Aldi Stores Ltd Partnership v Frito-Lay Trading Co Gmbh

In the case of Aldi Stores Ltd Partnership v Frito-Lay Trading Co GmbH, the central issue revolved around the use of the words "Cheezy Twists" on packaging by Aldi, which Frito-Lay claimed was an infringement of their trademark "Twisties". The dispute was brought before the court to determine whether the term "Cheezy Twists" constituted a trademark or merely a descriptive term, and whether there was sufficient similarity between "Cheezy Twists" and "Twisties" to cause confusion or deception among consumers. The primary judge found in favor of Frito-Lay, concluding that the term "Cheezy Twists" was indeed used as a trademark by Aldi and that there was a significant resemblance between "Cheezy Twists" and "Twisties" that was likely to deceive or confuse consumers.

The legal issues before the court encompassed the interpretation of the term "Cheezy Twists" as either a trademark or a descriptive term, the extent to which the use of "Cheezy Twists" infringed on Frito-Lay's trademark "Twisties", and the applicability of the primary judge's reliance on an admission by Aldi's buying director. Aldi argued that "Cheezy Twists" was a fair description of their product and not a trademark, while Frito-Lay contended that the term was deliberately chosen to mimic and capitalise on the reputation of "Twisties". The court was required to dissect the evidence and submissions from both parties to determine the veracity of these claims and their implications for trademark law.

The court, in its reasoning, determined that the term "Cheezy Twists" was used by Aldi as a trademark and that there was a substantial likelihood of confusion between "Cheezy Twists" and "Twisties". The court found that the description of the product as a "twist" was appropriate despite the manufacturing process, and the use of "Cheezy" was not a standard term but rather an invented word intended to capitalise on the reputation of "Twisties". The admission by Aldi's buying director that "Cheezy Twists" was used to distinguish their goods from those of other traders was deemed a relevant and persuasive factor. Consequently, the appeal was allowed, the orders made by the primary judge were set aside, and Aldi was ordered to pay Frito-Lay's costs of the proceeding and the appeal.