Conterfeit chocolate-scandal in our neighbourhood

Italian chocolate maker Ferrero has lost a long-running trademark battle over its top-selling praline in Ukraine in a case that was closely watched for its implications for foreign investments in the country – Reuters published.

The 6 billion euro $8.08 billion (5.05 billion pounds) confectionery group said on Wednesday a top Ukraine court had upheld a previous ruling cancelling the trademark of its round Raffaello chocolate in the country.

The court decision opens the way for the marketing of a rival praline launched in the country by a former Russian importer of Ferrero products.

“Today's negative outcome of the case is only going to encourage third parties to take advantage of the hard-earned reputation and know-how of foreign investors in Ukraine,” Ferrero said in a statement.

The maker of Nutella chocolate spread and Kinder chocolate eggs has won hundreds of counterfeit lawsuits, including some in neighbouring Russia which is the No. 1 market for Ferrero's chocolate truffles.

The hearing on Wednesday was attended by representatives from the embassies of the United States, Italy and the European Union, who have closely monitored the case.

“The case is very important for foreign investors because the court system in Ukraine is one of the key challenges for the business community in the country,” Anna Derevyanko, executive director of the European Business Association (EBA), which represents more than 750 businesses in Ukraine, told Reuters.

“Unless there is an opportunity to have a rule of law (in Ukraine) there will be no positive signal for the business community,” she said.

Ferrero said it will take all measures necessary to protect its business and investments in the ex-Soviet republic.