Zuru Triumphs in Trademark Dispute Against Lego Over Product Label

New Zealand toy manufacturer Zuru has emerged victorious in a significant trademark dispute against the Danish toy giant Lego. The long-standing legal battle was sparked by Zuru’s use of the term “Lego brick compatible” on its packaging for the Max Build More toy building bricks, which are sold through retail giant The Warehouse in New Zealand.

In a ruling announced today, the Court of Appeal overturned a previous decision made by the High Court in 2023. The High Court had determined that Zuru’s use of the word “Lego” constituted an infringement of Lego’s well-established trademark. The ruling is a crucial win for Zuru, which is owned by the Mowbray siblings, Mat and Nick Mowbray, who are recognized as New Zealand’s wealthiest individuals.

The legal conflict arose when Lego raised concerns that Zuru’s packaging could mislead consumers into believing that the Max Build More products were affiliated with or endorsed by Lego. In response, Zuru argued that the phrase “Lego brick compatible” was a descriptive term that informed customers of the compatibility of their products with Lego bricks.

This recent ruling may have broader implications for the toy industry, especially regarding how companies can reference established brands in product descriptions without facing legal repercussions.

Zuru’s success in this case highlights the ongoing tension between established brands and emerging competitors in the toy market. The decision not only favors Zuru but also underscores the importance of clear guidelines regarding trademark usage and consumer information.

As the toy industry continues to evolve, this case could set a precedent for how similar disputes are handled in the future. The implications of the Court of Appeal’s decision will likely be studied by other companies navigating the complexities of trademark law.

The Mowbray brothers have expressed their satisfaction with the ruling, emphasizing the importance of innovation and competition within the industry. “We are pleased with the outcome and remain committed to providing consumers with quality products that encourage creativity and play,” said Mat Mowbray.

As Zuru prepares to capitalize on this legal victory, it remains to be seen how Lego will respond and what this means for their ongoing relationship in a competitive market.