Koni Multinational Brands (Pty) Ltd v Beiersdorf AG (553/19) [2021] ZASCA 24; 2021 BIP 15 (SCA); [2021] HIPR 162 (SCA) (19 March 2021)

Saflii

Automated Summary

Key Facts

The Supreme Court of Appeal dismissed an appeal by Koni Multinational Brands against an interdict granted to Beiersdorf AG. Beiersdorf claimed that Koni's CONNIE MEN shower gel packaging (blue, white, silver color scheme with wave-styled labels) was confusingly similar to its NIVEA MEN products, which had a 58.5% market share by 2017. The court found no established residual reputation in the discontinued wave-label and concluded the brand names (NIVEA vs. CONNIE) sufficiently distinguished the products. A separate order addressed the respondent's attorneys' failure to disclose a conflict of interest involving an affiant.

Issues

  • The court addressed the respondent's attorneys' failure to disclose that Ms. Elizabeth Serrurier, who provided evidence of consumer confusion, was an employee of their firm. This non-disclosure was deemed a breach of professional integrity, prompting an order for the Legal Practice Council to investigate the matter.
  • The court had to determine whether the respondent's NIVEA MEN get-up (distinctive blue, white, and silver colour combination, wave-label, and packaging format) had acquired a sufficient reputation to protect against the appellant's CONNIE MEN shower gel, which was alleged to have a confusingly similar get-up. The majority found that the respondent's get-up was distinctive and that the appellant's product was calculated to pass off as the respondent's, while the dissenting judgment argued the brand name distinction (NIVEA vs. CONNIE) was sufficient to prevent confusion.

Holdings

  • The majority judgment dismissed the appeal, finding that the appellant's CONNIE MEN shower gel was confusingly similar to the respondent's NIVEA MEN get-up, which had acquired substantial reputation and goodwill. The court held that the similarities in the overall appearance and format of the products, including the blue, white, and silver colour combination and wave-styled label, created a likelihood of confusion among consumers. The decision emphasized that the respondent's brand was the market leader, and the use of distinct brand names did not negate the probability of deception due to the cohesive and distinctive get-up elements.
  • The dissenting judgment by Makgoka JA concluded that the respondent failed to establish a reputation in the specific get-up elements (e.g., blue, white, silver colour combination and wave label) and that the likelihood of confusion was not demonstrated. It argued that the distinct brand names (CONNIE vs. NIVEA MEN) and differences in container shapes and lid designs sufficiently distinguished the products. The dissent highlighted that the respondent's goodwill was tied to the NIVEA trademark, not the get-up, and that the absence of actual consumer confusion and the presence of non-disclosure by the respondent's attorneys further weakened the case.

Remedies

  • The Registrar of this Court is directed to forward a copy of this judgment to the Legal Practice Council, Pretoria, to investigate the circumstances in which the respondent's attorneys, Mr Gerard du Plessis and Ms Elizabeth Serrurier, failed to disclose Ms Serrurier's association with the respondent's attorneys to the Gauteng Division of the High Court, Johannesburg and this Court, when filing an affidavit by her as a member of the public, and to take whatever steps it deems appropriate in the light thereof.
  • The appeal is dismissed with costs, including the costs of two counsel, where so employed.

Legal Principles

The court applied the doctrine of passing-off, requiring proof of reputation, misrepresentation, and damage. The majority held that the respondent's get-up (blue, white, silver color scheme and wave-label) was distinctive and confusingly similar to the appellant's product. The dissenting judgment emphasized that the respondent failed to establish reputation in the specific get-up elements and that the distinct brand names (NIVEA vs. CONNIE) prevented confusion.

Precedent Name

  • Moroccanoil Israel Ltd v Aldi Stores Ltd
  • Adidas AG and Another v Pepkor Retail Limited
  • Blue Lion Manufacturing (Pty) Ltd v National Brands Ltd
  • Caterham Car Sales & Coachworks Ltd v Birkin Cars (Pty) Ltd and Another
  • Schweppes Ltd v Gibbens
  • Hollywood Curl (Pty) Ltd and Another v Twins Products (Pty) Ltd
  • Orange Brand Services Ltd v Account Works Software (Pty) Ltd
  • Reckitt & Colman SA (Pty) Ltd v SC Johnson & Son SA (Pty) Ltd
  • W H Burford & Sons Ltd v G Mowling & Son
  • Reckitt & Colman Products Ltd v Borden Inc and Others

Judge Name

  • Schippers
  • Makgoka
  • Unterhalter
  • Sutherland
  • Cachalia

Passage Text

  • The majority judgment concluded that the similarities in the overall appearance of the products, including the blue base, silver lid, wave-styled label, and bright green lettering, created a likelihood of confusion. The different names did not negate this because the get-up's resemblance was deliberate and deceptive.
  • The high court found that the CONNIE MEN shower gel's get-up, including the wave-label, blue, white, and silver colour combination, and similar packaging format, was confusingly similar to NIVEA MEN products. This resemblance was calculated to pass off the CONNIE MEN product as belonging to the respondent's range.
  • Makgoka JA (dissenting) argued that the respondent failed to prove reputation in its get-up and that the distinct brand names 'NIVEA' and 'CONNIE' would prevent confusion. The notional consumer would associate products with the well-known NIVEA trademark, not the packaging alone.