Nestlé sues ex-partners over Nescafé trademark breach
Coffee brand demands 577 million baht from Thai business tycoons
Nestlé has initiated legal action against former business partners over the alleged infringement of the Nescafé trademark.
The company is seeking 577 million baht in damages from Prayudh Mahagitsiri and Chalermchai Mahagitsiri, as stated in a company release dated May 30 (yesterday).
The claim pertains to losses caused by an eight-day suspension of Nescafé sales after the Minburi Civil Court issued an emergency injunction on April 3. This order temporarily halted Nestlé from producing, outsourcing, distributing, or importing instant coffee products under the Nescafé brand in Thailand.
Later April, the Central Intellectual Property and International Trade Court confirmed that Nestlé (Thai) Ltd holds exclusive rights to the “Nescafé” and “เนสกาแฟ” trademarks within Thailand.
The Central Intellectual Property and International Trade Court hosted a mediation session on Wednesday, May 28 concerning the lawsuit against the Mahagitsiri family for purported trademark infringement. Although representatives from both parties attended, no settlement was reached.
The court has scheduled the trial for June 9 to address the issues requiring resolution.
Nestlé previously petitioned the Southern Bangkok Civil Court on March 14 to dissolve Quality Coffee Product Ltd (QCP), a joint venture equally owned with the Mahagitsiri family, including Prayudh and Chalermchai. This petition aimed to allow shareholders to retrieve their shares and reinvest independently due to disagreements over QCP’s future direction.
Furthermore, Nestlé requested the court appoint an administrator to manage QCP’s financial commitments and safeguard its assets pending a decision on the company’s dissolution.
The Southern Bangkok Civil Court completed the examination of three plaintiff witnesses on May 19 and scheduled the examination of defendant witnesses for June 26.
Since Nescafé sales resumed in April, Ekkapong Chokchaiwitut, chief executive of Mother Marketing Plc, reported that sales have returned to normal levels at Mother Supermarket and Mother Marché in southern Thailand, despite an overall market slowdown linked to low tourism, reported Bangkok Post.
Milin Veraratanaroj, chairman of Tang Ngee Soon Superstore, a leading traditional wholesale chain in Udon Thani, noted that the quick restocking of Nescafé products prevented significant shifts to competing brands. He mentioned that Nestlé Thailand might have imported some Nescafé products from countries like Vietnam last year in anticipation of QCP’s closure.
Regarding the ongoing legal matter, Milin believes Nestlé may limit the distribution or import of large product quantities until the legal proceedings are resolved.
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