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

Sources say the judge could return to a disputes or mediation-focussed role, though others have questioned whether the Texas court will remain a litigation hotspot in his absence
Sheppard, which has hired 14 IP partners in the last 12 months, has cited client demand for expert counsel in SEP, ITC, and district court disputes
Tingxi Huo joins our ‘Five minutes with’ series to discuss boosting the value of clients’ IP and the importance of reflection
Hefty legal teams assembled for a three-day hearing in what was the court’s first foray into SEPs since Unwired Planet v Huawei
IP firm's new base will be located inside the tallest office space in the UK's ‘second city’
Practitioners at four firms across Asia and Europe share the do’s and don’ts of mindful networking ahead of the INTA Annual Meeting
Brand Action explains why the IP community can be a force for good in the world as thousands of professionals prepare to head to London for INTA’s Annual Meeting
The firm, which has also hired a senior trademark leader to lead operations in the region, believes greater China to be one of the most important IP jurisdictions
Attorneys at Gibson Dunn share why plaintiffs’ growing reliance on DMCA anti-circumvention claims in AI scraping cases exposes a critical vulnerability
Tom Carver, who spent the last 18 months sailing the Mediterranean, tells Managing IP why he’s ready to return to land
Gift this article