Battle of the Titans: It’s Nestle vs ITC. Know why

What’s in a Masala! The same thing Nestle owned Maggi must be pondering over after its rival in the instant noodle segment, ITC has sued the former on the grounds of intellectual property infringement.

As per a news report by The Economic Times, Nestle India is planning to appeal against a Madras High Court interim order over its product, 'Maggi Magical Masala', in a case filed by ITC. The latter said the Maggi variant was launched on the back of the success of its 'Yippee! Magic Masala', thereby infringing on its intellectual property rights.

The respondent has to withdraw the Maggi Magical Masala variant even if it plans to file an appeal, ITC counsel Arun C Mohan of law firm Mohan Associates told the ET. The financial daily has a copy of the interim order that was passed on April 29. The order said although ITC's instant noodle was marketed under the Sunfeast Yippee brand, it was popularly known as Magic Masala and ITC not only used the term first, but showed it had won market share against its rival with the product.

An ITC spokesperson declined to comment on the issue. A spokesperson of Nestle India has told the daily,”We have seen the interim order and are preparing to file an appeal." "The respondent cannot sell this variant till the time they win after making the appeal. The judgment is significant in the sense that an IPR infringement can be enforced even against a market leader," Mohan said.

As per market estimates, Nestle has around 72% volume share in instant noodles against ITC's 18%. This is put at 74% and 17% by value, respectively. These figures could not be independently confirmed with Nestle and ITC.

(Image: India Times)