Thursday, August 26, 2010

Nespresso in Fight for Survival

Nespresso owns 1,700 patents relating to its coffee capsule system, and most are set to expire in 2012. Until then, Nespresso is aggresively asserting its intellectual property rights against Sara Lee and the Ethical Coffee Company, a business started by ex-Nespresso executive Jean-Paul Gaillard. In a court battle which could begin next month in Paris, both competitors will claim that their capsules, though they are compatible only with Nespresso machines, are sufficiently unique so as not to infringe on Nespresso's intellectual property.

If Nespresso loses, its image as proprietor of an exclusive, closed coffee club stands to be tarnished with the entry of low-cost alternative capsules.

Sara Lee L'or Capsules

Ethical Coffee Company's Casino Capsules

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