SC orders a settlement with Britannia and ITC about the packaging of butter cookies

14 Dec 2023 , 10:09 AM

On Wednesday, the Supreme Court ordered ITC Ltd. and Britannia Industries to ‘exchange suggestions’ in order to settle their disagreement with their misleadingly similar packaging.

ITC had contested, on the grounds of infringement of Britannia’s Good Day Butter Cookies packaging, the Madras High Court’s November judgement prohibiting it from using Sunfeast MOM’s Magic Butter Cookies packaging. The restriction order was issued because Sunfeast MOM’s Magic blue packaging was thought to resemble that of Britannia Good Day Butter Cookies, a competitor. The HC stated that the usage 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’ .

A bench led by Justice Sanjiv Khanna noted that both enterprises produce high-quality goods that are enjoyed by all, and they concluded that ‘it will be better if (the companies) can talk to each other’ and settle the dispute. Additionally, it scheduled a follow-up hearing for January.

Senior solicitors Mukul Rohatgi and AM Singhvi, representing the ITC, informed the Supreme Court that it is a recognised viewpoint that the colours blue and yellow are synonymous with butter cookies or biscuits, with yellow being used to represent butter.

In a previous lawsuit involving zero-sugar digestive biscuits, Britannia had taken a firm stand that blue is a generic or common colour in the industry. As a result, no one can claim exclusivity for using these colours, and no one can be held fraudulently responsible for using them in biscuits that adhere to such industry practices, according to the ITC. Therefore, the assailed judgement is fundamentally incorrect on this alone, and the question of Britannia asserting any distinctiveness and exclusive right to the exclusion of other members of commerce does not arise. The ITC appeal, filed via attorney Mohit Ram, declared that Britain could not be permitted to approve and disapprove in the way it has done.

After Britannia accused ITC of utilising the trademark ‘Mom’s Magic’ to sell identical items under the Sunfeast name and take advantage of Britannia’s goodwill, the HC ordered the action.

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