Nespresso ends trademark fight with Peet’s over coffee pods

By Blake Brittain

(Reuters) – Nestle’s Nespresso and coffee chain Peet’s Coffee told a Manhattan federal court that they have agreed to resolve Nespresso’s trademark lawsuit over Peet’s coffee pods, which Nespresso alleged would cause consumer confusion with its competing capsules.

The companies asked the court to dismiss the case with prejudice, which means it cannot be refiled. They told the court in a joint letter in August that they were working to finalize a settlement.

Representatives for Nespresso and Peet’s did not immediately respond to requests for comment on Tuesday.

Nespresso sued Emeryville, California-based Peet’s last year over its capsules, which Nespresso said were nearly identical to its trademark-protected capsule design. Nespresso said that Peet’s used the capsules to create a false association with its brand and improperly advertised them as compatible with Nespresso machines.

The Nestle unit also argued that Peet’s capsules had already caused consumer confusion, citing internet reviews that called Peet’s products “Nespresso pods” or “Nespresso capsules.”

Peet’s denied the allegations and argued that Nespresso’s capsule design was not entitled to trademark protection. It also said that Nespresso was using trademark claims to extend a monopoly it had lost when patents covering its capsule system expired.

Peet’s also argued that the “Nespresso” name had become generic for a “category of single-serve espresso systems, machines, and capsules.”

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.