Sydney, April 11 - Cadbury Schweppes is seeing red over the color purple.
The Australian branch of the confectionary and beverage giant on Friday lost a court bid to ban a local competitor from using purple in its packaging and marketing.
Cadbury had claimed in Federal Court that purple was integral to its image and that its use by family-owned Darrell Lea candy makers was misleading and deceptive conduct that could cause customers to mistakenly grab the wrong chocolate bar.
Judge Peter Heerey said he was not persuaded that Darrell Lea's use of purple in window displays and packaging was an attempt to pass its products off as those of Cadbury. He said the company had not broken the Trade Practices Act.
"I am not satisfied that such usage has resulted, or would result, in ... purchasers of chocolate being misled or deceived," Heerey said in his judgment, handed down in the southern city of Melbourne and posted online.
The company's lawyer, Tom Watson, accused Cadbury of trying to intimidate Darrell Lea. He welcomed the ruling as a victory for smaller businesses that are under pressure from large international companies.
"This was a long and hard-fought case against an overseas competitor which used its vast financial resources and all legal options open to it to seek to win this case," Watson said.
Cadbury, based in Britain, said it would appeal the decision.
"Cadbury Schweppes has deliberately established a connection between our shade of purple and Cadbury chocolate, and many consumers associate Cadbury purple with Cadbury chocolate," managing director Mark Callaghan said in a statement. "We remain totally committed to protecting our brand identity and Cadbury will appeal this decision."