Fast-food giant McDonald’s has lost the exclusive right to use the 'Big Mac' name for its large chicken sandwich in the European Union, following a significant ruling by the European Court of Justice. This decision marks the end of a prolonged legal battle with Irish fast-food chain Supermac.
Background of the Case
Supermac, known for its chicken nuggets, and chicken and beef burgers across Ireland, challenged McDonald’s over its extensive hold on the 'Big Mac' trademark. The European Court of Justice ruled in favor of Supermac, allowing other fast-food and poultry companies to use the name 'Mac' both in their branding and food items.
Court's Ruling and Implications
The court’s decision was based on the argument that McDonald’s had not made effective use of the trademark for the last five years. Furthermore, since McDonald’s was not using the 'Big Mac' name for any of its chicken sandwiches, it should not prevent other restaurants from doing so. This ruling significantly impacts McDonald’s, restricting the 'Big Mac' trademark to its red meat sandwiches only, and opens up opportunities for other businesses in the industry.
Allegations of Trademark Bullying
Supermac also accused McDonald’s of trademark bullying, alleging that the multinational corporation used its dominance to stifle competition. Pat McDonagh, managing director of Supermac, stated, “We knew when we took on this battle that it was a David versus Goliath scenario. The original objective of our application to cancel was to shine a light on the use of trademark bullying by this multinational to stifle competition.”
Previously, Supermac had complained about McDonald’s trademarking the name 'SnackBox', a popular item on Supermac’s menu, despite McDonald’s not offering any product by that name. This new ruling provides a significant win for smaller chains like Supermac, aiming to expand their market presence without being hindered by trademark issues.
Future Steps for McDonald’s
McDonald’s has not yet indicated whether it will contest the European Court of Justice's decision. The ongoing dispute between Supermac and McDonald’s continues in the UK, where EU trademark law no longer applies post-Brexit.
Controversy in Israel
In recent months, McDonald’s faced backlash for providing free meals to Israeli soldiers, prompting criticism and boycotts from the Palestinian-led Boycott, Divestment, and Sanctions (BDS) movement. In response, McDonald’s emphasized that its franchisees acted independently and that the corporation does not take sides in the Israel-Hamas conflict. Despite this, McDonald’s announced plans to buy back 225 franchisee restaurants in Israel, operated by Alonyal, following a decline in sales due to the boycott.
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Source: Euronews