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Orkla and Mondelez reach settlement over trademark dispute on chocolate packaging

by Paal-André Storesund

Published: 4 September 2024

On 7 June 2024, the Norwegian District Court of Oslo ("District Court") handed down a judgment in a dispute between Orkla Confectionery & Snacks Norge AS ("Orkla") and Mondelez AS ("Mondelez") in which Orkla had asked the court to prohibit Mondelez from marketing and selling a chocolate named "Freia Boble". Orkla also sought compensation on the basis of an alleged infringement of Norwegian Trademark Law by Mondelez and the revocation of the chocolate wrapped in the disputed packaging. One of the main issues of the case was whether the color "Pantone 2144 C" had acquired protection under Norwegian Trademark law.

The District Court concluded that Orkla does have protection for the color Pantone 2144 C for porous milk chocolate and that the packaging used by Mondelez for Freia Boble infringed this right. The District Court also concluded that Mondelez's use of the color on the packaging was an act in the course of trade which was in conflict with good business practice among traders and thereby constituted a breach of section 25 of the Norwegian Marketing Act. Mondelez was ordered to remove the product from the market and to pay legal costs and compensation to Orkla in the amount of NOK 20 000 000.

It did not take long before Mondelez expressed their desire to appeal the District Court's judgment. However, since then there have been new developments in this dispute. On 19 August 2024, it became publicly known that the parties decided to enter a settlement pursuant to which Mondelez will change their design of the disputed wrapping but will continue to sell their products in the original wrapping until the new wrapping is in place in stores. Orkla will in return also make some adjustments to the design of their own wrapping.

As a result, despite the earlier indications it appears that the judgment will not be appealed after all.