2nd UPDATE: Nespresso Rivals Dealt A Blow As Patent Upheld
April 19 2012 - 2:38PM
Dow Jones News
Rivals to Nestle SA's (NESN.VX) Nespresso system have been dealt
a blow, as the European Patent Office upheld a patent that protects
the coffee system from capsules produced by other companies.
"The patent has been maintained in an amended form," EPO
spokesman Oswald Schroeder told Dow Jones Newswires.
The ruling, made by a panel of experts, was opposed by Sara Lee
Corp. (SLE), privately held Ethical Coffee Co. and Italian coffee
company Vergagno.
The three companies, which all make capsules that are compatible
with the Nespresso system, had demanded the patent, which protects
the interface between the coffee capsule and the machine, be
removed. But the patent was upheld by the EPO's panel of experts
late Wednesday.
The three companies can now challenge the decision at the EPO's
court of appeal, whose decision is final.
Nestle Chief Executive Paul Bulcke said Thursday that the patent
"will continue to provide adequate protection to our intellectual
property." This put the company in a good position against its
generic rivals, Bulcke told the Nestle annual general meeting
here.
Nestle's Nespresso business has been fighting legal battles
against a string of rivals, including Swiss discounter Denner, that
have launched their own versions of capsule coffee that are
compatible with Nestle's machines.
The Swiss food company has sought to defend Nespresso, which has
grown into a business with sales of more than 3 billion Swiss
francs in 2011 and profit margins among the highest in the
company.
It is too early to say whether the decision means the rivals
must remove their capsules from shop shelves.
Richard Girardot, chief executive of Nespresso, said: "This is a
positive decision for Nestle--we are satisfied."
He said Nespresso wasn't against competition, with the brand
facing competition from 50 other companies in the coffee capsule
business. But Nespresso would continue to defend its intellectual
property where necessary, Girardot told Dow Jones Newswires.
-By John Revill, Dow Jones Newswires; +41 43 443 8042;
john.revill@dowjones.com
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