Australian company Bega Cheese has won the peanut butter jar packaging dispute with US-based food company Kraft.

Kraft filed a case against Bega in an Australian Federal Court, claiming that it owns exclusive rights to the peanut butter product packaging.

The company claimed exclusive rights to the “jar with a yellow lid and label with a blue or red peanut device”. It sought to prevent Bega Cheese from using this packaging trade dress.

“The ruling will enable the Australian company to continue to use the current packaging of its Smooth and Crunchy Peanut Butter products.”

The Federal Court of Australia has ruled in favour of Bega Cheese, saying that the company has the right to continue to use the trade dress associated with the peanut butter products, which it acquired in 2017.

The ruling will enable the Australian company to continue to use the current packaging of its Smooth and Crunchy Peanut Butter products.

The judgement determined that Kraft Heinz’s use of the trade dress is misleading or deceptive under Australian law.

Bega Cheese noted that it will review the Federal Court judgment and make any necessary further announcement following this review.

In January 2017, Mondelez International entered an agreement with Bega Cheese to sell most of its grocery business in Australia and New Zealand for A$460m ($347m).

According to the agreement, Bega Cheese acquired a number of well-established brands from Mondelez. It included peanut butter and Australia’s Vegemite brand.