Yalumba's Federal Court battle with Jacob's Creek dismissed

Yalumba's six-month Federal Court battle to stop Jacob's Creek using the term "Signature" on its labels has been dismissed.

Pernod Ricard released three Jacobs Creek red wines in September 2015 - priced at $20 each - with the words “Barossa Signature” on the label, however Samuel Smith and Son's Yalumba brand has been producing its “The Signature” cabernet-shiraz - priced at $60 a bottle - since 1966. 

Samuel Smith and Son claimed Pernod Ricard had infringed on the Yalumba trademark, which was registered in November, 2000. 

However, when giving her judgment earlier this week, Natalie Charlesworth said the case came down to three questions: whether Pernod Ricard used the words “Barossa Signature” appropriately under the Trade Marks Act, whether it was deceptively similar to the Yalumba Trademark, and whether Pernod Ricard used the term “in good faith to indicate the kind, quality, intended purpose, geographical origin or some other characteristic”.

She concluded: “The first of those questions should be answered yes. The second should be answered no. It follows that Yalumba’s application must be dismissed. Had it been necessary to answer the third question, I would have determined that issue against Pernod Ricard.”

The judgement also sets out how the judgment sets out the premise behind Pernod Ricard devising the Barossa Signature range.

“During a lunch break in the meeting, Pernod Ricard’s chief executive officer, Mr Jean-Christophe Coutures, conceived of a project to introduce additional products into the Reserve range, to be comprised of red wines sourced only from the Barossa Valley and to be sold in a higher price bracket than other wines within the Reserve range,’’ the judgment states.

“He coined the name Signature to define the project. In his affidavit evidence, Mr Coutures claims that he used the word Signature in the sense that the new products would be identifiable as ‘quintessential Barossa red wine and that of Jacob’s Creek’s renowned or Signature region, the home of the brand, the Barossa’.’’

Robert Hill-Smith, chairman of Yalumba, told Business Insider he was “naturally disappointed” by the outcome and would be “reading the judgement and considering our position… over a glass or two”.

“We have worked long and hard to build the reputation of our fine wine,” he said. “Whilst the law is one aspect of this saga we value many other aspects of our Australian wine growing culture and its fraternity. We shall be careful to embrace those values forever and as a family who has been here at Yalumba since 1849, we are like the magnificent elephant and have long memories."