A Peet's coffee shop is shown in Encinitas, California, U.S., May 19, 2020. REUTERS/Mike Blake

Nespresso says Peet's 'nearly identical' pods cause confusion The company and law firm names shown above are generated automatically based on the text of the article. We are improving this feature as we continue to test and develop in beta. We welcome feedback, which you can provide using the feedback tab on the right of the page.

(Reuters) - Nespresso USA Inc sued Northern California-based chain Peet's Coffee in Manhattan federal court on Thursday, alleging its coffee pods infringe Nespresso's trademark rights for its own capsule design.

The lawsuit said Peet's similar capsules confuse customers into believing the pods are connected with Nestle's Nespresso, which Peet's allegedly exacerbates by advertising that its pods are compatible with Nespresso machines.

Coffee pods have triggered a range of legal battles in recent years, including patent and trademark disputes involving Nespresso, Keurig Dr. Pepper, and others.

Nespresso's Thursday lawsuit said Peet's sells coffee capsules that are "nearly identical" to Nespresso's, with the same "frustoconical" tops, opaque colors, and other elements.

Nespresso also said Peet's capsules are likely to cause confusion, and that some customers have already been confused, noting several internet product reviews of Peet's pods that call them Nespresso pods.

Nespresso said in the lawsuit that it has applied for a federal trademark registration covering its pod design.

It asked the court to award it Peet's profits from the allegedly infringing capsules and tripled money damages.

A Nespresso spokesperson said the company had "spent many years and invested millions of dollars" cultivating its "unique experience" and that Peet's had refused to stop infringing its intellectual property after it asked.

The case is Nespresso USA Inc v. Peet's Coffee Inc, U.S. District Court for the Southern District of New York, No. 1:22-cv-02209.

For Nespresso: John Mancini and Kristine Young of Mayer Brown

Source: Reuters

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