Swiss food giant Nestlé has won a UK court appeal ruling against Cadbury over the latter's attempt to trademark the purple color packaging of its Dairy Milk bars.
With this development, the Swiss firm overturned a decision from earlier ruling. In 2012, Cadbury won a legal, stopping other chocolate manufacturers from using a color known as Pantone 2865c for packaging.
The dispute has been running since 2008 when Nestlé opposed Cadbury's initial application for a color trademark.
Last week, the Court of Appeal judges in London said that the trademark application by Cadbury lacks the required clarity, precision, self-containment, durability and objectivity to qualify for registration.
The decision allows Nestlé and other confectionery manufacturers to use purple color for their packaging.
A Cadbury spokesman said, "We are disappointed by this latest decision but it's important to point out that it does not affect our long held right to protect our distinctive colour purple from others seeking to pass off their products as Cadbury chocolate."
"Our colour purple has been linked with Cadbury for a century and the British public has grown up understanding its link with our chocolate," the spokesman added.
"We are studying this particular ruling and will consider our next steps which includes the possibility of an appeal."
A Nestlé spokesman said, "We believe this was the right outcome from a legal perspective."
In 2010, Cadbury was acquired by Kraft Foods in a $19.6bn deal.