Core Viewpoint - The recent legal dispute between two major players in the dairy industry, Yili and Mengniu, has concluded with a court ruling against Mengniu for unfair competition related to packaging similarities [1][4]. Group 1: Legal Dispute Details - The Jiangsu Provincial High Court upheld the lower court's decision, ordering Mengniu to cease its unfair competition practices and to compensate Yili 5 million yuan for economic losses and reasonable expenses [1][4]. - The dispute centers around the packaging design of Yili's "Jindian" pure milk, which underwent a significant upgrade in 2020, establishing a distinctive visual style that includes a white base with dark green borders and illustrations of pastoral elements [3][4]. - Yili accused Mengniu of substantial imitation with its "Selected Pasture" pure milk packaging launched in late 2023, claiming it could confuse consumers due to the high similarity in design [3][4]. Group 2: Court Findings - The court rejected Mengniu's defense arguments, stating that while individual elements may be common in the industry, the unique combination of these elements in Yili's packaging is legally protected [4]. - The court noted that Mengniu's failure to prominently display its well-known "Mengniu" trademark on the packaging further contributed to potential consumer confusion [4]. - Evidence of actual consumer confusion was presented, including erroneous reviews on e-commerce platforms and market survey reports, leading to the court's conclusion of unfair competition [4]. Group 3: Financial Implications and Market Context - The court's ruling included a compensation amount of 5 million yuan, which, while not financially devastating for either company, sends a strong message about the importance of brand integrity and innovation in market competition [5]. - Yili's "Jindian" pure milk reported total sales of 6.458 billion yuan from 2021 to mid-2024, with a market share of 11.33% from May 2023 to May 2024, while Mengniu's "Selected Pasture" had a mere 0.13% market share during the same period [5]. - In the first half of 2025, Yili achieved revenue of 61.777 billion yuan, a year-on-year increase of 3.49%, while Mengniu's revenue was 41.567 billion yuan, reflecting a decline of 6.9% [5].