Eggshells and private labels

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Cookies Settings

Eggshells and private labels

Brand owners and retailers have developed a unique rapport when it comes to private labels.

“It’s one of the most interesting relationships I’ve ever observed,” said Johnson & Johnson’s Jake D. Feldman, who moderated a panel on the topic yesterday. “Not only are they our customers, but they’re also our competitors.”

In what Feldman described as an “eggshell” relationship, the parties occasionally clash. Retailers must ensure their store brands don’t too closely resemble national brands. Often, they occupy the same shelves in stores. 

Andrew M. Solomon, associate general counsel of manufacturer Perrigo, said the company conducts extensive research to avoid disputes or, when responding to claims of infringement, defend its position. Perrigo develops, manufactures and distributes over-the-counter drugs and infant formula to stores like Target and Walmart. “We don’t want people buying Target store brands thinking they’re buying Johnson & Johnson products,” he told the crowd. 

“That’s interesting,” Feldman said, eliciting laughter from the audience. “I wonder if many brand owners think the same way.”


The panel also looked at McNeil Nutritionals v. Heartland Sweeteners, a recent case in which McNeil alleged Heartland’s private-label artificial sweetener’s packaging was too similar to Splenda’s. The Third Circuit ruled that while private label manufacturers could develop packaging somewhat similar to those of branded products, they could not produce trade dress that is essentially a duplicate but for a “tiny differentiating label.”

“This case affirms trade dress packaging as protectable,” said James D. Weinberger of Fross, Zelnick, Lehrman & Zissu. “It gives brand owners real direction about what kinds of things you can use on products and things you can’t.”

Still, Weinberger criticized the “broad general statements” the Third Circuit made regarding clarity on product source. “If I were a brand owner, I would not be deterred to pursue a case,” he said.

Feldman also cautioned private-label manufacturers and retailers from taking too much comfort in the decision. “I don’t think it’s completely clear,” he told attendees. “I don’t think this case is as helpful as a definitive case on private labels.”     

more from across site and SHARED ros bottom lb

More from across our site

Ana Castedo, who brings a strong focus on patent litigation, is due to help build the firm’s IP litigation offering in Madrid
A former scientist, inventor and now a patent practice leader, Hanane Fathi Roswall shares her views on leadership, diversity, the rise of AI and the promise of the UPC
With rumours that a third IP judge could yet join the England and Wales High Court, we run through some potential names while practitioners outline the importance of a well-stocked bench
Speaking to Managing IP at Via’s Bridge Summit in San Francisco, president Kevin Mack explains why the AI infrastructure boom is forcing a rethink of traditional SEP licensing and FRAND models
Law firms continue to sell clients on international footprints, but sprawling office networks count for little if financial structures discourage internal collaboration
Via's Qi pool expands its footprint in Asia with the addition of Chinese smartphone giant and Japanese auto company
Matthew Cassie becomes the tenth partner to join the firm’s London outpost, and the second since it opened its new headquarters in May this year
A&O Shearman and Fish & Richardson invested in German talent, meanwhile, major firms have assembled for an on the merits case pitting KeeeX against OpenAI and Adobe
Julia Bishop is director of IP at Twilio in the US
Hellberg is an IP director at Essity in Sweden
Gift this article