News - Packaging Predicament: Unraveling the ITC-Britannia Butter Cookies Dispute and Its Industry Implications

 The Supreme Court on Wednesday asked ITC Ltd and Britannia Industries to "exchange suggestions" and resolve dispute over their deceptively similar packaging.

Date: 13 December 2023

Source: Economic Times

ITC had challenged the Madras High Court's November order that restrained it from using Sunfeast MOM's Magic Butter Cookies packaging on the grounds of infringement of Britannia's Good Day Butter Cookies packaging. The restraint order was passed on account alleged similarity of Sunfeast MOM's Magic blue colour packaging with that of its rival Britannia Good Day Butter Cookies'.

The HC said the use of blue, "leads to the inference of dishonest adoption on the part of the (ITC) in order to pass off its goods so as to unjustly enrich itself". Observing that both companies make premium products that are consumed by everyone, a bench led by Justice Sanjiv Khanna said that "it will be better if (the companies) can talk to each other" and resolve the issue. It also posted the matter for further hearing January.

Senior counsel Mukul Rohatgi and AM Singhvi, appearing for ITC, told the SC that it is an admitted position that the blue and yellow colours are generic to butter biscuits/cookies wherein yellow is used to depict butter.

Britannia had earlier in another litigation related to zero sugar digestive biscuits between the parties taken a categoric stance that the blue colour is generic/common to the trade, therefore no exclusivity can be claimed by anyone in respect of use of these generic colours and no malafide can be attributed on account of use thereof for biscuits that follow such industry practice, ITC said. "Therefore, the question of Britanria claiming any distinctiveness and proprietary right to the exclusion of other members of trade does not arise and the impugned judgment is fundamentally wrong on this ground alone. Britannia cannot be allowed to approbate and reprobate, as per its convenience, in the manner it has done," the ITC appeal filed through counsel Mohit Ram stated.

The HC order was passed after Britannia had accused ITC of selling similar products under the Sunfeast brand, using the trademark 'Mom's Magic' with intent of exploiting Britannia's goodwill.

The Packaging Predicament: The essence of the dispute lies in the packaging of butter cookies. Unpacking the specifics of the disagreement – whether it pertains to design elements, branding, or intellectual property – provides essential context for understanding the complexities that underpin the legal tussle.

Legal Landscape and Claim Dynamics: A thorough exploration of the legal dimensions is essential. What specific claims and counterclaims have been presented by ITC and Britannia? Any precedent-setting legal history or industry standards can provide a backdrop for evaluating the potential outcomes and implications of the case.

Market Impact and Consumer Perception: Packaging is a crucial factor influencing consumer choices. An in-depth analysis of how this dispute may shape consumer perceptions, influence market competition, and impact the market share of both companies provides valuable insights into the broader market dynamics at play.

Broader Industry Trends: Packaging disputes are not isolated incidents. Examining similar cases within the industry and understanding how companies navigate such challenges offers a comparative perspective. Insights into industry trends and precedents provide a lens through which to view the resolution process.

Potential Resolutions and Negotiation Dynamics: What avenues exist for resolving this dispute? Delving into potential resolutions, including out-of-court settlements, negotiation dynamics, or regulatory interventions, offers a forward-looking perspective on the possible trajectories this conflict may take.

Brand Image and Stakeholder Perception: The public perception of ITC and Britannia during and after the dispute is critical. How each company manages communication, addresses consumer concerns, and upholds its brand image amid the legal tussle will undoubtedly play a pivotal role in shaping the post-dispute landscape.

Lessons for Businesses: Beyond the specifics of the ITC-Britannia case, this analysis can extrapolate broader lessons for businesses in managing packaging-related conflicts. Clear agreements, innovative designs, and strategic approaches to prevent and address disputes can be gleaned from this case to inform future industry practices.

Conclusion: As the ITC-Britannia butter cookies packaging dispute unfolds, it becomes a microcosm of the intricate relationships between law, market dynamics, and consumer perceptions. This in-depth analysis aims to unravel the layers of the legal challenge, offering a comprehensive understanding of the situation and its potential impact on both companies and the industry. With lessons for businesses seeking to navigate similar challenges, this dispute becomes not only a legal case but also a strategic guide for companies grappling with the complexities of the ever-evolving marketplace.