Jones Brothers has advertised that its coffee pods were ‘Nespresso-Compatible.’ Now its marketing is Nespresso-compatible as well, under a settlement that ends a trademark dispute between the companies.
Nespresso notified a New York federal judge Dec. 16 that it had “amicably resolved” its dispute with Jones Brothers Coffee Co. Distribution LLC. The details of the settlement weren’t disclosed, but Jones Brothers’ website now features multiple disclaimers and a less prominent role for the Nespresso name. The packaging appears to have changed as well.
The settlement shows how adjusting packaging and adding disclaimers can resolve trademark infringement litigation.
Nespresso had sued Jones Brothers in April, saying its prominent use of the phrase “Nespresso-compatible” to promote the coffee capsules infringed its trademark. The capsules themselves infringed Nespresso trade dress with their shape and packaging, the company alleged. Jones Brothers “built an entire business by unlawfully trading off Nespresso’s valuable assets and goodwill” without any “prominent and proximate” disclaimers separating itself from the coffee giant, according to the complaint.
The case settled in the U.S. District Court for the Southern District of New York before Jones Brothers filed an answer to the complaint.
Jones Brothers and counsel for Nespresso didn’t immediately return a request for comment.
Mayer Brown represented Nespresso.
The case is Nespresso USA, Inc. v. Jones Brothers Coffee Company Distribution, LLC, S.D.N.Y., No. 19-3449, Notice of Settlement 12/16/19
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