Source: Radio New Zealand
The dispute was around a simple phrase printed on packaging of Zuru’s own-brand MAX Build More plastic brick building kits: “LEGO® BRICK COMPATIBLE.” Pixabay
Zuru has scored a major win in its long-running legal fight with Lego, the Court of Appeal overturning a High Court ruling that had found Zuru breached Lego’s trademark.
The heart of the dispute centred on a simple phrase printed on packaging of Zuru’s own-brand MAX Build More plastic brick building kits: “LEGO® BRICK COMPATIBLE.”
Lego argued the wording infringed its trademark, potentially misleading shoppers into thinking Zuru’s cheaper bricks were Lego products or endorsed by Lego.
In 2023, the High Court agreed, ruling Zuru had infringed Lego’s trademark, but today, the Court of Appeal said the High Court had got it wrong.
The judges found Zuru’s statement to be purely descriptive, telling consumers the bricks work with Lego, not that they were actual Lego bricks.
In its written decision, the court said, “When use of LEGO is seen in its full context, the consumer would think that Zuru’s bricks were MAX BUILD MORE bricks.”
“The phrase ‘LEGO® BRICK COMPATIBLE’ is descriptive, not a badge of origin.”
Double loss for Lego
The court also dismissed Lego’s counter claims of passing off and misleading conduct under the Fair-Trading Act, saying shoppers would clearly see Zuru’s own brand, MAX Build More, on the packaging.
The court said there was no evidence of confusion.
The ruling aligns a legal precedent with Australia’s, known as “comparative advertising” – using a competitor’s trademark to make a comparison of products.
Comparative advertising is allowed under New Zealand law, providing its honest and not misleading.
For Zuru, it means the company can reinstate the phrase, “LEGO® BRICK COMPATIBLE” back onto its Max Build More packaging.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
