All is well?

The designation "Butter" is, under the Regulation on the Common Organisation of the Markets in Agricultural Products (CMO), similar to the term "Champagne", a protected designation for goods of a specific quality and character. The EuG now had to clarify whether the product "Pomazánkové máslo" (spreadable butter) may nevertheless continue to use the trade name "Butter".

Under the Regulation on the Common Organisation of the Markets in Agricultural Products (CMO), only products with a specific milk fat content, a maximum content of water and milk solids-not-fat may be marketed under the designation "Butter". An exception to this rule applies to foodstuffs whose exact composition results from their traditional use and is listed in a register by the EU Commission.

The EU Commission sued the Eastern European country concerning the designation of its traditional dairy product as spreadable "Butter". This was prohibited to the Czech Republic in the year 2012 by the EuGH in final instance.

The Czech Republic is now attempting to establish the designation used in its country with the EU Commission as a "guaranteed traditional specialty" in order to ensure the continued use of the designation "Butter" for the foodstuff.

Court decision

The EuG dismissed the action with judgment of 12.05.2015 – Az. T-51/14 .

All products for which an exception had been created in the unified CMO are listed in a complete register of the EU Commission. The foodstuff "Pomazánkové máslo" is not contained therein.

An exception to the Regulation could only be made in respect of products whose actual composition cannot be confused with the nature of the products whose name is protected by this Regulation. However, the possibility of confusion exists between the Czech product "Pomazánkové máslo" and "Butter".

No Member State may be permitted to circumvent the community-adopted Regulation on the unified CMO by means of the designation "guaranteed traditional specialty". The consequence would be a lack of uniformity in the use of trade names for agricultural products.

Conclusion

The CMO has the objective of maintaining competition and protecting consumers. In this context, the decision of the EuG is understandable.

The incorrect use of trade names is, moreover, also contrary to competition law, so that a certain urgency is warranted in the renaming of the corresponding products.