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 2025

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

Licensing chief Patrik Hammarén also reveals that the company will rename its IPR business to better reflect its role in defining standards
The acquisition of Pecher & Partners follows the firm’s earlier expansion into litigation to create a ‘one-stop shop’
News of Via Licensing Alliance launching its first semiconductor patent pool and INTA electing a new president were also among the top talking points
Submit your nominations to this year's WIBL Americas Awards by January 23
The 2026 Life Sciences EMEA Awards is now open for entries. We are looking forward to reviewing and celebrating the industry's most impressive achievements and landmarks from the past year.
The tie-up between Perkins Coie and Ashurst may generate some striking numbers, but independent IP firms need not worry yet, according to practitioners
Perkins Coie’s US patent prosecution strength could provide Ashurst with an opportunity to enter an untapped market in Australia, but it may not be easy
Mitesh Patel at Reed Smith outlines why the US Copyright Office and courts have so far dismissed AI authorship and how inventors can protect AI-generated works
Xia Zheng, founder of AFD China, discusses balancing legal work with BD, new approaches to complex challenges, and the dangers of ‘over-optimism’
A dispute involving semiconductor technology and a partner's move from Hoffman Eitle to Hoyng Rokh Monegier were also among the top talking points
Gift this article