The debate over who can rightfully claim industry terms as trademarks is heating up once again, this time centred around the phrase ‘Master Chocolat’. Swiss chocolate giant Lindt is engaged in a trademark battle against Canadian chocolatier GRC Food Services Ltd., highlighting critical issues around trademark ownership, market positioning, and brand identity.
This legal clash forms part of Lindt’s broader, assertive approach to trademark protection. Notably, Lindt recently secured a trademark victory involving its iconic gold foil-wrapped Easter bunny. Learn more about Lindt’s successful defence of its bunny branding in our full coverage here.
The Trademark Dispute: Lindt vs. Master Chocolat
At the centre of the case is GRC Food Services Ltd., a Calgary-based chocolate company that has been using the name Master Chocolat since 2015. The brand experienced notable commercial growth, with sales increasing from £220,000 in 2015 to approximately £1.8 million by 2020.
However, when GRC attempted to register ‘Master Chocolat’ as a trademark, Lindt intervened, arguing that the term was confusingly similar to several of its own trademarks, including ‘Chocolate Masters’, ‘Lindt Master Chocolatier’, and ‘Lindt Maître Chocolatier’.
Lindt contended that consumers might mistakenly associate Master Chocolat with its products due to the similar wording and meanings. The Trademarks Opposition Board agreed partially with Lindt, ruling there was indeed potential confusion between ‘Master Chocolat’ and Lindt’s ‘Chocolate Masters’. Consequently, GRC’s trademark application was rejected.
Importantly, the board also found that ‘Master Chocolat’ was sufficiently different from ‘Lindt Master Chocolatier’, offering partial relief to GRC and highlighting the nuanced nature of trademark disputes.
What This Means for Businesses
This ruling sheds light on a common trend where large companies attempt to trademark generic industry terms, sparking concern among smaller competitors.
Intellectual property specialist Julie MacDonnell explains the challenges faced by smaller brands:
“Some of the largest global corporations succeed in trademarking descriptive terms like ‘chocolate master’. Smaller companies attempting the same face greater legal risks and significant hurdles.”
This case reinforces that, while companies generally cannot monopolise common descriptive terms, courts may favour established brands when there’s evidence of potential consumer confusion.
Protecting Your Trademark: Lessons for Businesses
For SMEs looking to safeguard their trademarks effectively, the Lindt dispute offers three important lessons:
- Opt for Distinctive Brand Names
Choosing unique, clearly distinguishable brand names helps mitigate risks of trademark disputes and challenges from larger competitors. - Stay Alert to Market Conflicts
Regular marketplace monitoring for potential trademark conflicts can help businesses avoid costly litigation and branding issues down the line. - Avoid the Pitfalls of ‘Passing Off’
Even successfully trademarked brands can face challenges if competitors claim unfair brand association. Companies must carefully evaluate branding, packaging, and language to ensure clear differentiation.
For more insights into disputes involving established brands and smaller businesses, revisit our analysis of the Peloton passing off case and the nuances of trademark protection in competitive markets.
What’s Next for the Master Chocolat Case?
GRC Food Services Ltd. is now appealing the decision, with hearings set in the Federal Court for later this year. A successful appeal could signal a shift, empowering smaller businesses to challenge expansive trademark claims by larger corporations.
For now, businesses must ensure their trademark strategies are robust enough to withstand scrutiny from larger industry players.
How to Protect Your Brand Today
The Lindt vs. Master Chocolat case illustrates the complexities of trademark law, especially concerning descriptive brand terms. Whether you’re a startup or an established enterprise, expert guidance on trademark registration and enforcement is crucial.
Our experienced team at The Trademark Helpline can assist you with trademark registration, marketplace monitoring, and effective infringement action.
Worried your brand might be vulnerable? Contact us today to secure your brand’s future.
