Nespresso won again in Switzerland?

by chee Leng (on coffee makers)
(Singapore)

Just months after Denner won their case against Nespresso to start selling compatible Nespresso capsules in Switzerland, the Switzerland Federal Supreme Court in Lausanne awarded the case in favor of Nespresso.

While, no action was done, the court asked the commercial court to consider the decision to revoke an injunction.

The federal court upheld Nespresso complain that Denner had violated the food company's rights (where different shaped capsules should or can be used in Nespresso machines).

The technicalities of this case goes on on the use of slogans and captions etc.

What I want to bring across is that the suit by Nespresso are on the details and they seem bent on pursuing it all the way.

My thought is that now the commercial court would have to stop Denner from selling the Nespresso capsules again.

Even before any judgement was passed, Nespresso won. Why?

Here is my $0.02.

Imagine you are a consumer,and you keep reading about the lawsuit and the situation of sometimes finding and sometimes not finding the capsules in your favorite supermarket -would you trust this brand?

I doubt so. The credential of Nexpod would have effectively be undermined in this situation.

Then there is the cost and time investment in fighting cases such as this. Nespresso has the resources and the team to fight it all the way.

But, what about Denner or Nexpod, can they stand the wearing effect of a lawsuit?

If Denner would to give up, then there is nothing much Nexpod can do too right?

And this is the main value add of a lawsuit.

The win is of course what everyone is looking for, but seriously if the case drags on and even if Denner would to win the case, I wonder how long or how much sales they would need to get in order to justify the time and cost spend on the case.

But, this cost is true for Nespresso as well. Both on financial and moral credit.

Imagine, they are at least having another two cases (1 against ECC and 1 against Sara Lee) for selling compatible pods.

The cost of fighting all these is sure to weight on them as well. ECC has strong support while Sara Lee is not exactly small either.

They would have the resources to fight it for the long term. Then, what would consumers perceive Nespresso?

What is Nespresso preventing us from getting alternatives? Why Nespresso is preventing us from trying other drinks?

The bullying tactics of Nespresso might not sit well with consumers.

Consumers might start thinking, if Keurig allows other drinks with my-kap, why Nespresso is so bent on having a close system?

Nespresso mentioned something about quality, but did we see the quality of Keurig being compromised?

What did Nespresso gained by doing all these? So that they can earn more money from us?

My thought is that while Nespresso can use lawsuit to wear other companies, the effect is not lost on them.

They would wear out and tarnish their image as a bully in the long run.

Other related stories

About ECC and Nespresso

Sara Lee and Nespresso