Daily Reports
McDonald's Faces EU Court Setback Over 'Big Mac' Trademark Dispute
The American fast-food giant McDonald's has experienced a notable legal setback in its long-standing dispute with the Irish chain Supermac's over the 'Big Mac' trademark. The General Court of the European Union, situated in Luxembourg, has curtailed McDonald's exclusive rights to use the 'Big Mac' brand across the European market, notably for poultry products. This ruling is part of an ongoing legal battle that dates back to 2017.
According to the court's announcement, McDonald's did not demonstrate 'serious use' of the 'Big Mac' trademark for an uninterrupted period of five years. Consequently, McDonald's has lost its exclusive rights to use this brand for chicken sandwiches and other poultry-based food products within the EU. The iconic 'Chicken Big Mac' isn't widely available on McDonald's menus across Europe, further weakening their stance.
Supermac's initially challenged McDonald's exclusive registration of the 'Big Mac' trademark in 2017, arguing that it stifled competition and amounted to corporate intimidation. The EU Intellectual Property Office (EUIPO) had previously upheld McDonald's protection for both beef and chicken sandwiches, but this new ruling from the General Court marks a significant shift. Pat McDonagh, director of Supermac's, expressed delight over the ruling, likening their struggle to a 'David versus Goliath' scenario.
On the other hand, McDonald's has downplayed the impact of this decision, asserting that it does not affect their broader rights to use the 'Big Mac' trademark. They emphasized the longstanding popularity and recognition of their iconic sandwich. However, the ruling means that other companies within EU territory could use the 'Big Mac' name for their products, potentially increasing marketplace competition for McDonald's.
Supermac's Victory Over Big Mac Trademark
The General Court's ruling elaborated that the evidence provided by McDonald's failed to prove the relevance and volume of 'Big Mac' sales specifically for chicken products. This decision stems from an initial legal conflict that arose in 2014 when McDonald's opposed Supermac's trademark application, fearing it could cause brand confusion. The fight intensified in 2017 when Supermac's sought to revoke McDonald's 'Big Mac' trademark. In 2019, the EUIPO partially ruled in favor of Supermac's.
Supermac's argued that the international classification of goods, known as the Nice Classification, had incorrectly distinguished 'beef sandwiches' and 'chicken sandwiches' under McDonald's listings. With this new ruling, McDonald's loses its monopoly over the 'Big Mac' name for poultry products, a decision that could encourage other food chains to adopt similar branding in the EU.
Lastly, it's noteworthy that McDonald's continues to face challenges elsewhere. The company has seen sales decline in the Middle East due to boycotts over its operations in Israel. Additionally, it has faced backlash in the U.S. over allegations of price hikes, particularly concerning the supposed sale of a Big Mac for $18. Joe Erlinger, president of McDonald's USA, has responded to these claims, asserting that the price increases are not above inflation rates.
- McDonald's still retains the rights to use the 'Big Mac' trademark for beef sandwiches and associated menus across the EU. The ruling primarily affects the use of the trademark for products made from poultry. This decision is seen as a partial victory for the Irish chain Supermac's, which has been gradually expanding its footprint in the European market since its founding in 1978.
- As McDonald's contemplates its next steps in this legal battle, which includes a potential appeal to the highest body of the European Union—the Court of Justice of the EU (CJEU), the outcome could influence other disputes over trademark use within the fast-food industry. Legal experts suggest that this case could set a precedent, impacting how trademarks are interpreted and enforced within the EU.
