Groupe LFE (SA) (Pty) Limited v Swartland Winery Limited and Another

Swartland Winery Ltd, a long‑established wine producer, owned a registered trade mark for the word mark “Swartland” in class 33 for wines, registered with effect from 13 December 1994. The Winery had used the mark for decades and it had become closely associated with its wines. Groupe LFE (SA) (Pty) Ltd produced wines labelled prominently with the word “Swartland”, exporting them mainly to the Netherlands. LFE claimed it used the term merely as a geographical indication of origin, not as a trade mark. The Winery brought infringement proceedings under the Trade Marks Act 194 of 1993. LFE counter‑applied for expungement of the mark, arguing that “Swartland” was a geographical indication incapable of registration and that the mark was contrary to the Liquor Products Act.

The appeal was dismissed with costs, including the costs of two counsel. The finding of trade mark infringement and the dismissal of the counter‑application for expungement were confirmed.

The case clarifies the distinction between trade mark use and bona fide use of geographical indications in South African trade mark law. It confirms that prominent use of a geographical name can amount to infringing trade mark use, and that geographically descriptive marks may be protected if they have acquired distinctiveness. It also explains the interaction between the Trade Marks Act and the Liquor Products Act regarding wine of origin designations.