Ethical Coffee Company sue Nespresso

The market for single-serve coffee is set for another shot in the arm after the Ethical Coffee Company (ECC) began proceedings in Parisian court to sue Nespresso for $170 million, claiming patent infringements and other damages.

The patent infringements relate to Nespresso introducing a ‘harpoon mechanism’ to their popular range of domestic coffee machines back in 2010, a move that stopped ECC’s third-party capsules from working properly. It is claimed that this is in violation of a European Patent that is held by ECC.

Many within the industry will surely be keeping a keen eye on this case.

“Today, Ethical Coffee Company has implemented technical solutions to both maintain a gustatory advantage, as well as full compatibility of capsules with all Nespresso machines.

“Ethical Coffee Company demands that Nestle Group immediately stops this illegal usage and pay the necessary compensation,” a statement read.

It is believed that ECC will attempt to take similar steps in other countries, if similar violations are found. They also planned further action.

At the moment there are around 50 rival manufacturers of compatible coffee capsules and it is worth noting that in Europe at least, Nespresso has made steps to be more competitor friendly and open-source in recent years.

However ECC believe that their products are better tasting than their Nestle-made counterparts, but that they are also superior because their capsules are biodegradable. And they are keen to stress the latter point:

“Nestle/Nespresso still manufacture aluminium capsules. It is known that aluminium is a polluting material, and that its recycling, in the form of small closed capsules…will never really work,” ECC said in a pre-prepared statement.

Nestle fired back, with Diane Duperret, the company’s corporate PR director, telling the Beverage Daily website that “Nespresso is confident that it does not infringe the patent in question and will continue to oppose the patent at the European Patent Office and defend ourselves before the French Court.”

And because every good story about a prominent legal battle needs a twist: the Ethical Coffee Company is led by Jean Paul Gaillard, who was Nespresso’s Chief Executive Officer between 1988 and 1997.

photo: Martin (Flickr/Creative Commons)