The IP High Court has ruled that the grape brands "SWEET SAPPHIRE" and "BLACK SAPPHIRE," which are famous for their high sugar content and long shape, are valid trademarks of International Fruit Genetics LLC ("IFG"), and cannot be seen as general breed names for these grapes.

In February 2019, IFG, a U.S.-based fruit-breeding company, filed trademark applications for "SWEET SAPPHIRE" and "BLACK SAPPHIRE" for "Fresh Grapes" and other goods in Class 31. However, the Korean Intellectual Property Office (KIPO) and the Intellectual Property Trial and Appeal Board (IPTAB) both rejected the applications under Article 33(1)7 of the Trademark Act, ruling that the applied-for trademarks were generally recognized by consumers to refer to grape varieties, not particular source identifiers, and that allowing a single entity to monopolize the trademark for its own commercial use was against public interest. IFG appealed to the IP High Court (formerly the Patent Court), which held there was insufficient evidence that the trademark applied for by IFG was in fact used and recognized as a variety of grapes, and revoked the IPTAB decision. KIPO appealed further to the Supreme Court, but the Supreme Court dismissed the appeal without any substantive review, affirming the IP High Court decision. 

[IFG's Sweet Sapphire™ Grapes]

The key issue in this case was whether IFG could prove that the cultivar name of the grape in question was "IFG Six," and that the applied-for marks were source identifiers for IFG's products. Based on advice from Kim & Chang, IFG was able to present various evidentiary materials showing they distinguished between the patented variety name IFG Six and the trademark "Sweet Sapphire" used to refer to the variety, which the IP High Court then cited to reach a judgment in favor of IFG. 

In detail, the IP High Court reasoned that the applied-for marks were not generally recognized to refer to "fresh grapes (fresh fruit)" in light of the following: (i) the materials submitted by IFG, such as US registrations, AU Plant Breeders Rights, screenshot images of the IFG website, etc., clearly confirmed that IFG used IFG Six as a patented table grape variety name and "Sweet Sapphire" as a trademark for this specific variety; (ii) the IFG Six grape variety has been imported into Korea since around 2018, and "SWEET SAPPHIRE" has been indicated as a trademark on the packaging during that time, as well as declared to the Korea Seed and Variety Service as a trade name for the IFG Six variety; and (iii) KIPO's evidence only showed a few cases where consumers mistakenly used "Sweet Sapphire," "Black Sapphire," or "Moon Drops" as variety names for IFG Six. 

IFG sells its grape products around the world, and there is high demand for the distinctive and delicious table grape varieties they develop. Because IFG did not have plant variety rights in Korea giving them direct protection over these grape varieties, this case was important to providing IFG with means to effectively protect its IP and trademark rights in Korea. 

As of August 11, 2023, IFG has merged with SNFL Group (Special New Fruit Licensing) to create the world's largest premium fruit-breeding company BLOOM FRESH International.