On 17 December 2024, the Federal Court of Australia delivered a landmark decision in the case of Hampden Holdings I.P. Pty Ltd v Aldi Foods Pty Ltd,[1] finding Aldi liable for copyright infringement. The case revolved around the packaging design of Aldi’s children’s food products, underscoring how copyright law can be an effective tool for brand owners to combat copycats and protect their intellectual property.
The Case
Hampden is an IP holding company that licenses IP to a related company, Every Bite Counts Pty Ltd (‘EBC’). EBC sells children’s food products under the ‘Bellies’ brand, including BABY BELLIES, LITTLE BELLIES and MIGHTY BELLIES. EBC alleged that Aldi infringed their copyright by closely replicating the packaging design of their products for Aldi’s MAMIA dry food range. EBC argued that Aldi used their brand as a “benchmark” for redesigning its packaging—a claim supported by the similarities in design elements between the two products.
Key design elements replicated by Aldi included:
- A small, oval-shaped cartoon character with a large, light-coloured belly
- A solid white background
- A two-column layout with stacked text
- Rounded, childlike fonts
- Photographic images of the product and ingredients
The Court found that Aldi’s designs were not merely inspired by EBC’s packaging but substantially reproduced its artistic elements, thus infringing copyright law.
Implications for Businesses
This decision emphasises the legal risks of “benchmarking”—a practice where companies take inspiration from a competitor’s product design to create similar offerings. While benchmarking may aim to adapt market trends, this case highlights that crossing the line into copyright infringement can lead to significant consequences.
The Court’s judgment included additional damages, reflecting the flagrant nature of the infringement and the commercial advantage Aldi sought to gain. This punitive aspect reinforces that copyright law is not only a means to protect creative works but also a deterrent against unauthorised copying.
Key Takeaways
For businesses, especially those in competitive industries like food and beverage, the Aldi case offers critical lessons on protecting and respecting intellectual property:
- Copyright as a Shield: Copyright can protect creative design elements, such as packaging layout and artistic features, that go beyond mere concepts.
- Proactive Protection: Registering trademarks and ensuring copyright compliance are essential to safeguarding your brand identity.
- Enforcement Options: If you suspect infringement, legal avenues such as copyright claims can provide recourse against copycats and lookalike brands.
- Avoiding Risks: Businesses should exercise caution when benchmarking competitors’ products to ensure they do not inadvertently infringe on protected intellectual property.
Conclusion
If you have questions about how this decision impacts your business or need guidance on intellectual property matters, reach out to Ersel Akpinar (ersel@morganenglish.com.au) and the IP + Tech + Compliance team at M+E today. We know that protecting your brand is essential to your business’s success.
[1] [2024] FCA 1452
