The enforcement of Lavazzas IP rights in the espresso systems market LIDC Congress Turin 19 September 2014 2 Lavazza group 1340 million turnover in ID: 811059
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Slide1
Aftermarkets: IP rights vs market protection?The enforcement of Lavazza’s IP rights in the espresso systems marketLIDC Congress - Turin, 19 September 2014
Slide22
Lavazza group
1,340
million
€
turnover in
2013
BUSINESS AREAS
HOME
AWAY
FROM
HOME
COFFEE
SHOP
FOODSERVICE
VENDING
Slide33
THE LAVAZZA
ESPRESSO SYSTEMS
1989
LAVAZZA ESPRESSO
POINT
®
The first LAVAZZA espresso system for offices
2003
2007
2012
LAVAZZA
BLUE
®
LAVAZZA
A MODO
MIO
®
KEURIG
®
RIVO
®
A system designed for all spaces, public and private
For home consumers. Machines and capsules sold at supermarkets
For US home consumers. Brewing
espresso and frothing
fresh
milk at the touch of a
button
Slide44LAVAZZA ESPRESSO POINT
1989
T
he first espresso system
for offices
and small communities
is created
Slide55LAVAZZA BLUE Best Lavazza Ultimate Espresso
2003
A multi-channel system created for:
families
offices
Public places
families
offices
Ho.re.ca.
Slide66LAVAZZA A MODO MIO2007
With this new espresso system for home use Lavazza enters large-scale and specialized retail chains
Slide77Keurig rivo
2012
Lavazza launches the new system
KEURIG® RIVO®
on the U.S. market
Slide88The most growing segment of coffee marketHigh profitability, but huge investments to develop machines and capsules
Competition leading to continuous innovation and cost reduction
IP rights crucial to gain a competitive advantage
Enforcement of IP rights is often required
The MARKET OF espresso systems
Slide99The first Lavazza espresso system, Espresso Point, was developed in 1989. For its convenience, quality and innovation it was a great successThe patent protection was weak. Around the end of the Nineties an increasing number of compatible capsules appeared on the market
Since the compatible capsules did not infringe the EP patent, Lavazza did not bring legal action against the producers
Today EP is considered the standard system for offices in Italy. Almost all Italian roasters have EP compatible capsules in their range of products
In 2000 Lavazza decided to develop a new generation of sealed capsules (no secondary packaging is needed) based on a patented technology which was exclusively licensed to Lavazza
The first Lavazza BLUE compatible capsules were launched in 2010. This time, Lavazza decided to sue the manufacturer of these capsules
FROM ESPRESSO POINT TO BLUE
Slide1010Three Italian courts and several companies were involved in this legal battle. The results were completely different in each caseCourt of Turin
In September 2010 the single judge, on the basis of the opinion of the court’s expert, decided that the
Monodor patent was infringed and granted the requested interim measures against the manufacturer and the distributors
The board of three judges in the second instance confirmed the first
decision, excluding only the unfair competition
Court of Milan
In June 2011 the single judge refused the injunction for patent infringement because, since the patent would have expired in September 2011, there was no
periculum
in
mora
The
board of
second instance confirmed the first decision for a different reason: (the Torino’s court report was disregarded because according to them it did not consider a patent which could invalidate
Monodor’s patent)The judges rejected also the injunction to use the mark AGOSTANI IN BLU to identify the LAVAZZA BLUE compatible
capsules (in this case the judges were satisfied with the defendant’s claim that the use was ceased…)
Court of Bologna (action brought by
Monodor
against
Caffita
System in 2005)
In August 2011 the Tribunal, on the basis of the opinion of another expert, decided that the claim 1, 2, 3 and 17 of the
Monodor
patent were null for lack of novelty
THE ENFORCEMENT OF MONODOR PATENT
Slide1111A Modo Mio was developed in 2006 and launched in 2007
The capsules were entirely conceived by Lavazza. Machines’ core components are designed and engineered by Lavazza and licensed to authorized manufacturers
Lavazza entered the competition in the home use market at the time dominated by players such as Nestlé (
Nespresso), Philips-Douwe
Egberts
(
Senseo
) and Kraft (
Tassimo
) with its own espresso system
The Lavazza A
Modo Mio compatible capsules were launched at the end of 2011, soon after the expiry of the Monodor patent
Such capsules do not employ the patented technology which covers the A Modo Mio system. Lavazza therefore decided not to sue the manufacturer of these capsules
An enhanced version of this technology was launched in 2012 in US in partnership with Keurig-Green Mountain, US leader in this market
FROM BLUE TO A MODO MIO and RIVO
Slide1212 Lavazza Espresso Point – A Look-alike case
Slide1313A MODO MIO COMPATIBLE. LAVAZZA vs. GIMOKA Look-alike
Trademark’s
use
Slide1414A MODO MIO COMPATIBLE CAPSULESPassing off at Venditalia fair in 2014
Slide1515Enforcement of patent rights is not always effective due to the considerable uncertainty of courts’ interpretationsThe attitude of the courts is generally in favor of the compatible products
The
Nespresso vs.
Vergnano case set important rules concerning the use of another party’s trademarks
The ‘
Nespresso
case’: innovation for consumers’ benefit or abuse?
In
the
meantime in
the US market …
Keurig announced its “2.0 technology” whereby the machines will have a “reader” to recognize and brew only original or licensed capsules
Nespresso launched the Vertuoline system, based on a barcode scanning technology to recognize the single capsules
What about market protection?CONCLUSION AND SOME QUESTIONS
Slide1616Thank You!
Marco BraidaSenior Counsel
– IP and TechnologyLuigi Lavazza S.p.A.C.so Novara 59 - 10154 Turin, Italy
E-mail m.braida@lavazza.it