Unilever fined Rp30 billion for infringing Orang Tua Group’s ‘strong’ trademark

The Central Jakarta District Court on 7 January ruled in favour of Hardwood Private Limited or Orang Tua Group (OT) in its trademark battle against Unilever. OT filed a lawsuit against Unilever in May 2020 for infringing its oral care brand Formula’s trademark. 

The word ‘strong’ on OT’s Formula and Unilever’s Pepsodent oral care brands becomes the centre of the legal battle between the two consumer goods giants. The Formula Strong trademark has been registered with the Directorate General of Intellectual Property under Class 3. Class 3 includes toothpaste, cleaning preparations, denture polishes, mouth washes, not for medical purposes.

Meanwhile, the defendant named one of its oral care products ‘Pepsodent Strong 12 Jam.’ The trademark is filed under the same class as Formula’s at a later time. Trademark right in Indonesia is assigned on a first-to-file basis.

OT claims that the similarity could create confusion among consumers. It could perpetuate a perception that both brands were working together to launch toothpaste products. OT also argued that Formula is a well-known brand in the country, so it deserves legal protection in order to preserve its existence and goodwill of the company.

The court turned down OT’s initial Rp75 billion damage claim and ordered Unilever to pay Rp30 billion in damages. Unilever is filing an appeal against the court ruling, asserting that the trademark should be examined as a whole, ‘Formula Strong’ and ‘Pepsodent Strong 12 Jam,’ instead of the word ‘strong.’