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

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

Examiner statistics could help patent prosecution practitioners tailor strategies, turning an area of high variability into a potential competitive advantage
The England and Wales High Court’s ruling in Accord v Novartis may not rewrite the law on plausibility, but it does signal a pragmatic approach that could provide greater certainty for life sciences innovators
Firms with established sports relationships and specialised expertise are well positioned to capture the market’s expanded pool of IP work
Gunjan Paharia discusses developing RIA, an AI platform built to draw on decades of institutional knowledge, support junior lawyers, and reshape how legal teams work
A strong Canadian business helped lift profits, but the IP service group's latest results underline the pressure facing its operations in Australia, New Zealand and parts of Asia
Wins in court have been key to the six-year-old firm’s growth, as one of its founders explains
The firm’s co-CEO discusses patent litigation, collaboration with overseas colleagues and the next generation of leaders
Two recent decisions demonstrate the courts’ creativity in cutting-edge IP disputes that tested their jurisdictional powers
Aditi Verma Thakur, managing partner at Aishani Partners, discusses 5 am wake-ups, working with high-performing professionals and staying calm under pressure
After more than three decades at Wilson Sonsini, Ian Edvalson explains why he moved to expand his life sciences transactional practice
Gift this article