Puffed Out: Hampden Triumphs over Aldi in Copyright Clash

Hampden Holdings I.P. Pty Ltd v Aldi Foods Pty Ltd [2024] FCA 1452 (Link to Judgment)

Notorious for its lookalike packaging inspired by other name brands, Aldi has been a robust presence in defeating claims of misleading and deceptive conduct and/or passing off over the years.

However, on December 2024, the Federal Court ultimately found Aldi liable for infringing the copyright of the Baby Bellies “Puffs” packaging designs, owned by Hampden Holdings IP Pty Ltd (first applicant) and designed by Lacorium Health Australia Pty Ltd (second applicant) and B&B Studio Limited.

In 2018, Mr Mota, a designer at Lacorium, undertook a re-design of the Baby Bellies “Puffs” packaging design (originally designed by B&B Studio) and developed the new Bellies’ Puffs Works. Subsequently, Aldi used these works as a benchmark during its process of designing its own packaging for similar puffed food products for children.

Hampden claimed that the Aldi Impugned Puffs Works copied a substantial part of the package design of the Bellies’ Puffs Works, which went beyond mere inspiration.

Aldi mounted a cross-claim, arguing that the threats were unjustified.

The Artistic Works in Question

Bellies’ Puffs Works	Aldi’s Impugned Puffs Works

Issues Considered by the Court

The Court considered the following key issues:

1. whether (for each of the Applicants’ Works) Hampden and/or Lacorium was the owner of the copyright;
2. whether (for each of the Impugned Works) Aldi infringed copyright by reproducing a substantial part of one or more of the Applicants’ Works;
3. if all or part of the copyright claim is made out, whether Aldi is liable for additional damages; and,
4. whether Aldi’s cross-claim was made out.

The Court’s Findings

• In relation to the Bellies Puffs Works, designed by Mr Mota, Lacorium and Hampden have the right to bring their claims for breach of copyright as copyright subsists in the works.
• In its defence, Aldi adopted the argument that the Hampden product packaging design was merely implemented as a benchmark throughout the process of Aldi developing its products. There was no intent to replicate the Bellies Puffs Works.
• However, it was found that Aldi’s Impugned Puffs Works reproduced a substantial part of the Bellies’ Puffs Works.
• Aldi was also found liable for additional damages due to the flagrancy of the infringement for commercial gain, continued sales post-complaint and the need for deterrence.
• The cross-claim by Aldi was dismissed. 

Legal Ramifications of Adopting Benchmarks

While it is common practice to reference existing products in the market during the development of product packaging design for the same or similar goods, it is vital that this benchmarking practice does not result in a product which replicates a substantial part of the original design.

For decades, Aldi has adopted similar packaging in relation to the same or similar goods that have lined its shelves, usually relying on the use of sufficiently different product names to avoid trade mark infringement. However, this case now draws a line in the sand, highlighting the importance of distinguishing between inspiration and imitation in this area, and that the absence of customer confusion is not sufficient to green-light this type of imitation.

How Can Brand Owners Protect Copyright Works from Infringement?

The use of a benchmark is encouraged to identify what works in the marketplace. However, to avoid legal ramifications, such as copyright infringement, it is integral that brand owners take proactive steps to protect their intellectual property.

Here are some key strategies:

1. Before finalising any design, conduct comprehensive research to ensure that your packaging does not infringe any existing copyright works. This includes examining design elements, colour schemes and overall layout.  Trade dress such as packaging design is also often protected by trade mark registration.
2. Consult with an intellectual property lawyer to understand the nuances of copyright and trade mark law and ensure that your designs are compliant.
3. Incorporate distinctive features into your packaging that set it apart from competitors.
4. Regularly monitor the market for any potential infringements on your copyright works.

By adopting these strategies, brand owners can effectively use benchmarks to enhance their product packaging while safeguarding against legal issues related to copyright infringement.

Looking ahead

This case marks a significant turning point in copyright enforcement, underscoring the necessity of using benchmarks as sources of inspiration rather than as direct templates.

If you would like to have a confidential chat about how this copyright enforcement outcome may impact you or your business, please reach out to our experienced Intellectual Property Team.

The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.