Bega Cheese has won a long running legal battle against American giants Kraft and Heinz over its use of peanut butter product packaging.
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On Tuesday, the federal court dismissed an appeal by the two companies in their attempt to prevent the use of distinctive yellow packaging, and also dismissed a cross-appeal from Bega Cheese.
Bega's share price rose to $4.85 on Wednesday morning following the judgment.
The public stoush began after Kraft was bought by Heinz and its Australian products were then moved to Mondelez International and then bought by Bega in 2017, in a deal which also included the Vegemite brand.
Kraft had alleged Bega engaged in misleading or deceptive conduct over the marketing of its peanut butter products, and the federal court ruled last year that Bega has exclusive rights to the use of iconic yellow lids, and red and blue labels.
Federal Court Justice David O'Callaghan's 2019 judgement declared the rights to the trademark branding had been transferred to Bega as part of the sales agreement between it and Mondelez.
"Importantly, this gives Bega Cheese the right to continue to use the current packaging of its smooth and crunchy peanut butter products," Bega Cheese executive chairman Barry Irvin said at the time.
Executive general manager of Bega Foods Adam McNamara said at the time the company believed it had purchesed the trade dress "in good faith" and had defended its position "strongly".
"Everyone here is delighted and that's also the sentiment we're seeing on social media [following the decision]," he said.
In 2018, Kraft took its complaint to the US courts, seeking "emergency relief" from the International Centre for Dispute Resolution, and also launched legal action in the US federal court, which was to pause until the Australian case was finalised.
Bega is also currently fighting New Zealand company Fonterra in the Victoria's Supreme Court over a brand licensing dispute, also stemming from the Mondelez International deal, with a judgement expected later this year.
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