Designation of origin 'Champagne sorbet' permitted?

May Aldi label a sorbet with the protected designation of origin 'Champagne' or does the discounter exploit the reputation of this protected designation through the use of 'Champagne'? The Higher Regional Court of Munich (OLG München) recently had to decide this legal question.

The organisation of Champagne producers opposed a product distributed by the company Aldi bearing the designation 'Champagne Sorbet', whereby the semi-frozen food listed 12% Champagne in its ingredients list. The wine growers' association saw in the use of this term a misuse of the designation of origin 'Champagne' protected for the association.

The discounter Aldi countered that the product name 'Champagne Sorbet' was a designation for a semi-frozen food known to consumers, which, instead of being made with fruit juice, used an appropriate sparkling wine.

Decision of the court

The Higher Regional Court of Munich (OLG München) decided byjudgment dated 16.10.2014 (Az. 29 U 1698/14)that it does not constitute an unfair use of a protected designation of origin if the manufacturer of a product, in which a product ingredient has acquired established significance as the eponymous constituent of the entire product based on corresponding naming practices in commerce, names this product using the protected designation. However, unfair use of the designation of origin is a prerequisite for protection against misuse of reputation, and is therefore not present in this case.

Conclusion

Aldi is therefore permitted to continue labelling its semi-frozen product as 'Champagne Sorbet', since consumers know this designation and are accustomed to the flavour of the sorbet being named accordingly. Consequently, the discounter's product designation is not unfair and therefore also not capable of exploiting the reputation of the protected designation.