A court has backed an appeal by Nestlé against the sale of Nespresso-style coffee capsules by Swiss discount chain Denner.
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The Federal Court’s civil division in Lausanne ruled the case could legally be found in favour of the food giant Nestlé. Three of the judges said they accepted the appeal, and two said it was inadmissible.
Nestlé opposed a decision by the St Gallen commercial court, which provisionally approved the sale of generic capsules by Denner for use in Nespresso machines in Switzerland. It argues Denner’s capsules infringe its patent rights.
Nestlé lodged the legal bid in December to stop the sale of the capsules. The St Gallen court first blocked the sale temporarily but in March reversed its decision, allowing Denner to continue selling its capsules.
The Federal Court also upheld Nestlé’s complaint against Denner using slogans similar to its own to advertise the generic capsules.
The case has been sent back to the St Gallen commercial court for a new determination.
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