The two companies went to the Federal Court over Bega's use of the iconic yellow lid and jar for its peanut butter.
In a statement to the ASX, Bega Cheese said it had entered into a "confidential settlement" for monetary relief and legal costs.
When Bega bought the company in 2017, it kept the branding colours but ran ads stating "Kraft peanut butter is now Bega peanut butter".
“As part of the settlement, all outstanding issues between the parties regarding the right to use the peanut butter trade dress and the legal proceedings have been resolved,” the Bega statement said.
Kraft appealed the 2019 Federal Court decision awarding Bega exclusive rights to use the yellow lid plus the red and blue peanut labels.
However, on April 14, 2020 the Federal Court dismissed the challenge.
The American company claimed it was misleading to consumers but the appeal judges disagreed.
“Even if there were a possibility that some reasonable consumers would be confused about the change in brands, conduct that merely causes confusion is not misleading or deceptive,” justices Lindsay Foster, Mark Moshinsky and Michael O'Bryan wrote in their 2020 Federal Court decision.
The fight over product image and copyright ownership was sparked during a series of takeovers.
The Kraft company was bought by Heinz and the Australian products, including peanut butter, moved under the Mondelez umbrella that was bought by Bega.
14°C