Giblin

Legal Secretary & Personal Assistant

Related Alerts

April 9, 2025
Yes, crypto currency is personal property!

The legal system has taken some time to come to grips with crypto currency,...

Privacy & AI: How much does your AI know?

There have been a number of changes to Australia’s privacy laws recently and businesses...

March 5, 2025
Recent Decision on Copyright Infringement: a Puff Piece

In December 2024, the Federal Court of Australia handed down a judgment on a...

View other alerts

Footer

Clifford Gouldson Lawyers

CLIFFORD GOULDSON LAWYERS
P: 07 4688 2188
F: 07 4688 2199
mail@cglaw.com.au
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Locations

TOOWOOMBA (Head Office)
259 Ruthven Street,
Toowoomba Q 4350

PO Box 8208,
Toowoomba South Q 4350

Toowoomba Office

BRISBANE
Level 5, 231 George Street,
Brisbane Q 4000

PO Box 12802 George Street,
Brisbane Q 4003

Brisbane Office

 

SUNSHINE COAST
Regatta Corporate Building, Office 3,
Ground Floor, Innovation Parkway,
Birtinya Q 4575

Locked Bag 5010
Caloundra DC Q 4551

Sunshine Coast Office

Practice Areas

  • Property + Business Transactions
  • Workplace
  • Litigation + Dispute Resolution
  • Intellectual Property + Technology
  • Wills, Estates, Planning + Structuring
  • Business + Corporate Advisory
  • Construction
  • Privacy & Disclaimer
  • Terms of Use

Site Footer

CG Law (Trading) Pty Ltd ACN 143 426 028 t/a Clifford Gouldson Lawyers ABN 89 143 426 028 Liability limited by a scheme approved under professional standards legislation.

The contents of this website are provided solely for general information purposes and do not constitute legal or other professional advice. Clifford Gouldson Lawyers expressly disclaims any liability arising from the use or reliance on the information provided. If you require legal or other expert advice or assistance, then you should seek our help or the services of a qualified professional.

Copyright © 2025 Clifford Gouldson Lawyers · Privacy & Disclaimer · Terms of Use · Marketing by John Gray Marketing · Site by Kingfisher